Indonesia has a vast and diverse retail landscape and has experienced significant growth for fast moving consumer goods (FMCG) business by 10.6% in 2022 (Nielsen consumer LLC, 2022), driven by factors such as populations size, increasing disposable income, urbanization, and changing consumer preferences.
FMCG industry in Indonesia is driven by general trade sector who made a substantial contribution, comprising 69% of the total retail market in 2022. It is increasing its contribution by 0.8% compared to the last year.
The milk industry in Indonesia, as part of FMCG, has seen significant growth in recent years, driven by a growing middle class with higher disposable income and an increasing awareness of the importance of dairy products in maintaining a healthy diet. Despite being the fourth most populous country in the world, Indonesia has relatively lower capita milk consumption per year compared to other sea country.
In the adult milk category, PT XYZ as a leader in the adult milk category surpassing 50% of the market. The modern trade channel emerges as the dominant player, contributing a significant 76.4% to the category's overall sales. General trade channel in PT. XYZ is under performing to other channel with the market. The key strategies are acceleration of numeric distribution through leveraging right route to market strategy in general trade channel and brand expansion and innovation, continue to build on the strong global brand and reputation by expanding product offerings, introducing new variants or extensions to cater to evolving consumer preferences.