Concentrated sweetened milk and cream market in Indonesia

Earlier Report Observations

The Indonesian concentrated sweetened milk market saw regulatory changes in 2018 with the introduction of mandatory warning labels, which aimed to clarify product distinctions and inform consumers. This period also witnessed a surge in market volume, particularly in 2020, when a drop in retail prices for several major brands made the product more affordable and boosted physical consumption by over 16%, even as the market's value contracted due to lower unit prices.

From 2021 onward, the market dynamics shifted as prices rebounded, supporting value growth despite volatile volumes. A notable change in consumer preference away from powdered and condensed milk toward liquid UHT and pasteurized milk began to reshape demand, contributing to a temporary dip in condensed milk volume in 2022. Simultaneously, the industry attracted significant new investments, including expansion projects by PT Frisian Flag Indonesia and PT Nestle Indonesia, signaling confidence in the long-term development of the dairy processing sector.

In 2023, the market volume recovered to 36 883 tons, a 6.6% increase from the previous year, while the market value rose to 52.7 million US dollars. This growth was supported by lower export volumes and steady import levels.

Production concentrated sweetened milk and cream in Indonesia

In kind, 2018-2021, t

From 2018 to 2021, Indonesia maintained the 17th position globally in terms of production volume for concentrated sweetened milk and cream.

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

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

In 2021, Indonesia produced 21 842 tonnes of concentrated sweetened milk and cream, showing no significant change compared to 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, K $ US

After two years of decline, concentrated sweetened milk and cream production in Indonesia increased in 2021. The output was valued at 24 315 thousand US dollars, marking a 7.2% rise from the previous year. Over the 2018-2021 period, production decreased by 38.2%, with a compound annual growth rate of -14.8%. The minimum value was recorded in 2020 at 22 692 thousand US dollars, which also saw the largest decline of 24.2%.

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

Exports concentrated sweetened milk and cream from Indonesia

Exports in kind, t

Indonesia's export volume of concentrated sweetened milk and cream declined for the second consecutive year. In 2021, exports reached 4 140 tonnes, down 25.3% from the prior year. Between 2018 and 2021, exports decreased by 14%, equating to an annualized rate of -4.9%. The maximum value was recorded in 2019 at 5 620 tonnes, which also experienced the largest increase of 16.8%.

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

From 2018 to 2021, the Philippines and Vietnam were the main markets for Indonesia's exports in kind, jointly accounting for 84.4% of total flows, with other partners making up the remainder.

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, K $ US

Concentrated sweetened milk and cream export volumes from Indonesia declined for the third consecutive year. In 2021, exports were recorded at 4 609 thousand US dollars, indicating a decrease of 19.9% from 2020. Between 2018 and 2021, exports decreased by 46.7%, equating to an annualized rate of -18.9%.

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

Over the 2018-2021 period, the Philippines (47.8% of exports in value terms), Vietnam (20.2%), and Pakistan (14.4%) remained the leading destinations in Indonesia's export structure by value, with a combined share of 82.4% 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 sweetened milk and cream to Indonesia

Imports in kind, t

Foreign supplies of concentrated sweetened milk and cream to Indonesia increased for the third consecutive year. In 2021, Indonesia imported 1 000 tonnes, equivalent to a gradual gain of 4.7% year-over-year. Between 2018 and 2021, imports increased by 123.3%, equating to an annualized rate of 30.7%.

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

From 2018 to 2021, Malaysia remained the leading supplier of concentrated sweetened milk and cream to Indonesia, accounting for 79.3% of total imports in kind, while the rest was distributed among many other countries.

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, K $ US

Indonesia's import volume of concentrated sweetened milk and cream increased for the third consecutive year. In 2021, imports amounted to 23 845 thousand US dollars, indicating a rise of 12.3% year-over-year. Between 2018 and 2021, imports increased by 67.5%, equating to an annualized rate of 18.8%.

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

Throughout 2018-2021, Malaysia and the United Kingdom remained the key partner countries for Indonesia's imports in value terms, with a combined share of 84.9% of total flows; other partners accounted for the rest.

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

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