Skip to main content

Sweet Tooth: Eliasan Consulting’s Insight on Indonesia’s Baked Goods Market
May 25, 2021 at 2:00 PM
b12 blog thumb size b.png

Currently, the Asia Pacific sector is filled with opportunities in a wide variety of food and beverage markets. Indonesia’s Baked Goods industry is one of the most active and fastest-growing in the region.


The demand for wheat based-bakery products has taken the country by storm, and here at Eliasan Consulting, we can’t lose the opportunity to fill you in with the latest most relevant news. If you are interested in taking your products to such an active market, stay for the read!


This information will be especially useful if your business is part of the Biscuit or Cake Industry, Baked Goods in general, or if you just want more insight into the way the Indonesian consumer thinks.


Consumer Trends on Indonesia’s Baked Goods Market


In Asia, there is currently an increasing demand for healthier options in all sorts of food types. Indonesia’s Baked Goods Market has not been left behind on this trend, which has established itself more fiercely now due to the COVID situation.

People are very interested in artisanal products, as well as gluten-free options. There is expected growth in Indonesia’s Biscuit Industry and Indonesia’s Cake Industry. This is being stimulated by the evolution of flavor in the diverse options these industries present, whether it is taking foreign flavors or integrating local ones with some European flair.

European-inspired baking is a huge trend, regarding both taste and aesthetics. Labeling is another important thing that consumers are paying special attention to. Consumers are interested in health certifications, as well as possible added benefits that products for consumption might have.

High-demand products in Indonesia’s Cake Industry include products with added benefits that are gluten-free. In the case of Indonesia’s Biscuit Industry, whole or multi-grain options, as well as reduced additives/fat options, are very successful.

Has Covid Changed the Game for Indonesia’s Baked Goods Industry?

The short answer is yes. But worry not: this means good news for exporters. Social distancing has helped raise the demand for baked goods since consumers are spending more time at home. This has also fueled an unexpected new hobby for a lot of Indonesians: Home Baking.

This is good news for raw material exporters (such as wheat) and baking products (like dessert mixes, yeast, and other items alike). Indonesia’s Biscuit Industry has experienced huge growth over the last decade, even before COVID, going from 3 Trillion IDR in 2009 to 6.2 Trillion IDR up until 2015. Numbers have grown exponentially since COVID, especially because baked goods are Indonesia’s go-to snack. And speaking of that, it is important to know that Indonesian’s snack at least 3 times a day, as several surveys suggest.

Statistics on Indonesia’s Baked Goods Market that you need to know

People see baked goods as comfort foods, which is a prime reason why this market is

thriving. Several countries are interested in doing business. Switzerland and Australia, for example, are looking at the growing opportunities in Indonesia’s Cake Industry, partially interested in providing raw materials, but also making partnerships with local bakeries.

The demand for these products is also stimulated by the expansion of the middle class since most of the population are below 30 years of age and are having the widest disposable household income in the last decade. Not only that, but the distribution channels for these goods have also grown, from hypermarkets to grocery retails, restaurants, and even hotel chains across the nation.

In general, now is a great time to expand overseas, and especially to markets like Indonesia that have so many good things to offer. How sweet!