Indonesia PROBIOTIC DRINKS MARKET -2024-2027

Indonesia Probiotic Drinks

The Indonesia Probiotic Drinks market recorded a value of US$ 643.88 million in 2023 and is expected to reach a value of US$ 925.44 million in 2027, growing at a CAGR of 9.66% during the forecast period (2024-2027).

The Indonesian probiotic drinks market has seen significant growth in recent years, largely driven by rising consumer interest in health and wellness, particularly in digestive health. Probiotic beverages, known for their gut health benefits, have become increasingly popular as Indonesian consumers adopt healthier lifestyles. In particular, the growing awareness of digestive issues and the benefits of probiotics have led many to incorporate these drinks into their daily routines.

Urbanization is the primary driver behind this demand, as a growing middle class seeks more convenient and functional food options. Consumers, particularly younger generations such as millennials and Gen Z, are shifting towards products that not only offer taste but also health benefits. This demographic, known for its openness to new trends, makes up a large portion of the probiotic drinks market, influencing both consumption patterns and product development. The increasing popularity of ready-to-drink formats has further accelerated the market growth as consumers seek easy, on-the-go solutions that align with their busy lifestyles.

Modern retail channels, including supermarkets, convenience stores, and e-commerce platforms, are helping to expand the availability of probiotic drinks, allowing them to reach a broader consumer base across the country. This expansion is also influenced by the growing interest in plant-based and functional beverages, with consumers turning to alternatives such as plant-based probiotic drinks for digestive health. Companies are adapting by diversifying their product offerings to meet these evolving consumer preferences.

Market Drivers

Shift Towards Healthier Beverage Alternatives Over Sugary Drinks

The shift towards healthier beverage alternatives over sugary drinks is a significant driver for the growth of the Indonesian probiotic drinks market. In 2023, as consumers became increasingly health-conscious, there was a marked decline in the consumption of sugary sodas and energy drinks, while probiotic beverages gained traction as a healthier option. This trend is largely influenced by rising awareness of the negative health impacts of sugary drinks, such as obesity, diabetes, and tooth decay, which has led to greater demand for functional beverages that provide health benefits without excessive sugar content.

Probiotic drinks, known for their gut health benefits, are positioned as a healthier alternative to traditional sugary beverages. According to the Indonesian Ministry of Health, about 35% of Indonesian adults are concerned about their sugar intake, with a notable rise in health-focused consumer behavior, especially post-pandemic. This awareness has led many to seek out probiotic drinks that not only promote digestive health but also offer other benefits, such as immune system support and improved mental well-being.

The demand for probiotic beverages is also boosted by the increasing popularity of functional foods and beverages. In 2023, the functional beverages sector in Indonesia grew by 8%, with probiotic drinks accounting for a significant portion of this growth. The health benefits associated with probiotics are well recognized, with a large percentage of consumers turning to them as part of their daily routine for better digestion, immunity, and overall wellness.

Furthermore, as people become more aware of the adverse effects of excessive sugar consumption, 55% of urban consumers indicated a preference for beverages with reduced sugar content in 2023, further accelerating the demand for probiotic options. The shift away from sugary drinks is expected to continue, driven by increasing consumer education and stricter government regulations on sugar content in packaged drinks. This will further solidify probiotic beverages as a staple in the healthy beverage market in Indonesia in the coming years.

Increasing Demand for Functional and Convenience Beverages

The increasing demand for functional and convenience beverages is one of the key drivers behind the growth of the Indonesian probiotic drinks market. In 2023, there was a significant shift in consumer preferences toward beverages that offer added health benefits beyond basic hydration. This trend reflects a broader move towards functional foods and beverages, with 40% of Indonesian consumers indicating that they are actively seeking products that support their health and wellness. Probiotic drinks, known for their positive effects on gut health and immune function, are ideally positioned to meet these growing demands.

Probiotic beverages are particularly attractive to consumers seeking convenient health solutions. With urbanization and busy lifestyles on the rise, 50% of Indonesian consumers prefer ready-to-drink beverages that are not only nutritious but also quick and easy to consume. This preference for convenience has fueled the popularity of bottled probiotic drinks, which can be easily incorporated into daily routines. Additionally, the packaging innovation in terms of portability, such as single-serve bottles, further supports the demand for these drinks.

