NIQ Retail Spend Barometer
Indonesia

• Consumers in Indonesia spent IDR 256T on FMCG and Consumer Tech products in Q3 2024, a 1.7% growth from the same period last year.
• Indonesians spent IDR 208T on FMCG alone, 81% from the total spending for Indonesians in Q3 2024. This is 1.1% uplift from last year on the same period. Meanwhile, on Consumer Tech, Indonesians spent 47T with an increment of 4.3% from last year on the same period.
• Value growth on the FMCG sector increased from +0.2% in Q2 2024 to +1.1 in Q3 2024, this is due to falling inflation and economy still growing at 4.9% in Q3 2024. However, for the Consumer Tech sector the value growth rose from 2.5% in Q2 2024 to 4.3% in Q3 2024.

Consumers in Indonesia spent IDR 256T on FMCG and Consumer Tech products in Q3 2024, a 1.7% increase from last year on the same period. FMCG contributed 81% and Consumer Tech Contributed 19% from the total spending in Indonesia.

In Q3 2024, Indonesians spent IDR 208 trillion on FMCG products, marking a 1.1% increase compared to the same period last year. The FMCG sector’s value growth also improved, rising from +0.2% in Q2 2024 to +1.1% in Q3 2024. This growth aligns with our overall economic performance, which continued to expand at 4.9% year-on-year in Q3 2024, with a 1.5% quarter-on-quarter uplift compared to Q2 2024. Additionally, inflation softens to 1.8%.

This positive uplift is reflected in the category performance, with Beverages and Ambient Food emerging as key drivers of FMCG growth, surpassing the results of Q2 2024. Beverages grew by 6.0% in Q3 2024, a +3.9% increase from the previous quarter. Similarly, Ambient Food saw a significant jump from 1.9% growth in Q2 to 6.6% in Q3. The Snacking category also experienced a strong boost, growing from 3.6% in the previous quarter to 9.5% in Q3 2024. With the continued economic growth and softening inflation, opportunities for FMCG are expected to rise in the upcoming quarter. Additionally, Q4 2024 may further stimulate consumer spending on FMCG products, driven by the Christmas and year-end holiday season.

Tech & Durables market reflects a positive trend in Q3 with overall growth 4.3% year-on-year, largely driven by The Technical Consumer Goods sector. This sector made a significant contribution, outperforming others with a 6.2% increase in Q3 and a 12.7% growth over the past year.

Breaking it down by sector, by Q3, steady growth in Technical Consumer Goods was driven primarily by the IT and Telco sectors, with one of the key factors being a shift towards higher-value items. In contrast, DIY & Home Improvement continued to face challenges, posting a decline of 14.8%, largely due to a 16.9% drop in the LED lamp category. The Home Appliances sector also saw a decline of 2.2%, with notable decreases in key categories such as Air Conditioners (-2.4%) and Washing Machines (-5.4%).

“Consumers show better spending appetite for Q3, albeit still slow, for both FMCG and Consumer Tech. Beverages and Ambient Food drive the FMCG growth while IT and Telco drive the Consumer Tech growth. As we are approaching end-of-year holiday season, consumers are expected to continue increasing their spending resulting in higher market growth.

Wiwy Sasongko, Executive Director, Retail Vertical at NIQ Indonesia