Indonesia is on the road to becoming a global economic powerhouse, with 2045 the year this is predicted to come to fruition. Looking forward to a robust performance in 2024, the government expects about 5.2% economic growth rate in the coming years. The encouraging outlook is buoyed by progress in key non-oil and gas manufacturing industries, the largest of which is food & beverage. The F&B sector which accounts for the greater share of the CPG industry, accounted for 6.47% (USD20.78 billion) of GDP in the first quarter of 2023, the highest contributor based on recent reports from BPS Statistics.
The government’s reforms to move the CPG industry forward have attracted local and foreign manufacturers to expand and set up their production hubs in Indonesia. More local brands are gaining market share across the region. But as any company knows, challenges remain in sight.
To gain new perspective on this ever-growing industry, Ringier and Siemens recently collaborated on a market study titled Indonesia’s Consumer-Packaged Goods (CPG) Trends and Challenges. This study highlights the primary issues affecting production and manufacturing, and the appropriate solutions, as disclosed by 180 executives surveyed from the Top 500 companies. Additionally, the study delineates the decision-making process involved in embracing advanced technology and digitalization.
Top three trends executives are focused on
The key consumer trends influencing the CPG industry vary and touch all elements of product design, marketing, and customer experiences. Executives are strategically addressing these trends to enhance their market positioning and meet evolving consumer demands.
A significant 23.2% of executives are focused on product functionality, ensuring their offerings provide enhanced features and benefits that directly improve the user experience. Product functionality aligns with the focus on superior performance and convenience.
Creating product variants also becomes a focal point for 20.3% of executives. Different versions of their products allow them to cater to a wider range of consumer preferences and specific needs, broadening their market appeal and boosting sales and brand reputation.
Closely behind, 18.1% of the surveyed executives are committed to sustainability. These companies integrate eco-friendly materials, ethical sourcing practices, and environmentally conscious processes into their production, meeting the rising consumer demand for responsible consumption.
To read the entire article, go to https://www.industrysourcing.com/article/Indonesia-overcoming-challenges-and-advancing-thru-digitalization
To download the white paper, Indonesia’s Consumer-Packaged Goods (CPG) Trends and Challenges, go to https://www.industrysourcing.com/whitepapers/info/375161
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