A Comprehensive Report on Indonesia's Food and Drink Market for Q3 2008: Examine Forecasts, the Latest Statistics and Key Industry Players
DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/d29d59/indonesia_food_and)
has announced the addition of the "Indonesia Food and Drink Report Q3
2008" report to their offering.
Our Indonesia Food Drink Report provides independent forecasts and
competitive intelligence on Indonesia's food and drink industry.
Spiralling food prices - a strong theme throughout this report
last quarter - were expected to make themselves known in the first
quarter financial results releases of the country's leading food and
beverage producers; this did not happen. Instead, the food, beverage
and retail industry's leading players have posted strong net profit
and revenue growth for Q108. Nonetheless, as examined in our newly
published Indonesia Food & Drink Report for Q308, consumer confidence
in the country remains shaky, and the prospects for strong full-year
growth are still in the balance.
Unilever Indonesia - a subsidiary of the Dutch consumer goods
giant - revealed Q108 net profit growth of 31% to US$76mn, while sales
rose by 20% to US$407.9mn. For the same period, the country's leading
food manufacturer Indofood Sukses Makmur saw net profit increase by a
phenomenal 116% to US$41.2mn, while sales increased by 52% to
US$952.4mn. Meanwhile, retailer Matahari Putra Prima announced that
its net profit for the first three months of the year had risen by 19%
to US$1.94mn, while sales had climbed by 22% to US$263.7mn.
These strong financial releases seem to show that consumer demand
in Indonesia is strong enough to support the price increases that
manufacturers have resorted to in a bid to protect their profitability
during this period of high input prices. The consumption forecasts for
the market also support that view.
Indonesia's ongoing economic recovery and the growing affluence of
its emerging middle class is driving a total food consumption growth
forecast of 50% to IDR714.7trn in 2012; in per capita dollar terms,
the author expects food consumption to increase by 61% to US$359.70 in
2012.
However, while economic growth and consumer demand have proved
sufficient to allow price increases to be introduced relatively
smoothly, with no major knock-on effect on volume sales or market
share, consumer confidence in Indonesia is too volatile for this to
remain the case for long. March saw protests in Jakarta as consumers
took to the streets to complain about spiralling food prices.
Admittedly, these protests mainly involved the country's lowest income
groups who were complaining about the price of basic commodities, as
opposed to the rising cost of convenient instant noodles, but
nonetheless they reflect growing resentment at inflation.
With forecasting full-year average inflation of 8.7% in Indonesia
in 2008, consumer confidence is likely to be shaken further over the
remainder of the year. Acknowledging the impact that sustained high
prices will have on consumer expenditure levels in the country,
Matahari and soft drinks market leader Coca-Cola Amatil tempered their
2008 expansion plans and growth expectations, respectively, with the
proviso that they would watch the economic situation closely and
downgrade plans and targets in line with changing consumer demand.
Key Topics Covered:
- Business Environment
- Regional Food & Drink Business Environment Ratings
- Indonesia's Food & Drink Business Environment Rating
- SWOT Analysis
- Mass Grocery Retail
- Macroeconomic Outlook
- Food Consumption
- Trade
- Market Overview
- Food Production
- Drink
- Agriculture At A Glance
- Retail
- Competitive Landscape
- Key Players
- Deep US Recession Scenario
- Global Scenario
- Asia Pacific Food & Drink Scenario
Companies Mentioned:
- Aqua Golden Mississippi (Aqua)
- Carrefour
- Coca-Cola Amatil (CCA)
- Indofood Sukses Makmur Terbuka
- Matahari Putra Prima
For more information visit
http://www.researchandmarkets.com/research/d29d59/indonesia_food_and.
Research and Markets
Laura Wood
Senior Manager
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716
press@researchandmarkets.com
Copyright Business Wire 2008
