Milk and cream market in Indonesia

Earlier Report Observations

From 2018 to 2022, the volume of Indonesia's milk and cream market remained stable, fluctuating between 1 633 and 1 648 thousand tonnes, while its value grew from $1.9 billion to $2.2 billion with a notable 22% surge in 2020. This period coincided with the expansion of major ice cream producer Aice, which strengthened its production facilities and distribution network, likely supporting steady demand for milk as a raw material.

In 2023, the market contracted sharply, with volume falling by 12% to 1 451 thousand tonnes and value dropping 15% to $1.9 billion. That same year saw the launch of the Dairy Champ program, which aims to empower women entrepreneurs through the use of sweetened condensed milk, indicating continued efforts to stimulate dairy consumption.

Looking ahead, regulatory changes from 2024, including the removal of obligatory local milk purchases for processors, and the state-led Free Nutritious Food Program (MBG), which provides specially produced UHT milk to school children, are set to influence the market's future trajectory.

Production milk and cream in Indonesia

In kind, 2018-2021, K t

Top producers of milk and cream, 2018-2021

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

Indonesia's milk and cream production declined after two years of growth. In 2021, production remained virtually unchanged at 1 641.0 thousand tonnes compared to 2020. The peak was recorded in 2020 at 1 649.7 thousand tonnes, while the largest annual increase occurred in 2019 at 0.6%.

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

In value, 2018-2021, M $ US

In 2021, Indonesia's milk and cream output was valued at 2 136 million US dollars, showing no significant change from 2020. Over the 2018-2021 period, production grew by 15.4%, with a compound annual growth rate of 4.9%. The lowest value was recorded in 2019 at 1 746 million US dollars, and the highest in 2020 at 2 139 million US dollars. The largest annual decline occurred in 2019 at 5.7%, while the largest increase was in 2020 at 22.5%.

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

Exports milk and cream from Indonesia

Exports in kind, t

Indonesia's milk and cream exports increased for the second consecutive year. In 2021, exports reached 7 543 tonnes, marking a moderate 5.8% improvement over 2020. Between 2018 and 2021, exports grew by 2.4%, with a compound annual growth rate of 0.8%. The lowest volume was recorded in 2019 at 6 389 tonnes, with the largest annual decline that year at 13.3%. The largest annual increase occurred in 2020 at 11.6%.

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

From 2018 to 2021, Singapore, Timor-Leste, and Malaysia were consistently the main destinations for Indonesia's milk and cream exports by volume. Singapore accounted for 57.0% of exports, Timor-Leste for 10.2%, and Malaysia for 8.8%. Together, these three markets represented 76.0% of total export 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, K $ US

Indonesia's milk and cream export value increased for the second year in a row. In 2021, exports totaled 9 820 thousand US dollars, a 6.2% increase from 2020. Between 2018 and 2021, export value grew by 17.7%, equating to a 5.6% annualized rate. The lowest value was recorded in 2019 at 6 780 thousand US dollars, with the largest annual decline that year at 18.7%. The largest annual increase occurred in 2020 at 36.4%.

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

From 2018 to 2021, Singapore, Timor-Leste, and Papua New Guinea were the principal destinations for Indonesia's milk and cream exports by value. Singapore accounted for 39.7% of export value, Timor-Leste for 33.0%, and Papua New Guinea for 8.0%. Together, these three markets made up 80.7% of total export 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 milk and cream to Indonesia

Imports in kind, t

In 2021, Indonesia's milk and cream imports reached 7 015 tonnes, representing a 48.9% increase from 2020. Between 2018 and 2021, imports grew by 50.9%, with an annualized rate of 14.7%. The largest annual decline occurred in 2020 at 4.4%.

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

Throughout 2018-2021, New Zealand, France, and Thailand formed the core of Indonesia's milk and cream imports by volume. New Zealand accounted for 50.9% of imports, France for 20.8%, and Thailand for 20.3%. Together, these three sources represented 92.1% of total import 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, K $ US

After two years of decline, Indonesia's milk and cream import value increased in 2021. Imports stood at 14 150 thousand US dollars, indicating a sharp 25.2% rise from 2020. Between 2018 and 2021, import value decreased by 6.1%, equating to a 2.1% annualized rate. The lowest value was recorded in 2020 at 11 305 thousand US dollars, with the largest annual decline that year at 17.0%.

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

Over the 2018-2021 period, New Zealand and France consistently accounted for 82.7% of Indonesia's milk and cream import value, indicating a high degree of market concentration alongside numerous smaller suppliers.

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

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