Intensifying Competition in Indonesia's Consumer Goods Market

Indonesia's consumer goods sector is experiencing heightened competition as local brands gain ground against multinational corporations. In the third quarter of 2024, Indonesian consumers spent IDR 208 trillion on fast-moving consumer goods (FMCG), marking a 1.1% increase from the previous year, despite economic challenges .MRI Consulting

However, the first quarter of 2025 saw a slowdown in growth, influenced by global and local economic pressures that have suppressed consumer purchasing power . The shrinking middle class, which has declined by 20% over the past six years, further impacts consumer spending habits .https://indonesiabusinesspost.com/Financial Times

Multinational companies like Unilever are facing challenges in maintaining market share. In the third quarter of 2024, Unilever's market share in Indonesia declined to 34.9% from 38.5% the previous year, partly due to boycotts and the rise of more affordable local brands such as Wings Group and Mayora Indah .Reuters

Local companies are leveraging digital platforms and e-commerce to reach consumers more effectively. Brands like Kopi Kenangan have expanded rapidly, with over 900 outlets across Indonesia and neighboring countries . Convenience store chains like Alfamart continue to grow, serving millions of customers daily .WikipediaWikipedia

As the market evolves, companies must adapt to changing consumer behaviors and preferences. Emphasizing affordability, digital engagement, and local relevance will be key strategies for success in Indonesia's competitive consumer goods landscape.