Indonesia Frozen Food Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Indonesia Frozen Food Market Trends and Insights

Popularity of Convenient Food Products

Indonesia's consumption landscape is evolving, fueled by a growing demand for convenient food products. Ready-to-eat and ready-to-cook frozen foods have become essential household items, offering a wide range of options from both local and international cuisines. These products meet consumer preferences for nutrition, variety, and time efficiency, driving the frozen ready meal segment to lead the market. Urbanization and the increase in dual-income households have amplified the dependence on these convenient food solutions, particularly in major metropolitan areas like Jakarta and Surabaya. According to Statistics Indonesia, 46.61% of urban expenditure in Indonesia was allocated to food in 2024^{[1]Source: Central Bureau of Statistics, "Indonesian Residents' Consumption Expenditure", bps.go.id}. This shift is further supported by the rise of modern retail formats and the rapid growth of e-commerce, which together enhance product accessibility and variety. Companies are increasingly utilizing digital platforms to connect with younger, time-constrained consumers. For instance, GoFood reported a 30% year-on-year increase in online orders for frozen and ready meals in 2024. As Indonesia's middle class continues to grow and urban lifestyles become more demanding, this trend is expected to persist.

Expansion of cold-chain logistics

Indonesia's frozen food market depends heavily on cold-chain infrastructure, which remains significantly underdeveloped. In 2024, Pelindo's modernization program reduced berth times for non-containerized vessels by 30% and increased reefer plug availability at Tanjung Priok, leading to a 17% rise in chilled cargo throughput. Thirteen smart ports now utilize technologies such as optical character recognition, IoT, and automated gates, enabling cold chain operators to monitor container temperatures efficiently from ship to warehouse^{[2]Source: International Trade Administration, "Indonesia Infrastructure Smart Port Development", trade.gov}. Advanced refrigeration and cold transport reduce spoilage during transit and distribution, ensuring high standards of food safety and quality. This logistical efficiency reassures consumers and addresses concerns about product degradation and contamination. In May 2025, the collaboration between Dalian Bingshan and Thermo Asri Makmur to develop new cold chain facilities highlights a shift toward modern logistics solutions. These advancements are expected to create new growth opportunities, particularly for off-trade and e-commerce sectors that require integrated temperature control and effective last-mile delivery.

Plant-based and functional frozen meal innovation

Plant-based and functional frozen meals are becoming significant growth drivers as health and sustainability gain prominence. The increasing adoption of vegetarian, vegan, and flexitarian diets is boosting the demand for plant-based frozen meals. Ready-to-eat formats now include traditional soy-based foods like tempeh and tofu, along with modern meat substitutes, making them more accessible. This growing demand is driving innovation, with brands introducing fortified, plant-based frozen options tailored to regional preferences. To enhance transparency and consumer trust, BPOM implemented new labeling and nutrient disclosure standards in 2024. Consumers are increasingly prioritizing sustainability and animal welfare in their purchasing decisions. Plant-based frozen foods, with their lower environmental impact, align with ethical eating values and climate action goals, further accelerating their adoption.

Social media and influencer marketing

Social media and influencer marketing are accelerating the adoption of frozen foods among younger demographics. Instagram and TikTok have become essential platforms for product discovery and peer recommendations. In 2024, brands observed a notable increase in engagement and sales following targeted influencer campaigns, particularly for new launches in the plant-based and ready-to-eat segments. These digital initiatives are further strengthened by collaborations with food delivery services, highlighting the link between online visibility and market penetration. The rise in internet usage underpins digital marketing strategies, with social media and influencer engagement serving as key growth drivers for the market. According to the International Telecommunication Union (ITU), 69% of Indonesia's population used the internet in 2023^{[3]Source: International Telecommunication Union (ITU), "Individuals using the Internet (% of population) - Indonesia", datahub.itu.int}. As digital information and recommendations increasingly shape purchasing decisions, frozen food manufacturers are turning to social media and influencer marketing, underscoring a shift in consumer habits.

