If you’re running a frozen food business—or thinking of starting one—it’s essential to understand how the industry is developing in Indonesia.
Why? Because staying updated on industry trends, consumer behavior, and innovations can help you make better business decisions, capture new market opportunities, and stay ahead of the competition.
In this article, we’ll explore the current landscape of Indonesia’s frozen food market and what it means for you as a food entrepreneur.
🔍 The Dynamics of Indonesia’s Frozen Food Industry
Since the pandemic, the demand for convenient, ready-to-eat meals has surged dramatically in Indonesia. This shift in lifestyle has caused a significant rise in frozen food consumption—including items like chicken nuggets, sausages, French fries, dim sum, and even traditional Indonesian specialties.
According to the Indonesian Frozen Food Producers Association (APMBI), frozen food consumption has grown by 35% over the past two years.
The primary drivers?
- Busier lifestyles
- Preference for convenience
- Budget-friendly meal options
⚠️ However, there’s a growing concern about the health impacts of frozen food, particularly around preservatives and sodium content. In response, the Indonesian Food and Drug Authority (BPOM) has tightened regulations to ensure food safety and public health standards are met.
🚀 What’s Fueling the Growth of Frozen Food in Indonesia?
1. Lifestyle Shifts + Better Product Quality
Urban dwellers, in particular, have adopted busier schedules, leading to increased demand for quick and convenient food options—such as frozen vegetables, snacks, and ready-to-eat meals.
Interestingly, a 2017 study found no significant difference in nutrient levels between fresh and frozen produce. In some cases, frozen fruits and vegetables actually retained more vitamins because they’re frozen at peak ripeness.
This perception shift is powering frozen food’s rise as a high-quality, healthy alternative. According to research from SPINS, consumer demand for:
- Non-GMO frozen food grew 30% YoY
- Vegan-friendly options rose 27%
- Plant-based positioning increased 25%
- Paleo-certified products rose 35%
- Allergy-friendly products jumped 35%
2. Digital Distribution Channels
Online platforms like Tokopedia, Shopee, and Blibli have made it easier than ever for frozen food businesses to reach consumers—even in remote areas—boosting both accessibility and sales volume.
3. The Rise of Home-Based Businesses & MSMEs
In Q1 2022, Indonesia’s Ministry of Industry reported 1.68 million MSMEs in the food & beverage sector—creating jobs for over 3.8 million people and contributing nearly 38% of Indonesia’s non-oil GDP.
Many small businesses are turning to frozen food as a low-investment, high-potential home business model, with stable demand and customizable production processes.
⚠️ Challenges Facing the Frozen Food Industry
1. High Storage & Freezer Costs
Commercial freezers require a significant investment and use a lot of energy. Initial costs range from IDR 2 million ($120) to hundreds of millions depending on capacity. Limited freezer space also makes inventory management tricky.
2. Cold Chain Supply Issues
Maintaining a seamless cold chain from production to retail shelves is critical. Any breakdowns in temperature control can lead to spoilage, product recalls, and major food safety risks.
This is especially relevant for grocery stores and supermarkets, which must balance stock levels carefully to avoid waste while maintaining freshness.
3. Environmental Impact
High energy consumption in cold storage adds to carbon emissions—a concern for eco-conscious consumers.
There’s also the issue of packaging waste, which poses a sustainability challenge. Brands are now being called to reduce waste while still preserving product quality and shelf life.
💡 Tips for Success in the Frozen Food Business
1. Define Your Market
First, be clear about your target audience. Are you selling to individuals? Restaurants? Supermarkets?
Once you’ve identified your audience, analyze the latest trends and consumer preferences. This will help you craft the right marketing strategy.
Example:
The brand So Good targets families, moms, hotels, restaurants, and catering services. Their marketing approach includes:
- Continuous product innovation
- Consumer education via Japfa Foundation’s nutrition ambassadors
- Distribution across supermarkets, mini markets, and online platforms
2. Choose the Right Product Type
There are three main categories of frozen food:
- Ready-to-eat meals
- Raw food ingredients
- Frozen baked goods or desserts
Pick a category that aligns with your passion and expertise, then find reliable suppliers.
So Good, for instance, specializes in chicken-based products such as frozen cuts, nuggets, and premium chicken sticks.
3. Partner with Quality Suppliers
Your suppliers should offer not only high-quality ingredients but also safe, hygienic packaging. Partnering with the right vendor ensures product consistency and helps build a trustworthy brand.
4. Invest in Attractive, Functional Packaging
Packaging plays a vital role in the frozen food business. It must be:
- Visually appealing
- Informative (with clear labels)
- Durable enough to withstand shipping and freezer storage
We recommend using ALVAboard’s PP board packaging—a high-quality, food-grade polypropylene material with a lightweight, hollow-core structure that’s durable and eco-conscious.
📦 Upgrade Your Frozen Food Brand with ALVAboard PP Packaging
As Indonesia’s frozen food market continues to grow, now’s the time to level up your packaging with smart, sustainable materials like ALVAboard’s PP corrugated plastic.
Why ALVAboard?
- Food-safe and premium-grade
- Lightweight yet durable
- Water-resistant and reusable
- Customizable for impactful branding
Interested in exploring ALVAboard packaging for your food business?
👉 Contact our Customer Service via WhatsApp at +62 877-9310-2838 for a free consultation.
🛒 Shop ALVAboard Online
Browse our full line of food packaging products at:
- Tokopedia
- Shopee
- TikTok Shop
📘 Bonus: Download our free eBook, “The Ultimate Food Packaging Guide”, for insights on trends, materials, and designs that help your business stand out and scale profitably.
