Indonesia’s soups market to grow at 6.9% CAGR over next five years, forecasts GlobalData

The Indonesia’s soups market is projected to grow at a compound annual growth rate (CAGR) of 6.9% from IDR108.5bn (US$7.7m) in 2020 to IDR151.3bn (US$10.2mn) in 2025, owing to the rising demand of instant and shelf-stable soups products among busier consumers, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Indonesia Soups Market Assessment and Forecasts to 2025’, reveals that the market is majorly driven by growth in the ambient soup category, which is forecast to register the fastest value CAGR of 10.4% during 2020-2025. The category will be followed by dried soup (mixes) category, which is expected to record a CAGR of 6.7% during the same period.

Anjali Singh, Consumer Analyst at GlobalData, says: “Indonesian consumers seeking instant soup products due to their busy lives and growing urbanization in the country will drive the growth of the soups market. Shelf-stable ambient soups are popular among consumers owing to their convenience and less/no preparation time.”

‘Hypermarkets & supermarkets’ was the leading distribution channel in the Indonesian soups market in 2020, followed by convenience stores and e-retailers.

The per capita expenditure of soups in Indonesia, which increased from US$0.02 in 2015 to US$0.03 in 2020, is expected to reach US$0.04 in 2025. However, it is way lower than the per capita expenditure on soups, both at the global (US$2.8) and the APAC (US$0.9) level.

​So Good, Unilever and Daesang were the top three companies in the Indonesian soups market by value in 2020 while Bakso Kua and Royco were the leading brands.

Ms. Singh concludes: “Convenience and traditional & local flavors will remain key motivators for Indonesians. Though consumers seek novelty, their affinity for authentic flavors will continue to drive the demand. Manufactures are offering products with halal certification to entice large base of Muslim consumers and focus on products with organic and vegan options to diversify product portfolio.”

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