
Indonesia Food Sweetener Market Analysis by Mordor Intelligence
The Indonesia food sweetener market generated USD 1.17 billion in 2025 and is projected to reach USD 1.41 billion by 2030, advancing at a 3.89% CAGR. This moderate expansion signals a sector in transition as health-conscious shoppers, fiscal measures on sugar, and mandatory halal labeling reshape purchase choices. A prolonged dependency on imported raw sugar continues to expose local supply to global price swings, yet broadening domestic cultivation of stevia, palm sugar, and coconut sugar offers a partial hedge against that exposure. Large beverage fillers have started to reformulate flagship products to cut taxable free-sugar content, while bakery producers are experimenting with sweetener blends that preserve texture at lower caloric loads. The gradual rise of middle-class households with higher discretionary income sustains overall demand for indulgent items, but spending is shifting toward “better-for-you” SKUs that rely on high-intensity or natural alternatives rather than bulk sucrose.
Key Report Takeaways
- By type, sucrose led with 62.43% of Indonesia's food sweetener market share in 2024, and high-intensity sweeteners are forecast to expand at a 4.76% CAGR through 2030.
- By form, powder commanded 72.44% share of the Indonesian food sweetener market size in 2024, while liquid formats are projected to grow at a 4.64% CAGR through 2030.
- By source, synthetic variants represented 68.74% revenue share in 2024; natural sources are set to register the fastest growth at 4.65% CAGR to 2030.
- By application, beverages held 37.57% of the Indonesian food sweetener market in 2024; bakery and confectionery are advancing at a 4.99% CAGR between 2025-2030.
Indonesia Food Sweetener Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Processed-food boom elevating bulk sucrose demand | +1.2% | National, concentrated in Java and urban centers | Medium term (2-4 years) |
Booming demand for low-calorie beverage in urban regions | +0.8% | Urban Indonesia, particularly Jakarta, Surabaya, Bandung | Short term (≤ 2 years) |
Increasing prevalence of diabetes and obesity | +0.7% | National, with higher impact in urban areas | Long term (≥ 4 years) |
Shift toward food personalization and controlled nutrition | +0.5% | Urban middle-class demographics | Medium term (2-4 years) |
Strong demand for flavored dairy products reduces sugar | +0.4% | National, driven by government nutrition programs | Medium term (2-4 years) |
Consumer behaviour toward clean label products | +0.6% | Urban and semi-urban regions | Long term (≥ 4 years) |
Source: Mordor Intelligence
Processed-food boom elevating bulk sucrose demand
The growing processed food industry in Indonesia is significantly driving the demand for bulk sucrose. According to data from the Indonesian Ministry of Industry, the processed food sector has been expanding at a robust pace, contributing substantially to the country's GDP. World Bank data reveals that in 2023, urban areas in Indonesia housed approximately 59% of the nation's total population [1]Source: World Bank, "Urban population (% of total population) - Indonesia", www.data.worldbank.org. As processed foods often require sucrose as a key ingredient for flavor enhancement, preservation, and texture improvement, the demand for bulk sucrose is witnessing a notable rise. Furthermore, government initiatives aimed at boosting the food and beverage industry, such as tax incentives and infrastructure development, are expected to further support the growth of the processed food sector. This, in turn, is likely to sustain the upward trajectory of bulk sucrose demand in the forecast period.
Booming demand for low-calorie beverage in urban regions
The increasing demand for low-calorie beverages in urban regions is a significant driver of the Indonesia Food Sweetener Market. This trend is fueled by growing health consciousness among urban consumers, who are actively seeking healthier alternatives to traditional sugary drinks. In 2024, the International Diabetes Federation reported a diabetes prevalence rate of 11.3% in the country [2]Source: International Diabetes Federation, "Diabetes in Indonesia (2024)", www.idf.org. In response, the government has launched initiatives to encourage healthier eating habits, emphasizing the adoption of low-calorie products.The government has also introduced public awareness campaigns, such as the "Isi Piringku" program, which emphasizes balanced nutrition and reduced sugar intake. Additionally, the Indonesian Food and Beverage Association (GAPMMI) has reported a steady rise in the production and consumption of low-calorie beverages, reflecting a shift in consumer preferences. GAPMMI further highlights that urbanization and rising disposable incomes have contributed to the growing demand for premium and health-focused products, including beverages sweetened with innovative alternatives like stevia, sucralose, and erythritol.
