The Indonesia Confectionery Market Trends You Need to Know [2025]

The Indonesia confectionery market trends are driven by rising disposable incomes, urbanization, and evolving consumer preferences. In 2024, the market is projected to reach USD 1.03 billion, with a CAGR of 14.35% from 2024 to 2029, eventually hitting USD 2.01 billion by 2029. This robust growth aligns with increasing demand for indulgent products and the expansion of modern retail channels such as convenience stores and e-commerce platforms.

Chocolate confectionery dominates the sector, accounting for over half the sales, while sugar confectionery, ice cream, and preserved pastry goods also contribute significantly. Despite challenges such as inflation and changing consumer habits, the sector shows strong resilience. The market is further bolstered by innovation in flavors, textures, and healthier product alternatives. Indonesia’s position as the third-largest cocoa producer reinforces its significance in the global confectionery landscape. With room for growth and innovation, Indonesia’s confectionery market presents exciting opportunities for businesses aiming to expand their brand presence.

Overview of the Indonesia Confectionery Market Trends

The Indonesian confectionery market is a vibrant and rapidly growing sector. In 2024, the market is projected to reach USD 1.03 billion, growing at a CAGR of 14.35% to touch USD 2.01 billion by 2029.

Chocolate confectionery contributes over half of total sales, followed by sugar confectionery at around 38%. Despite challenges like price volatility in raw materials, such as cocoa, the market continues to expand due to rising disposable incomes, urbanization, and evolving consumer tastes.

Key Segments

1. Chocolate Confectionery: As the largest segment, it enjoys widespread appeal among all age groups. Growth is driven by increasing availability in smaller, affordable pack sizes, making chocolate more accessible to lower-income consumers and ideal for on-the-go snacking.
2. Sugar Confectionery: This segment appeals largely to children, supported by a variety of flavors and innovative novelty products. Sugar-free and reduced-sugar options are emerging due to health-conscious trends.
3. Ice Cream: Growing consumer demand for indulgence and innovative flavors drives this category, with retail value recovering faster than volume due to inflationary price increases.
4. Preserved Pastry Goods and Cakes: This category remains a popular treat during festive and special occasions, supported by urban consumers seeking premium options.

Retail and Distribution Landscape

Modern retail channels such as convenience stores and supermarkets dominate the distribution landscape. Convenience stores excel in impulse purchases, while e-commerce is gaining traction for specialty and premium products. Small mom-and-pop stores remain pivotal in rural areas, supported by partnerships with e-commerce platforms like Grab and Foodpanda.

Learn more about the retail landscape and the who the leading retailers in Indonesia are.

Pricing Dynamics

The Indonesia confectionery market trends are significantly influenced by price fluctuations in raw materials, particularly cocoa. In 2024, cocoa prices reached record highs, driving unit price growth and contributing to higher retail values. While price increases dampen volume growth, they provide opportunities for premiumization, aligning with consumer demand for quality.

Key Drivers Shaping the Indonesia Confectionery Market

Economic Growth and Rising Incomes

Indonesia’s growing middle class and rising disposable incomes have fueled demand for indulgent and premium confectionery products. As more consumers in urban areas gain purchasing power, they are increasingly seeking indulgences like chocolate and premium snacks. This trend is particularly evident in metropolitan regions like Jakarta and Surabaya, where modern retail channels are expanding.

Urbanization and Retail Expansion

Urbanization has enhanced access to modern retail infrastructure, including convenience stores, supermarkets, and e-commerce platforms. This expansion has made confectionery products more available to diverse consumer groups. Digital platforms like Shopee and Tokopedia also drive accessibility, particularly in underserved areas.

Health-Conscious Eating Trends

While indulgence remains a key driver, many consumers are shifting toward healthier alternatives. Sugar-free, low-sugar, and functional confectionery products with claims like high-protein or added fiber are growing in popularity. This trend offers a strong growth opportunity for brands innovating in wellness-oriented snacks.

Cultural Relevance and Local Flavors

Indonesia’s rich culinary heritage drives demand for localized confectionery flavors, such as pandan and durian. Incorporating these traditional elements into confectionery helps brands build deeper connections with consumers and distinguish their offerings in a competitive market.

