U.S. health food supplements have over 70 percent of the total import market share and enjoy a sterling reputation in Indonesia. The market for health food supplements in Indonesia was estimated at $313 million in 2008. The market consists of over 80 percent imports with some locally manufactured items. U.S. products accounted for $180 million of all health food supplements imported by Indonesia in 2008. Sales prospects remain good, however, due to the tightening of the registration process, the impact of the economic downturn, and the depreciation of the Indonesian rupiah against the U.S. dollars. The market of health food supplements may show signs of slow down in 2009. Distributors anticipate that the market will remain stagnant during the second and third quarter but will slowly increase in the last quarter.
Best sales prospect include diet and aesthetics products, items that affect physical appearance, including weight loss; degenerative prevention products, items that prevent degenerative diseases such as cardiovascular diseases, hypertension, and osteoporosis; products that improve sex life and stamina; and vitamins.
U.S. products are highly regarded in Indonesia, and are considered pioneers in food supplements. This notion combined with an increasing awareness with Indonesian consumers has created a great opportunity for U.S. companies. U.S. companies looking to enter this market should offer innovative products with unique formula or ingredients.