Indonesia FMCG volumes fall as shoppers narrow spending priorities

Traditional trade remained the largest channel, accounting for 70% of market value.

FMCG volumes in Indonesia continued to decline in Q2 2026 as consumer confidence weakened and shopping frequency showed no signs of recovery, according to Worldpanel by Kantar's Asia Pulse Q2 2026 report.

The softer demand reflects consumers becoming more selective about where they spend, particularly amongst upper-mid income households.

Higher income consumers continue to have spending capacity, but are prioritising certain categories over others, making it increasingly important for brands to retain a place in their baskets.

Traditional trade remained the largest channel, accounting for 70% of market value in Q2 2026. Mini markets followed with a 12% share, while hypermarkets and superstores and specialty stores each accounted for 5%.

Beverages and dairy were the main contributors to the volume decline in F&B.

Home care also saw weaker volumes as consumers reassessed their spending priorities, whilst baby product shoppers shifted towards lower-priced options.

Beauty was the exception, continuing to post double-digit growth, although at a slower pace. The category also continues to show potential for premiumisation.