Innovation and Product Differentiation

Brands are leveraging innovation in flavors, textures, and packaging to capture consumer attention. Multi-sensorial experiences, like chewy, popping, or fizzy textures, are particularly appealing to younger consumers. Similarly, smaller, affordable pack sizes cater to cost-sensitive buyers while boosting product accessibility.

Consumer Trends and Purchasing Influences in Indonesia

Demand for Indulgence and Experience

Indonesians value indulgent experiences when choosing confectionery. Rich, sweet flavors and premium-quality products drive demand, especially in categories like chocolate, cakes, and pastries. Consumers are also drawn to confectionery products that evoke emotional connections or are associated with celebrations and special occasions.

Health-Driven Choices

Consumers are proactively seeking products that align with their wellness goals. Functional confectionery with benefits like immunity support, improved gut health, and sugar reduction appeals to this audience. Brands incorporating clean labels and natural ingredients stand out in this growing segment.

Rise of Digital Influence

Younger consumers are heavily influenced by e-commerce and live shopping platforms. Digital campaigns, especially those promoting specialty and premium confectionery, resonate well with this demographic. The convenience of home delivery and interactive shopping experiences adds to the appeal of online purchases.

Preference for Smaller, Affordable Packs

Budget-conscious consumers gravitate toward smaller pack sizes, which make indulgent products more accessible. These packs are popular among on-the-go buyers and younger consumers who seek portion-controlled options. This affordability-driven trend has also gained traction in rural areas.

Social and Cultural Influences

Food remains a cornerstone of social interactions for Indonesians, particularly among younger demographics. Confectionery products with unique flavors, cultural significance, or festive associations often become part of these shared experiences, driving purchases.

Innovation Trends in the Indonesia Confectionery Market

Heat-Resistant Chocolate

To address Southeast Asia's high temperatures, companies like Mars are developing heat-resistant chocolate. By replacing cocoa butter with sugar replacers, these products maintain their form in extreme heat while preserving taste and texture. This innovation ensures that confectionery can be sold and consumed consistently across varying climates, especially in outdoor retail environments.

Texture and Multi-Sensorial Experiences

Cargill’s focus on creating diverse textures – such as popping, chewy, and fizzy sensations – caters to Indonesian consumers' preference for multi-sensorial confectionery. The introduction of customized starches, pectin, and carrageenan enhances product differentiation. This aligns with the growing trend of novelty-driven purchases, particularly among younger consumers seeking unique eating experiences.

Health-Oriented Formulations

Brands are innovating with sugar-free, low-calorie, and functional confectionery, incorporating benefits like protein, fiber, and immunity support. For example, cereal bars fortified with vitamins and minerals appeal to health-conscious consumers looking for guilt-free indulgence. These products address rising demand for snacks that balance health benefits with great taste.

Localized and Cultural Flavors

The incorporation of local flavors, such as pandan, durian, and tropical fruits, showcases cultural relevance while differentiating products in a competitive market. This strategy taps into Indonesians’ love for traditional flavors, making confectionery resonate more deeply with consumers.

Key Challenges Facing the Indonesia Confectionery Market

Rising Raw Material Costs

The soaring prices of key raw materials like cocoa significantly impact production costs, with record-high cocoa prices in 2024 adding pressure on manufacturers. This increases product pricing, which can reduce affordability for consumers, particularly in lower-income segments. The volatility in raw material costs also challenges long-term planning and profit margins for manufacturers.

Health and Wellness Trends

The increasing consumer focus on health and wellness creates challenges for traditional confectionery products, especially those with high sugar content. Manufacturers face the dual burden of reformulating recipes to reduce sugar without compromising taste, all while ensuring competitive pricing. The shift toward sugar-free and functional alternatives demands significant investment in research and development.

Distribution and Accessibility

Indonesia’s vast geography poses logistical challenges for reaching rural areas, where infrastructure may be underdeveloped. Traditional mom-and-pop stores still dominate these regions, requiring tailored distribution strategies. Additionally, ensuring product freshness and quality across the humid climate increases supply chain complexities.

Competition from Local Players

Local confectionery brands offer lower-cost alternatives, intensifying competition for global players. Smaller manufacturers often use cost-effective strategies to appeal to price-sensitive consumers, making it harder for international brands to justify premium pricing. This competition erodes market share, particularly in rural and middle-income segments.

