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Indonesia Food and Drink Report Q4 2012

827.45

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Electronic License

Electronic License

An electronic version (mostly PDF, but can be Excel or PPT), which is either available for immediate download or will be sent via email by the Publisher of the report. The licencing for an electronic version is for use by the purchaser ONLY.

£827.45

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Market

Food and Drink

Report Type

Market Research

Country

Indonesia

Published

12 September 2012

Number of Pages

111

Report Delivery

Download

Delivery Lead Time

Immediate

Publisher

Business Monitor International

File Format

PDF

Indonesia soft drink market to grow at a CAGR of12.1% between 2012 and 2016

The consumer story in Indonesia continues to be one of the brightest in the world, with a recent global survey conducted by Nielsen confirming the countrys relative outperformance. Indonesia ranked third globally in the survey, which gauged consumer sentiment, despite global economic threats and generally rising costs. Since the poll was conducted, the government has announced that it will shelve plans to reduce fuel subsidies for at least the remainder of 2012, alleviating concerns that higher fuel prices would hit consumers wallets. Wage growth in Indonesia has been strong as the economys growth has begun to translate to higher employment. Minimum wages have been raised by as much as 20% in some cities, and double digit wage growth is generally expected, with a survey conducted by Towers Watson indicating that employers plan to increase salaries by 9.5% this year.

Headline Industry Data

- Food consumption growth for 2012 = +7.1%; CAGR forecast to 2016 = +8.6%.
- Alcoholic drinks sales growth for 2012 = +11.5%; CAGR forecast to 2016 = +11.8%.
- Soft drinks sales growth for 2012 = +11.2%; CAGR forecast to 2016 = +12.1%.
- Mass grocery retail sales growth for 2012 = +12.0%; CAGR forecast to 2016 = +13.5%.

Key Industry Trends

Growth Of Minimarkets Poses Threat To Supermarkets – The proliferation of minimarts is gradually eating into the supermarket retailers consumer base. Due to the rapid spread of minimarts, the number of supermarkets fell by 17% in 2011 to 1,229 stores from 1,477 stores in 2008, according to data from the Indonesia retail employers association, Aprindo. In comparison, the number of minimarts increased by 63% to 16,720 in 2011, from 10,289 in 2008. Given the competitive advantages of minimarkets such as cheaper product prices, greater accessibility and the formats increasing popularity among the younger generation, minimarts are likely to remain a major threat to the sales opportunities of supermarket retailers.

Asahi Attracted By Dynamism In Soft Drinks – In July 2012, Japanese beverage maker Asahi announced the establishment of a partnership with Indonesia-based PT Indofood CBP Sukses Makmur for the distribution of non-alcoholic drinks across Indonesia. According to local reports, the deal is valued at around US$321mn, and the move will see the firms set up two joint ventures, one for manufacturing and one for marketing and distribution. The move is a continuation of Asahis overseas expansion in response to maturity in its domestic market, with the beverage market in Indonesia forecast to achieve rapid growth over coming years.

Risk To Outlook

One of the more obvious headwinds that Indonesia faces in 2012 is a slowing regional economy. The developing hard landing in China means that regional growth will be subdued compared to the heady rates of 2010-11, and trade in particular is set to suffer. Indeed, Indonesias own links to China have become considerably deeper since the enactment of the ASEAN-China Free Trade Agreement, and exports to the mainland now account for approximately 13.4% of total exports, passing the US, Japan, and the eurozone to become one of Indonesias largest markets.

The price of this market report covers 4 quarterly reports on this sector. This quarterly report will be downloadable instantly as a PDF document, with the 3 remaining reports delivered at regular intervals throughout the year.

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Select License Type

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Electronic License

An electronic version (mostly PDF, but can be Excel or PPT), which is either available for immediate download or will be sent via email by the Publisher of the report. The licencing for an electronic version is for use by the purchaser ONLY.

£827.45

Change Currency

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