Increasing prevalence of diabetes and obesity
The increasing prevalence of diabetes and obesity is fueling the market growth. According to data from the Indonesian Ministry of Health, the prevalence of diabetes in the country has been steadily rising, and obesity rates have also surged. These health concerns have led to a growing demand for low-calorie and sugar-free sweeteners as consumers seek healthier alternatives to traditional sugar. Indonesia's Ministry of Health is intensifying its battle against obesity, aiming to keep the nation's obesity rate steady at 21.8% through the end of 2024 [3]Source: Ministry of Health, "Ministry to maintain obesity prevalence at 21.8 percent until 2024", www.en.antaranews.com. The ministry's strategy, as highlighted by the Director of Non-Communicable Diseases Prevention and Control, zeroes in on addressing conditioned risk factors and social determinants, targeting the journey from being merely overweight to becoming obese. Furthermore, associations such as the Indonesian Diabetes Association have been actively promoting awareness about the risks of excessive sugar consumption, further driving the adoption of alternative sweeteners in the market. This trend is expected to continue during the forecast period, supported by government initiatives aimed at reducing sugar intake and promoting healthier lifestyles.
Shift toward food personalization and controlled nutrition
The shift toward food personalization and controlled nutrition is emerging as a significant driver in the Indonesia food sweetener market. Consumers are increasingly seeking customized food products that cater to their specific dietary needs, preferences, and health goals. This trend is fueled by growing health awareness, advancements in nutritional science, and the availability of innovative sweetener solutions. The rising prevalence of lifestyle-related diseases, such as diabetes and obesity, has further accelerated the demand for controlled nutrition, prompting consumers to opt for sweeteners that support healthier lifestyles. Additionally, the increasing penetration of digital health tools and mobile applications has enabled consumers to monitor their nutritional intake more effectively, driving the adoption of personalized food products. Manufacturers are responding by developing tailored sweetener products that align with individual requirements, such as low-calorie, natural, or functional sweeteners.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Stringent regulatory scrutiny and labeling requirements | -0.9% | National, with higher compliance costs for smaller manufacturers | Short term (≤ 2 years) |
Rising demand for clean label and natural food products | -0.6% | Urban and semi-urban markets | Medium term (2-4 years) |
Health concerns over artificial sweeteners' carcinogenic properties | -0.4% | National, particularly educated urban demographics | Long term (≥ 4 years) |
Growing consumer preference for natural plant-based sweeteners | -0.5% | Urban middle-class and health-conscious segments | Medium term (2-4 years) |
Source: Mordor Intelligence
Stringent regulatory scrutiny and labeling requirements
The Indonesia Food Sweetener Market faces significant restraint due to stringent regulatory scrutiny and labeling requirements. The government of Indonesia, through agencies such as the National Agency of Drug and Food Control (BPOM), enforces strict regulations to ensure food safety and consumer protection. These regulations mandate comprehensive labeling of food products, including detailed information on sweetener content, usage limits, and potential health impacts. Additionally, compliance with international standards, such as those set by the Codex Alimentarius Commission, further adds to the regulatory burden for manufacturers. Industry associations, including the Indonesian Food and Beverage Association (GAPMMI), have highlighted the challenges faced by producers in adhering to these evolving regulations. Such stringent requirements increase operational costs and can delay product launches, thereby restraining market growth during the forecast period.
Health concerns over artificial sweeteners' carcinogenic properties
Consumers are becoming increasingly aware of potential health risks associated with artificial sweeteners, particularly synthetic ones like aspartame and saccharin, which is constraining market growth. In Indonesia, health authorities and consumer advocacy groups are raising alarms about the potential carcinogenic properties of certain artificial sweeteners, a stance bolstered by international research and regulatory debates. While the government pushes to curb non-communicable diseases like diabetes and obesity, it finds itself in a paradox: promoting artificial sweeteners as healthier sugar substitutes while also questioning their long-term health implications. Community programs educating the public on stevia's safety, in contrast to its artificial counterparts, signal a notable shift towards natural options. Furthermore, heightened media attention on global studies casting doubt on the safety of artificial sweeteners has led to a palpable hesitance among consumers, especially those in urban areas who prioritize health and diligently scrutinize product ingredients.
Segment Analysis
By Product Type: Sucrose dominance faces high-intensity challenge
Sucrose accounted for 62.43% of Indonesia's food sweetener market. Its widespread use is attributed to its multi-functional properties, including its ability to act as a bulking agent, aid in crystallization, and enhance flavor. These characteristics make sucrose a preferred choice across various food and beverage applications in the country. Additionally, its cost-effectiveness and ease of availability further strengthen its position as a dominant sweetener in the market.
High-intensity sweeteners, including stevia, sucralose, neotame, and monk-fruit extracts, are gaining traction in the Indonesian market. These sweeteners are increasingly favored due to their low-calorie content and significantly higher sweetness levels compared to sucrose, which allows for smaller quantities to achieve the desired sweetness. The segment is growing at a CAGR of 4.76%, driven by rising consumer demand for healthier and low-calorie alternatives in food and beverage products. Furthermore, the growing awareness of health issues, such as obesity and diabetes, is encouraging manufacturers to incorporate these sweeteners into their product formulations.