Economic Uncertainty

The global cost-of-living crisis has dampened consumer spending in Indonesia, particularly on non-essential items like confectionery. Inflationary pressures force consumers to prioritize basic needs, reducing demand for indulgent products. While this trend is temporary, it poses short-term challenges for revenue growth.

Breakdown of the Confectionery Segment Landscape

1. Chocolate Confectionery

As the largest segment, chocolate confectionery accounts for over half of total market sales. Its popularity spans all age groups, with consumers favoring both premium offerings and smaller, affordable packs for on-the-go snacking. Chocolate is also a preferred indulgence during festive occasions and special celebrations. Innovations like heat-resistant chocolate cater to Indonesia’s tropical climate, ensuring consistent quality.

Leading Brands:

• Delfi Limited (Silver Queen)
• Mars Inc. (Snickers, Mars)
• Mondelez (Cadbury Dairy Milk)
• Mayora Indah (Beng Beng)

2. Sugar Confectionery

The second-largest segment, sugar confectionery, contributed over 38% of total sales. It appeals primarily to children, supported by a variety of flavors, novelty products, and healthier options such as sugar-free and low-sugar alternatives. Functional and innovative sugar confectionery, including products with added vitamins or unique textures, are gaining traction among health-conscious buyers.

Leading Brands:

• Perfetti Van Melle (Mentos, Chupa Chups)
• Nestlé Indonesia (Fox’s)
• Mayora Indah (Kopiko Candy)
• Orang Tua Group (MintZ)

3. Ice Cream

Ice cream is a growing segment, driven by increasing demand for indulgent treats and innovative flavors. While retail value is rising, volume growth is tempered by inflationary price hikes. Smaller, portable portions are popular for affordability and convenience. This category benefits from seasonal spikes and its ability to cater to both children and adults seeking refreshing treats in Indonesia’s warm climate.

Leading Brands:

• Unilever (Wall’s)
• Campina
• Aice
• Indoeskrim

4. Preserved Pastry Goods and Cakes

Although smaller in size compared to other categories, preserved pastry goods and cakes are staples during festive seasons and celebrations. This category is popular among urban consumers seeking convenient, ready-to-eat desserts. Premiumization and innovations in flavors are driving its slow but steady growth. Products in this segment are often positioned as gifts or treats for special occasions.

Leading Brands:

• Mondelēz (Oreo Cakes)
• Mayora Indah (Danisa Butter Cookies)
• Garudafood
• Orang Tua Group

Top 10 confectionery companies in Indonesia

Delfi Limited (formerly Petra Foods)

Segment: Chocolate Confectionery
Delfi Limited is one of Indonesia's leading manufacturers of chocolate confectionery products. Known for popular brands like SilverQueen, Ceres, and Delfi, the company offers a wide range of chocolate bars, coatings, and compounds. They have a strong market presence and are known for catering to local tastes with innovative products.

PT Mayora Indah Tbk

Segment: Sugar Confectionery, Preserved Pastry Goods, and Cakes
PT Mayora Indah is a major Indonesian consumer goods company producing a variety of food and beverage products. In the confectionery sector, they're known for brands like Kopiko (coffee candy), Tamarin (tamarind candy), and Roma biscuits. Mayora has a vast distribution network and is recognized for its quality and affordability.

GarudaFood Group

Segment: Chocolate Confectionery, Sugar Confectionery
GarudaFood is a significant player in Indonesia's food and beverage industry. Their confectionery brands include Gery Chocolatos (chocolate wafer sticks) and Leo snacks. They focus on innovation and have expanded their reach both domestically and internationally.

PT Perfetti Van Melle Indonesia

Segment: Sugar Confectionery
Part of the global Perfetti Van Melle group, they produce well-known brands like Mentos, Chupa Chups, Alpenliebe, and Fruitella. They are leaders in the candy and gum market, offering a wide variety of flavors and formats that appeal to all age groups.

PT Nestlé Indonesia

Segment: Chocolate Confectionery, Ice Cream
Nestlé is a global food and beverage company with a strong presence in Indonesia. Their confectionery products include KitKat, MILO, and Nestlé Crunch. They also offer ice cream products under brands like Nestlé Ice Cream, focusing on quality and nutrition.

