The Indonesian confectionery market registered strong growth during the review period 2015-2019, according to the latest report released by MarketLine. The growth of the market was expected to accelerate over the forecast period (2019-2024), however COVID-19 outbreak has dampened expectations on future market performance.
Indonesia is the 3rd largest producer and exporter of cocoa, and Indonesians are very receptive to confectionery products in general. Small pack sizes are gaining popularity in the country as they are not only more affordable but can also be consumed on-the-go.
The confectionery market reported sales of US$2.23 billion in 2019, with a CAGR of 13% during the review period. The chocolate segment contributed the highest share at 55.6% with total sales of US$1.24 billion in 2019. On the other hand, sugar confectionery sales reached US$860 million or 38.5% share.
In terms of volume sales, the Indonesian confectionery market grew by 7.6% in 2019 to reach a volume of 248.2 million kilograms.
The sudden emergence of COVID-19 has severely impacted forecast for this market moving forward. MarketLine has downgraded its growth projection for this segment from a CAGR of 9.8% in terms of volume prior to the outbreak to just 7.7% in 2024.
Singapore-based Delfi Limited, formerly known as Petra Foods, is the leading player in this market with 25.3% share in value terms and is expected to maintain its market dominance in the coming years. Delfi also accounted for 45.5% of the chocolate segment in 2019. Major players Perfetti Van Melle and PT Mayora Indah also have strong presence and are the 2nd and 3rd largest player in the confectionery market in 2019.
MarketLine has identified Delfi Limited to be the most successful company in this market as it registered the highest rise in market share during the review period from 19.3% in 2015 to 25.3% in 2019.
The most popular confectionery brands in the market include Silver Queen owned by Delfi Limited which has 14.3% share followed by Beng Beng by Mayora Indah (4.9%) and Cadbury Dairy Milk by Mondelez (4.6%).
