With a market estimated at around US$ 11.4 million for packaged organic food. Fresh fruit and vegetables largely domestically sourced, Indonesia is the world’s largest Muslim country – with an economy backed growing at 5% – and is seen a stepping stone to other Muslim communities.Export of organic is an important industry, and increasing.
Consumer Preferences & Channels
Aside from typical motivators such as food scandals, there is also more of a fashionable demand for artisan and quality/taste led food. The most common motivator is still health though, followed by low amounts of additives. Reduction in exposure to farm and process chemicals is also a factor. A belief that organic produce is tastier is more prominent as a motivator here compared to other countries in the region. Access to a full range of organic is still perceived as an issue for some, not to mention price. The vast majority of organic consumers intend to maintain or increase their intake of organic.
South Korea’s Nature Republic are an example of overseas retailers now entering the Indonesian marketplace. With 142 square metre store is located in the Lippo Mall in Indonesian capital Jakarta, the company plans 10 further store openings in the country, in cities including Bandung, Surabaya and Bali by the end of 2017.
The age category most likely to be aware of and purchase organic foods is 25-44. For household spending around half spend around 260US$ per year, with the top bracket 10% of consumers buying over 500US$. Higher end restaurant chains have begun to offer organic ingredients in their menus. Vegetables, eggs rice and fruit are the most commonly consumed products according to wbioworld.
No legislation, products can be exported without specific certification. An export certificate may be needed – SAC can endorse these free of charge.
Sources & Links to Further Info