Concentrated or sweetened milk and cream market in Indonesia

Earlier Report Observations

From 2018 to 2022, the market for concentrated or sweetened milk and cream in Indonesia expanded consistently, with volume rising from 268 thousand tons to a peak of 367 thousand tons. This growth was primarily fueled by increasing imports, which climbed from 231 thousand tons to 333 thousand tons over the period. Domestic production remained stable until 2022, when it received a boost from new investments by major players like PT Frisian Flag Indonesia and PT Nestle Indonesia in processing facilities, enlarging the industry's capacity. Earlier in 2018, the market's framework was shaped by BPOM Regulation No. 21/2016, which established clear subcategories and quality standards for sweetened condensed milk and creamer, providing producers with defined manufacturing guidelines.

A shift in consumer preferences toward liquid milk (UHT and pasteurized) began to influence the dairy sector from 2021 onward, gradually affecting demand patterns for sweetened condensed products. Despite this trend, the market for concentrated or sweetened milk remained resilient through 2022. Efforts to strengthen the supply chain, such as the establishment of Milk Collection Points in West Java and the digitalization of 40 milk receiving stations in East Java in 2022, enhanced raw milk quality monitoring and supported production efficiency.

In 2023, the market volume contracted to 317 thousand tons, coinciding with intensified competition where Frisian Flag captured the largest e-commerce market share. The industry demonstrated continued adaptability, with investment and export activity noted in 2024, even as the broader shift toward liquid milk consumption persisted.

Production concentrated or sweetened milk and cream in Indonesia

In kind, 2018-2021, t

Top producers of concentrated or sweetened milk and cream, 2018-2021

World map of production of concentrated or sweetened milk and cream, 2018-2021

In 2021, Indonesia produced 43 683 tonnes of concentrated or sweetened milk and cream, showing no significant change from 2020. The largest decline occurred in 2019, at 0.1%, while the largest increase was recorded in 2020, also at 0.1%.

Annual dynamics of production in Indonesia in kind, 2018-2021, t

In value, 2018-2021, M $ US

Indonesia's concentrated or sweetened milk and cream production value increased for the third consecutive year. In 2021, output was valued at 129.6 million US dollars, marking a 14.5% gain compared to 2020. From 2018 to 2021, production rose by 29.1%, with a compound annual growth rate of 8.9%.

Annual dynamics of production in Indonesia in value, 2018-2021, M $ US

Exports concentrated or sweetened milk and cream from Indonesia

Exports in kind, K t

After a two-year rise, Indonesia's concentrated or sweetened milk and cream export volume declined in 2021. Exports amounted to 6.7 thousand tonnes, a 16.2% decrease from the previous year. Between 2018 and 2021, exports increased by 8.8%, equating to an annualized rate of 2.8%. The largest increase was recorded in 2019 at 28.6%, with the maximum volume reached in 2020 at 8.0 thousand tonnes.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, K t

From 2018 to 2021, the Philippines, Vietnam, and Timor-Leste accounted for the largest share of Indonesia's concentrated or sweetened milk and cream exports in volume terms. The Philippines represented 51.9% of exports, Vietnam 17.8%, and Timor-Leste 11.0%, together comprising 80.7% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, M $ US

After a two-year rise, Indonesia's cross-border shipments of concentrated or sweetened milk and cream in value terms declined in 2021. Exports totaled 20.0 million US dollars, a moderate reduction of 3.9% year-over-year. From 2018 to 2021, exports increased by 40.8%, with a compound annual growth rate of 12.1%. The largest increase was recorded in 2019 at 42.4%, with the maximum value reached in 2020 at 20.8 million US dollars.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, M $ US

In 2018–2021, the leading destinations for Indonesia's concentrated or sweetened milk and cream exports in value terms were the Philippines, Pakistan, and Timor-Leste. The Philippines accounted for 43.8% of exports, Pakistan for 15.6%, and Timor-Leste for 15.4%, jointly representing 74.7% of total flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports concentrated or sweetened milk and cream to Indonesia

Imports in kind, K t

Foreign supplies of concentrated or sweetened milk and cream to Indonesia increased for the third consecutive year. In 2021, imports totaled 283.5 thousand tonnes, showing a measured uptick of 5.6% compared to the previous year. Between 2018 and 2021, imports rose by 22.9%, equating to an annualized rate of 7.1%.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, K t

Throughout 2018–2021, New Zealand, the United States, and Belgium were the three largest sources for Indonesia's imports of concentrated or sweetened milk and cream in volume terms, together accounting for 68.3% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, M $ US

Cross-border shipments of concentrated or sweetened milk and cream to Indonesia in value terms increased for the third consecutive year. In 2021, imports stood at 845.3 million US dollars, marking a 17.1% increase compared to 2020. Between 2018 and 2021, imports grew by 65.6%, equating to an annualized rate of 18.3%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, M $ US

In 2018–2021, New Zealand, the United States, and Australia led the structure of Indonesia's imports of concentrated or sweetened milk and cream in value terms. New Zealand represented 34.5% of imports, the United States 26.3%, and Australia 11.9%, together accounting for 72.7% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021