In 2007 the market for health food supplements in Indonesia was estimated at $303 million, consisting of over 80 percent imports with some locally sourced or manufactured items. U.S. products accounted for $160 million or over 60 percent of all imported health food supplements. The prospect of sales in the Indonesian market remains good. Demand for health food products is expected to increase in the range of 20-25 percent over the next two years. This upward trend is attributed to an increasing awareness of preventative health measures, which created a larger demand for a variety of health food supplements, leading to excellent opportunities for U.S. health food supplement manufacturers.
Indonesia is a good potential market for health food supplements, given its 220 million population. The market for health food supplements has enjoyed phenomenal growth at an annual rate of 19 percent from 2006-2007. Imports of health food supplements are expected to increase over 20 percent in 2008. Health food importers predict that demand will follow an upward trend over the next 2 years.
This rising trend is attributed to multiple causes. First, Indonesian consumers are becoming more aware of the positive impact of nutritional products. The outbreak of diseases has opened a new market for importers and distributors of food supplements after the health conscious started shifting to preventative efforts. This expansion parallels the trend in healthcare in Indonesia, using non-prescription over-the counter (OTC) preparations.
Other causes which contribute to the increasing demand for food supplements include: the rise in health care costs, the changes in diet and lifestyle and the aging population. Indonesian consumers often turn to selfmedication and food supplements because they have become a less expensive alternative. To boost their immune system and reverse the aging process, people continue to consume food supplements. The awareness of the positive effects of vitamins and food supplements on health has supported the sales for food supplement products.
Indonesia’s health food market features imported and locally produced products. The imported health food market is concentrated in the larger cities, such as Jakarta, Bandung, Surabaya, and Medan. Locally produced health foods consist mainly of herbal health drinks that appeal to a down-market segment. Indonesia traditional herbs (jamu) are not classified as food supplements.
By Sharon Chandra