PT Mondelez Indonesia

Segment: Chocolate Confectionery, Preserved Pastry Goods
Mondelez International operates in Indonesia with popular brands such as Cadbury Dairy Milk, Toblerone, and Oreo cookies. They are known for their premium chocolate offerings and continuous product innovation to meet local tastes.

PT Mars Indonesia

Segment: Chocolate Confectionery
Mars is a global leader in confectionery, offering iconic brands like Snickers, M&M's, and Twix in Indonesia. They focus on delivering high-quality chocolate products and have a commitment to sustainable sourcing practices.

PT Kino Indonesia Tbk

Segment: Sugar Confectionery, Chocolate Confectionery
Kino Indonesia produces a range of consumer goods, including confectionery items like Kino Candy and Kino Chocolate. They are known for their innovative flavors and appealing packaging, targeting both children and adults.

PT Yupi Indo Jelly Gum

Segment: Sugar Confectionery
Yupi is the leading gummy candy manufacturer in Indonesia. They produce a variety of jelly and gummy confectionery products known for their fun shapes and fruity flavors, popular among kids and teenagers.

PT Unican Surya Agung

Segment: Sugar Confectionery
Unican is a local confectionery company specializing in candies and sweets. They focus on producing affordable confectionery products with a variety of flavors that cater to the mass market.

Emerging Opportunities in Indonesia’s Confectionery Market

• Targeting the Expanding Middle Class
  Indonesia’s middle class continues to grow, providing a lucrative consumer segment with higher disposable incomes. This group is increasingly drawn to premium and indulgent confectionery, opening doors for brands to introduce sophisticated, high-value products tailored to evolving tastes.
• Seasonal Boosts from Festivals
  Key celebrations like Eid al-Fitr, Christmas, and Chinese New Year create natural spikes in confectionery demand. By offering festive-themed products, exclusive packaging, and gifting options, brands can tap into the cultural importance of sharing sweets during these occasions.
• Health-Forward Product Development
  A rising focus on health offers room for functional and reduced-sugar confectionery. Consumers are actively seeking snacks with added benefits like improved digestion, immunity boosts, or high protein content, enabling brands to innovate for the wellness-conscious market.
• Digital Retail Expansion
  The growing penetration of e-commerce and mobile platforms like Shopee and Tokopedia presents new opportunities for digital-first brands and omnichannel strategies. Engaging consumers with targeted advertising, interactive shopping experiences, and home delivery options can expand reach.
• Convenience and Portability
  Busy lifestyles are driving demand for single-serve and portion-controlled packs. These smaller, portable options align with urban consumers’ needs for quick indulgence, providing an opportunity to position products as both affordable and convenient.
• Localized Innovation
  Traditional Indonesian flavors, such as tamarind, coconut, or tropical fruits, can add a unique twist to modern confectionery. Leveraging local taste preferences enhances cultural relevance and attracts a loyal domestic audience.
• Retail Infrastructure Growth
  With urbanization comes the expansion of modern retail formats, including supermarkets, convenience stores, and specialty shops. Brands have an opportunity to increase visibility and drive impulse purchases through strategic in-store promotions and collaborations.

FAQs

1. How big is the confectionery market in Indonesia?

As of 2024, Indonesia's confectionery market was valued at around USD 1.03 billion. It is expected to grow at a CAGR of 14.35% from 2024 to 2029, to reach USD 2.01 billion by 2029, according to data from Statista.

2. What are three major Indonesia confectionery market trends?

• Health-Conscious Consumption: There's a growing demand for low-sugar and functional confectionery options.
• Digital Retail Expansion: E-commerce platforms are increasingly popular for purchasing confectionery products.
• Localized Flavors: Incorporating traditional Indonesian flavors into confectionery items is gaining traction.

3. Which are the top three brands in the confectionery market in Indonesia?

The leading confectionery brands in Indonesia include:

• Delfi Limited: A major player in the chocolate segment.
• PT Mayora Indah: A prominent local brand offering various confectionery items.
• GarudaFood Group: A significant player in confectionery and snacks, with a global reach.

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