Market Trends of Southeast Asia Bakery Products Industry
Surge in Demand for Specialty and Healthy Bakery Products
- There has been a significant increase in the demand for natural and organic food products as consumers become more aware of the adverse health effects of consuming synthetic food ingredients that do not comply with governmental standards. In Southeast Asia, consumers are adopting Western-style diets that contain wheat and high protein content.
- Thai consumers, in particular, are seeking healthier diets, which has prompted companies to produce gluten-free baked goods and natural bakery products. Mondelez launched its gluten-free Oreo chocolate sandwich cookies in 2021, and this increased consumer demand for nutritious products and clean-label claims has accelerated market growth in the region.
- Consumers perceive their food as an opportunity to experience various tastes and textures, and they are more inclined to products that position themselves as natural and healthy. Market players are responding to this trend by incorporating "superfood" seeds into their offerings, such as chia seeds, which are rich in proteins and calcium. Oat Krunch, a brand of Munchy's group, offers healthy crackers made using oats and chia seeds. Oat Krunch is a source of fiber, is trans-fat-free, has no preservatives, and is available in dark chocolate, strawberry, and blackcurrant variants.
- The bakery industry has recently witnessed the establishment of a combination of bakeries, restaurants, cafes, and catering services. These bakery cafes or cake houses offer various products in different flavors, and the increasing demand for artisanal and healthy bakery products is further driving the bakery products in the market.
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Indonesia as the Dominant Region in the Market
- The demand for bakery products in Indonesia is steadily increasing as consumers recognize them as a meal rather than just a snack. This rising consumption can be attributed to changing lifestyles, improving incomes, urbanization, and westernization.
- Consumers are now seeking unique offerings that fulfill halal requirements and offer authentic Indonesian flavors. Despite various factors affecting purchase decisions, such as cost, healthfulness, convenience, and sustainability, taste remains the primary motivator for food and beverage purchases across different baked product categories, according to the International Food Information Council Foundation.
- The German-Indonesian Chamber of Industry and Commerce reported that as of 2021, there were more than 640 registered bakery product companies operating in Indonesia, which includes both small and large enterprises. This highlights the significant growth of the bakery industry in Indonesia and the increasing competition in the market.
- Additionally, the increasing popularity of online food delivery services is contributing significantly to the growth of bakery product sales in the country. This has led to the emergence of new players in the e-commerce bakery market. One such example is Paris Baguette, a bakery company owned by SPC Group, which entered Indonesia in October 2021 and opened its first franchise location in Jakarta. The South Korean bakery and food manufacturer established a joint venture with Erajaya Group in Indonesia to tap into this market trend.
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