Indonesia PROBIOTIC FOOD MARKET DATAM - 2024-2027

Indonesia Probiotic Food

The Indonesian probiotic Food Market reached US$1080.64 million in 2023 and is expected to reach US$1477.15 million by 2027, growing at a CAGR of 8.29% during the forecast period 2024-2027.

Indonesia's probiotic food market is gaining momentum, driven by rising health consciousness, dietary changes, and government initiatives promoting nutrition. According to the World Food Programme, food insecurity remains a challenge, with fluctuations in food prices affecting affordability for many. However, the market for health-focused products, including probiotics, continues to grow as urbanization and middle-class expansion fuel demand.

In 2023, Indonesia faced over 5,000 natural disasters, leading to an increased focus on resilient food systems and nutritious products, which positively impacted sectors like probiotics. Additionally, the prevalence of malnutrition, with stunting affecting 21.6% of children under five in 2022, has amplified the need for functional foods that support gut health and immunity.

The Indonesian government and organizations like the FAO are actively collaborating to enhance food security and nutrition. Programs such as the Country Programming Framework emphasize innovation and global best practices, aligning with the growing adoption of probiotic foods to improve dietary health. These developments make Indonesia a promising market for probiotic foods, with increasing awareness of their health benefits and the potential to address nutritional gaps. To capitalize on this opportunity, companies must navigate affordability challenges while leveraging rising urban demand and government support for nutrition-focused initiatives.

Market Drivers

Expanding Middle-Class Population with Higher Disposable Incomes

Indonesia's expanding middle-class population, bolstered by rising disposable incomes, plays a pivotal role in driving the country's probiotic food market. As Southeast Asia's largest economy, Indonesia has experienced robust economic growth, maintaining an average annual GDP growth of around 5% over the past decade. This growth has elevated millions into the middle-income bracket, significantly influencing consumption patterns.

In 2023, Indonesia regained its status as an upper-middle-income country, reflecting increased private consumption fueled by higher earnings. The World Bank reports that the middle-class population accounts for a substantial portion of household consumption, with their spending contributing to over half of the national GDP. This demographic's growing preference for health and wellness products, including probiotic foods, aligns with their rising awareness of preventive healthcare.

The Ministry of National Development Planning highlighted that disposable income among middle-class households is projected to grow by 4.9% annually until 2025, enhancing purchasing power. This trend directly supports the probiotic food market, as consumers increasingly invest in functional foods to address gut health, immunity, and overall well-being.

Furthermore, the Indonesian government has emphasized health improvement in its development goals, reducing malnutrition and stunting rates from 37% in 2013 to 21.6% in 2022. With a growing focus on nutrition, probiotic foods are gaining traction as convenient and effective dietary solutions, especially among urbanized middle-class families. Overall, the expanding middle class in Indonesia, coupled with supportive economic and demographic trends, presents a lucrative opportunity for growth in the probiotic food market.

Strong Influence of Government Initiatives on Dietary Health and Malnutrition Reduction

Government initiatives to improve dietary health and reduce malnutrition have significantly driven the growth of Indonesia's probiotic food market. Indonesia, home to the fourth-largest population globally, has faced long-standing issues of undernutrition, particularly among children. The government's efforts to combat these challenges have underscored the importance of functional foods like probiotics in enhancing nutritional intake and overall health outcomes.

The National Medium-Term Development Plan (RPJMN) 2020-2024 highlighted stunting and malnutrition reduction as critical priorities. Through the National Strategy to Accelerate Stunting Reduction, Indonesia successfully lowered stunting rates from 30.8% in 2018 to 21.6% in 2022. Probiotic foods have gained recognition within these programs for their potential to support gut health, improve nutrient absorption, and enhance immunity, particularly among children and pregnant women.

Government-backed nutrition campaigns such as Isi Piringku (""My Plate"") have encouraged healthier eating habits, including the incorporation of nutrient-rich and functional foods. Probiotic products have aligned well with these initiatives, becoming increasingly accessible and appealing to health-conscious consumers. The Ministry of Health has also collaborated with local industries to promote fortified and functional foods as part of broader nutritional improvement goals.

Furthermore, Indonesia's food fortification programs and partnerships with international organizations, such as UNICEF and WHO, emphasize the critical role of gut health in addressing malnutrition. Probiotic foods, including yogurt and fortified drinks, are recommended to complement these efforts by providing essential nutrients and improving microbiome balance. With continued government commitment to reducing malnutrition and improving public health, the probiotic food market in Indonesia is poised for sustained growth.

Market Restraints

High Price Sensitivity among Rural and Low-Income Consumers

High price sensitivity among rural and low-income consumers is a significant restraint in the growth of the Indonesian probiotic food market. According to the World Bank, approximately 27% of Indonesians still live on less than $3.65 per day (2023), highlighting the economic challenges faced by a considerable portion of the population. Probiotic foods, which are often priced higher than regular food products due to specialized production processes and storage requirements, remain unaffordable for these segments.

The disparity between urban and rural income levels exacerbates the issue. While urban households benefit from higher disposable incomes, rural consumers, constituting around 43% of the population (BPS Indonesia, 2023), struggle to allocate funds for premium health products like probiotics. For instance, the average price of a 100g probiotic yogurt in Indonesia can range from IDR 10,000 to IDR 15,000, which may not fit the budget of rural families prioritizing staple foods.

