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16 Jan 2013

International Economy

[AEC Plus] Indonesia’s F&B Business: Huge Opportunities for Thailand (Current Issue No. 2304 Full Ed.)

The Indonesian food and beverage market offers bright prospects, thanks to a vast market with 244.4 million people (the world's fourth most populous nation), where a majority of consumers spend over 50 percent of their monthly income on food and beverages amid improving domestic conditions that have shored up purchasing power there.
KResearch has assessed trends in consumer behavior and channels for tapping into that F&B market:
  • F&B consumption is projected to grow at an average of 17.2 percent/year between 2012 and 2015.
  • Consumers there have diverse preferences, and are willing to seek new food and beverage experiences. Prepared, packaged ready-to-eat and premium foods – as well as beers and wines – are gaining popularity in Indonesia.
  • Indonesia is ASEAN's largest F&B importer. Thailand is a major import source.
  • Delving into the vast Indonesian F&B market requires thorough advance planning. Their trade regulations on food and beverages will, in all likelihood, become even more stringent.

While Thai companies are being urged to make greater inroads into the Indonesian market that is four times larger than ours, they need to be vigilant toward intense competition from both domestic and international participants, plus other dynamics in their market. Given this, Thai businesses are advised to make a well-rounded business plan on Indonesia, taking into account the intended target consumer segments, competition from rivals and the possibility of business partners because it can help them cope with any changes in the market. Meanwhile, they should pay strict attention to F&B regulatory issues there, as well.

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International Economy