High electricity and refrigeration costs

Indonesia's frozen food sector faces significant challenges due to high electricity and refrigeration costs, particularly in areas outside major urban centers. The fragmented power grid and elevated energy tariffs substantially increase cold storage and logistics expenses, which, in turn, compress profit margins for producers and distributors. This issue is especially pronounced in eastern Indonesia, where infrastructure deficiencies persist despite government efforts to encourage private-sector investment through various incentives. Although the adoption of energy-efficient technologies and renewable energy sources is gradually helping to optimize cost structures, the sector is unlikely to experience widespread benefits until the medium term.

Competition from fresh and chilled food alternatives

Fresh and chilled food alternatives continue to pose strong competition, particularly among consumers who perceive frozen products as less healthy or lacking in taste. Traditional markets, which still dominate food retail transactions, play a significant role in reinforcing the preference for daily-purchased, freshly prepared foods. In Indonesia, a large segment of consumers views fresh and chilled foods as more flavorful, healthier, and of superior quality compared to frozen options. This preference is especially evident in traditional cuisine and among shoppers who frequent wet markets or urban centers where daily fresh supplies are readily available. However, the COVID-19 pandemic, coupled with evolving urban lifestyles, has started to shift these perceptions. These changes present an opportunity for frozen food brands to reposition themselves by highlighting attributes such as convenience, safety, and nutritional value, which align with the needs of modern consumers.

Segment Analysis

By Product Category: Ready-to-Cook Retains Dominance, Ready-to-Eat Accelerates

The Ready-to-Cook segment commanded 61.84% of the Indonesian frozen food market share in 2024. With brands increasingly developing regional spice blends tailored to Sundanese and Balinese preferences, this segment is expected to grow steadily. Consumers appreciate the flexibility to adjust final seasonings, making these kits a practical balance between traditional cooking and convenience. Manufacturers are leveraging this trend by introducing family-size packs, which lower per-serving costs and enhance freezer-fill rates in modern retail outlets. Meanwhile, Ready-to-Eat meals are anticipated to grow at a strong 7.62% CAGR through 2030, fueled by the rise in single-person households. Products such as microwaveable rice bowls, Korean-style dumplings, and protein-enriched porridges appeal to students and professionals living in rented accommodations. Additionally, cross-promotions on ride-hailing super-apps encourage impulse purchases, embedding Ready-to-Eat meals into daily routines and strengthening their role in Indonesia's growing frozen food market.

Global suppliers are increasingly collaborating with local partners to align taste and texture with Indonesian preferences. Automated portioning lines ensure consistent quality, while modified-atmosphere packaging extends shelf life to over 18 months. This operational precision supports export goals to neighboring ASEAN markets and establishes the foundation for economies of scale. This enables suppliers to sustain aggressive promotional pricing without compromising margins. Consequently, the combined growth of the Ready-to-Cook and Ready-to-Eat segments strengthens Indonesia's frozen food market, providing resilience against fluctuations in raw material costs.

By Product Type: Frozen Meat and Seafood Anchor, Fruits and Vegetables Lead Growth

Frozen Meat and Seafood generated 38.51% of the Indonesian frozen food market size in 2024, highlighting the country's strong protein preferences and the increasing role of formal-sector food services. Quick-service restaurants, expanding their presence, relied on individually quick-frozen (IQF) chicken and battered fish fillets to maintain consistent menu quality nationwide. Enhanced cold-chain compliance, enforced by the 2024 BPOM regulation, not only reduces spoilage risks but also improves unit economics for animal protein processors. Meanwhile, Frozen Fruits and Vegetables are projected to grow at an 8.35% CAGR, fueled by the middle class's focus on wellness and the growing popularity of smoothie bars in urban malls. Local agritech start-ups source blemished but nutrient-rich produce directly from farms, flash-freezing it within six hours of harvest. Their sustainability-focused messaging appeals to eco-conscious millennials, expanding their market share within Indonesia's frozen food sector.

