Indonesia’s dairy market is one of the largest in Southeast Asia, shaped by strong population growth, rising incomes, and evolving dietary habits.
Demand for dairy products continues to increase, particularly in urban areas, where consumers are shifting towards more protein- and calcium-rich diets.
However, the country remains heavily reliant on imports, with domestic milk production meeting less than 25 percent of total consumption.
Most locally produced milk comes from smallholder farms, primarily located in Java, with limited cold chain and processing infrastructure.
This supply gap has created opportunities for foreign dairy suppliers, especially in the powdered milk, infant formula, and cheese segments.
Major players include global brands such as Frisian Flag, Nestlé, and Fonterra, alongside local processors like Indolakto and Cimory.
While the government has introduced initiatives to support local dairy farming, challenges such as low yields, high production costs, and fragmented supply chains persist.
As a result, Indonesia’s dairy market continues to evolve as a high-potential but structurally constrained sector within the region’s broader food and beverage landscape.
Indonesia’s dairy industry in numbers
Indonesia’s dairy market reached a value of US$5.10 billion in 2021, driven by a strong compound annual growth rate (CAGR) of 12.3 percent between 2016 and 2021.
During the same period, consumption volume grew at a CAGR of 5.9 percent, reaching 1.95 billion kilograms in 2021.
However, growth is expected to moderate slightly, with the market forecast to expand at a CAGR of 6.7 percent from 2021 to 2026, reaching approximately US$7.07 billion by the end of the forecast period, according to a report from Markets and Research.
Dairy products and eggs market in Indonesia
Indonesia’s dairy products and eggs market is projected to generate revenue of US$27.6 billion in 2025, with strong annual growth expected at a compound annual growth rate (CAGR) of 6.56 percent between 2025 and 2030.
This expansion reflects rising consumer demand for protein-rich and nutritious food products in line with improving incomes and urbanisation trends.
In terms of per capita metrics, the market is forecast to generate US$96.60 per person in 2025, with an average consumption of 43.1 kilograms per person.
Overall market volume is expected to reach 13.83 billion kilograms by 2030, with a projected volume growth rate of 2.5 percent in 2026, according to data from Statista.
Milk market in Indonesia
Indonesia’s milk market is forecast to generate revenue of US$12.33 billion in 2025, with annual growth projected at a compound annual growth rate (CAGR) of 6.50 percent between 2025 and 2030, according to data from Statista.
In 2025, per capita revenue is expected to reach US$43.16, with average consumption at 23.2 kilograms per person.
By 2030, total market volume is projected to hit 7.31 billion kilograms, with a volume growth of 1.9 percent anticipated in 2026.
Indonesia’s dairy imports
Indonesia is one of Southeast Asia’s largest dairy importers, relying heavily on foreign suppliers to meet rising domestic demand.
With local production covering less than 25 percent of consumption, imports — particularly of milk powder and processed dairy — remain critical to the national supply chain.
Indonesia dairy imports
| Country | 2024 | 2023 | Change |
| Total | 1,479,419,891 | 1474328022 | 0.35% |
| New Zealand | 681,288,831 | 660,291,389 | 3.18% |
| United States | 223,233,635 | 294,112,127 | -24.10% |
| Australia | 177,716,033 | 117,889,957 | 50.75% |
| Belgium | 70,571,996 | 77,629,154 | -9.09% |
| France | 68,684,894 | 73,583,623 | -6.66% |
| Netherlands | 53,956,522 | 57,499,977 | -6.16% |
| Germany | 42,337,841 | 31,263,724 | 35.42% |
| Argentina | 26,482,476 | 45,103,272 | -41.28% |
| Malaysia | 22,159,346 | 20,674,614 | 7.18% |
| India | 18,528,311 | 13,370,708 | 38.57% |
| Denmark | 18,217,083 | 15,165,367 | 20.12% |
| Poland | 16,161,054 | 13,747,070 | 17.56% |
| Belarus | 13,474,961 | 14,724,319 | -8.48% |
| Ireland | 13,291,418 | 16,427,079 | -19.09% |
| United Kingdom | 12,556,825 | 8,454,903 | 48.52% |
| Italy | 4,943,049 | 3,901,094 | 26.71% |
| Thailand | 3,746,975 | 2,541,270 | 47.44% |
| Lithuania | 3,387,566 | 3,358,065 | 0.88% |
| Sweden | 2,140,645 | 1,473,669 | 45.26% |
| Vietnam | 1,556,614 | 696,533 | 123.48% |
Source: BPS-Statistics Indonesia
Dairy production in Indonesia
Dairy production in Indonesia is largely driven by smallholder farms concentrated on the island of Java, with a few large-scale commercial operations supplementing national supply.
