Baby Milk & Infant Formula - Indonesia

Revenue in the Baby Milk & Infant Formula market amounts to US$4.05bn in 2024. The market is expected to grow annually by 5.75% (CAGR 2024-2029).
In global comparison, most revenue is generated China (US$17bn in 2024).
In relation to total population figures, per person revenues of US$14.47 are generated in 2024.
In the Baby Milk & Infant Formula market, volume is expected to amount to 224.30m kg by 2029. The Baby Milk & Infant Formula market is expected to show a volume growth of 4.2% in 2025.0.
The average volume per person in the Baby Milk & Infant Formula market is expected to amount to 0.7kg in 2024.

Definition:

Baby milk and infant formula are types of milk made specifically for infants and young children who are not yet able to consume solid food or who cannot be breastfed. They are also intended for children aged between 1 and 3 who do not get enough nutrients from their regular diet.

Baby milk is typically made from cow’s milk that has been modified to make it more easily digestible for babies. It may also contain added nutrients, such as vitamins and minerals, to ensure that infants or young children receive all the nutrients they need for healthy growth and development. Infant formula is specially designed to mimic the nutrient content of breast milk as closely as possible. Baby milk and infant formula may come in different forms, such as in powdered form, as a liquid concentrate, or in a ready-to-feed form.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per unit (unit refers to kilogram). The market encompasses retail sales through both online and offline sales channels to private end customers (B2C). The market only covers at-home consumption, out-of-home consumption is not included.

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Infant formula, such as Nestlé NAN PRO 1 Infant Formula, Aptamil Gold Infant Formula Milk Powder for Babies, Similac Advance Infant Formula, and Nestlé LACTOGEN 1 Infant Formula Powder
Baby milk, such as Milupa Milupino for 1–3-year-old toddlers and Aptamil Pronutra 1+

Milk and milk products intended for adult consumption, such as Danone’s dairy drinks
Milk substitutes (soy-based) for babies and infants
Out-of-home consumption

The Baby Milk & Infant Formula Market in Indonesia is experiencing minimal growth, influenced by factors such as increasing competition, changing consumer preferences, and stricter regulations. Despite this, the market continues to see steady growth due to rising demand for convenient and healthy infant nutrition options.

Customer preferences: With the rise in urbanization and working mothers, there has been a notable increase in demand for convenience and time-saving products in the Baby Milk & Infant Formula Market in Indonesia. As a result, there has been a surge in the sales of ready-to-drink and single-serve formula options, catering to the busy lifestyles of modern parents. This trend is likely to continue as more families prioritize convenience and ease of use when it comes to feeding their infants.

Trends in the market: In Indonesia, the Baby Milk & Infant Formula Market is experiencing a shift towards organic and natural products, driven by increasing health and wellness awareness among consumers. This trend is expected to continue as consumers become more conscious of the ingredients in their baby's food and seek out healthier options. Additionally, the rise of e-commerce platforms and online grocery shopping is making it easier for consumers to access a wider range of baby food products. This trend presents opportunities for industry stakeholders to expand their offerings and reach a larger customer base, while also highlighting the need for stricter regulations to ensure the safety and quality of baby food products sold online.

Local special circumstances: In Indonesia, the Baby Milk & Infant Formula Market of the Baby Food Market is heavily influenced by cultural and religious factors. As a predominantly Muslim country, halal certification is crucial for baby food products, leading to a surge in demand for halal-certified infant formula. Additionally, the country's growing middle class and increasing urbanization have resulted in a shift towards more convenient and premium baby food options, such as ready-to-drink formula and organic baby food. These unique factors make the Indonesian market a key player in the global baby food market.

Underlying macroeconomic factors: The Baby Milk & Infant Formula Market of the Baby Food Market within The Food market is primarily influenced by macroeconomic factors such as population growth, increasing disposable income, and changing consumer preferences. With a growing middle class and rising awareness about the benefits of infant nutrition, the demand for baby milk and infant formula is expected to rise in Indonesia. Additionally, government initiatives promoting breastfeeding and stricter regulations on advertising of breast milk substitutes have also impacted the market. Furthermore, the country's stable economic growth and favorable investment climate have attracted major players in the market, contributing to its overall performance.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.