Delivering ‘fun’ will be more highly valued by Indonesian consumers in 2023

‘Fun’ will be a key theme to connect with Indonesian consumers who continue to be challenged by economic recessions and the rising cost of living. Mintel Global Consumer research shows that one-third (33%) of Indonesians say their financial situation is okay but do not have a lot left by the time the basics are taken care of. Despite financial constraints, consumers’ sentiments towards adventure and playfulness remain strong in the last three years through September 2022.

During the Mintel Big Conversation event in Jakarta, the market intelligence firm’s experts provided insights and forecast on how Indonesian consumers’ demands for food and drink as well as beauty and personal care will evolve from now to what’s next for the subsequent few years ─ indicating brands will need to convince and convey the value of their products that is centred on ‘fun’ among increasingly price-conscious consumers.

“Consumers will gravitate towards food and drink for moments of pleasure and indulgence in tough times, but pleasurable food and drink are often marketed as naughty, guilty or frivolous. Brands can promote new ways to help consumers find pleasure in food and drink, especially for at-home consumption,” said Heng Hong Tan, Senior Food and Drink Analyst.

“We’ve also seen a growing interest in wellness driven by the pandemic, and over one-third (35%) of Indonesians say they eat comforting foods to reduce stress. Whether it’s part of a relaxing activity, an edible beauty regimen or home cooking, this is an opportunity for brands to rethink the positioning of pleasurable products and incorporate them into the realm of self-care.”

On cosmic comforts, Heng Hong notes that food and drink brands will increasingly take inspiration from space-inspired technologies and Earthly innovations from space travel findings (think: powdered protein and zero gravity fermentation), making it more tangible and profound to consumers as a marketing theme. “This will particularly appeal to Gen Zs who are intrigued by the vast mystery of space. From cosmic colours to flavour innovations, brands can address this young demographic’s desire for discovery and spiritual wellness,” he added.

“Similar to food and drink, the beauty category is intended to be uplifting and can contribute to a post-pandemic sense of self-care, including wellness at every life stage. Skin health is one of the key areas that brands can tap into, as 59% of Indonesian consumers say that looking good makes them feel more confident. Beauty supplements with functional benefits are considered a skin health promoter which can be easily integrated into consumers’ beauty routines,” said KinShen Chan, Senior Beauty and Personal Care Analyst, South APAC.

In the future, Chan says that self-care will evolve with a new purpose, highlighting the importance of community as consumers look to connect with like-minded individuals. “The idea of community self-care will be on the rise with the value of helping one another to live better and feel better. Brands will be expected to have more honest conversations about topics that are moving mainstream (eg hormonal issues),” he said.

For both food and drink as well as beauty care categories, financially-conscious consumers will limit their spending to brands that can demonstrate their value. “Our research shows that delivering value through fun will resonate with Indonesian consumers. When finances are better, they would be more willing to spend on brands that were with them through good and bad times. Brands that have already proven their value will benefit the most,” concluded Huiqi Ong, Senior Consumer Lifestyle Analyst, APAC.