Product innovation is gaining momentum, with importers introducing berry mixes and avocado chunks that were previously unavailable in large quantities. Domestic brands are leveraging these inputs to develop ready-to-blend mixes tailored for health-focused consumers, capitalizing on the global superfood trend. To enhance transparency, food-safety traceability codes are printed on each bag, allowing consumers to verify the farm origin through QR scans. This combination of health, convenience, and digital verification positions Frozen Fruits and Vegetables as a premium segment, helping to mitigate the impact of cyclical fluctuations in meat prices on Indonesia's frozen food market.

Note: Segment shares of all individual segments available upon report purchase

By Distribution Channel: Off-Trade Channels Dominate, E-Commerce Surges

In 2024, off-trade outlets, such as supermarkets, hypermarkets, and convenience stores, accounted for 82.28% of the Indonesian frozen food market share. This growth was driven by retail floor-space expansions exceeding 600,000 m² across Java and Sumatra. Retailers strategically position curved-glass freezers at store entrances to improve product visibility. Additionally, private-label SKUs, priced lower than national brands, are enhancing shopper loyalty. However, the fastest growth is occurring online, with e-commerce becoming the most significant revenue driver for Indonesia's frozen food sector. Fulfillment innovations, including insulated totes with gel packs, maintain –18 °C temperatures for six-hour deliveries to peri-urban and rural households. Moreover, BPOM Regulation No. 8/2020 enforces strict labeling and last-mile handling standards, prompting platforms to invest in temperature-monitoring sensors and delivery driver training.

Looking ahead, the off-trade distribution channel is expected to grow at a CAGR of 7.09% through 2030. The synergy between offline and online channels is evident with the implementation of “click-and-collect” lockers at minimarts, which lower shipping costs and improve stock-turn ratios. Additionally, loyalty apps offering digital coupons redeemable in both environments are increasing foot traffic to brick-and-mortar stores. Together, these omnichannel retail strategies enhance market accessibility and reinforce the Indonesian frozen food market's role in mainstream grocery shopping.

Geography Analysis

Java, with its dense urbanization, higher-than-average disposable incomes, and extensive modern-trade network, continues to dominate Indonesia's frozen food market, contributing to over half of the category's turnover. Provinces such as West Java and East Java play a pivotal role by hosting multi-temperature distribution centers capable of reaching 80% of the island's population within 24 hours. Additionally, the widespread penetration of smartphones has significantly boosted e-commerce activity, increasing the frequency of online orders. This trend has enabled frozen food products to penetrate suburban areas that were previously reliant on traditional wet markets.

Sumatra is positioning itself as the next major growth area for the frozen food market. Ongoing infrastructure projects, including the Trans-Sumatra toll road and the expansion of feeder ports, are effectively reducing logistics delays and cutting freight costs by up to 20%. To further accelerate this growth, local governments are providing land-lease incentives to attract cold-store developers, thereby expanding storage capacity across the island. Retailers are also introducing innovative hybrid supermarket-e-commerce hubs in cities like Medan and Palembang. These hubs combine in-store tasting events with app-based delivery services, creating opportunities for consumers to trial frozen food products and driving category growth.

Eastern Indonesia, which includes Sulawesi, Maluku, and Papua, has historically lagged behind but is now making significant strides through collaborative public-private cold-chain initiatives. Japanese ODA funding has facilitated the deployment of micro-grid solar chillers, which stabilize reef-fish harvests and ensure the year-round availability of frozen seafood in key cities such as Makassar and Manado. Furthermore, school-feeding programs in these provinces are incorporating frozen chicken nuggets and fortified vegetable mixes, laying the groundwork for increased demand. The combination of government-led nutrition targets and a rise in tourist inflows is creating a strong foundation for the long-term integration of Eastern Indonesia into the broader frozen food market, signaling substantial growth potential for the region.