Local flavors and sustainable solutions for the Indonesian market

Indonesia’s food and beverage market shows a strong appetite for traditional as well as healthier processed products.  Forecast to reach USD 250.10 billion in 2024, and growing annually at a rate of about 6.03% from 2024 to 2029^[1], the market offers prospects for local and international brands to introduce healthier innovations to their product lines.

 

At Fi Asia held in Jakarta from 4-6 September, manufacturers had the opportunity to sample the latest ingredients and solutions from over 700 exhibitors. Kerry's booth, for example was a showcase of expertise in Taste, Proactive Health, and Food Protection & Preservation, with popular snacks and healthy meals highlighting the company’s solutions and capabilities. Its diverse range of food and beverage concepts catered to the local sense of taste and to the growing demand for new products. More importantly, the company’s ingredient solutions underscore affordability and sustainability. 

 

As General Manager of Kerry Indonesia, Janeley Haryono states, the goal is to help companies in transitioning towards sustainable nutrition, to ensure that innovative and healthier food and beverages are accessible and affordable to everyone.  Below, Ms. Haryono continued to provide her insights on the Indonesian market during an interview with FoodPacific Manufacturing Journal.

 

How is Indonesia different from other Southeast Asian markets when it comes to taste, flavor and consumer behavior?

Indonesians tend to prefer local food over other cuisines, according to Kerry’s 2024 report, Savoring the World with Authentic Taste of Indonesia. They love the familiar flavours, they are assured the food is satisfying, and they enjoy the richness of taste that come with local food.

 

The finding is interesting, given that culinary trends evolve as quickly as the global variety of food ingredients and cooking methods. However, Indonesians’ taste for strong, traditional flavors does not imply that their palates are not sophisticated. In fact, it’s more nuanced.

 

Would you explain this further?

Since the pandemic, the concept of a healthier lifestyle and diet has been catching on among Indonesians, and the idea of taking better care of themselves to stay healthy has become a priority. The trend towards healthier eating in Indonesia is projected to increase by 7.9% ^[2] this year.  

 

Moreover, a 2024 Statista survey of 1,042 respondents aged 18-64 in Indonesia, showed that freshness (78%), natural ingredients (66%) and fair-trade ingredients are the top factors behind food buying decisions, with 69 %saying they are making a conscious effort to eat better.

 

Interestingly, Indonesia is also the fourth biggest market for snacks in APAC.

 

What does Kerry offer in sustainable nutrition solutions to address this market change?

Kerry’s Tastesense™ solutions creates sweetness with up to 30% sugar reduction in food and beverages while allowing consumers to enjoy the same taste, texture, and mouthfeel that sugar delivers, be it juices, ready-to-drink tea and coffee, or yogurt. It’s a taste and nutrition solution that supports this shifting preference among consumers, which has, in turn, prompted the Indonesian government to issue regulations that support health benefits while responding to market demand.

 

Indonesia’s Ministry of Health requires food and beverage producers to include the sugar content on all products sold.

 

In Kerry’s proprietary research on consumer sweetness perception in Southeast Asia, as many as 88% of those surveyed in the region, including Indonesia, agreed that although reduced sugar products did not taste the same, they realized that reduced sugar products were healthier for them. In addition, 86% of consumers understood the potential risks of too much sugar leading to diabetes and weight gain.

 

Are there other government initiatives promoting healthier choices?

In 2021, Indonesia’s Food and Drug Monitoring Agency (BPOM) introduced the “Pilihan Lebih Sehat” green tick logo on food packaging, which identifies the product as containing sugar, salt, and fat levels that are in accordance with nutritional needs. This is to help consumers make healthier food and beverage choices.

 

In 2022, the Indonesian government announced a recommendation for the use of sugar, salt, and fat in processed and instant foods, aimed at lowering the risk of hypertension, stroke, diabetes, and heart attack among the population. The Ministry of Health recommends limiting daily salt intake to no more than 5 grams, sugar to 50 grams, and fat to 67 grams.

 

This is also where Kerry’s Tastesense™ Salt solutions fit in: it delivers on salt and rich savory taste, without adding sodium, by retaining essential flavor properties and replicating salty impact, body, and linger. Available both as a singular solution for salted crisps and as part of more complex snack seasoning formulations, Tastesense™ Salt is supported by strong fundamental science that links taste receptors with proprietary product chemistry, salt morphology, proteolysis, and fermentation.

 

What were the takeaways from Kerry’s participation at Fi Asia Indonesia? What trends will continue to influence F&B formulations in 2025?

Young consumers will continue to drive the culinary/F&B landscape. They travel widely, they want more options; they want to enjoy their traditional foods but with a wider variety of food ingredients and modern cooking methods.

 

At the same time, people have become more aware of the importance of a healthier diet through sustainable sources, particularly after the pandemic.  

 

Brands and manufacturers are very keen on healthier solutions for their consumers but without compromising on taste; this will continue to shape F&B formulations.

 

At FiA, we went out to educate our customers and consumers about our purpose to deliver nutritional and sustainable solutions through our advanced technologies. We will continue to create solutions for F&B products that not only support better health, but are delicious  andalso accessible and affordable for people everywhere.

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[1] https://www.statista.com/outlook/cmo/food/indonesia

[2]https://www.suara.com/pressrelease/2024/02/19/114500/tren-konsumsi-makanan-sehat-masyarakat-capai-79-berpotensi-untuk-peluang-bisnis