Indonesia Frozen Food Market - Growth, Trends, and Forecasts (2023-2028)

The Indonesian frozen food market is projected to witness a CAGR of 8.68% over the next five years.

The increase in consumer preferences for convenience foods and the development of cold chain logistics in the country are crucial factors driving Indonesia's frozen food market growth. Furthermore, the advancement of modern retail channels has also determined frozen food development. Supermarket giants, such as Super Indo, Giant Eksatra, and Ramayana, have become significant sources of growth for the frozen foods market. The demand for clean-label food is driving the demand for clean-label frozen foods in the market. Moreover, along with clean-label food, the companies are also providing eco-friendly and sustainable packaging, understanding the growing environmental sentiments of consumers, and thereby increasing the penetration of their products in the market.

With strong support from technological innovation and due to the advantages of frozen food, the products have become much more accessible and affordable for consumers in the country. The advent of new technologies has resulted in the affordability of frozen food. Thus, the market is expected to register a robust growth rate, owing to increasing customer appetite and acceptance, complemented by an increase in selling points, deeper penetration by organized retail players, and increased freezer space in the retail domain. The region has also witnessed an expansion in the ice cream and frozen dessert segment of the market studied.

Indonesia Frozen Food Market Trends

Increase in Demand for Convenience Foods

An important aspect fueling the expansion of Indonesia's packaged food business is the growing consumer appetite for convenience meals. Since packaged foods require minimal or no further preparation before eating, especially ready meals and frozen food, there has been an exponential rise in their popularity due to the convenience element. Ease in the availability of staple, seasonal, and regional food products has influenced the purchasing patterns of consumers. They are now placing frozen food on their list of daily consumables. Owing to the wider availability of seasonal ingredients all year round, there has been a steady growth in the demand for frozen food products in Indonesia.

The packed food includes canned food, packaged food or meals, frozen food, preserved food, and instant products. Frozen-ready meals appeal to consumers in Indonesia with hectic lifestyles, those who are trying to lose weight, and those who live alone and do not want to prepare a full meal. The presence of various global players in this country has led to wider availability of products. Furthermore, due to the increasing purchasing power, food safety and hygiene are considered by consumers in the country. These factors have given global players the potential to make their products available on retail shelves, as brands are often considered high-quality products.

The Frozen Meat and Fish Segments Contribute to the Maximum Revenue Share

The consumer preference for frozen meat is increasing in Indonesia, in part due to the hygiene issues associated with making fresh products available. According to UN Comtrade, in 2021, the imports of meat to Indonesia amounted to USD 965.34 million, as compared to the meat imports in the previous year, which were valued at USD 710.54 million. The popularity of protein diets has made meat and fish all the more popular, and seafood, in particular, is emerging as an important source of export earnings for the country. With the increase in bilateral and international agreements regarding the expansion of agriculture and food trade, the frozen meat and fish segments are expected to grow during the forecast period. These products exhibit a longer shelf life, ranging from six months to a year, making them convenient for export to the farthest of places. Indonesian companies export various types of fish meat after processing and adding preservative materials according to international standards and consumer demand.

Indonesia Frozen Food Market Competitor Analysis

The Indonesian frozen foods market is a competitive one, with numerous domestic and international players offering different varieties of frozen products. The major players in the market studied, including General Mills Inc., Unilever PLC, and PT Charoen Pokphand Indonesia Group, are heavily capitalizing on research and development. Ajinomoto Co., Inc., Gunung Sewu Group (Belfoods Indonesia), and Kelola Group (PT Kelola Mina Laut) are some other leading players in the market with a significant range of product offerings. On the basis of the development of new products, manufacturers are sensitive to ongoing consumer concerns and trends about choosing products that are suitable for their healthy lifestyle choices. Thus, players are offering products with international standards and certifications, such as organic and kosher.

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