Indonesia Snack Bar Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Indonesia Snack Bar Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Indonesian snack bar market is expected to register a CAGR of 7.5% during the forecast period.

• The market is primarily driven by rising consumer demand for healthy and convenient snacking options. Individuals' increased health consciousness and the expanding popularity of athletic and sporting activities also push the market's growth. In accordance with this, the rising prevalence of obesity and other lifestyle disorders is fueling market expansion.
• Furthermore, vigorous promotion initiatives carried out by key market leaders and significant investments in collaborations with prominent sports and media figures are resulting in increased product consumption across the country. The launch of snack bars with unique tastes and ingredients, as well as their easy availability across online and offline organized retail channels, are also driving the market.
• Increased snacking habits and consumers seeking healthier snacks are the key drivers for the market. Expanding modern grocery retail offering wide brands of packaged food and convenient packaging are various factors fueling the snack bar market growth.
• Moreover, the demand for vegan snack bars has also increased with the inclination toward plant-based products and a vegan diet. Some of the prominent flavor components for plant-based snack bars include beet, spirulina, orange, peanut butter, brownie, and red berries. In addition, market competitors have been launching snack bars made with vegan components that contain little or no sugar. Rising urbanization, evolving nutritional choices among the Indonesian population, the introduction of targeted-consumer products, and substantial research and development (R&D) operations are some of the major drivers driving the market growth.

• With the growing consumer inclination toward plant-based products and a vegan diet, there has also been a demand for vegan snack bars. Moreover, consumer demand for on-the-go healthier snacking alternatives and nutritious foods has driven the market for snack bars. Also, with the rise in demand for fortified food, fortified energy bars with high protein content are in demand.
• Growing health awareness has led Indonesian consumers to include fruit and vegetable-derived ingredients in their dietary habits, driving the demand for healthy snacks. This has led key players in the snack bar and energy bars markets to come up with newer and healthier market offerings, such as snack bars containing fruits and dried fruits.
• Changes in social and economic patterns and increased spending on food and beverages are driving up demand for quick healthy snacks. Due to their hectic lifestyles, convenient snacks such as snack bars, among others, are becoming increasingly popular, particularly among the country's working population and the expanding young generation of consumers.
• Furthermore, the concept of on-the-go snacking is linked to the ease of consumption and is generally easier to handle snacks like snack bars. It can also help prevent people from being too hungry for junk foods because snack bars serve as eatables between meals or when people need more time to cook. To cater to growing consumer demand, the players in the market have focused on launching new and innovative products.
• For instance, Cadbury has launched kurma (kurma meaning "dates" in Malay) chocolate in Indonesia to celebrate Eid-al-Fitr 2022. The new Cadbury Dairy Milk Kurma offers the smooth chocolatey taste and the goodness of kurma or dates, which are popularly consumed to break the fast. Mondelez is also combining its classic brands in novel ways to produce new snacks, such as the Cadbury Dairy Milk Oreo chocolate bar.

• Modern grocery stores are expanding in the country with a double-digit compound annual growth rate (CAGR). Modern grocery stores are rapidly taking shares from traditional grocery stores, expanding their presence in urban and tier-II cities. Matahari Group is aggressively tapping into new markets in eastern Indonesia by opening 20 hypermarts, 20 bostons, and 5 food marts. Supermarket/hypermarket led the snack bar sale with more than 70% share in the distribution channel.
• Supermarkets and convenience stores are the fastest-growing sales channel for snack bars owing to large brand availability and discounts on bulk purchases. There were about 3.61 million grocery retail establishments in the country in 2021. With a total of 19,133 outlets in 2021, Indomaret had the most grocery stores in Indonesia. It was followed by Alfamart, which had 16,060 outlets across the country.
• The retail sector in Indonesia is highly fragmented, with local businesses dominating the market. Key market companies such as PT Matahari Putra Prima Tbk, which operates seven retail chain brands nationwide, and convenience store industry leaders Alfamart and Indomaret have been catering to the mass market segment primarily through physical distribution channels.
• A snack preference poll conducted in 2021 in Indonesia discovered that 56% of respondents prefer branded snacks, compared to 34% who prefer non-branded snacks. Small firms typically create traditional packaged snacks; some are offered without a brand name. The market has been experiencing consistent growth over the past few years due to the aforementioned factors.

The Indonesian snack bar market is concentrated among a few companies occupying a significant market share. It has been observed that foreign brands offer a greater number of innovative products in various flavors and varieties compared to domestic brands. Penetration through the modern retail channel and product innovation is the key strategy players adopt to maximize sales. Some of the major players in the market studied are Otsuka Pharmaceutical Co., Ltd., Kalbe Farma (FITBAR), Nestlé S.A., NuGo Nutrition, and Premier Nutrition Corporation, among others. These companies actively develop new product innovations in terms of flavor, ingredients, and packaging.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support