Indonesia Infant Milk Formula Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Formula Type (Formula 1 (0-6 Months), Formula 2 (6-12 Months), Formula 3 (1-3 Years)), By Distribution Channel (Online, Offline), And By Province - Forecasts From 2022 To 2027

The Indonesian infant milk formula market was valued at US$2,495.91 million in 2020. Growing nutrition awareness, increased structured retail marketing, urbanization, and a significant increase in the number of working mothers are all factors propelling the country's infant milk formula market forward. According to data from the Ministry of Manpower, the female workforce participation rate in 2021 increased marginally from 2020 to 53.13 percent, up from 51.81 percent in 2019.

As per the Bureau of Investigative Journalism, international baby formulae manufacturers like Nestlé and Danone are increasingly using social media to promote to customers in South East Asia. During the coronavirus pandemic, businesses altered their advertising strategies to produce online marketing content to improve brand visibility. For instance, Dancow, a brand of infant formula sold in Indonesia by Nestlé, had commercials with the phrases "Bunda, Lindungi Si Buah Hati" (Mother, protect your sweetheart!) and pictures of young children consuming milk formula. Since March 2020, the business has regularly used the hashtag #DancowLindungi (#DancowProtects) in its posts.

Growth Factor:

• Falling child mortality rate and increasing urbanization rate

The country's falling child mortality rate and expanding urbanization rate will enhance the demand for infant milk formula even more. As per World Bank data, Indonesia’s urban population reached 154.926 million in 2020, up 9.7 percent from 2016. In addition, Indonesia’s infant mortality rate in 2020 was 23 deaths per 1000 live births, down 4.17 percent from 2019, according to the World Bank. Furthermore, the country's rising disposable income and e-commerce are likely to boost demand for infant milk formula.

The increase in innovative product launches, as well as rising nutrition and digestive health awareness, have led to increased developments by major players, which is expected to propel the market's growth during the forecast period.

Key Development:

• In January 2022, Karihome goat's milk infant formula was introduced in Indonesia by Orient EuroPharma Group. Karihome is marketed as Indonesia's first goat's milk formula that promotes improved digestion and provides internal protection. Additionally, the European Food Safety Authority has authorized Karihome (EFSA). The new goat's milk formula gives Indonesian mothers another alternative for their infants' digestive health.

COVID-19 Impact on the Indonesia Infant Milk Formula Market

The COVID-19 epidemic hindered the Indonesian infant milk market’s potential growth by slowing the market expansion in 2020. The interim closure of companies in Indonesia because of government-imposed lockdowns and isolations has resulted in the slow growth of the infant milk market in 2020. The COVID-19 pandemic lowered the export and import rates of baby products from and to Indonesia. The offline retail sector suffered massively in the country; however, online sales witnessed an increase propelling the market in 2020.

Indonesia Infant Milk Formula Market Scope:

Market Segmentation:

• By Formula Type
  • Formula 1 (0-6 Months)
  • Formula 2 (6-12 Months)
  • Formula 3 (1-3 Years)
• By Distribution Channel
  • Online
  • Offline
• By Province
  • Jakarta
  • Bali
  • Java
  • Others