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Health, convenience and sweets: Consumer trends in 2024
Cooking oil, mineral water and instant noodles are staple goods that are at the core of the Indonesian diet, so consumption growth for the goods will remain resilient in 2024 and for years to come.
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An installation of Indofood in Ideafest 2019 in Jakarta showcases the company's instant noodle products, some of which have been globally distributed. (JP/Tertiani ZB Simanjuntak)
T
he Indonesian consumer confidence index ended the year 2023 on a positive note, touching the level of 123.8, well above the optimism threshold of 100 points.
Breaking it down by expenditure level, each consumer segment signaled optimism, with the return of consumers in the Rp 1 million to 2 million (US$63.15 to 126.30) monthly expenditure segment to the optimistic zone in December 2023, after previously falling into the pessimistic zone in November 2023.
This consumer optimism signals that consumers are welcoming the new year with confidence in spending, which raises the question: What goods are consumers buying in 2024?
Over the past few decades, Indonesia has significantly reduced its poverty levels, making way for the rise of middle-class consumers with higher earnings and busier lifestyles. This consumer group wants quick and easy, which translates to packaged food and beverages, since they are convenient and readily available. As health awareness improves, they also want healthy lifestyles and the goods and services that make that possible.
This change in lifestyle and consumption preferences is reflected in the Indonesian National Socioeconomic Survey Data (Susenas). For the past five years, mineral water has been among the top two fast-moving consumer goods (FMCG) that Indonesian consumers spend their money on, behind only cooking oil.
Indonesians spent Rp 41.6 trillion to purchase mineral water, both in multi-gallon jugs and bottles, with a compound annual growth rate (CAGR) of 4.1 percent from 2019 to 2023. Instant noodles are another contender, on which Indonesians spent Rp 35.9 trillion in 2023, with a CAGR of 7.7 percent from 2019 to 2023.
Cooking oil, mineral water and instant noodles are staple goods that are at the core of the Indonesian diet, so consumption growth for the goods will remain resilient in 2024 and for years to come.
