Showing posts with label Butter and Spreads Market Indonesia. Show all posts
Showing posts with label Butter and Spreads Market Indonesia. Show all posts

Monday, June 1, 2020

Post COVID-19 Impact, Butter and Spreads Sales within Indonesia saw Growth over Non-Traditional Platform owing to Price Decline: Ken Research

      • A decline in Palm oil prices will help margarine business to gain significant growth in the near future amid increased deforestation in Indonesia
      • Demand for butter saw an incremental increase alongside an exponential increase in the bread and bakery industry of Indonesia.
      • Import of butter and spreads got affected by trade halts from other Asian countries such as China and Vietnam
Major Players have started to work on the Substitutes of the Product or its Sourcing Material: Domestic demand as well as B2B demands for margarine is largely affected due to the global lockdown situation causing a decline in terms of production capacity.
As a result, Fonterra was observed to establish a partnership with Lazada Indonesia to bring changes in the retail concept and digitalizing sales while Upfield plans to further launch a new product “New Flora Plant”. The impact of coronavirus has still been haunting the domestic industry that was specifically indulged in buying and selling online for imported goods in Indonesia.
The sales of processed foods in Indonesia are estimated to drop by ~30% as people’s purchasing power is hit by the coronavirus pandemic or COVID-19. The particular trend is expected to multiply in the coming months thus, causing disruptions in butter and spreads industry in Indonesia. In addition to that, sales are also expected to take a hit during Ramadan and Eid season.
In accordance with Public Policy of the Indonesian Food and Beverage Association (GAPMMI) survey of members’ perceptions, businesses are expected to go down by 30-35%, amid all production activities will continue as usual in the near future. The government of Indonesia presently does not limit the production activities in the middle of the implementation of the Large-Scale Social Restrictions (PSBB) policy in DKI Jakarta to break the chain of transmission of coronavirus. However, the ongoing production process may still cause demand fluctuations in the butter & spread industry due to price variation on a continuous basis.
Apart from the households, manufactures are in constant touch with restaurant and cafĂ© chains who are delivering food items via online mode of delivery. Meanwhile, the current stock of raw materials is sufficient enough to last for a few months after which, the need for new raw materials will affect the production cost owing to the high dollar exchange rate i.e. already Rp 16,000. Manufacturers are also considering the fact that butter is a part of basic food business and people consume it as a daily necessity thus, giving them the confidence to launch new spread variants in the coming months.
The market is greatly affected by the trade halts from China due to the pandemic situation caused in the current year. Due to widespread COVID-19 infection, dairy consumption patterns changed to a great extent. All the major players shifted their product distribution either through internet retailing or via home delivery.
The report titled Indonesia Butter and Spreads Market Outlook to 2025 - Growth within Food and Beverage Market to Drive Demand for Butter and Spreads by Ken Research suggested that the market is further expected to grow in future majorly due to changing Urban Lifestyle of Indonesians and alteration in preferences of the purchasing platform. Indonesia butter and spreads market are expected to register a positive six-year CAGR of 3.6% and 3.5% in terms of revenue and sales volume respectively during the forecast period 2019P-2025F.
Key Segments Covered: -
Product Type
Butter and Spreads
Butter
Margarine and Spreads
Distribution Channel
Hypermarkets
Supermarkets
Independent Small Grocers
Convenience stores
Other grocery retailers
Non store retailing
Health and beauty specialist retailers
Key Target Audience
Dairy food manufacturers
Milk Processors
Dairy Association
Butter Manufacturers
Spreads Manufacturers
Margarine Manufacturers
Time Period Captured in the Report:
Historical Period: 2013-2019P
Forecast Period: 2019P–2025F
Companies Covered:
Butter and Spreads –
Upfield Holdings BV / Unilever Group
Indofood Sukses Makmur Tbk PT
Fonterra Cooperative Group Ltd
Golden Agri-Resources Ltd
Wysman & Zonen BV, HJ
Key Topics Covered in the Report
Executive Summary – Indonesia Butter and Spreads Market
Need, Opportunity and Industry Size of Butter and Spreads Market
Demand & Supply Side Ecosystem, Preferences & Trends across End Users Market
Butter and Spreads Market Segment by Product Type, 2013-2019P
Market Segmentation by Distribution Channel, 2013-2019P
Ecosystem for Butter and Spreads Industry in Indonesia
Value Chain Analysis
Indonesia Butter and Spreads Market
Trade Scenario in Indonesia Butter and Spreads Market, 2014-2018
Comparative Landscape in Indonesia Butter and Spreads Market
Regulatory Landscape in Indonesia Butter and Spreads Market
4 Ps Analysis
Indonesia Butter and Spreads Market Future Outlook and Projections, 2019P-2025F
Appendix / Research Methodology
For More Information on the research report, refer to below link: -
Related Reports by Ken Research: -
Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249