In the third quarter of 2024, Indonesia recorded positive changes across all fast-moving consumer goods (FMCG) segments compared to the same quarter in the previous year. The overall change in the FMCG market value in the country stood at *** percent in that quarter. Indonesia’s FMCG market is one of the fast-growing in the Southeast-Asian region. Fast-growing market The growth of the FMCG market in Indonesia cannot be separated from the increasing number of middle-class consumers in the country. This development signified a changing lifestyle among those with more personal income, as they are increasingly able to afford products that they had considered superfluous before. In the FMCG market that covers almost every essential product needed by individuals, this would mean a robust value growth of the FMCG industry. Shift in consumer preferences In recent years, consumer preferences in Indonesia have shifted significantly due to growing awareness of sustainability. As more consumers adopt sustainability practices when shopping, demand for transparency in terms of production, sourcing, and label information have also increased. A recent survey showed that many Indonesians were even willing to pay more for sustainability products. To stay ahead of the highly competitive FMCG market in Indonesia, companies need to cater to this shifting consumer preferences.

In 2023, Indomie was the most chosen FMCG brand among consumers in Indonesia, with a household penetration rate of **** percent. Pepsodent came in second, with a household penetration rate of **** percent. This indicates consistent preference for well-established products among Indonesian consumers. Indofood: the force behind Indomie  PT Indofood Sukses Makmur Tbk is a powerhouse in Indonesia’s fast-moving consumer goods (FMCG) sector, best known for its flagship products, Indomie instant noodles. Since its launch, Indomie has become a cultural staple. In 2023, Indomie topped the list of the most preferred food brands among Indonesian households. Indofood’s success lies in its ability to cater to local tastes, offering a diverse range of flavors that reflect Indonesian cuisine. The company also has an extensive portfolio including snacks, dairy products, and seasonings, ensuring its strong presence across multiple FMCG categories. Unilever: a strong contender in Indonesia’s FMCG sector PT Unilever Indonesia Tbk is another key player in Indonesia’s FMCG market, providing a wide array of products in personal care, home care, and food sectors. Popular brands like Pepsodent, Lifebuoy, Dove, and Knorr demonstrate Unilever’s ability to cater to local preferences while maintaining high-quality standards. In 2023, Unilever’s two personal care brands, Pepsodent and Lifebuoy, ranked first and second on the list of the most preferred personal care brands among Indonesian households.

As of the third quarter of 2024, traditional trade held the highest market share of ** percent in the fast-moving consumer goods (FMCG) sector in Indonesia. Mini markets followed with ** percent market share in the FMCG sector. Traditional trade has been an important part of many Indonesians’ lives. It is a familiar sight in Indonesian neighborhoods, and a place for bargaining and purchasing various consumer products. The benefits of traditional trade Traditional trade, which encompasses traditional markets, “warung” or small kiosks, and other family-run establishments, has been preferred by Indonesian consumers due to its accessibility. This has been a great alternative for them as logistics have proven to be challenging in a country where its *** million people are spread out in thousands of islands. Although traditional trade has its benefits, it has struggled to compete with its modern competitors in terms of convenience. This problem was also amplified in some areas of the country due to the decreasing amount of people living in rural areas. As the value of retail sales from convenience stores continues to increase, these modern alternatives will continue to gain a foothold across Indonesia. The market outlook The market share of mini-markets for FMCG in Indonesia has decreased by ***** percent since the third quarter of 2020. Though still dwarfed by that of traditional markets, the same could not be said about their popularity. However, Indonesians may still trust and support traditional trade more due to its consistent pricing strategies. Unlike traditional retail, modern trade channels such as hypermarkets and supermarkets follow the loss leader strategy by selling some items at a loss to gain more by selling other products at a more expensive price.

Indonesia Corporate Sector: Consumer Goods Industry: Net Income (Annualized) data was reported at 44,767.724 IDR bn in Mar 2021. This records a decrease from the previous number of 46,090.427 IDR bn for Dec 2020. Indonesia Corporate Sector: Consumer Goods Industry: Net Income (Annualized) data is updated quarterly, averaging 41,572.233 IDR bn from Mar 2013 (Median) to Mar 2021, with 33 observations. The data reached an all-time high of 57,059.953 IDR bn in Mar 2020 and a record low of 27,661.359 IDR bn in Mar 2013. Indonesia Corporate Sector: Consumer Goods Industry: Net Income (Annualized) data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI022: Financial System Statistics: Corporate Sector.

Indonesia Corporate Sector: Consumer Goods Industry: Average Equity data was reported at 349,458.481 IDR bn in Mar 2021. This records an increase from the previous number of 305,716.023 IDR bn for Dec 2020. Indonesia Corporate Sector: Consumer Goods Industry: Average Equity data is updated quarterly, averaging 205,774.653 IDR bn from Mar 2013 (Median) to Mar 2021, with 33 observations. The data reached an all-time high of 349,458.481 IDR bn in Mar 2021 and a record low of 127,861.614 IDR bn in Sep 2013. Indonesia Corporate Sector: Consumer Goods Industry: Average Equity data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI022: Financial System Statistics: Corporate Sector.

