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The Indonesia - retail market size is estimated to grow at a CAGR of 4.73% between 2023 and 2028. The market size is forecast to increase by USD 49.56 billion. The growth of the market depends on several factors such as the expansion of the retail landscape, the growing popularity of private-label brands, and the rising prominence of in-store bakeries.
The report offers extensive research analysis on the Indonesia Retail Market, with a categorization based on Distribution Channel including offline, and online. Additionally, the report provides Product segmentation, covering food and beverages, electrical and electronics, apparel and footwear, home improvement and household products, and others. Market size, historical data for 2018-2022, and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising prominence of in-store bakeries is the key factor driving market growth. In-store bakeries are found in several large supermarkets and hypermarkets in Indonesia. Although relatively smaller in size, these bakeries offer a wide range of baked products, such as doughnuts, cakes, and pastries. The prominence of these bakeries is growing, mostly because they offer the convenience of one-stop shopping. The popularity of parbaked, pre-baked, and bake-off product ranges is growing across the country.
Moreover, various retailers, such as PT. Circleka Indonesia Utama employs freezers and overs to keep baked products fresh and warm, respectively. Freezing increases the shelf-life of the product and helps in retaining the texture and taste of baked products. Thus, the above-mentioned factors indicate that in-store bakeries in supermarkets will drive customer footfall in retail stores in Indonesia and boost the growth of the market during the forecast period.
Rising market activities by retailers is the primary trend shaping market growth. Investments in social media help brands become more efficient. Consumers use social media to gain insight into new products available in the market. Indonesia - retail market players use it to create brand awareness. Retailers are leveraging the social media platform to market their products and inform customers about new offers, discounts, and seasonal sales.
Furthermore, with Indonesian people being highly active on social media platforms such as Instagram and Facebook, various retailers are using these platforms for customer engagement and creating brand loyalty. This trend reflects the growing importance of social media as a marketing tool for retailers. Thus, such factors will drive the growth of the market during the forecast period.
Underdeveloped infrastructure is a challenge that affects market growth. The lack of developed and well-maintained infrastructure makes it difficult for exporters and investors to operate efficiently. Warungs and minimarts are traditional markets in Indonesia that continue to be popular among consumers. Consumer business companies require an extensive distribution network to gain traction in the market. They also need to focus on innovations, especially in terms of packaging, due to limited and highly competitive shelf space in traditional retail outlets.
In addition, the population in the country is dispersed across many islands, and underdeveloped connectivity to proper roads prevents a lot of consumers from availing of various goods and services. Distribution channels also need to be developed extensively. Companies need to invest in innovations in the areas of packaging and displaying their products in retail outlets. This can be achieved with the help of a proper infrastructure, which can attract the attention of consumers. Thus, such factors may impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Indonesia Retail Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The offline segment is estimated to witness significant growth during the forecast period. The offline segment includes convenience stores, department stores, drug stores, supermarkets, and hypermarkets. Furthermore, the availability of products from unorganized market players poses a serious threat to the organized Indonesia - retail market.
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The offline segment was the largest segment and was valued at USD 123.85 billion in 2018. Besides, retailers adopted strict preventive measures at their stores to provide a safe and steady shopping experience to consumers and ensure that all people have access to products required for daily consumption. The number of visitors at offline stores in Indonesia has reduced due to shifting customers' online shopping habits and minimizing physical interaction. Therefore, the offline distribution channels segment will lead to moderate growth in the Indonesia - retail market during the forecast period.
The Indonesia retail market reports market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Indonesia Retail Market Scope |
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Report Coverage |
Details |
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Page number |
142 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.73% |
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Market Growth 2024-2028 |
USD 49.56 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.38 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Adidas AG, Apple Inc., Authentic Brands Group LLC, Decathlon SA, Inter IKEA Holding BV, Levi Strauss and Co., LG Electronics Inc., Marks and Spencer Group plc, Nike Inc., Panasonic Holdings Corp., PT FUJITA Indonesia, PT Hino Motors Manufacturing Indonesia, PT Siantar Top Tbk, PT Sumber Alfaria Trijaya Tbk, PT. Indomarco Prismatama, PT Mitra Adiperkasa Tbk, PT Ramayana Lestari Sentosa Tbk, PT. SGMW Motor Indonesia, Samsung Electronics Co. Ltd., and Sony Group Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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