Indonesia Animal Supplement Market - 2024-2027

Indonesia Animal Supplement

Indonesia Animal Supplement Market reached US$ 128.41 million in 2023 and is expected to reach US$ 177.85 million by 2027, growing with a CAGR of 8.65% during the forecast period 2024-2027.

As consumers and farmers become more aware of the environmental and health impacts of chemical-based products, there is a growing trend in the market toward natural, organic, and plant-based animal supplements. These products are gaining popularity due to their perceived safety, sustainability, and alignment with eco-friendly farming practices. This shift is driven by both consumer demand for cleaner food sources and a broader movement toward reducing the use of synthetic chemicals in agriculture.

The demand for performance-enhancing supplements is also increasing in the market, particularly in the livestock and poultry sectors. These supplements are designed to improve growth rates, reproduction, milk production, and overall health. As farmers in Indonesia look for ways to boost the productivity of their animals, the market for performance-enhancing supplements is expanding. These products are seen as a way to maximize profitability while maintaining animal welfare standards.

With limited local players, global companies are tapping into the growing demand by expanding their presence and introducing products in the region. For instance, on March 23, 2022, Chr. Hansen introduced GalliPro and GalliPro Tech, probiotics designed to optimize poultry gastrointestinal health, in Indonesia. The product launch, held in collaboration with Chr. Hansen's distributor, Cita Indonesia, took place in Jakarta and Surabaya.

Market Drivers

Rising Incidences of Animal Diseases

The rising incidences of animal diseases in Indonesia are significantly driving the growth of the animal supplement market. With the increasing prevalence of zoonotic diseases and livestock infections, farmers and pet owners are seeking preventive measures to ensure the health of their animals. Supplements enriched with vitamins and minerals are gaining popularity as they boost immunity, enhance disease resistance, and promote overall well-being.

Indonesia is battling severe outbreaks of Foot-and-Mouth Disease (FMD) and Lumpy Skin Disease (LSD), with over 600,000 animals infected by FMD, leading to 11,000 deaths and the forced slaughter of 15,000 animals. Previously FMD-free for over 30 years, the disease has now spread to 27 provinces since its resurgence in September 2022. Meanwhile, LSD has infected 22,000 animals across 13 provinces. The economic impact of FMD alone could reach 1 trillion Rupiah (USD 6.6 billion) annually, with devastating consequences for smallholder farmers.

These outbreaks highlight the urgent need for preventive and immune-boosting solutions to safeguard livestock health and productivity. Supplements such as vitamins, minerals, probiotics, and herbal additives are increasingly being used to strengthen immunity, enhance recovery, and mitigate the effects of diseases. Smallholder farmers, who are most affected by such outbreaks, rely on supplements to minimize livestock losses and maintain their livelihoods.

Increasing Pet Ownership and Humanization of Pets

The increasing pet ownership and growing humanization of pets are key drivers of the Indonesian animal supplement market. As more Indonesians, particularly millennials, adopt pets and consider them part of the family, they are more likely to invest in products that enhance their pets’ health and well-being. This trend aligns with the rising disposable income in urban areas, allowing pet owners to purchase premium products such as supplements for preventive care, nutritional enhancement, and disease management.

According to the Indonesian Pet Food Association (AMHKI), the country's pet food sector is projected to grow by 20% annually, with Java accounting for 60% of the market, given its concentration in major cities like Jakarta. This integration of functional nutrition into regular diets is further driving market growth. Rising pet ownership and urbanization are increasing awareness of pet health and nutrition, boosting demand for premium supplements. This trend reflects growing disposable incomes and a shift toward better pet care standards.

Market Restraints

Complex Regulatory Frameworks and Delays in Approval Processes

The regulatory approval process for animal supplements in Indonesia often involves lengthy procedures that require manufacturers to submit detailed documentation, clinical trial results, and product safety assessments. This extended time-to-market means that new products or innovations take much longer to reach consumers, delaying the introduction of potentially cost-efficient animal supplements into the market. The time-consuming nature of these approvals can lead to missed market opportunities and slower adaptation to emerging industry trends.

Navigating through the regulatory maze in Indonesia requires significant financial resources. Companies often have to hire legal experts, consultants, and regulatory affairs specialists to ensure that their products comply with the country's requirements. These additional costs are passed down to the market, making the final products more expensive for consumers, particularly for small-scale farmers and rural businesses. As a result, high regulatory compliance costs limit access to quality animal supplements and restrict the market's growth potential.