Furthermore, the Indonesian market is seeing a rise in interest in beverages that combine functionality with natural ingredients. Probiotic drinks, which are perceived as a healthier, more natural alternative to sugary sodas and energy drinks, are gaining traction. According to industry reports, the functional beverage market in Indonesia grew by 7-8% annually, with probiotic drinks accounting for a substantial portion of this increase. As consumers continue to prioritize functional beverages that support their digestive health, immunity, and overall well-being, the demand for probiotic drinks is expected to continue its upward trajectory in the coming years.

Market Restraints

High Price Sensitivity Among Rural Consumers

High price sensitivity among rural consumers is a key factor restraining the growth of Indonesia’s probiotic drinks market. While the demand for functional beverages is rising in urban areas, rural consumers face financial limitations that hinder their ability to consistently purchase premium-priced probiotic drinks. In 2023, it was estimated that about 60% of rural Indonesian consumers prioritize affordability over health benefits when choosing beverages, limiting the penetration of higher-priced functional drinks in these regions.

Probiotic drinks are often positioned as premium products due to the added costs involved in their production, including fermentation processes and the cold chain logistics necessary for maintaining product quality. The average price of a single bottle of probiotic drink was around USD 0.65 to USD 1.00 in 2023, which is significantly higher compared to traditional soft drinks priced at approximately USD 0.30 to USD 0.45. This price gap makes probiotic drinks less accessible to price-sensitive consumers in rural areas.

Income disparities also play a major role in limiting access to probiotic beverages. In 2023, the average household income in rural Indonesia was estimated to be 40% lower than in urban areas, further reinforcing the challenge of affording health-focused beverages. As a result, rural consumers are less likely to invest in products perceived as non-essential, even if they offer health benefits such as improved digestion and immunity.

To mitigate these barriers, some brands have started introducing smaller, more affordable packaging and promotional offers. However, the overall price remains a significant challenge for the widespread adoption of probiotic drinks in rural Indonesia.

Market Segment Analysis

The Indonesia probiotic drinks market is segmented based on type, ingredient, application, age, and distribution channel.

Consumer Preference for Digestive Health and Convenience Drives the Segment Growth

Drinkable yogurt holds a significant share in the Indonesian probiotic drinks market. The portability and ready-to-consume format of drinkable yogurt makes it a preferred choice in the fast-paced urban lifestyles of Indonesia. This convenience is a key driver that differentiates it from other probiotic beverages in the market. With growing awareness about the benefits of probiotics, the demand for drinkable yogurt has surged in the market. Its ability to promote digestive health, boost immunity, and enhance gut microbiota resonates with health-conscious consumers, solidifying its dominance.

The market for drinkable yogurt benefits from campaigns targeting younger demographics. Companies are leveraging social media, influencer partnerships, and sports-related endorsements to make it a trendy, health-oriented beverage. The market for drinkable yogurt is thriving due to the availability of diverse flavors, catering to varying consumer preferences. From tropical fruit flavors like mango and pineapple to innovative blends, brands are appealing to local palates.

Sustainability Analysis

Indonesian consumers are increasingly prioritizing sustainable products, driven by heightened environmental awareness. Probiotic drink manufacturers in the market are aligning with this trend by offering eco-friendly packaging and responsibly sourced ingredients. The market is witnessing a shift from single-use plastics to biodegradable, recyclable, or reusable packaging materials. Companies are leveraging innovations like plant-based bottles or paper-based cartons to reduce waste and cater to eco-conscious consumers.

Probiotic drinks in Indonesia increasingly rely on sustainably sourced ingredients such as organic milk and fruits. This trend not only supports environmental goals but also appeals to health-conscious and ethical consumers in the market. Several manufacturers in the market are investing in renewable energy technologies for their production facilities. Solar, wind, and biomass energy are being utilized to reduce the carbon footprint of probiotic drink production.

Unmet Needs

The Indonesian probiotic drinks market still faces several unmet needs despite the growing demand for functional beverages. In 2023, it became evident that there are significant gaps in product offerings and consumer expectations, which are limiting the market's growth potential. The primary unmet need is the demand for more affordable and accessible probiotic drink options. Although consumers in urban areas are increasingly aware of the benefits of probiotics, price sensitivity remains a barrier—especially in rural regions where the average household income is lower. In 2023, it was reported that about 60% of rural consumers still perceive probiotic drinks as a luxury item due to their relatively high price point, which averages around USD 0.65 to USD 1.00 per bottle.

