food industry in Indonesia

Food Industry in Indonesia: Consumer and Market Trends

Halal, ethical sourcing, natural ingredients, and affordability create opportunities for local and global brands

Report

Food Industry in Indonesia: Consumer and Market Trends

25 August, 2025 – To understand Indonesian consumer habits around food and nutrition, one needs to consider a number of different influences, including the global environment. Macro level forces can impact a number of the 39 different food and beverage categories. This report looks as beverages, staple categories, components for meal preparation, snacks and treats, and foods for plant-based and special diets.

Global Forces Affect Indonesian Consumer Food Trends

Consumers around the world are extremely concerned about the environment and health of the planet. They see the effects of climate change on personal health, economies, and food security. The second top consumer concern is health and wellbeing. Healthcare systems are under pressure because obesity levels are going up and mental health is in crisis. Consumers also are worried about growth in the economy, corruption, and job insecurity. Over one-third of consumers participating in consumer trends research say that they are worried about affordability of nutritious food and access to good healthcare. Consumers today pay a lot of attention to their finances, and they are worried about the security of their data. The various global pressures increase consumer need for security, honesty, and transparency from brands. Technology can be a threat to job security and privacy, but it also is a catalyst for innovation. These issues also shape purchasing behavior in the food industry in Indonesia, where consumer concerns around affordability, health, and sustainability mirror wider global pressures.

Taste, Clean Label, Cost and Ethics Drive Consumer Trends

Indonesian consumers want to enjoy their food, and taste and flavor play a big roll. Taste and flavor rank as the most important features in many food categories, where they rank higher than health. Indonesian consumers also appreciate novelty and variety. Clean label features such as no artificial colors or flavors, real ingredients, and product safety attract Indonesian consumers. They read ingredient lists to make sure products are natural and trusted. These features are more important than sugar and fat reduction. Consumer research shows that Indonesian consumers seek a balance among affordability, value, quality, and freshness. Dairy products, meat products, and snacks that are fresh and clean at a good price invite repeat purchases. Because of religious requirements, halal certification is a priority among Indonesian purchasers of meat, dairy, and meals.

food trends in Indonesia

Desired Product Features Vary with Type of Beverage

Premium features matter to Indonesian purchasers of alcoholic and non-alcoholic alternative beverage, although alcohol purchasing is below the global average. In alcohol, Indonesian consumers seek taste and flavor, freshness, convenience, taste and flavor, and brand. Better-for-you features are boosting the market for non-alcoholic alternative beverages. Halal is important to Indonesian consumers of soft drinks, who also are attracted to real and natural ingredients and vitamin and mineral fortification. However, bottled water is popular for health reasons. Halal claims for soft drinks are on the rise. According to consumer research results, taste and flavor are extremely important to Indonesian consumers of hot coffee and hot tea, which they enjoy in the morning. Halal also is an essential claim on hot drinks, reflecting key trends in the food industry in Indonesia.

Consumers of Staple Foods Look for Health, Freshness, and Cost

Although Indonesian consumers purchase less bread than the global average, they seek bread products that are safe and halal. Breakfast cereal purchases are influenced by a combination of taste and flavor, health, and cost. Food trends in Indonesia show that purchasers of dairy products look for health benefits and natural ingredients in products that are safe. Halal and protein also are important. Purchases are below the global average but growing. When purchasing meat and fish, Indonesian consumers consider many factors, including taste and flavor, freshness, health benefits and cost. Other important features are protein, omega-3 and omega-6 fatty acids, halal, and real and natural ingredients. Indonesians are higher consumers of fish and seafood and lower consumers of meat and poultry. Compared to consumers globally, Indonesian consumers care more about health benefits, freshness, brand, and cost.

Several Factors Impact Components for Meal Preparation

As with other categories, Indonesian consumers balance flavor, freshness, health, brand and cost when considering meal preparation components. In the food industry in Indonesia, they are avid users of savory and sweet spreads, which appeal most if they are halal, have real and natural ingredients, and carry claims regarding safety. Ready meals need to feature premium ingredients that taste good and offer convenience. Indonesian consumer over-index compared to the global average for premium quality, especially for sweet spreads, savory spreads, and dips.

Snacks and Treats Should be Natural and Halal

Indonesian purchasers of snacks and treats look for a combination of halal certification and natural ingredients. Food trends in Indonesia show that avid consumers of cakes, pastries, and sweet goods, Indonesian consumers are attracted by taste and flavor, along with cost. Halal certification, protein plus fiber, natural ingredients, and safety drive purchases of cereal bars and energy bars. The appeal of protein spans across all categories of snacks and treats.

Foods for Plant-Based and Special Diets Become More Prominent

Health and sustainability features are driving Indonesian purchases of plant-based foods and foods for special diets. In the food industry in Indonesia, consumers are highly interested in sports nutrition and functional nutrition products, especially for health and functionality. When purchasing plant-based, they consider health, flavor, and freshness. Other features that matter, especially in meat substitutes and dairy substitutes, are halal, protein, real ingredients without artificial flavors or colors, organic, and safety.

What’s Next in Indonesian Food Trends?

Religious certification, namely halal, is extremely important to Indonesian consumers. Indonesian consumers also respond to ethical sourcing and environmentally responsible products. This is especially true for dairy alternatives and meat substitutes. Indonesian consumers value taste and flavor and respond well to new flavor combinations featuring local and international flavors. Flavors could be customized for specific regions of Indonesia. Indonesian consumers who are increasingly aware of health want transparency regarding natural ingredients and no artificial ingredients, preservatives, or additives. A way to support a healthy, pure product is by using ingredients that are natural and recognizable. Honest and simple labeling can build trust and appeal. Indonesian consumers want products that combine affordability with high quality. Staple foods like dairy products, meat products, and snacks also have to be fresh. Consumers can be attracted by promotions and deals to encourage volume purchases of products that are sustainable, fresh, and local.

 

This article is based on Innova’s Category Growth Drivers in Indonesia report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more

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