Indonesia Corporate Sector: Financial Ratio: Consumer Goods Industry: Turn Over Ratio: Asset Turn Over (Total Sales (Annualized)/Total Assets) data was reported at 0.890 Times in Mar 2021. This records a decrease from the previous number of 0.896 Times for Dec 2020. Indonesia Corporate Sector: Financial Ratio: Consumer Goods Industry: Turn Over Ratio: Asset Turn Over (Total Sales (Annualized)/Total Assets) data is updated quarterly, averaging 1.242 Times from Mar 2013 (Median) to Mar 2021, with 33 observations. The data reached an all-time high of 1.337 Times in Mar 2013 and a record low of 0.890 Times in Mar 2021. Indonesia Corporate Sector: Financial Ratio: Consumer Goods Industry: Turn Over Ratio: Asset Turn Over (Total Sales (Annualized)/Total Assets) data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI022: Financial System Statistics: Corporate Sector.

As of the third quarter of 2023, the share of household spending on fast-moving consumer goods (FMCG) in Indonesia amounted to 19.6 percent of the total household spending. The household spending share on FMCG is forecast to remain constant in the following years. Daily essentials dominate FMCG budget  Due to everyday demand for necessities including food, drinks, personal hygiene items, and cleaning supplies, FMCG account for a sizeable amount of household spending in Indonesia. This reflects the growing population’s reliance on these essentials even during economic challenges. As demand for these products remains positive, FMCG spending will remain resilient and continue to make up a substantial share of household expenditures. Emerging trends and shift in consumer behavior FMCG spending in Indonesia is also adjusting to new consumer habits as a result of a growing middle class and increased e-commerce usage. Despite the ongoing popularity of offline sales channels such as traditional trade and mini markets, consumers are increasingly opting for convenience-driven options like online shopping. Additionally, the demand for FMCG in Indonesia is being shaped by shifting lifestyle preferences. A recent survey showed that Indonesian consumers valued sustainable and eco-friendly products more. This suggests that household purchases are becoming more varied and quality focused.

Consumer Spending in Indonesia increased to 1759353.80 IDR Billion in the first quarter of 2025 from 1731431.50 IDR Billion in the fourth quarter of 2024. This dataset provides - Indonesia Consumer Spending - actual values, historical data, forecast, chart, statistics, economic calendar and news.

As of the third quarter of 2024, traditional trade held a market share of ** percent in the distribution of fast-moving consumer goods (FMCG) products in Indonesia. It made up the highest market share among other sales channels of the fast-moving consumer goods (FMCG) in the country.

Indonesia Corporate Sector: Consumer Goods Industry: Total Sales(Annualized) data was reported at 560,605.284 IDR bn in Mar 2021. This records an increase from the previous number of 549,014.455 IDR bn for Dec 2020. Indonesia Corporate Sector: Consumer Goods Industry: Total Sales(Annualized) data is updated quarterly, averaging 437,694.422 IDR bn from Mar 2013 (Median) to Mar 2021, with 33 observations. The data reached an all-time high of 560,605.284 IDR bn in Mar 2021 and a record low of 291,964.179 IDR bn in Mar 2013. Indonesia Corporate Sector: Consumer Goods Industry: Total Sales(Annualized) data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI022: Financial System Statistics: Corporate Sector.

Get expert insights on Indonesia Consumer-Packaged Goods Market, size at USD 102 billion in 2023, featuring industry analysis and key player segmentation.

Consumer Price Index: Non Seasonally Adjusted data was reported at 178.581 2010=100 in Mar 2025. This records an increase from the previous number of 175.683 2010=100 for Feb 2025. Consumer Price Index: Non Seasonally Adjusted data is updated monthly, averaging 78.548 2010=100 from Jan 1987 (Median) to Mar 2025, with 459 observations. The data reached an all-time high of 178.581 2010=100 in Mar 2025 and a record low of 10.060 2010=100 in Jan 1987. Consumer Price Index: Non Seasonally Adjusted data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Indonesia – Table ID.World Bank.GEM: Consumer Price Index. The consumer price index reflects the change in prices for the average consumer of a constant basket of consumer goods. Data is not seasonally adjusted.

Indonesia Corporate Sector: Consumer Goods Industry: Total Assets data was reported at 629,715.134 IDR bn in Mar 2021. This records an increase from the previous number of 612,622.776 IDR bn for Dec 2020. Indonesia Corporate Sector: Consumer Goods Industry: Total Assets data is updated quarterly, averaging 348,442.200 IDR bn from Mar 2013 (Median) to Mar 2021, with 33 observations. The data reached an all-time high of 629,715.134 IDR bn in Mar 2021 and a record low of 218,430.199 IDR bn in Mar 2013. Indonesia Corporate Sector: Consumer Goods Industry: Total Assets data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI022: Financial System Statistics: Corporate Sector.

In Indonesia FMCG Market, The FMCG sector can only anticipate increased growth as consumers become increasingly accustomed to e-commerce.

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Indonesia Retail Market Size 2025-2029

The Indonesia retail market size is forecast to increase by USD 49.9 billion, at a CAGR of 4.7% between 2024 and 2029.

