According to the National Agency for Drug and Food (BPOM), the health and food supplement markets in Indonesia have generated more than IDR 4.5 trillion (USD 318 million).
It is an industry of IDR 16.8 trillion (USD 1.2 billion) with 80 per cent the products imported mainly from the United States. The projected food supplement market in Indonesia will reach IDR 25.19 trillion (USD 1.8 billion) in 2020.
- Indonesia has the second highest growth of health and food supplement products in the ASEAN region, contributing to 35 per cent of ASEAN Economic Zone.
- Indonesia’s 45 million people of consuming class will increase to 135 million by 2030.
- The food supplement market in Indonesia will grow 15 per cent per annum (CAGR 2018-2021).
- Per person revenues of IDR 16,655 (USD 1.19) are generated in 2018, in relation is total population figures in Indonesia.
- In Indonesia, more than 200 pharmaceutical companies produce food supplements.
- In 2013, Indonesia adopted the ASEAN harmonisation regulation for traditional medicine health supplements (TMHS).
Drivers of Growth
Food supplements in Indonesia recorded strong value growth in 2018. It is because Indonesian consumers are now changing their habits, and increasing awareness of preventive health measures can be seen among the middle-income Indonesian population. A study by Nielsen showed that when it comes to promoting health benefits, 81 per cent of Indonesian consumers were likely to spend more on healthy foods and supplements. This has initiated a substantial demand for a myriad of health food supplements, creating opportunities for local and international manufacturers to enter health food supplement sector in Indonesia
Middle-income consumers are the key factor that drove sales of food and health supplements in 2017 and 2018. This is associated with the vast growth of the middle class from just 37.7 per cent in 2003 to over 50 per cent in 2020, along with its growing buying power. Besides, the Indonesian economy rose by 5.1 per cent GDP in 2017 and is expected to grow by 5.3 per cent this year.
On top of that, the purchasing power has made a comeback in 2017 – Indonesia’s food and beverage industry (including food supplements) is predicted to grow 8.5 per cent year-on-year to IDR1,400 trillion (USD 105.2 billion). The direct investment is also forecasted to reach approximately IDR 63 trillion (USD 4.7 billion) simultaneously.
Imported Health and Food Supplements
The U.S. health and food supplements have a sterling reputation in Indonesia. They account for 80 per cent of the market share in Indonesia. It means that among the IDR 4.5 trillion (USD 318 million) health food supplements revenue in Indonesia, imported U.S. products account for IDR 3.5 trillion (USD 250 million). The imported health and food supplement market is concentrated in Jakarta, Bandung, Surabaya, and Medan.
According to a study done by Global Trade, the best sales prospects include vitamins (especially for children) and supplements that improve aesthetics and prevent certain diseases. For examples, supplements for weight loss and bodybuilding, supplements for cardiovascular disease, hypertension, and osteoporosis, and products that improve sex life and stamina.
As an important note, 90 per cent of the ingredients used in the Indonesian food and health supplement industry is still imported, thus presenting an endless opportunity for both local and foreign investors.
Non-registered halal food supplements will become non-halal in 2019. Check the conditions here.
Traditional Medicine Health and Food Supplement (TMHS)
Multivitamins lead the market in volume sales of health and food supplement, but traditional medicines still remain popular. In May 2013, BPOM announced that the country decided to adopt the terminology in the ASEAN harmonisation regulation for traditional medicine health supplements (TMHS). The TMHS regulatory framework defines health food supplements and properly regulates health and food supplement as a sector.
With more than 240 million people in the country, Indonesia is the second highest growth of health and food supplement products in the ASEAN region, contributing to 35 per cent of ASEAN Economic Zone. By implementing this regulation, both local and global brands in the Indonesian health and food supplements possess another competitive edge in the overseas market.
Sellers and Retailers Getting On Board
According to Asosiasi Pengusaha Suplemen Kesehatan Indonesia (APSKI), more than 200 pharmaceutical companies produce health and food supplements in Indonesia. Major retailers, especially hypermarkets and supermarkets, have also joined the pool with other retailers to use health and wellness products as part of their competitive strategy.
Import Business License in Indonesia
Food Supplement Product Registration in Indonesia
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