Indonesia Meat Market Outlook to 2028

Indonesia Meat Market Overview

• The Indonesia meat market is valued at USD 19 billion, based on a five-year historical analysis. This market is primarily driven by the rising demand for protein-rich foods, influenced by increased disposable income and changing dietary preferences among the Indonesian population. The growing urbanization and population increase have significantly fueled the demand for meat products, especially among middle-class consumers. Additionally, government policies promoting self-sufficiency in food production have encouraged local meat production, though imports still play a crucial role in meeting demand.

• The cities of Jakarta and Surabaya, as well as the regions of Java and Sumatra, dominate the market due to their large populations, high urbanization rates, and economic activity. These regions have a more developed infrastructure for meat production, distribution, and retail, making them key hubs for both consumption and processing. Moreover, they have higher concentrations of modern retail formats such as supermarkets, which play a significant role in meat sales, further driving their dominance in the market.
• The Indonesian government has introduced multiple policies aimed at achieving food sovereignty and reducing reliance on meat imports. Key programs such as the National Food Security Agency's initiative to boost local meat production have played a crucial role. In 2023, the government provided USD 150 million in subsidies to local farmers to increase livestock production, which included modernizing farm infrastructure and promoting self-sufficiency in meat supply. These policies are expected to boost domestic meat production by 10% in the coming years, aiding in meeting the country's growing demand for meat.

Indonesia Meat Market Segmentation

By Meat Type: The Indonesia meat market is segmented by meat type into beef, poultry, pork, mutton, and others (goat, fish). Poultry dominates the meat market due to its affordability and widespread preference among consumers. Poultry is consumed widely across various demographics and is considered a staple protein source for many households. The relatively lower production costs and shorter production cycles compared to other meats also contribute to the dominance of this segment, making it a preferred choice among producers and consumers alike.

By Distribution Channel: The market is also segmented by distribution channel into retail, foodservice, online channels, and wet markets. Retail, particularly modern retail formats such as supermarkets and hypermarkets, holds the dominant market share. This is largely due to the increasing preference for packaged and hygienically processed meat products in urban areas. Additionally, the retail sector offers consumers convenience and a wide variety of meat products, including fresh and frozen options, further cementing its leading position in the market.

Indonesia Meat Market Competitive Landscape

The Indonesia meat market is dominated by a mix of local and international players, each contributing to different aspects of the meat supply chain. Key players in the market include Japfa Comfeed, Charoen Pokphand Indonesia, and PT Sierad Produce, which are involved in both meat production and distribution. Additionally, the presence of multinational companies like Cargill further intensifies the competition.

Indonesia Meat Market Analysis

Growth Drivers

• Rising Meat Consumption: Meat consumption in Indonesia has been steadily increasing due to shifts in dietary preferences and a growing middle class. According to FAO data, the per capita meat consumption in Indonesia reached 11.6 kg in 2023. This reflects an increase in demand for poultry, beef, and other meats, driven by changing dietary patterns as more Indonesians move toward protein-rich diets. The demand for chicken is especially high, accounting for over 70% of total meat consumption. Rising consumer awareness of protein's benefits and its affordability compared to other food sources further accelerates this trend.
• Increasing Population and Urbanization: Indonesia's population, which stands at approximately 277 million in 2023, continues to expand, with a notable rise in urbanization. The World Bank reports that 57.5% of the population lived in urban areas as of 2023, spurring higher demand for meat products, especially in cities like Jakarta, Surabaya, and Medan. Additionally, the country's gross national income per capita increased to USD 4,580 in 2023, leading to higher disposable income and a corresponding rise in household spending on meat products. This growth in income and urbanization is accelerating meat consumption.
• Economic Expansion and Disposable Income: Indonesia's robust economic expansion, with a GDP growth rate of 5.2% in 2023 according to the World Bank, has contributed to increased disposable income and higher household spending on meat. Indonesian households spent an average of USD 630 per month in 2023, with a significant portion allocated to food, especially meat. As disposable income rises across urban and rural areas, meat consumption is growing, particularly in the middle-income demographic. This economic boost is encouraging greater demand for beef, chicken, and processed meat products across the country.

Market Challenges

• Disease Outbreaks: Indonesia has faced several disease outbreaks, such as avian influenza and African swine fever, affecting poultry and pig populations. In 2023, an avian influenza outbreak led to the culling of over 2 million chickens, disrupting the poultry supply chain. Biosecurity measures, such as vaccination programs and stricter farm inspections, have been introduced by the government, but these outbreaks continue to challenge the stability of the meat market. The government allocated USD 40 million in 2023 for disease control and prevention measures.
• Regulatory Barriers: Indonesia has complex import regulations and health standards that meat suppliers must navigate. The Indonesian government imposes strict health and safety standards on imported meat, such as halal certification and quality control inspections, which can delay shipments and increase costs. In 2023, the government introduced a new set of regulations requiring all imported meat to meet stringent food safety standards, including disease-free certification, adding another layer of bureaucracy for importers and domestic producers. Source.

Indonesia Meat Market Future Outlook

Over the next five years, the Indonesia meat market is expected to experience steady growth, driven by factors such as rising consumer demand for protein-rich foods, expanding urbanization, and government initiatives promoting local meat production. Advancements in meat processing technology and the growing popularity of value-added meat products, such as pre-cooked or ready-to-eat meals, are likely to further propel market growth. Additionally, as concerns over food security increase, the government's continued focus on boosting local livestock production and reducing import dependency will play a crucial role in shaping the market's future trajectory.

Market Opportunities

• Growth in Processed Meat Segment: The processed meat segment in Indonesia is rapidly expanding, driven by increasing demand for convenience foods. In 2023, processed meat products like sausages, nuggets, and canned meats saw a 12% rise in sales, reflecting a growing preference for ready-to-eat options. The expansion of supermarkets and modern retail outlets, especially in urban centers, has facilitated the rise of shelf-stable meat products. The government is also encouraging local producers to invest in value-added meat processing to enhance the sectors growth.
• Expansion into Halal Meat Export : Indonesia, being the worlds largest Muslim-majority country, has significant potential to export halal meat to the global market. In 2023, Indonesia exported USD 120 million worth of halal-certified meat products, primarily to the Middle East. Government-backed initiatives aim to strengthen the halal certification process, aligning with international standards, which could unlock new opportunities in markets like Saudi Arabia and the UAE. This creates significant potential for Indonesian meat producers to tap into the growing global demand for halal meat