Another key unmet need is for more convenient and long-lasting probiotic drink formats. Many consumers find it difficult to purchase probiotic drinks regularly due to their limited shelf life and storage requirements. The average shelf life of these products ranges from just 2 to 3 weeks, which makes it challenging for both manufacturers and consumers to ensure product quality and availability over extended periods. This short shelf life, coupled with the absence of adequate cold chain infrastructure in some areas, results in a substantial barrier to the widespread distribution of probiotic drinks, especially in remote or rural regions.

Moreover, there is a need for more innovative product formulations and flavor varieties to cater to Indonesian consumers' diverse tastes. In 2023, less than 30% of probiotic drink offerings in Indonesia were flavored or supplemented with additional health benefits, such as natural ingredients or added vitamins and minerals.

Competitive Landscape

The major players in the market include Greenfields Dairy Group, PT Cisarua Mountain Dairy (Cimory), Heal Probiotics, Covita Sparkling Probiotic, PT MILKUP INDONESIA GROUP, PT Bukit Baros Cempaka, and Kombuchi Brewing Co.

By Type
• Drinkable Yogurt
• Kombucha
• Kefir
• Tepache
• Others

By Ingredient
• Lactobacillus
• Streptococcus
• Bifidobacterium
• Others

By Application
• Gastrointestinal Health

o Gut Microbiota/Microbiome Balance

o Digestion

o Constipation

o Bloating

o Diarrhea

o Leaky Gut

o Inflammation

o Immune System

o Others

 Gluten sensitivity

 Abdominal Pain

 GERD/Helicobacter pylori

 Antibiotic-Associated Diarrhea/Post-Antibiotic Treatment

 Gut Flora/Gut Microbiome Restoration

 Others
• Vaginal Health
• Urinary Tract Health

o Kidney Stones

o UTIs

o Others
• Oral Health
• Anti/Healthy Ageing
• Allergies/Asthma
• Bone & Joint Health

o Osteoarthritis

o Osteoporosis/Low Mineral Bone Density

o Inflammation
• Brain/Mental Health

o Sleep

o Cognition

o Mood

o Depression

o Focus
• Cardiovascular Health
• Circulation
• Energy/Fatigue Reduction
• Metabolic Syndrome/Blood Glucose
• Liver Health
• Energy
• Immunity/Respiratory Infections
• Nutrient Absorption
• Skin-Hair-Nails

o Atopic Dermatitis & Eczema

o Acne

o Rosacea

o Hair Growth/Hair Loss

o Skin Microbiome

o Others
• Sports
• Women’s Health

o Fertility

o Menopause

o Pregnancy

o Pcos

o Vaginal Health & Health Vaginal Microbiome

o Vaginal Infections (Bv/Vvc)

o Pregnancy Outcomes

o Others
• Men’s Health & Men's Fertility
• Weight Management
• Pediatric Health

o Colic

o Constipation

o Regurgitation

o Atopic Dermatitis

o Others
• Others

By Age
• Infant
• Children
• Adults
• Seniors

By Distribution Channels
• Supermarkets/Hypermarkets
• Pharmacies and Drug Stores
• Convenience Stores
• Online Retailers
• Other Distribution Channels

Key Developments
• In May 2024, Mengniu, the Chinese dairy giant, introduced YoyiC Plus, a new isotonic water product, to the Southeast Asian market. The launch expands the popular YoyiC brand into the functional beverage segment, with the product now available in Indonesia, Malaysia, and Vietnam. YoyiC Plus is a shelf-stable drink that combines hydration with health benefits, featuring probiotics (bifidobacterium lactis), calcium, vitamin C, and essential minerals like potassium, magnesium, and chloride.
• On October 1, 2022, Yakult announced the launch of Yakult Light, a vitamin-enriched, low-sugar variant, aimed at catering to health-conscious consumers in Indonesia. This new product is manufactured at the Yakult factory in Mojokerto, East Java, ensuring high-quality production standards. Priced at Rp 13,000 (US$0.85) for a five-pack in Java and Rp 13,500 outside Java, Yakult Light offers an affordable option for those seeking a healthier alternative.

Why Purchase the Report?
• To visualize the Indonesia probiotic drinks market segmentation based on type, ingredient, application, age, 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 Indonesia probiotic drinks 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 probiotic drinks report would provide approximately 36 tables, 56 figures and 210 pages.

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