Indonesia Consumer Insights: 2025

MARKETING

Muhammad Rizqi Perdana

5/26/20254 min read

As Southeast Asia’s largest economy and fourth most populous nation globally, Indonesia presents a dynamic and rapidly evolving consumer landscape. In 2025, Indonesian consumers are experiencing shifts shaped by digital acceleration, rising middle-class influence, heightened sustainability awareness, and a growing appetite for personalization and local relevance. Understanding these consumer insights is crucial for businesses aiming to thrive in one of the world’s most promising emerging markets. Here are below some Indonesia consumer insight that can help company improve their business.

Purchases continue to occur, even though prices are starting to rise. Consumers also show anticipatory sentiment towards inflation. Consumers tend to be experimental in choosing brands and prioritize cheap prices, promotions, and pay Later. Besides that, consumer shopping priorities are dominated by physical needs (70%), future planning (64%), and mental health (60%).

Consumers are Becoming More Cautious in Spending their Money

Consumers Tend to Prefer Purchases in Small Sizes and Prioritize Basic Ingredients

To cope with inflation pressure, consumers are turning to smaller packages or generic products to keep spending within budget. Essential daily products such as instant noodles, biscuits, cooking oil, and rice dominate the growth of FMCG sales this year. The categories with the highest increase are beverages (+6.0%), staple foods (+6.6%), and snacks (+9.5%), continuing the trend of daily consumption needs.

The Growth of e-Commerce and Online Shopping Activities is Increasing

E-commerce has become an important channel for consumers. Although the growth in the value of e-commerce transactions has slowed (only +4.95% throughout 2024), the number of online buyers has increased by 6.8%. More than half of Fast-Moving Consumer Goods (FMCG) purchases are now moving online; transactions for FMCG products in e-commerce surged +90% year on year. The use of live shopping is becoming increasingly popular: around 60% of Indonesian consumers have purchased through live broadcasts in 2024.

An Entertaining Shopping Experience and KOLs Influence Consumer Purchases

An entertaining and interactive shopping experience makes consumers choose live shopping. Influencers and KOLs play a significant role; studies show that 78% of buyers trust influencer recommendations when purchasing products. 'Shoppertainment' incentives such as short video content, interactive quizzes, and flash sale/live shopping promotions make online shopping increasingly attractive and impulsive.

Consumers Increasingly Prioritize Purchases by Considering the Value They Receive

Consumers are becoming more selective and value conscious. They prioritize essentials and seek value for money. The search for 'Buy Now, Pay Later' options has increased by 30% based on a study conducted in 2022, indicating a growing interest in easy installments. Local brands and those that are socially responsible are also increasingly favored because they provide added value (pride and trust).

Strengthen presence across all channels, especially offline distribution (traditional stores, kiosks, minimarkets, modern trade) as it is strong because the majority of consumers still plan to shop there. Seamlessly integrate attractive promotions with online platforms—for example, offer digital vouchers that can be redeemed at physical stores, or a loyalty points program that is valid across various channels.

Strategy Recommendation

Strengthen the Approach with an Omnichannel

Utilizing Social Commerce and Influencer Engagement

Take advantage of interactive shopping experience trends that are very popular. Hold regular live shopping sessions on platforms like TikTok Shop, Instagram Live, or YouTube, showcasing new products with live demonstrations. Provide incentives (special discounts, giveaways) to encourage viewers to make purchases right away. Also, utilize affiliate programs or reseller rewards that offer commissions to micro-influencers/sellers to promote your products.

Apply Value-added Techniques such as Bundling, Cashback, and Flexible Payments

In the midst of pressured purchasing power, promotions such as bundles (savings packages) for everyday products, cashback or loyalty points for every transaction, and installment/paylater options can encourage purchases. For example, economical packaging (refill/grocery sizes) at competitive prices, or subscription programs for essential products (milk, ground coffee) that provide automatic discounts every month. Collaboration with digital wallets or fintech (e-wallet rewards points) also enhances consumer loyalty and engagement.

The Indonesian consumer in 2025 is informed, connected, and empowered. Businesses that understand their nuanced behaviors balancing digital efficiency with emotional storytelling, local pride with global standards, and value with values will be well-positioned to lead. The future belongs to brands that can listen, adapt, and innovate alongside Indonesia’s diverse and ever-evolving consumer base.

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