Note: Segment shares of all individual segments available upon report purchase
By Form: Powder efficiency meets liquid convenience
In 2024, powdered variants dominated Indonesia's food sweetener market, capturing 72.44% of the market share. Their dominance can be attributed to several factors. Powdered sweeteners offer an extended shelf life, which is particularly advantageous in Indonesia's tropical climate with high humidity levels. This characteristic ensures that the product remains stable and usable over a longer period. Additionally, powdered formats are easier to package and transport, making them highly suitable for inter-island shipping, which is a critical logistical requirement in Indonesia's archipelagic geography. Furthermore, powdered sweeteners are widely used in various applications, including dry-mix sauces and instant noodles, due to their compatibility with these products.
Meanwhile, liquid formats are experiencing notable growth, advancing at a 4.64% CAGR. This growth is primarily driven by technological advancements and evolving consumer demands. Beverage companies in Indonesia are increasingly upgrading their production lines with aseptic PET technology, which enhances the safety and shelf life of liquid sweeteners. This technological shift has made liquid formats more appealing for use in beverages and other liquid-based applications. Additionally, liquid sweeteners are gaining traction due to their ability to provide precise metering during continuous syrup preparation, which is essential for maintaining consistency and quality in production processes.
By Source: Synthetic leadership challenged by natural momentum
Synthetic solutions held a dominant 68.74% market share in 2024. This significant share can be attributed to their cost advantages, which make them a preferred choice for manufacturers aiming to optimize production costs. Additionally, robust global supply contracts have ensured a steady and reliable availability of synthetic sweeteners, further solidifying their position in the market. These factors collectively contribute to the widespread adoption of synthetic solutions across various industries in Indonesia.
On the other hand, natural solutions are gaining traction in the Indonesia sweetener market, growing at a CAGR of 4.65%. This growth is primarily driven by increasing consumer demand for halal-compliant products, which align with the dietary preferences of the predominantly Muslim population in the country. Furthermore, the clean-label positioning of natural sweeteners appeals to health-conscious consumers seeking minimally processed and transparent ingredient options. Domestic cultivation initiatives have also played a crucial role in supporting the growth of natural sweeteners, as they promote local production and reduce dependency on imports.
By Application: Beverage leadership yields to bakery innovation
In 2024, beverages accounted for a significant 37.57% share of Indonesia's food sweetener market, amounting to USD 440 million. This dominance highlights the entrenched consumer preference for sweetened beverages, including tea, carbonated drinks, and dairy-based beverages. The popularity of sweetened tea remains a cultural staple, while carbonated drinks continue to attract a broad consumer base due to their refreshing appeal. Additionally, the growing demand for flavored and sweetened dairy drinks, such as milk-based beverages and yogurt drinks, further drives the segment's growth. The beverage sector's reliance on sweeteners is expected to remain robust, supported by evolving consumer tastes and the introduction of innovative product offerings by manufacturers.
The bakery and confectionery segment is experiencing notable growth, with a compound annual growth rate (CAGR) of 4.99%. This expansion is fueled by the rising café culture and the proliferation of premium croissant chains in Indonesia's metropolitan areas. Urban consumers, particularly millennials and young professionals, are increasingly drawn to artisanal bakery products and high-quality confectionery items. The growing presence of international bakery chains and local premium brands has further enhanced the availability of diverse offerings, catering to evolving consumer preferences. Sweeteners play a crucial role in this segment, as they are integral to the production of cakes, pastries, chocolates, and other confectionery products. The segment's growth trajectory is expected to continue, driven by urbanization, increasing disposable incomes, and the rising demand for indulgent and premium bakery products.

Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Indonesia, the world's largest archipelagic nation, presents a distinctive geographical landscape that significantly influences its sweetener market. With over 17,000 islands, the country faces logistical complexities that shape distribution networks. These challenges have led to a preference for shelf-stable powder sweeteners, which are easier to transport and store compared to liquid alternatives. The fragmented geography necessitates efficient supply chain strategies to ensure product availability across diverse regions, making distribution a critical factor in market development.
Java, Indonesia's most economically significant island, plays a pivotal role in the sweetener market. As the center of economic activity, Java hosts key urban hubs such as Jakarta, Surabaya, and Bandung, which drive both manufacturing and consumption. These cities serve as focal points for market growth, with their dense populations and higher purchasing power fostering demand for a wide range of sweetener products. The concentration of industrial and commercial activities in Java also facilitates the establishment of manufacturing facilities, streamlining production and distribution processes.
