2021 Kosher Consumer Trends: Convenience Foods and the Indonesian Market Opportunity

2021 Trends: More Packaged Convenience Foods

The 2020 COVID pandemic was a devastating disaster for the Jewish community. Fortunately, we miraculously overcame it and are now adapting to the new changes this disaster has brought to our lives.

One of the most important changes is that Kosher consumers are increasingly interested in purchasing ready-to-eat foods, as this eliminates the hassle of food preparation and cooking at home. Products like diced onions, horseradish mixtures, herring-flavored foods, and pre-cut vegetables are among the increasingly popular convenience items on store shelves today. Many takeout departments have expanded their food offerings into traditional food categories, including vegetable soups, stir-fries, and all areas with potential to provide consumers with greater convenience. Soup has become increasingly popular among Kosher consumers, with some stores selling unprecedented quantities of soup products and even beginning to offer heating and additional services. One customer said her family loves soup, and with just a few cans of pre-cooked vegetables, chickpeas, and tomato sauce, she can make enough for her family for a whole week. Experts predict that 2020 has taught many families how to freeze prepared foods for storage. These convenient ready-to-eat foods were once travelers favorites and have now become basic necessities for many ordinary households.

The COVID pandemic has also brought changes to the Halal industry. Experts believe that for enterprises hoping to internationalize their products after the pandemic, rising purchasing power and government support make Indonesia a major opportunity market.

As is well known, Indonesia is an ideal choice for Halal brands seeking a large consumer audience, as the country has the largest Halal consumer population globally - reaching 231 million. Additionally, the country middle-income consumers are growing, with increasing purchasing power and consumer openness to international food trends, both of which are key to successful internationalization for foreign brands. As experts note: The internationalization opportunities for foreign brands in Indonesia are indeed very prominent, as the country Halal food import value has reached USD 16.9 billion, expected to grow 2.2% to USD 19.2 billion by 2024. Riyanto Sofyan, Chairman of Halal consulting firm Amicale, mentioned at the recent Re-imagine: Halal in Asia 2020 virtual conference: Importantly, Indonesia middle-class Halal consumer population is growing rapidly, with increased purchasing power. These middle-class consumers are mostly millennials (ages 25-35), tech-savvy and open to international trends, making it possible for overseas Halal foods to succeed in Indonesia.

These consumers pursue trendy lifestyles that align with their faith, so Halal-certified instant noodles, for example, are very popular. This is not limited to Asian trends - many locals also enjoy premium European cheese, but it is difficult to find quality hard cheeses that are Halal-certified, which is also a business opportunity.

Sofyan also pointed out that although the pandemic had a slight impact on local purchasing power, it is still growing slowly. Economists expect economic recovery this year: Now is a good time to consider internationalization, because all enterprises want to restart and grow after the pandemic, so brands should prepare now to gain a competitive edge.

Beyond the favorable consumer numbers and trends for market entry, the Indonesian government actively supports and encourages foreign investment in various sectors including food and beverage. Therefore, foreign brands seeking to seize Indonesian market opportunities will receive strong multi-faceted support.

The State of the Global Islamic Economy 2020 report indicates that Indonesia Halal food consumption reached USD 186.5 billion in 2019, projected to grow 2.7% to USD 209.3 billion by 2024.