Indonesia vegetable juice market is projected to grow at a CAGR of 6.39% during the forecast period. Being the fourth most populous nation in the world which was in the order of 268 million translates to a large domestic consumer base as of 2019. The nation’s Gross Domestic Product (GDP) was to the tune of $1,120 billion and GDP per capita reached an estimated $4,179. The country’s retail sector registered as sales of $115 billion in 2019 with traditional grocer reportedly occupying 82% of the share. The grocery retail sales are registered in 2019 was the largest in Southeast Asia. Convenience stores have emerged as the primary point-of-sail for the locally produced brands. The need for shopping closer to home expressed by the consumers who belong to the middle class among others are have aided in the proliferation of convenience stores. Moreover, the increase in consumer expenditure occurs during the major holiday-periods Viz. Ramadan (April May in 2020), Christmas/New Year (December), Chinese New Year (January-February). Conversely in tandem with their respective growth strategies the modern grocery retailers reportedly offers more fresh products as well as a wide variety of imported products which is in line with the increasing demand for products that responds to the healthy lifestyle aspirations of consumers in Indonesia. Moreover, as an initial outcome of COVID 19, a 30% increase in sales was reported by supermarket chains to the preceding month as a result of initial panic buying. Moreover, movement restrictions enforced by the government had reportedly benefited retail grocery due to the increased perception of retail grocery to have comparatively better sanitary conditions. Moreover, the retail sales value of soft drinks was registered at $ 7,434.3 million during 2019 (January – April) which is an increase of 3% from the sales value registered during 2018 (January – April) [Source: USDA]. The aforementioned market conditions among others have conclusively makes way for the growth of the Indonesia vegetable juice market.
FIGURE: INDONESIA VEgETABLE JUICE MARKET SHARE, BY DISTRIBUTION CHANNEL, 2019
Source: Knowledge Sourcing Intelligence Analysis, Sample Figure
The growing pool of middle-class population is reportedly driving the interest in foreign products which is expected to positively impact the Indonesia vegetable juice market. The total import of non-alcoholic beverages for the US accounted for $ 2 million during 2019 with annual growth registered at 80.7% [Source: USDA]. The trend of wellness and health trends are the key determinants that are expected to drive the sales Indonesia vegetable juice market. The shift in lifestyle among the urban population is expected to steer consumers towards beverages with reduced sugar and those which contain natural ingredients. Further rising prevalence of lifestyle diseases that stems from the irregular eating schedule and hectic office hours are necessitating the need for supplementing the diet with products like vegetable juices. It also aids in bridging the gap in long pauses between meals and compensates in case of low nutrient intake. Moreover, various players in the market have reportedly developed products with a variety of combinations alongside the vegetable ingredients which adds value to the products and facilitates detoxification as well.