Dietary preferences across Indonesia vary significantly, reflecting the country's cultural and regional diversity. In rural areas, traditional sweeteners like palm sugar and coconut sugar remain deeply ingrained in local culinary practices and cultural traditions. These natural sweeteners are widely used in traditional dishes and beverages, maintaining their relevance in rural markets.
Competitive Landscape
Indonesia's sweetener market is highly fragmented. The market dynamics allow global companies to leverage their technological expertise and extensive supply chain networks, while local firms capitalize on their deep understanding of cultural preferences and regulatory frameworks. This balance between global and local players fosters a competitive environment where diverse strategies can thrive.
Global leaders such as Cargill, Tate & Lyle, and Ingredion dominate the market by utilizing their advanced technological capabilities and economies of scale. These companies focus on optimizing production processes, ensuring consistent product quality, and maintaining robust supply chain operations to meet the growing demand for sweeteners. Their ability to innovate and adapt to global trends, such as the increasing demand for low-calorie and natural sweeteners, further strengthens their market position.
On the other hand, domestic players in the Indonesian sweetener market rely on their cultural insights and regulatory expertise to gain a competitive edge. These companies are well-versed in local consumer preferences and are adept at navigating the country's regulatory landscape, which can be complex and challenging for foreign entrants. The competitive dynamics are increasingly shifting toward innovation-driven differentiation, with both global and local players investing heavily in R&D and forming strategic partnerships.
Indonesia Food Sweetener Industry Leaders
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Roquette Frères
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Cargill, incorporated
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Ingredion Incorporated
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Archer Daniels Midland Company
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Tate and Lyle PLC
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- August 2024: Cargill inaugurated a new blending facility at its flagship site in Pandaan, East Java, Indonesia. The new blending facility enhances Cargill’s capabilities in starches, sweeteners, and texturizers, allowing the company to develop specialised solutions tailored to Asian consumers’ preferences.
- December 2023: In Jombang, Indonesia, ITS inaugurated a state-of-the-art factory dedicated to producing Smart Mini Sorghum Sweeteners. This facility aims to bolster food security and ensure a steady supply of both raw and auxiliary materials for the nation's industries.
- June 2022: Cargill has invested USD 2.4 million into its sweetener plant in Indonesia, more than doubling its production capacity for organic, non-GMO tapioca syrup in response to rising consumer demand for healthier ingredients.
Indonesia Food Sweetener Market Report Scope
The Indonesia food sweetener market is segmented by Type into Sucrose, Starch Sweeteners and Sugar Alcohols and High Intensity Sweeteners. By Application basis the market is segmented into Bakery and Confectionery, Dairy and Desserts, Meat and Meat Products, Soups, Sauces and Dressings and Others.
By Type | Sucrose (Common Sugar) | ||
Starch Sweeteners and Sugar Alcohols | Dextrose | ||
High Fructose Corn Syrup (HFCS) | |||
Maltodextrin | |||
Sorbitol | |||
Xylitol | |||
Others | |||
High Intensity Sweeteners (HIS) | Aspartame | ||
Saccharin | |||
Neotame | |||
Stevia | |||
By Form | Powder | ||
Liquid | |||
Others | |||
By Source | Natural | ||
Synthetic | |||
By Application | Bakery and Confectionary | ||
Dairy and Frozen Desserts | |||
Beverage | |||
Meat and Meat Products | |||
Soups, Sauces, and Dressings | |||
Others |
Sucrose (Common Sugar) | |
Starch Sweeteners and Sugar Alcohols | Dextrose |
High Fructose Corn Syrup (HFCS) | |
Maltodextrin | |
Sorbitol | |
Xylitol | |
Others | |
High Intensity Sweeteners (HIS) | Aspartame |
Saccharin | |
Neotame | |
Stevia |
Powder |
Liquid |
Others |
Natural |
Synthetic |
Bakery and Confectionary |
Dairy and Frozen Desserts |
Beverage |
Meat and Meat Products |
Soups, Sauces, and Dressings |
Others |
Key Questions Answered in the Report
What is the projected value of the Indonesia food sweetener market by 2030?
The market is forecast to reach USD 1.41 billion by 2030, growing at a 3.89% CAGR.
Which product type segment shows the fastest growth rate?
High-intensity sweeteners lead with a projected 4.76% CAGR through 2030, driven by low-calorie beverage reformulation.
Which form factor dominates sales?
Powdered sweeteners hold the largest share, accounting for 72.44% of 2024 revenue thanks to shelf-life and logistics advantages in tropical climates.
Why are natural sweeteners gaining momentum?
Halal certification, clean-label preferences, and local cultivation of stevia and palm sugar are encouraging brands to shift from purely synthetic options.
Page last updated on: July 3, 2025