20 February 2017

Gum remains profitable in Indonesia

The positive volume growth of gum confectionery in Indonesia in 2016 was due to improved distribution of gum, especially chewing gum, as a result of the rapid expansion of modern retail outlets. Purchasers were also encouraged by the benefits of gum, including fresh breath and teeth whitening, says research consultancy Euromonitor.

PT Perfetti Van Melle Indonesia continued to lead gum with a value share of 58% in 2016, Euromonitor said. Perfetti Van Melle Indonesia has been successfully using promotions to build a wider consumer base and higher brand awareness.

Volume growth in gum is expected to remain positive over the forecast period from 2016 to 2021, with improved distribution expected to ensure product availability. Leading gum manufacturers are likely to continue price promotions and new product development, which would further boost growth in gum over the forecast period, Euromonitor said.