Despite rising demand, local production meets only around 20–25 percent of the country’s dairy needs, making Indonesia heavily reliant on imports.
Indonesia Dairy Firms: Key Players
Indonesia’s dairy industry is supported by a mix of established domestic companies and emerging players that are expanding production and innovation to meet rising consumer demand.
While smallholder farms remain the backbone of raw milk supply, local processors and vertically integrated firms are increasingly shaping the market.
PT Ultrajaya Milk Industry & Trading Company Tbk (IDX: ULTJ)
Ultrajaya is Indonesia’s leading producer of UHT (Ultra-High Temperature) milk and aseptic beverages.
It holds a significant market share in the country’s processed milk industry.
The company also produces a variety of other beverages and has been listed on the Indonesia Stock Exchange since July 1990.
PT Cisarua Mountain Dairy Tbk (Cimory)
Cimory is a prominent dairy company known for its yogurt and milk products.
It operates dairy farms and processing facilities, focusing on producing high-quality dairy items for the Indonesian market.
Cimory has been included in the IDX Sector Consumer Non-Cyclicals index.
PT Kurniamitra Duta Sentosa Tbk (IDX: KMDS)
This company is involved in the dairy and milk industry in Indonesia. As of April 2025, it had a Market Value Added (MVA) of USD 16.38 million, indicating its presence in the sector.
PT Platinum Wahab Nusantara Tbk (IDX: TGUK)
PT Platinum Wahab Nusantara operates in the processed foods industry with a focus on dairy products.
It was listed on the Indonesia Stock Exchange, offering shares at Rp110.00 per share.
PT Greenfields Indonesia
Greenfields is a major dairy producer in Indonesia, known for its fresh milk and dairy products.
The company operates large-scale dairy farms and processing facilities, contributing significantly to the country’s dairy industry.
PT Indolakto
A subsidiary of Indofood, Indolakto is one of Indonesia’s largest dairy companies, producing a wide range of dairy products, including milk, yogurt, and cheese.
It plays a significant role in meeting the country’s dairy consumption needs.
These companies are key players in Indonesia’s dairy industry, contributing to both domestic consumption and the overall growth of the sector.
Foreign dairy companies in Indonesia
Several foreign dairy companies have a significant presence in Indonesia, supplying a wide range of products and playing a vital role in meeting the country’s growing demand for dairy.
These firms operate through local subsidiaries, joint ventures, or licensing agreements, often dominating the processed milk, infant formula, and cheese segments.
Frisian Flag Indonesia (FrieslandCampina, Netherlands)
Frisian Flag is one of the most recognisable dairy brands in Indonesia, known for its sweetened condensed milk and UHT milk.
It is a subsidiary of FrieslandCampina, a Dutch multinational cooperative.
Frisian Flag has operated in Indonesia for over 90 years and maintains a strong position in the affordable dairy category.
Nestlé Indonesia (Switzerland)
Nestlé is a major player in Indonesia’s dairy market, offering products such as Dancow, Bear Brand, and Milo.
The company manufactures powdered milk, ready-to-drink milk, and dairy-based nutritional products.
It operates local manufacturing facilities and sources some raw materials domestically.
See also: Manufacturing in Indonesia: Industry Overview
Fonterra Brands Indonesia (New Zealand)
Fonterra supplies dairy ingredients and finished products under brands like Anchor and Anlene.
It focuses on high-value dairy such as nutritional milk and cheese, catering to both consumers and the foodservice industry.
Fonterra also supports local dairy development through farmer training and supply chain partnerships.