Moreover, a report by UNICEF (2023) on nutrition in Indonesia indicates that rural areas are more affected by malnutrition and limited access to health-promoting foods. The combination of high prices and low awareness regarding the health benefits of probiotics limits penetration in these regions, restricting market growth.

Government subsidies for basic commodities often focus on staple foods, leaving functional and premium foods like probiotics out of reach for low-income groups. Although initiatives like the Village Fund Program aim to improve rural infrastructure and livelihoods, the impact of enabling access to health-oriented products remains minimal.

Market Segment Analysis

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

Growing Awareness of Health Benefits Associated With Probiotics Drive the Segment's Growth

The yogurt segment holds the largest share of the Indonesian probiotic food market. The growing awareness of health benefits associated with probiotics, particularly in supporting digestive health and boosting immunity, is leading to an increase in consumer demand for probiotic-rich foods, with yogurt being one of the most popular and accessible options. This trend is influencing market dynamics and shaping the future of the Indonesian probiotic food market.

Yogurt is widely consumed due to its versatility, ease of incorporation into daily diets, and familiar taste profile. As probiotic foods become more mainstream in Indonesia, yogurt remains a preferred choice among consumers, particularly for those looking for convenient, ready-to-eat options. This widespread consumption helps the yogurt segment maintain its leading position in the overall market.

The rise of innovative yogurt formulations also contributes to the growing share of the yogurt segment in the Indonesian probiotic food market. Manufacturers are continuously exploring new ways to enhance the nutritional profile of yogurt, such as adding plant-based ingredients, fortified vitamins, and additional probiotics to offer consumers more health benefits. This innovation in yogurt formulations is helping the market stay competitive, further solidifying yogurt's position as the leading probiotic food product in Indonesia.

Sustainability Analysis

The Indonesian probiotic food market is poised for significant growth, driven by increasing consumer awareness of health and wellness. This trend is boosting demand for probiotic-rich foods and also fostering sustainability in food production and consumption practices. The market is aligned with broader global movements towards healthier lifestyles, environmentally-friendly products, and the incorporation of functional ingredients into everyday diets. Several key factors contribute to the sustainability analysis of the market in Indonesia.

The primary driver of sustainability in the Indonesian probiotic food market is the growing shift towards natural, plant-based, and locally sourced ingredients. As consumers become more health-conscious, they are increasingly seeking out probiotic food products that support digestive health and overall well-being, without compromising on sustainability. This trend encourages local manufacturers to source ingredients sustainably, reducing environmental impacts and ensuring that products are beneficial for health and also for the planet.

Additionally, the rise of eco-conscious consumers in Indonesia leads to a greater demand for probiotic foods that are produced with minimal environmental footprint. Probiotic food companies in the market are adopting green packaging solutions, reducing single-use plastics, and promoting recyclability. This shift aligns with the global movement towards reducing plastic waste and promoting circular economies, which further enhances the sustainability credentials of products within the market.

Unmet Needs

The unmet needs in the Indonesian probiotic food market are primarily driven by gaps in awareness, affordability, product availability, and education. Despite the growing awareness of health benefits related to probiotics, many consumers in rural areas remain unaware of the advantages of probiotics, especially in terms of gut health and overall wellness. According to a 2023 report from Indonesia's Ministry of Health, only 20% of consumers in rural regions had exposure to probiotic-based marketing campaigns or educational initiatives. This lack of awareness hampers the adoption of these products.

Furthermore, the high price point of many probiotic products remains a major barrier, especially for the low-income population. In Indonesia, where a significant portion of the population lives below the poverty line (approximately 9.6% in 2023 according to the World Bank), probiotic foods are often seen as luxury items, limiting their uptake. A survey by the Indonesian Consumer Association found that over 60% of respondents in rural areas considered the high price of probiotic foods as a major obstacle to regular consumption.

Another significant gap in the market is the lack of availability in smaller retail outlets and traditional markets, which serve as the primary distribution channels for many consumers, particularly in rural areas. A 2023 study by the Indonesian Retail Association revealed that while modern retail outlets in urban centers offer a wide range of probiotic foods, they make up only a small percentage of the overall retail landscape, with traditional markets still accounting for over 60% of food sales in rural areas.

Addressing these unmet needs involves increasing awareness through education, improving distribution networks to reach rural areas, and introducing more affordable product lines for price-sensitive consumers. These actions would not only increase adoption but also ensure the long-term growth of the probiotic food market in Indonesia.

Competitive Landscape

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

By Type
• Yogurt
• Kefir
• Sauerkraut
• Tempeh
• Kimchi
• Miso
• Kombucha
• 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 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 Channel
• Supermarkets/Hypermarkets
• Pharmacies and Drug Stores
• Convenience Stores
• Online Retailers
• Other Distribution Channels

Key Developments
• In May 2024, PT Japfa Comfeed Indonesia Tbk (JAPFA) launched Olagud, a brand of probiotic chicken products. Olagud offers a variety of products, including fresh probiotic chicken and ready-to-eat probiotic chicken dishes.

Why Purchase the Report?
• To visualize the Indonesia probiotic food 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 food market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping is available in Excel and consists of key products of all the major players.

The Indonesia probiotic food market report would provide approximately 36 tables, 59 figures, and 103 pages.

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