Dairy products and alternatives in 2025: The big picture
In 2025, dairy products and alternatives in Indonesia is recording strong value sales growth, driven by a combination of rising health consciousness, digital engagement and evolving consumption habits. Local consumers increasingly seek products that offer functional benefits, such as high protein, probiotics and lactose-free options, while also fitting into their fast-paced lifestyles. This shift is particularly evident among urban millennials and Gen Z, who embrace dairy not just for nutrition but as part of their health and wellness routines. Players are responding with innovations in format, flavour and accessibility, making dairy products and alternatives more relevant and appealing across income groups.
Key trends in 2025
Government policy is having a strong impact on development – most notably the Free Nutritious Meals Programme (FNMP), which has embedded milk into school feeding schemes nationwide. This initiative boosts demand for drinking milk products by positioning them as essential components of child nutrition. Millions of schoolchildren and vulnerable groups receive milk regularly, reinforcing its role in supporting development and family health. Beyond direct distribution, the programme is raising public awareness about the nutritional value of milk, influencing household purchasing behaviour. As a result, even budget-conscious families are starting to prioritise milk in their grocery baskets, contributing to sustained demand despite economic pressures. The FNMP is also helping to normalise milk consumption among younger demographics, laying the foundation for long-term growth.
Competitive Landscape
Frisian Flag Indonesia retains its position as the leading company of overall dairy products and alternatives in Indonesia in 2025, anchored by its namesake flagship brand Frisian Flag. The company’s leadership spans across key categories and segments, each benefitting from strong consumer trust, wide availability and consistent innovation.
Channel developments
In 2025, small local grocers remains the leading distribution channel for dairy products and alternatives in Indonesia, thanks to these stores’ deep integration into daily consumer routines and widespread accessibility. The channel’s outlets, which include warungs and market stalls, offer convenience, affordability and flexible purchasing options such as small pack sizes and informal credit, making them ideal for lower- to middle-income households and small food businesses.
What next for dairy products and alternatives?
Dairy products and alternatives in Indonesia is poised for strong and steady growth throughout the forecast period, supported by a combination of demographic, economic and lifestyle shifts. Rising disposable incomes and the expansion of the middle class are enabling more consumers to invest in health-oriented and premium dairy products. Urbanisation is reshaping consumption habits, with younger, time-pressed consumers seeking convenient, nutritious options that fit into fast-paced routines. At the same time, channel shifts - particularly the rise of convenience stores and e-commerce - are making dairy products and alternatives more accessible, especially in semi-urban and rural areas, while also supporting impulse purchases and trial of new formats.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Indonesia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in Indonesia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in Indonesia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in Indonesia?
- Which are the leading brands in Dairy Products and Alternatives in Indonesia?
- How are products distributed in Dairy Products and Alternatives in Indonesia?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Indonesia?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in Indonesia
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in Indonesia
KEY DATA FINDINGS
Government efforts help push growth in baby food in 2025
Sarihusada leads through its SGM brand as Yummy Bites enjoys rapid rises
Convenience stores as favoured channel for baby food purchases in Indonesia
Baby food faces strong value growth for forecast period
Rising health awareness will drive development
Tightened regulations and local players set to shape progress
Butter and Spreads in Indonesia
KEY DATA FINDINGS
Butter and spreads sees slowed growth in 2025
Upfield leads with popular Blue Band brand
Small local grocers remains favoured channel as convenience stores continues to expand
Further strong growth forecast for butter and spreads
Functional, plant-based and other health claims set to become more prevalent
Tighter regulations and social media trends will continue to impact evolution
Cheese in Indonesia
KEY DATA FINDINGS
Cheese benefits from rising consumer awareness despite ongoing economic uncertainty
Kraft continues to lead, investing heavily in promotional events
Supermarkets leads distribution though is ceding share to convenience stores
Cheese will see strong value growth in Indonesia throughout the forecast period
Health and wellness trends remain critical influences on category development
Regulation and certification promote healthier choices among consumers
Drinking Milk Products in Indonesia
KEY DATA FINDINGS
Slowed growth sustained by government programme
Ultrajaya leads, benefiting from trust and innovative efforts
Small local grocers as most popular channel, with e-commerce rising fastest
Drinking milk to continue to benefit from raised awareness
Health concerns as central to purchasing decisions
Digital campaigns will remain critical growth-builders
Yoghurt and Sour Milk Products in Indonesia
KEY DATA FINDINGS
Solid growth driven by increased accessibility and affordability
Yakult leads while Heavenly Nutrition rises fastest
Direct selling accounts for most sales in yoghurt
Rapid rises predicted for yoghurt and sour milk products
Healthy options continue to expand
Digital engagement becomes increasingly important to push sales
Other Dairy in Indonesia
KEY DATA FINDINGS
Other dairy sees slowed value growth in 2025, with cream rising fastest
Frisian Flag continues to lead overall other dairy in Indonesia
As e-commerce expands further, small local grocers remains primary distribution channel
Condensed milk set to expand and help drive further steady growth for other dairy
Health and wellness concerns will have increased impact on development
Social media as critical growth driver
Plant-Based Dairy in Indonesia
KEY DATA FINDINGS
Plant-based dairy records robust rises
Heinz still ahead of the rest, with Float Oat seeing further growth
Small local grocers remains biggest distribution channel in 2025
Forecast period will see persistent strong growth for plant-based dairy in Indonesia
Plant-based milk set to benefit from improved awareness
Flavour innovation will help fuel future growth
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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