In 2024, Indonesia saw improvements in its Economic Freedom and Trade rankings, indicative of a more open and stable environment for commerce. However, projections for 2025 suggest a potential downturn in business confidence due to the new administration's emphasis on economic nationalism. The labour market exhibited gradual enhancements, though youth unemployment and skills deficits persist as notable hurdles.

Indonesia’s real GDP grew by 5.0% in 2024, driven by strong private and public consumption, though GDP per capita stayed below the regional average. Inflation eased to 2.2% on tighter monetary policy and lower commodity prices, lifting consumer confidence. During 2024-2029, growth is projected at a 4.9% CAGR, supported by structural reforms, investments, and strong private and public consumption.

In 2024, couples with children were the leading household type in Indonesia, reflecting traditional family values and a trend towards smaller family sizes, due to a falling birth rate and urbanisation. Over 2024-2029, the number of households is forecast to grow by 5.1%, with single person households expanding the fastest, driven by delayed marriage and childbearing.

Total baby food packaging retail volumes rose by 1% in 2024, reaching 1.3 billion units. Growth was driven primarily by the robust performance of dried baby food, which remained the most widely purchased baby food aside from milk formula, owing to its long shelf life, ease of storage, and convenience of preparation. These attributes continued to resonate with modern households, particularly in regions where access to fresh ingredients is limited or time constraints are a significant factor. Mean

In 2024, total confectionery packaging retail volumes in Indonesia declined by 4%, reaching 11 billion units. This downturn was primarily driven by a significant decrease in chocolate confectionery, particularly boxed assortments, sales of which are typically linked to premium and gifting occasions. The decline in sales of chocolate confectionery was further exacerbated by an increase in unit prices, largely attributed to the global rise in cocoa costs. Weather disruptions, crop diseases, and ge

In 2024, total dairy packaging retail volumes in Indonesia experienced significant growth of 7%, reaching 15 billion units. This upward trend was driven by the robust expansion of milk processing capacity and increasing consumer demand. As of May 2024, the country's milk processing capacity had reached 4.64 million tonnes annually, supported by substantial industry investments totalling IDR23.4 trillion and 88 active processing plants. The growth in milk processing was characterised by the incre

In 2024, Indonesia witnessed 8% growth in total processed meat and seafood packaging retail volumes, reaching 1.9 billion units. This surge was driven by rising demand across chilled, frozen, and shelf-stable meat and seafood, as well as meat and seafood substitutes. The increasing popularity of convenient, protein-rich ingredients requiring minimal preparation, such as sausages, nuggets, and frozen seafood, can be attributed to busy urban lifestyles and the expansion of modern retail and foodse

In 2024, total processed fruit and vegetables packaging retail volumes in Indonesia reached 26 million units, representing 4% growth, thereby continuing the steady upward trend observed in recent years. Both frozen and shelf stable products contributed to this increase, driven primarily by urbanisation and evolving consumer lifestyles. As Indonesians increasingly adopt fast-paced, urban lifestyles, the demand for ready-to-eat and easy-to-use products has risen, prompting a shift towards packagin

In 2024, total sweet spreads packaging retail volumes in Indonesia rose by 7% to 173 million units, driven by broad-based growth across all key categories. The increasing popularity of chocolate spreads and nut and seed based spreads was a key factor, as they gained appeal as versatile, indulgent, and protein-rich options for both children and adults. Changing breakfast and snacking habits contributed to their success, with consumers seeking quick, flavourful, and convenient options that could b

In 2024, Kenya's average gross income ranked 19th among Middle East and Africa countries, with a slight deceleration in per capita disposable income growth. The government's manufacturing support programme, launched in January 2024, aimed to boost household earnings and job creation. Over 2024-2029, per capita disposable income is forecast to increase by 14.3%, driven by efforts to enhance the private sector and improve income distribution, although income inequality and poverty remain significa

In 2024, total meals and soups packaging retail volumes in Indonesia reached 35 million units, representing 2% growth, thereby continuing a multi-year trend of steady expansion. This upward trend was driven by consistent growth in packaging volumes across major categories, including dried, frozen, and shelf stable ready meals and soup, as consumers increasingly opted for packaged formats that offer convenience, a long shelf life, and ease of preparation. Notably, frozen ready meals and frozen so

