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RNCOS Predicts 7.7% CAGR Growth by 2011 in Indonesian Food Expenditure - 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
RNCOS Predicts 7.7% CAGR Growth by 2011 in Indonesian Food Expenditure

 

PRZOOM - /newswire/ - Delhi, New Delhi, India, 2008/05/09 - 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.

   
 
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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.

 
 
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RNCOS Predicts 7.7% CAGR Growth by 2011 in Indonesian Food Expenditure

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