Market Trends of Indonesia Frozen Food Industry
Increasing Demand for Convenience Food Products
The growing consumer demand for convenience meals is a critical factor bolstering the expansion of the Indonesian packaged food business. Since packaged foods require minimal or less preparation time, especially ready meals and frozen food, there has been an exponential rise in their popularity, especially among the working population. In addition to the time-saving factor, frozen food products can be a convenient and affordable way to incorporate nutrition into a regular diet. Since freezing helps preserve the nutrients of frozen food products, these products have more vitamins and minerals than fresh foods that lose their nutrients over time.
The rise in e-commerce further influences the demand for food products, including frozen food, via online retail stores. According to the International Trade Administration, the e-commerce sector exhibited a 23% increase in online transactions and nearly 63 million new users in 2021. The proliferation of the industry is supported by the rise in digital wallets such as GoPay, DANA, Ovo, and ShopeePay, along with a large, young, and tech-savvy population. Hence, such factors influence consumers' purchasing decisions for packaged frozen food via e-commerce channels across Indonesia.
Frozen Processed Meat Products are Currently in High Demand
Consumers in the country are more inclined toward frozen meat products, partly 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, compared to the imports in the previous year, valued at USD 710.54 million. The popularity of protein diets has further increased the consumption of meat and fish in the country. Moreover, 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 places. Indonesian companies export various types of fish meat after processing and adding preservative materials to meet international standards and consumer demand.
