YOY growth rate of the FMCG value in Indonesia Q2 2024, by segment

In the the second quarter of 2024, Indonesia recorded positive changes across all fast-moving consumer goods (FMCG) segments compared to the same quarter in the previous year. The overall change in the FMCG market value in the country stood at 5.7 percent in that quarter. Indonesia’s FMCG market is one of the fast-growing in the Southeast-Asian region. 

Fast-growing market

The growth of the FMCG market in Indonesia cannot be separated from the increasing number of middle-class consumers in the country. This development signified a changing lifestyle among those with more personal income, as they are increasingly able to afford products that they had considered superfluous before. In the FMCG market that covers almost every essential product needed by individuals, this would mean a robust value growth of the FMCG industry. 

Shift in consumer preferences

In recent years, consumer preferences in Indonesia have shifted significantly due to growing awareness of sustainability. As more consumers adopt sustainability practices when shopping, demand for transparency in terms of production, sourcing, and label information have also increased. A recent survey showed that many Indonesians were even willing to pay more for sustainability products. To stay ahead of the highly competitive FMCG market in Indonesia, companies need to cater to this shifting consumer preferences.