Released on: May 9, 2008, 3:14 am

Press Release Author: Shushmul Maheshwari

Industry: Food & Beverage

Press Release Summary: The consumer expenditure on food, beverages and tobacco
market in Indonesia is anticipated to grow at a CAGR of 7.7% by 2011 due to opening
of retail food outlets and changing consumption patterns.

Press Release Body: According to a market research report, “Indonesian Food,
Beverages and Tobacco Market Forecast till 2011”, released by RNCOS, consumers
spending on food, beverages and tobacco grew at a CAGR of around 12% during
2003-2006 and is expected to post a CAGR growth of 7.7% during 2007-2011.

The market report says that population of a country defines its food demand, and
growing population of Indonesia, which is standing at the fourth place in population
growth, is making the country’s food, beverages and tobacco industry dynamic.

With the modernization of retail sector and introduction of fast food outlets,
identifies the RNCOS report, food habits and consumption patterns of Indonesians
have undergone a radical change. Indonesia has witnessed opening of new modern food
retail outlets along with a wide range of retail stores such as hypermarkets,
supermarkets, warehouse clubs, convenience stores and mini markets, with entrance of
foreign retail companies, says the report. These stores are opened in major cities
across the country and are catering to the needs of the middle class and youth,
creating demand for fresh and value-added products in the country.

Besides, surging disposable income and increasing imported foods are also bringing a
transformation in the food consumption patterns of Indonesians, as per the report.
So people are now more inclined towards western-style products and processed foods,
comprising beef, noodles, bakery products, confectionery and soft drinks, thereby
raising their consumption. However, the country’s staple foods, rice, chicken,
vegetables, cooking oil and tea, continue to remain an integral part of the
Indonesian diet.

However, the report also highlights that Indonesian consumers are very price
sensitive and susceptible to economic fluctuations, with purchasing power of those
in the middle and lower income influenced the most.

Apart from drivers, “Indonesian Food, Beverages and Tobacco Market Forecast
till 2011”, also provides detailed analysis on the industry. It thoroughly
evaluates the consumptions patterns in all the major segments such as vegetables,
fruits, milk, meat etc. The report also includes extensive information on the
Indonesian beverage market, giving details about types of beverages and their market
performance. In addition, the report also provides brief analysis of the Indonesian
tobacco market.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM584.htm
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