Update COVID-19 in Indonesia: 228,993 confirmed infections, 9,100 deaths (16 September 2020)
16 September 2020 (closed)
USD/IDR (14,878) +34.00 +0.23%
EUR/IDR (17,508) -76.52 -0.44%
Jakarta Composite Index (5,058.48) -42.38 -0.83%
Indonesia is the world's second-largest consumer of instant noodles, after China. Based on the latest data from the World Instant Noodle Association (WINA), Indonesia consumed 13.2 billion packages of instant noodles in 2015, accounting for 13.5 percent of total worldwide instant noodle consumption. Instant noodles are very popular among the Indonesian population due to the affordable price, easy-to-prepare nature, and yummy taste of the noodles (although there have been many reports that claim that these food products are unhealthy).
Sribugo Suratmo, Chairman of the Association of Bread, Biscuit and Instant Noodle Producers (Arobim), said instant noodles are not regarded a snack anymore by Indonesian households but are now used as a side-dish. Moreover, the instant noodles industry of Indonesia is innovative - with new and interesting flavors being released each year - and Suratmo expects that this will contribute to rising consumption of instant noodles in Indonesia.
Arobim estimates that 15 billion instant noodles packages will be sold in full-year 2016, supported by Indonesians' improving purchasing power amid the accelerating economic growth. In Q1-2016 Indonesia's GDP growth reached 4.92 percent (y/y), higher than the 4.73 percent (y/y) recorded in Q1-2015. Therefore, Indonesia's instant noodle producers have started to engage in aggressive advertisement campaigns. Moreover, in early June the holy Islamic fasting month (Ramadan) will start (followed by the Idul Fitri celebrations). This period always triggers higher consumption and instant noodle consumption is expected to rise 10 - 15 percent (from normal conditions). Over the past two months the nation's instant noodle producers have already boosted their stocks in order to avert supply shortages during the Islamic celebrations.
Global Instant Noodle Consumption:
in billion packages
Source: World Instant Noodle Association (WINA)
Indonesia's top instant noodle producers are Indofood Sukses Makmur, the Wings Group, Conscience Food Holding, ABC President Indonesia, Jakarama Tama, and the Medco Group. Indofood Sukses Makmur is the company that controls the market with its strong Indomie brand, loyal customers, and dominant market position. Therefore, Indofood is also in a position to determine the prices of instant noodle packages (a price hike does not result in a significant decline of customers for Indofood).
Market Share Composition Indonesia's Instant Noodles Market (%):
|Indofood Sukses Makmur||71.8||71.8||71.8||72.0|
|Conscience Food Holding||2.7||2.7||2.7||2.6|
|ABC President Indonesia||1.9||1.9||1.8||1.8|
|Nissin Foods Holdings Co Ltd||1.1||1.1||1.0||1.0|
|Delifood Sentosa Corp||0.7||0.6||0.6||0.6|
Source: JP Morgan
The Power of Instant Noodles in Indonesia:
|What Explains the Popularity of Instant Noodles in Indonesia?|
|• available across the Indonesian archipelago|
|• affordable (also by the poorer segments of the population)|
|• wide range of flavors (often new flavors come on the market: innovation)|
|• it is a practical meal (quick and easy to make)|
|• aggressive advertising campaigning in various media (especially television)|