Market Trends of Indonesia Plant-Based Food And Beverages Industry
Meat Substitutes Are Gaining Traction Among Indonesian Consumers
The increasing consumer awareness about the health benefits associated with plant-based food is driving the shift toward meat substitutes in Indonesia. Middle and upper-class urban Indonesians, especially the younger generation, are increasingly adopting healthier diets, thus inclining toward plant-based food and beverage products. Meat substitutes like tofu and tempeh are traditional Indonesian soy-based products that have been part of the local cuisine for centuries, making them a staple in many Indonesian households. Additionally, ethical and health-conscious consumers are driving the penetration of meat substitutes nationwide. Ongoing research on the effects of meat production on climate change and resource usage is a major driver behind the growing consumer demand for plant-based food and drinks. For instance, in 2022, according to Glanbia Nutritionals, approximately 30% of parents in Indonesia included plant-based products in their children’s diets.
Animal welfare associations and government organizations educate the public about animal abuse and promote vegan lifestyles through various campaigns, driving the sales of meat substitutes. For instance, in July 2023, the Indonesian government banned dog and cat slaughter and meat trade sales in response to the campaign conducted by the DMFI (Dog Meat-Free Indonesia), an alliance of international and local animal welfare groups.
Growing Popularity of E-commerce Propelling the Growth
The convenience of online shopping for food and beverages is driving the shift toward e-commerce platforms. Online stores offer a wide range of plant-based foods and beverages, appealing to urban consumers with busy lifestyles who do not have time to access traditional brick-and-mortar retailers. The rise in internet penetration has been a key catalyst for this shift. In 2023, according to Statistics Indonesia, 69.21% of Indonesian consumers used internet. Key players in the market are capitalizing on this trend, offering a wide range of plant-based foods and beverages, including meat alternatives, dairy alternative beverages, non-dairy ice cream, non-dairy cheese, and other plant-based products, like milk powders, through online channels. Online shopping saves time and provides a vast selection of brands and products, along with convenient delivery services.
The user-friendly payment solutions offered by these stores are enticing consumers across the country. In 2022, according to the International Trade Administration, digital wallets were the top choice for 72% of online shoppers, followed by cash on delivery at 57%, mobile banking or internet banking at 39%, and pay later at 19%. Pay later is more commonly used by older generations (millennials and Gen X). This emerging way of shopping, although still relatively small in Indonesia, is anticipated to grow rapidly in the coming years.