Indonesia's complicated regulatory environment serves as a significant barrier to new entrants, especially international companies looking to expand their operations. The market can be especially challenging for startups and foreign manufacturers due to the need to navigate unfamiliar bureaucratic systems. These barriers deter foreign investment and limit the diversity of products available in the market, reducing competition and the introduction of innovative, high-quality animal supplements that could benefit the livestock and aquaculture industries.

Market Segment Analysis

The Indonesia animal supplement market is segmented based on animal type, ingredient, form and distribution channel.

High Demand for Supplements in Livestock Animal Husbandry

Livestock plays a crucial role in the Indonesian animal supplement market, holding a significant share due to the country's large agricultural sector and growing demand for animal-based food products. With Indonesia being a key producer of poultry, beef, and dairy, maintaining livestock health and productivity is essential to meet rising consumer demand. Farmers increasingly rely on supplements to enhance feed efficiency, improve growth rates, and strengthen disease resistance, ensuring sustainable production.

In December 2023, ADM, a global leader in human and animal nutrition, agreed to acquire PT Trouw Nutrition Indonesia, a subsidiary of Nutreco. PT Trouw Nutrition is a prominent provider of functional and nutritional solutions for livestock farming in Indonesia. The acquisition strengthens ADM’s position in the rapidly growing Indonesian livestock nutrition market, aligning with its commitment to advancing sustainable farming practices and delivering innovative nutritional solutions.

Sustainability Analysis

Rising awareness about reducing the environmental impact of livestock farming is driving the adoption of supplements that improve feed efficiency and minimize waste. Innovations in natural and organic supplements cater to consumer preferences for sustainable and safe products. The government’s support for sustainable farming through initiatives and regulations further bolsters the market’s growth.

However, challenges such as deforestation, water scarcity, and greenhouse gas emissions from livestock farming highlight the need for more sustainable practices. Major players ' investments in research and development are advancing environmentally friendly supplement formulations. Additionally, the export demand for higher-quality, sustainably raised livestock products is encouraging adherence to international standards. With a shift towards precision farming and the integration of technology in supplement production, the market is poised for sustainable growth.

Unmet Needs

The primary unmet need in the market is the lack of affordable and accessible animal supplements for small-scale farmers. Smallholder farmers, particularly in rural areas, often struggle with the high cost of supplements. The market needs more cost-effective solutions that provide basic nutritional support and health benefits without burdening farmers financially. This is especially important for the large portion of Indonesia’s agricultural sector made up of small and medium-sized enterprises.

Another significant unmet need in the market is the lack of education and awareness surrounding the benefits of animal supplements. Many farmers, especially in rural regions, are either unaware of these products or lack the knowledge to use them effectively. The market requires more robust educational campaigns and outreach programs that can help farmers understand how supplements can improve livestock health, productivity, and disease prevention, thereby increasing adoption rates.

Competitive Landscape

The major global players in the Indonesia market include Kalbe Business Innovation Center Lt., Nutricell Indonesia, and PT. Nusa Pet Indo, etc.

By Animal Type
• Livestock Animals

o Cattle

o Poultry

o Swine

o Horses

o Others
• Companion Animals

o Dogs

o Cats

o Birds

o Other Small Mammals

By Ingredient
• Vitamins & Minerals
• Amino Acids
• Omega Fatty Acids
• Probiotics & Prebiotics
• Botanicals
• Others

By Form
• Powder
• Liquid
• Tablets/Capsules
• Injections

By Distribution Channel
• Online Retailers
• Specialty Pet Stores
• Veterinary Clinics
• Convenience Stores
• Supermarkets/Hypermarkets
• Pharmacies and Drug Stores
• Other Distribution Channels

Key Developments
• On October 15, 2024, De Heus, marked a significant milestone in its Indonesian operations by acquiring and launching its fifth production facility in Purwodadi, Central Java. This expansion highlights De Heus’ dedication to promoting sustainable livestock farming and supporting local communities. With a production capacity of 15,000 tons per month, the new factory bolsters the company’s overall growth and solidifies its position as a key player in Indonesia’s market.

Why Purchase the Report?
• To visualize the Indonesia animal supplement market segmentation based on animal type, ingredient, form, and distribution channel, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of the Indonesia animal supplement market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Indonesia animal supplement market report would provide approximately 21 tables, 31 figures and 210 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies