SAVOURY SNACKS IN INDONESIA - ANALYSIS

Country Report | Aug 2019

HEADLINES Market Sizes

Current value and volume sales of savoury snacks rise by 8% and 3%, respectively to Sales of Savoury Snacks
reach IDR26.1 trillion and 333,700 tonnes in 2109 Retail Value RSP - IDR billion - Current - 2005-2024
Flavour extensions in salty snacks and nuts, seeds and trail mixes continue to drive
value growth in 2019 26,136 Forecast
40,000
Nuts, seeds and trail mixes sees the highest value growth of 15% in 2019 to reach
IDR9.8 trillion in 2019
Average unit price of savoury snacks rises by 5%, driven by a 12% price hike in nuts,
30,000
seeds and trail mixes
Indofood Sukses Makmur leads the category with a value share of 11% in 2019
Savoury snacks is expected to see a current value CAGR of 8% (3% 2019 constant 20,000
value CAGR) over the 2019-2024 forecast period

PROSPECTS 10,000

New product launches, especially those with new flavours, stimulated

demand 0
2005 2019 2024
New product launches in 2018 and 2019 stimulated demand for savoury snacks by giving
consumers more choices and resulted in higher value and volume growth for savoury
snacks in 2019. With intense competition in savoury snacks in Indonesia, offering a
wide product selection at affordable prices and in new flavours remains a key strategy Sales Performance of Savoury Snacks
that manufacturers use to generate interest. The latest launches were characterised by % Y-O-Y Retail Value RSP Growth 2005-2024
flavour extensions because unique or distinctive flavours are highly attractive to
Indonesian consumers of savoury snacks. For example, Doritos added two new flavours
of tortilla chips – Nacho Cheese and Barbeque – to its Indonesian portfolio in 2018 and
8.4% Forecast
14%
Calbee Wings launched a new potato chips product under the Potabee line in a Grilled
Chicken flavour. What also is unique about the new Potabee products is that they
12%
enable consumers to choose the spice level they want by adding one or two packs of
seasoning contained in the package. Indofood Sukses Makmur continued to launch
flavour extensions to its Chitato line, accompanied by the slogan, “Do us a flavour”, in 10%
2018 and 2019. This reflects the rising interest in and consumer acceptance of regional
ethnic flavours within snacking products. These innovations and anticipated others, for 8%
example in nuts, seeds and trail mixes, are set to ensure continued strong current value
growth of savoury snacks over the forecast period. 6%

Value growth of nuts, seeds and trail mixes driven by new products at 4%
higher prices
2%
Nuts, seeds and trail mixes saw the highest value growth in 2019, driven by new
premium product launches at much higher unit prices. New brands that have entered 0%
the category, which is a premium category, include Camel Natural Baked Almonds, 2005 2019 2024
Kacang Kulit Rasa Vanilla (roasted peanuts), Tong Garden Honey Almond Peanuts and
Champion Garlic Flavoured Peanuts. Unit prices of these products can be as much as
four times higher than that of mass products offered by Kacang Garuda and Dua Kelinci,
and their packaging is more premium. Distribution of these products is considered
niche compared to that of leading brands such as Garuda and Dua Kelinci, both of which
are strong in both traditional and modern retail channels; the more premium products
are mainly available in selected modern retail outlets such as supermarkets and
hypermarkets, which are only concentrated in larger cities.

Emerging tortilla chips category bolstered by higher awareness, new

brands
Tortilla chips experienced strong value growth in Indonesia in 2019, nearly as high as
that of potato chips, a long-established favourite amongst salty snacks. Tortilla chips is
benefiting from growing product awareness as well from the entry of new brands,
distributed by happyfresh.id stores, amongst others – for example, Wanted Tortilla
Chips in chilli flavour and Poco Loco Nacho Cheese Tortilla Chips. Tortilla chips is a
relatively emerging category, and as new international and local brands continue to be
introduced in Indonesia, they are expected to drive positive growth for the category
over the forecast period.

