Product Innovation in Indonesia’s Food Industry: The Key to Success during Economic Challenges

Understanding the Market

Industry experts emphasize that affordability and versatility are critical New Product Development (NPD) drivers in price-sensitive markets like Indonesia.

Despite the rising trends of health and wellness, there is a pressing need for product innovation to focus on being cost-effective. This is especially true in regions where consumers are particularly budget-conscious, such as Indonesia and Malaysia.

‘Indonesia in particular is a very value-driven market, likely due to its large population, offering numerous options,’ stated Will Kelly, General Manager of Kerry Southeast Asia, during the Fi Asia Indonesia event in Jakarta.

‘During unstable economic times, it is essential for products to be accessible to consumers. If a product is unaffordable, its quality and benefits will not prompt purchases.’

Kelly also highlighted the importance of maintaining quality and safety standards in food production. Innovative food technologies and enhancement solutions are vital to create tasty formulations that are low-cost.

The Search for Authenticity

In a geographically diverse nation like Indonesia, where consumers have unique regional tastes, brand authenticity plays a significant role. ‘Each region has culinary traditions that consumers want to engage with, even when they move away from their home areas,’ noted Jane Haryono, General Manager of Kerry Indonesia.

‘Even within a globalized marketplace, there’s a strong demand for local flavors, with examples such as consumers desiring local snacks like sate klopo, which they might seek in alternative formats like flavored chips.’

The Role of Versatility

Versatility in food products significantly enhances perceived value among consumers. ‘There is growing demand for products that are easy to use across multiple applications, improving convenience and value-for-money,’ added Kelly.

Brands are also diversifying their offerings to cater to this demand, with examples like DaVinci brand syrups being adaptable across various culinary contexts from drinks to desserts.