In 2024, Indonesia's total plant-based dairy packaging retail volumes saw growth of 5%, reaching 362 million units. This expansion was driven by consumers' increasing inclination to purchase healthier, dairy-free alternatives. A significant factor contributing to this trend was the high prevalence of lactose intolerance, affecting approximately 66% of adults in the country. In recent years, there has been increased awareness and understanding of lactose intolerance, which has boosted overall sal

In 2024, total sauces, dips, and condiments packaging retail volumes in Indonesia experienced a marginal increase, reaching 16 billion units. This growth was driven by rising demand for dips, salad dressings, and herbs and spices, which can be attributed to urban lifestyles, global cuisine trends, and the expansion of modern retail and foodservice channels. Mayonnaise and salad dressings were the key drivers growth, reflecting consumers' increasing interest in convenient meal solutions. However,

Tobacco in Indonesia was negatively influenced by weak private consumption in 2024, which forced consumers to economise. The rising cost of living and inflationary pressures squeezed disposable incomes forcing consumers to trade down from mid-priced to economy cigarettes. Unit price growth slowed in comparison to recent years, supporting a return to overall volume growth, albeit only marginal. Smoking alternatives continue to gain appeal due to the wider choice of products and lower prices. Toba

Cigarette volume sales in Indonesia contracted for the second consecutive year in 2024, although demand improved year-on-year. Cigarettes are considered a staple for many smokers from the lower income segment in Indonesia. Smoking is deeply ingrained in the social fabric, it is a common practice amongst men and is often associated with social gatherings, relaxation, and even hospitality. This cultural acceptance reinforces the prioritisation of cigarettes over other essentials at times.

Despite experiencing slower growth compared to previous years, other dairy in Indonesia is sustaining single-digit expansion in 2025, largely supported by affordability, product innovation and demand from the foodservice sector. As health consciousness grows among consumers, many are seeking healthier alternatives, prompting manufacturers to adapt their strategies. Rather than focusing solely on indulgence, brands have started to highlight nutritional benefits on packaging and social media. For

In 2025 cheese continues to enjoy strong retail value sales growth in Indonesia, nearing double-digit figures despite facing its slowest pace in a decade. The slowdown is largely attributable to ongoing economic uncertainties and a dip in consumer confidence. Nevertheless, cheese remains a rising star, driven by a surge in consumer awareness and evolving consumption habits. Much of this momentum stems from the strategic efforts of manufacturers and influencers leveraging social media platforms t

After a decline in 2024, baby food in Indonesia is showing signs of recovery in 2025, with value sales on the up. This shift is closely tied to the Indonesian government’s intensified efforts to combat stunting, a chronic malnutrition condition that hinders child development. The national stunting rate dropped from 21.5% in 2023 to 19.8% in 2024, with further reductions targeted for the coming years. These interventions focus on improving nutrition during the first 1,000 days of life - a period

Drinking milk in Indonesia continues to grow in terms of retail value sales in 2025, although at a slower pace compared to 2023 and 2024. The decline in consumer confidence, driven by economic pressures and a shrinking middle class, is leading many households to reduce spending on non-essential items. Despite this, milk remains a priority purchase, especially for families with children, due to its strong nutritional reputation and government support.

Yoghurt and sour milk products continues to show strong growth in Indonesia in 2025, driven entirely by yoghurt, and supported by rising consumer awareness, broader availability across retail channels and the introduction of more affordable products. As health consciousness increases, many consumers are actively seeking alternatives that offer functional benefits. Yoghurt fits this demand well, with its probiotic content supporting digestion and immunity, and its low-sugar variants appealing to

Cigars and cigarillos experienced another strong performance in 2024 as this category expands from a relatively small base in Indonesia. Given Indonesia’s challenging economy, demand weakened even among the most loyal affluent consumer base. Current value growth slowed slightly in 2024 as price growth began to normalise. However, falling unit prices did not have a significant impact on volume sales.

In 2025, though value sales continue to rise for butter and spreads in Indonesia, growth is slower compared to previous years. This deceleration is largely shaped by a combination of economic challenges and evolving consumer behaviour. As the country grapples with ongoing uncertainties and rising job losses, consumer confidence is declining. Households are more cautious with their spending, and this is leading many to reassess their grocery choices, often opting for more affordable or basic alte

Heated tobacco products in Indonesia dramatically outpaced e-vapour products in value growth terms during 2024. Heated tobacco products, while a relatively new category in the Indonesian market, has seen significant growth in the range of devices available over recent years. This expansion is largely driven by the increasing demand for alternatives to traditional smoking, coupled with advances in technology. The devices available for heated tobacco vary in terms of design, functionality, and use

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