Market Trends of Indonesia Snack Bar Industry
This section covers the major market trends shaping the Indonesia Snack Bar Market according to our research experts:
Growing Demand For Healthy On-the-go Snacking
- With the growing consumer inclination toward plant-based products and a vegan diet, there has also been a demand for vegan snack bars. Moreover, consumer demand for on-the-go healthier snacking alternatives and nutritious foods has driven the market for snack bars. Also, with the rise in demand for fortified food, fortified energy bars with high protein content are in demand.
- Growing health awareness has led Indonesian consumers to include fruit and vegetable-derived ingredients in their dietary habits, driving the demand for healthy snacks. This has led key players in the snack bar and energy bars markets to come up with newer and healthier market offerings, such as snack bars containing fruits and dried fruits.
- Changes in social and economic patterns and increased spending on food and beverages are driving up demand for quick healthy snacks. Due to their hectic lifestyles, convenient snacks such as snack bars, among others, are becoming increasingly popular, particularly among the country's working population and the expanding young generation of consumers.
- Furthermore, the concept of on-the-go snacking is linked to the ease of consumption and is generally easier to handle snacks like snack bars. It can also help prevent people from being too hungry for junk foods because snack bars serve as eatables between meals or when people need more time to cook. To cater to growing consumer demand, the players in the market have focused on launching new and innovative products.
- For instance, Cadbury has launched kurma (kurma meaning "dates" in Malay) chocolate in Indonesia to celebrate Eid-al-Fitr 2022. The new Cadbury Dairy Milk Kurma offers the smooth chocolatey taste and the goodness of kurma or dates, which are popularly consumed to break the fast. Mondelez is also combining its classic brands in novel ways to produce new snacks, such as the Cadbury Dairy Milk Oreo chocolate bar.
Understand The Key Trends Shaping This Market
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Branded Snack Bar Products in Traditional grocery stores and Supermarket/Hypermarket Holds A Prominent Share
- Modern grocery stores are expanding in the country with a double-digit compound annual growth rate (CAGR). Modern grocery stores are rapidly taking shares from traditional grocery stores, expanding their presence in urban and tier-II cities. Matahari Group is aggressively tapping into new markets in eastern Indonesia by opening 20 hypermarts, 20 bostons, and 5 food marts. Supermarket/hypermarket led the snack bar sale with more than 70% share in the distribution channel.
- Supermarkets and convenience stores are the fastest-growing sales channel for snack bars owing to large brand availability and discounts on bulk purchases. There were about 3.61 million grocery retail establishments in the country in 2021. With a total of 19,133 outlets in 2021, Indomaret had the most grocery stores in Indonesia. It was followed by Alfamart, which had 16,060 outlets across the country.
- The retail sector in Indonesia is highly fragmented, with local businesses dominating the market. Key market companies such as PT Matahari Putra Prima Tbk, which operates seven retail chain brands nationwide, and convenience store industry leaders Alfamart and Indomaret have been catering to the mass market segment primarily through physical distribution channels.
- A snack preference poll conducted in 2021 in Indonesia discovered that 56% of respondents prefer branded snacks, compared to 34% who prefer non-branded snacks. Small firms typically create traditional packaged snacks; some are offered without a brand name. The market has been experiencing consistent growth over the past few years due to the aforementioned factors.