© Euromonitor Interna onal 2020 Page 1 of 3

COMPETITIVE LANDSCAPE Sales of Savoury Snacks by Category
Retail Value RSP - IDR billion - Current - 2019 Growth Performance
Indofood’s “Do us a flavour” campaign, distribution advantage help
buttress its lead Nuts, Seeds and Trail Mixes
9,755.8
Indofood Sukses Makmur continued to lead in savoury snacks in 2019 on the strength of Salty Snacks
its wide product portfolio and new product launches, amongst which were several new 12,792.0
products under the previously mentioned “Do us a flavour” campaign, where it allows Savoury Biscuits
consumers to engage in designing or suggesting new flavours for its upcoming 2,302.6
launches. Indofood also applied this innovation strategy to its Qtela, Lay’s and Chitato Popcorn
brands, and such extensions as Mango Sticky Rice, Fried Crab with Golden Egg Yolk and 76.4
Beef Rendang in 2018, all under its Chitato line, contributed to the brand’s higher Pretzels
growth in 2019 over the previous year. Moreover, as one of the sponsors for the 2018 -
Asian Games, the company also launched two unique local flavours – Soto Betawi Other Savoury Snacks
(Betawi/Jakarta-style beef stew) and Pempek (Palembang-style fish cake) to embrace 1,208.7
Indonesian local culture, and offered these into two main cities that hosted the Asian 0% 10% 15%
Games. In the same year, Indofood followed a similar strategy with its Lay’s brand,
resulting in the winning flavours of Australian Beef Burger, Japanese Wafu seasoning SAVOURY SNACKS 26,135.6 CURRENT % CAGR % CAGR
YEAR % 2014-2019 2019-2024
and Iga Bakar Keju (Indonesian traditional BBQ ribs with cheese). GROWTH

Another reason for the company’s success is the strong availability of its products in
Indomaret, a convenience store in Indonesia, which shares the same parent company
as Indofood. This distribution advantage helped to generate revenue for the company’s
new product launches throughout the review period.
Competitive Landscape

Internet retailing and premiumisation strategies strengthen local start- Company Shares of Savoury Snacks
ups % Share (NBO) - Retail Value RSP - 2019

Local start-ups are gaining more awareness, supported by internet retailing. Although Indofood Sukses Makmur T... 10.5%
these young enterprises are still considered niche, the internet retailing channel has Garudafood Group 10.4%
enabled them to expand their distribution to cover a wider region. Beyond gaining
Dua Kelinci PT 7.5%
wider exposure via the internet, start-up brands have been pursuing a premiumisation
strategy instead of trying to compete with unpackaged or mass products. Tiga Pilar Sejahtera Foo... 4.4%
Premiumisation often focuses on using local ingredients and having a unique flavour or Siantar Top Tbk PT 4.3%
on offering products with healthier ingredients for consumers pursuing a healthier
lifestyle. For example, Ei uses the first approach by promoting local Indonesian snacks Ultra Prima Abadi PT 2.4%
such as chicken skin and its unique salted egg snack. On the other hand, Tempeh, a Mitrasatrya Perkasautama... 2.2%
start-up taking the healthier approach, recently enhanced the value of common
tempeh chips by adding organic versions to its line. Mondelez Indonesia PT 2.2%
Pacific Food Indonesia P... 2.0%
Growth of seaweed snacks boosted by expanded distribution, new URC Indonesia PT 1.8%
product launches
Pacific Millenia Pangan ... 1.7%
Seaweed snacks, classified under “other savoury snacks”, have gained popularity in Sekar Laut Tbk PT 1.7%
Indonesia, partly because they are perceived to be lighter than puffed snacks and
potato chips; hence, healthier for snacking. In 2019, the category continued showing Calbee Wings Food PT 1.7%
positive growth, supported by more new product launches and by expanded Mayora Indah Tbk PT 1.6%
distribution. In terms of distribution, products used to be available mainly in higher-
Manohara Asri PT 1.3%
end supermarkets or hypermarkets. In 2019, they were not only available in those
channels, but also accounted for more shelf space there than they did in the previous Khong Guan Indonesia PT 1.2%
year. In addition, distribution of some of the products expanded into medium-priced Sari Murni PT 0.8%
supermarkets and hypermarkets such as Giant and Carrefour. Moreover, some seaweed
products have already entered convenience stores. In terms of new product Sentral Multirasa PT 0.6%
development, more new products have entered the marketplace; amongst them are Jico Agung PT 0.6%
Chung Jung Won Olive Oil Traditional Laver in multiple flavours and MamaSuka Spicy
Others 41.0%
Dried Roasted Seaweed.

Summary 1 Other Savoury Snacks by Product Type: 2019

Product type
Noodle snacks
Seaweed snacks

Source: Euromonitor Interna tiona l from officia l s ta tis tics , tra de a s s ocia tions , tra de pres s , compa ny
res ea rch, s tore checks , tra de interviews , tra de s ources

© Euromonitor Interna onal 2020 Page 2 of 3

 Brand Shares of Savoury Snacks
% Share (LBN) - Retail Value RSP - 2019

Garuda 8.5%
Dua Kelinci 6.8%
Cheetos 3.6%
Taro 2.9%
Chiki 2.8%
Kayaking 2.4%
Mr P 2.2%
Chitato 2.0%
French Fries 2000 1.9%
Jack 'n' Jill 1.8%
Pilus 1.8%
Oops 1.7%
Finna 1.7%
Roma 1.6%
Mie Kremezz 1.6%
Potabee 1.5%
Mayasi 1.3%
Ritz 1.2%
Jacob's 1.0%
Others 51.6%

Increasing share Decreasing share No change

© Euromonitor Interna onal 2020 Page 3 of 3