Indonesia, the world’s 4th most populous country, is obsessed with nutritional supplements.

(Health Korea News / Changyong Lee) Indonesian consumers appear to have begun to show great interest in nutritional supplements following the COVID-19 pandemic.

According to the report ‘Indonesia Wellness Trends, Growth of the Vitamin Market’ prepared by the Jakarta Trade Office of the Korea Investment and Trade Promotion Agency (KOTRA), Indonesians have not considered nutritional supplements such as vitamins as essential consumer products. The explanation is that these products were consumed temporarily when special situations occurred, such as when the body was tired or the eyes were dry.

The biggest reason why vitamin and supplement intake is not high in Indonesia is price. Indonesians tend to view nutritional supplements such as vitamins as luxuries rather than necessities, and they tend to take action only when symptoms of a specific disease appear.

The opportunity to change Indonesian people’s perception was the coronavirus pandemic.

Decky Yao, Chairman of the Indonesian Association of Health Supplement Manufacturers (APSKI), said, “During the pandemic, people began to be interested in nutritional supplements to strengthen the immune system. Among them, vitamins C, D and zinc are the most important. “It is very popular, and many people are beginning to recognize vitamin C as a necessity to strengthen their immunity.”

The rapid increase in nutritional supplement advertisements on various SNS media such as Instagram and TikTok, and the ease of finding various products in supermarkets and drug stores, have also sparked interest in nutritional supplements.

According to a report published by DSG Consumer Partners, Indonesia’s vitamin and nutritional market size in 2022 is approximately $2.2 billion (KRW 2.9862 trillion), the largest in Southeast Asia. On the other hand, per capita consumption is significantly lower than that of neighboring countries. In Indonesia, annual per capita consumption is $7.6, which is significantly lower than Malaysia’s $31.8, Thailand’s $28.6, and Singapore’s $90.9.

Even though Indonesia consumes less English than its neighboring countries, it forms the largest market in Southeast Asia because it is the world’s fourth most populous country with about 280 million people.

Indonesia’s gross national income (GNI) per capita is expected to more than double to $8,000 to $9,000 (KRW 10.86 million to KRW 12.21 million) over the next 10 years. Therefore, the VDS (vitamins and dietary supplements) market is also expected to grow two to three times in a similar way to Thailand and Malaysia.

The report said, “The change in vitamin consumption signals is not a short-term temporary change, but is expected to be a long-term change resulting from the increase in health awareness among Indonesians.” “With the increase in the public’s education level and disposable income, vitamins are becoming increasingly popular.” It is expected that demand will continue to increase.”

While Indonesia’s demand for vitamins is increasing, imports have been decreasing in recent years. This change is said to be due to the growth of the domestic market and the emergence of cheaper local products. When comparing the import amount by major vitamin type, it was confirmed that vitamins E, C, and A were highest in that order.

The top importing country is China, importing about $67 million (about KRW 90.9 billion, 54.5%) as of last year, followed by Germany with $12 million (KRW 16.29 billion, 10%), and Switzerland with $11 million (KRW 14.9 billion). This was followed by 32.5 million won (8.9%). Korea ranked 11th in importing countries, recording $1.75 million (2.37562 billion won).

It is interpreted that the high preference for Chinese products is due to their low prices.

(Indonesian major importer of vitamins, unit: US$, source: Statistics Indonesia (BPS))

According to e-commerce market insight data published by Compas dashboard FMCG, wellness products worth more than $1.05 million (KRW 1.42632 billion) were traded on Shopee and Tokopedia (Indonesian e-commerce website) in June 2023 alone.

Competition is particularly fierce in the wellness category, which includes products such as probiotics, supplements, multivitamins, diet milk, and herbal supplements.

These e-commerce channels have become key platforms for purchasing health products in Indonesia. The products with the highest demand are general wellness supplements, accounting for 25.6% of the market. According to the data, 73% of Indonesians reported consuming more nutritional supplements during the pandemic. 94% said they took vitamin C specifically to strengthen their immune system. 60% of respondents stated that they take multivitamins regularly.

Jakarta Trade Director Do Hee-soo said, “Considering that Indonesia is a country with a continuously growing economy and the world’s fourth-largest population, it is a promising market for vitamins and nutritional supplements in the long term.” “Especially in the case of certain nutrients, “It appears that imported products are still playing a big role, so if reasonable prices and brand competitiveness are strengthened, it could be a good opportunity market for Korean companies in related fields in the long term,” he said.

He continued, “There are many brands in this field that are well-known in countries such as the U.S. and Europe, and local large corporations in Indonesia are also starting to produce low-price products, so we are keeping this in mind and targeting local consumers through appropriate promotion and marketing. “I think we need to approach,” he advised.

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