The Indonesia Retail Market is segmented by distribution channel (offline, online), product (food and beverages, electrical and electronics, apparel and footwear, home improvement and household products, others), ownership structure (local retailer, international retailer), end-user (urban, rural), payment type (cash, digital payments via mobile apps, cards, BNPL), consumer segment (urban, rural), and geography (APAC, specifically Indonesia). This segmentation reflects the market's diversity, driven by a growing middle class, urbanization, and e-commerce adoption, with offline channels dominating but online platforms rapidly expanding, particularly in urban areas.
The market is experiencing significant expansion, driven by the increasing preference for local brands among consumers. This trend is fueled by the growing middle class population and their desire for affordable yet quality products. However, the underdeveloped infrastructure poses a significant challenge for retailers. Limited access to reliable logistics and transportation networks, as well as inconsistent electricity supply, can hinder the smooth operation of retail businesses.
To navigate these challenges, retailers must explore innovative solutions such as developing robust supply chain management systems and investing in renewable energy sources. By addressing these issues, retailers can effectively capitalize on the market's potential for growth and meet the evolving needs of Indonesian consumers.

What will be the size of the Indonesia Retail Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic retail market of Indonesia, customer journey mapping plays a crucial role in enhancing customer retention. Online reviews management is essential for maintaining brand building and addressing customer feedback. Supply chain visibility is key to optimizing logistics and ensuring store operations run smoothly. Cart abandonment and conversion rates are closely monitored through predictive analytics and marketing automation. RFID technology and sales training are integral to inventory optimization and pricing strategy. Product assortment and merchandise planning are informed by business intelligence (BI) and prescriptive analytics. Store layout and visual merchandising are critical components of market penetration and competitive advantage.
Logistics optimization, retail infrastructure, and drone delivery are shaping the future of the industry. Sales forecasting, demand forecasting, and e-commerce infrastructure are essential for staying ahead of the competition. Staff training and customer experience (CX) are continuously improved through blockchain technology and promotional effectiveness analysis. Market penetration and competitive advantage are enhanced through pricing optimization, merchandise planning, and inventory optimization strategies. Brand building and customer retention are interconnected, with online reviews management and customer experience (CX) playing pivotal roles. Predictive analytics and sales training are essential for anticipating trends and optimizing performance. Store operations and supply chain visibility are crucial for ensuring a seamless retail experience.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Distribution Channel

  Offline
  Online


Product

  Food and beverages
  Electrical and electronics
  Apparel and footwear
  Home improvement and household products
  Others


Ownership Structure

  Local Retailler
  International Retailer


End-User

  Urban
  Rural


Payment Type

  Cash
  Digital Payments (Mobile Apps)
  Cards
  BNPL (Buy Now Pay Later)


Consumer Segment

  Urban
  Rural


Geography

  APAC

    Indonesia

By Distribution Channel Insights

The offline segment is estimated to witness significant growth during the forecast period.

In Indonesia's dynamic retail market, convenience stores cater to everyday consumer needs with a focus on accessibility. These small retail outlets offer essentials such as groceries, personal care products, and snacks, often co-located with gas stations for added convenience. Digital payments are increasingly popular, streamlining transactions and enhancing customer experience. Department stores, a staple in urban areas, provide a broad range of consumer goods. They have significantly influenced shopping habits and luxury services in cities. Digital ma

Among consumer goods, tobacco products accounted for the highest e-commerce spending growth rate in Indonesia. E-commerce expenditure in this category had around 24 percent growth in comparison to the previous year. In contrast, online shopping spending on eye-wear dropped by 5.6 percent compared to the previous year.

Graph and download economic data for Consumer Price Index: All Items: Total for Indonesia (IDNCPALTT01IXNBM) from Jan 1968 to Nov 2023 about Indonesia, all items, CPI, price index, indexes, and price.

As of the first quarter of 2024, telecommunications equipment held ** percent of the market share of technical consumer goods (TCG) in Indonesia. This was a slight increase compared to the market share in the same quarter in 2023. Meanwhile, major domestic appliances made up ** percent of consumer spending on TCG in the country.

In 2024, the consumer price index (CPI) of medicine and health products in Indonesia was ******, a decrease compared to the previous year. The CPI provides a weighted average of prices for a range of consumer goods and services, that shows whether a country is experiencing inflation or deflation.

Indonesia Corporate Sector: Consumer Goods Industry: Total Liabilities data was reported at 280,256.654 IDR bn in Mar 2021. This records an increase from the previous number of 279,869.847 IDR bn for Dec 2020. Indonesia Corporate Sector: Consumer Goods Industry: Total Liabilities data is updated quarterly, averaging 148,330.204 IDR bn from Mar 2013 (Median) to Mar 2021, with 33 observations. The data reached an all-time high of 280,256.654 IDR bn in Mar 2021 and a record low of 87,081.266 IDR bn in Mar 2013. Indonesia Corporate Sector: Consumer Goods Industry: Total Liabilities data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI022: Financial System Statistics: Corporate Sector.