16 February 2017

Interest in milk and yoghurt based drinks on the rise in Indonesia

Heavy advertising in mass media, more television programmes as well as magazine articles focusing on health issues have led to rising awareness among Indonesian consumers of the benefits of drinking milk over the period 2011 to 2016, says Euromonitor.

Ultrajaya Milk Industry & Trading Company remains the leading player in drinking milk products with a 23% value share in 2016. Its flagship brand is called Ultra. The company's performance in flavoured milk drinks comes as a result of heavy marketing and improved distribution, Euromonitor said. 

Although already popular for its shelf-stable milk, Ultrajaya Milk Industry & Trading is still educating Indonesian consumers about the benefits of consuming liquid milk rather than powdered or condensed milk. In 2016, the company held many below-the-line event promotions, such as Tour de farm, centring around visits to the Ultrajaya farm in Bandung. In May 2016, it also held Preschool Roadshow Ultra Mimi Carafun in the city of Medan. 

Source: Ultra Mimi website. Pictures from an Ultra Mimi Carafun Roadshow held in February 2016.
Source: Ultra Mimi website. Pictures from an Ultra Mimi Carafun Roadshow held in February 2016.

Euromonitor notes that Indonesian milk consumption per capita is lower than in other emerging countries, so there is still room to grow. 

The yoghurt market is also growing, especially among middle- and high-income consumers, particularly women, Euromonitor said, as it isbeing aggressively promoted in the mass media as offering nutritional benefits and aiding digestion. Female consumers are increasing their consumption of such products as they believe that yoghurt can help them maintain a slim figure, improve their skin and slow the ageing process, the research firm notes. Sour milk drinks, mainly targeted at children, are preferred by some parents compared to flavoured milk drinks, as they typically contain good bacteria for digestion.

In 2016, Yakult Indonesia Persada PT with dominated the yoghurt and sour milk market with its Yakult drinking yoghurt, which had a 69% value share, Euromonitor said. Yakult’s value share gain in 2016 comes down to improved distribution, via both retail channels and Yakult Ladies - Yakult employees who deliver Yakult drinks directly to customers in Indonesia. Apart from the growing number of Yakult Ladies promoting the brand not only in residential areas but also in schools, Yakult Indonesia Persada has also benefited from the rapid expansion of modern retailers in Indonesia, especially convenience stores, hypermarkets and supermarkets.

Yoghurt and sour milk products is likely to continue to benefit from growing health awareness, particularly among middle- to upper-income consumers, Euromonitor predicts. The increasing number of health-conscious consumers is expected to result in the expansion of yoghurt and sour milk products’ consumer base over the forecast period (2016 to 2021). Manufacturers are likely to continue to invest heavily in educating consumers about the health benefits of yoghurt and sour milk products.


Read the Euromonitor report on Dairy in Indonesia