Indonesia Frozen Food Market Outlook to 2028

Indonesia Frozen Food Market Overview

Indonesia Frozen Food Market reached a market size of USD 2 billion, driven by a rising preference for convenience food and the increasing number of working individuals. A growth in cold chain logistics has also bolstered the market, enabling frozen food products to maintain their quality during distribution.

Key players in the Indonesia Frozen Food Market include large domestic and international companies such as PT Charoen Pokphand Indonesia Tbk, PT Sumber Alfaria Trijaya Tbk (Alfamart), and PT Nippon Indosari Corpindo Tbk. These players dominate through widespread distribution networks and an expanding product range that caters to consumer preferences.

In 2024, McCain Foods has recently completed the acquisition of Strong Roots, a Dublin-based plant-based frozen food producer. This acquisition follows McCain's initial investment of $55 million in Strong Roots back in 2021, which marked the beginning of their strategic partnership aimed at expanding Strong Roots' offerings and market reach.

Jakarta, Surabaya, and Bandung are the cities that dominate Indonesia's frozen food market, mainly due to their large populations, high disposable incomes, and rapid urbanization. These cities have a strong demand for ready-to-eat meals due to busy lifestyles, and they have well-established cold chain infrastructure that supports the distribution and storage of frozen food products.

Indonesia Frozen Food Market Segmentation

By Product Type: The Indonesia frozen food market is segmented by product type into frozen ready-to-eat meals, frozen seafood, frozen vegetables, frozen poultry, and frozen desserts. In 2023, frozen seafood held the dominant market share, driven by Indonesias rich marine resources and the high demand for fish and shrimp products. Frozen seafood products are favored due to their convenience, and their nutritional value remains intact.

By Distribution Channel: The market is further segmented by distribution channel into supermarkets/hypermarkets, convenience stores, online platforms, and specialty stores. Supermarkets and hypermarkets lead the distribution channel with a market share in 2023. Their dominance is attributed to their ability to offer a wide range of products and frequent promotional activities.

By Region: Indonesia Frozen Food Market is segmented into Java, Sumatra, Kalimantan, Sulawesi, and others. Java holds the dominant market share in 2023, mainly due to its large population and well-developed infrastructure, including cold chain logistics. Java's economic centers, such as Jakarta and Bandung, drive consumption due to their dense urban populations and the popularity of frozen food among busy professionals.

Indonesia Frozen Food Market Competitive Landscape

Company Name

Year of Establishment

Headquarters

PT Charoen Pokphand Indonesia Tbk

1972

Jakarta

PT Japfa Comfeed Indonesia Tbk

1971

Jakarta

PT Sumber Alfaria Trijaya Tbk (Alfamart)

1989

Tangerang

PT Nippon Indosari Corpindo Tbk

1995

Bekasi

PT Sinar Mas Agro Resources

1962

Jakarta

PT Japfa Comfeed Indonesia Tbk: In 2024, PT Japfa Comfeed Indonesia Tbk officially launched Olagud, a new product line aimed at enhancing its presence in the frozen food sector. This initiative reflects the company's strategy to expand its downstream business and cater to the growing demand for frozen food products in Indonesia. This move is expected to strengthen Japfa's market position and capitalize on the increasing consumer preference for convenient, ready-to-cook meals.

PT Charoen Pokphand Indonesia Tbk: In 2023, UBS AG Singapore has acquired approximately 6% of PT Charoen Pokphand Indonesia Tbk (CPIN), purchasing 974.91 million shares through Deutsche Bank AG. This transaction, valued at USD 0.34 per share, marks UBS as a significant new investor in the company, which specializes in broiler farming and animal feed. The acquisition reflects ongoing interest from foreign investors in Indonesia's agricultural sector.

Indonesia Frozen Food Industry Analysis

Growth Drivers:

Cold Chain Infrastructure Expansion: The development of cold chain logistics has been a significant driver of the Indonesian frozen food market. Over 75 million kilograms of food are distributed daily in Indonesia, but only 50 thousand tons are transported using trucks and refrigerated containers, highlighting the need for enhanced integration and collaboration in cold parcel delivery services. The enhanced infrastructure allows businesses to expand their product offerings, improving the availability of frozen products in retail stores and online platforms.

Surge in E-commerce Platforms Sales: Approximately 51 million Indonesians are currently using e-commerce platforms at present. The rising middle class and the growth in smartphone penetration across urban centers have contributed to this shift. As of early 2024, 68.1% of Indonesia's population owns a smartphone, which translates to approximately 187.7 million smartphone users. The convenience of ordering frozen products online, coupled with competitive pricing and promotional offers, has made e-commerce a pivotal driver for market expansion.

Rising Demand for Processed Seafood: Indonesia, being one of the largest producers of seafood globally, has seen significant growth in the frozen seafood sector. In 2022, the export value of frozen foods was approximately $455.88 million for frozen fish products excluding fish fillets and other fish meat. Additionally, increasing health consciousness among consumers is driving demand for nutritious seafood options, supporting the growth of this segment.

Challenges:

Inconsistent Power Supply in Remote Areas: A significant challenge for the frozen food market in Indonesia is the inconsistent electricity supply in remote regions, which directly affects cold storage facilities. This inconsistency hampers the markets growth, particularly for frozen seafood and poultry, which require stable cold storage conditions. Despite the government's efforts to improve rural infrastructure, the power supply issue remains a bottleneck for market expansion in these regions.

Lack of Consumer Awareness in Rural Areas: Despite the growing popularity of frozen food in urban areas, consumer awareness in rural regions remains low. This lack of awareness, coupled with the high cost of frozen food in rural markets, presents a significant challenge to the expansion of the frozen food industry in Indonesia. Educating consumers about the benefits and convenience of frozen food will be crucial for long-term growth.

Government Initiatives:

E-Commerce Roadmap: The Indonesian government has established a national e-commerce roadmap to facilitate the growth of the digital economy in 2016. This roadmap includes the formation of a Programme Management Unit to coordinate efforts across various ministries and organizations, aiming to provide a structured approach to e-commerce development in the country. By improving logistics infrastructure, reducing costs, and increasing consumer awareness, the roadmap helps frozen food businesses.

Sustainable Fisheries and Aquaculture Initiative: The Coastal Fisheries Initiative (CFI) in Indonesia aims to enhance coastal fisheries management and environmental preservation for 70 million people reliant on marine resources. Covering over 1.6 million square kilometers. The initiative will also support local fishing communities by providing them with access to modern freezing technology, enabling them to sell frozen fish products in both domestic and international markets.

Indonesia Frozen Food Future Market Outlook

Indonesia Frozen Food Market is poised for steady growth over the next five years, driven by increasing consumer demand for convenience and ready-to-eat meals. By 2028, the market is expected to experience greater penetration in suburban and rural areas, facilitated by government-backed infrastructure improvements in cold chain logistics.

Future Trends

Expansion of Plant- Based Frozen Meals: In the coming years, the demand for plant-based frozen meals is expected to rise significantly, driven by health-conscious consumers. Companies are likely to introduce a wider variety of plant-based frozen products, catering to the growing vegan and vegetarian populations. This trend will be especially prominent in urban centers like Jakarta, where consumers are more inclined towards sustainable and eco-friendly food options.

Technological Innovations in Cold Chain Logistics: Technological advancements in cold chain logistics are expected to reshape the frozen food market. By 2028, the implementation of IoT and blockchain technology will improve the traceability and efficiency of the cold supply chain, ensuring that frozen products maintain their quality during transit. These innovations will also help reduce transportation costs and minimize food wastage, making frozen food more accessible to consumers in remote areas.
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