Indonesia Retail Market Outlook
The Indonesia retail market size was valued at USD 46.34 Billion in 2022 and is projected to reach USD 71.89 Billion by 2031, expanding at a CAGR of 5% during the forecast period, 2023 – 2031. The growth of the market is attributed to growing middle class population with higher purchasing power. Moreover, changing lifestyle is majorly contributing to market growth.
In Indonesia, household consumption has slowed down in the last few years. This is a major concern for the market as household consumption has been a crucial driving factor for the economy and is of greater importance than investment, exports, and government spending. Private consumption in the form of household spending has accounted for more than 50% of the nation’s GDP.
Indonesia Retail Market Drivers, Restraints, Trends, and Opportunities
- Rapid growth in the e-commerce industry is expected to proliferate the market growth during the forecast period.
- Increasing number of startups that are providing online deliveries and rising foreign investments in these startups, which is helping the distribution network of these startups is speculated to positively influence the market growth.
- The COVID-19 pandemic persuaded state government bodies to implement lockdown of malls, retail stores, and corporates. Moreover, it disrupted the supply chain of household products. This, in turn, negatively impacted the market growth. However, the market is anticipated to reach pre-COVID level by end of 2021.
- Decreased purchasing power owing to the pandemic had restrain the market growth.
- Increasing government initiatives by providing stimulus packages is expected to positively influence the market growth.
Scope of Indonesia Retail Market Report
The report on the Indonesia Retail market includes an assessment of the market, trends, segments and regional markets. Overview and dynamics have also been included in the report.
Retail Market - Indonesia Industry Analysis, Growth, Share, Size, Trends, and Forecast
Products (Food and Beverages, Personal and Household Care, Apparel, Footwear, and Accessories, Furniture, Toys, and Hobby, Electronic and Household Appliances, and Other Products) and Distribution Channels (Supermarkets/Hypermarkets, Convenience Stores, and Department Stores, Specialty Stores, Online, and Other Distribution Channels)
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
PT Matahari Putra Prima Tbk, Ramayana Lestari Sentosa, Mitra Adiperkasa, Alfartmart, PT Trans Retail Indonesia
Indonesia Retail Market Segment Insights
Products Segment Analysis
Based on products, the market is divided as food and beverages, personal and household care, apparel, footwear, and accessories, furniture, toys, and hobby, electronic and household appliances, and others. The food and beverages segment to account for a major market share owing to the growing demand for various foods and beverages due to increasing population in the country.
Indonesia’s position in the global the food & beverages market is uncertain, as on the one hand, Indonesia is one of the major producers of palm oil, fish, cocoa, and coffee, exporting its production abroad, while on the other hand, Indonesia relies on imports of products that such as wheat, dairy, or processed food products.
Amidst the COVID-19 pandemic, the food & beverage sector has emerged as one of the drivers for the growth in Indonesia’s economy. Despite the plunge in demand during the annual Ramadan period as a result of the outbreak, the sector was able to record positive year-on-year growth rates of 3.94% and 0.22% for the first and second quarter of 2020, respectively. The personal care and household segment is anticipated to grow at a steady rate during the forecast period.
Distribution Channels Segment Analysis
Based on distribution channels, the market is segregated as supermarkets/hypermarkets, convenience stores, and department stores, specialty stores, online, and others. The supermarkets/hypermarkets segment is projected to account for a significant market share during the forecast period owing to increasing preference for consumers to buy products from these outlets owing to convenience and discounts available.
- Food and Beverages
- Personal and Household Care
- Electronic and Household Appliances
- Other Products
- Convenience Stores
- Department Stores
- Specialty Stores
Some of the major players in the market are PT Matahari Putra Prima Tbk, Ramayana Lestari Sentosa, Mitra Adiperkasa, Alfartmart, PT Trans Retail Indonesia.
The organized retail market has been growing significantly with companies expanding stores and considering the business potential in new market avenues. Most of the unorganized retail outlets are increasingly being replaced with big retail hypermarkets, supermarkets, and other retail chains. This is expected to continue on a large scale during the forecast period, which may significantly lead to the market growth.