Danone Indonesia (France)
Through its dairy division, Danone offers yoghurt, drinkable yoghurts, and infant formula in Indonesia.
Its brand portfolio includes Activia and Nutricia.
Danone operates multiple production facilities across the country, making it a key contributor to local employment and supply.
Arla Foods (Denmark)
Arla has a growing presence in Indonesia, mostly through premium dairy imports.
Its products — mainly organic milk, butter, and cheese — are distributed through retail and foodservice channels targeting higher-income consumers and health-focused households.
These foreign companies contribute significantly to the Indonesian dairy supply chain, bringing international standards in product development, nutrition, and logistics.
They also play a role in sectoral development through investments, partnerships with local suppliers, and support for dairy farming initiatives.
See also: How to Start a Business in Indonesia
Popular dairy products in Indonesia
Indonesia’s dairy market is characterised by a preference for affordable, shelf-stable products, though urbanisation and rising incomes are gradually shifting consumption towards fresh and value-added dairy items.
These are some of the most popular dairy products among Indonesian consumers:
Sweetened condensed milk
This is the most widely consumed dairy product in Indonesia. Used in beverages like kopi susu (coffee with milk), desserts, and baked goods, sweetened condensed milk is a household staple.
Brands like Frisian Flag, Indomilk, and Cap Enaak dominate this segment.
Powdered milk
Powdered milk is popular for both children and adults due to its long shelf life and affordability.
Products under brands such as Dancow, Anlene, Sustagen, and SGM are widely consumed, particularly in families with school-age children.
UHT and pasteurised milk
Ultra-high temperature (UHT) milk is growing in popularity, especially in urban areas where cold chain access is improving.
Flavoured variants such as chocolate and strawberry are especially popular with children. Key brands include Cimory, Indomilk, and Ultra Milk.
Yoghurt and drinkable yoghurt
Yoghurt-based drinks have gained traction in recent years, particularly in modern retail channels.
Brands like Cimory Squeeze, Heavenly Blush, and Yakult have made drinkable yoghurt part of the daily routine for health-conscious consumers.
Cheese and processed cheese
Processed cheese is increasingly used in Indonesian snacks and fusion-style foods like cheese-filled bread and instant noodles.
Local and imported brands such as Kraft, Prochiz, and Greenfields are active in this growing segment.
While shelf-stable dairy still dominates in terms of volume, rising health awareness, urbanisation, and product innovation are expanding consumer interest in fresh milk, yoghurt, and cheese, particularly among middle-class and younger consumers in major cities.
Dairy farming regions in Indonesia
Dairy farming in Indonesia is concentrated in highland areas with cooler climates, suitable for raising dairy cattle.
While overall production remains low compared to national demand, several key regions play a central role in supplying fresh milk to processors and local markets.
West Java
West Java is the heart of Indonesia’s dairy industry, accounting for the majority of the country’s fresh milk output.
The districts of Lembang, Bandung, and Bogor are especially active, supported by cooperatives like KPBS Pangalengan.
The region benefits from cool temperatures, abundant feed resources, and proximity to major urban markets such as Jakarta.
East Java
East Java is another key dairy-producing province, particularly in areas like Malang, Batu, and Pasuruan.
The region supports both smallholder farms and larger commercial operations. Several dairy processors, including those under the Indofood and Greenfields brands, source milk from East Java.
Central Java
Dairy farming is also present in Central Java, especially in upland areas like Boyolali and Semarang.
Cooperatives and small-scale farmers supply fresh milk to regional processors, contributing to the province’s growing dairy output.
North Sumatra
Although less dominant than Java, parts of North Sumatra such as Berastagi and Karo Highlands engage in small-scale dairy farming.
These areas supply local fresh milk markets and support regional food industries.
These regions form the backbone of Indonesia’s domestic dairy production, though they still fall short of meeting national demand.
Most farms are small-scale and integrated into cooperative systems, with ongoing efforts by the government and private sector to improve yields, infrastructure, and supply chain efficiency.
Indonesia dairy market vs Vietnam, Philippines
The dairy markets of the Philippines, Vietnam, and Indonesia share some structural similarities — such as low self-sufficiency, strong demand growth, and high import dependency — but they differ significantly in terms of scale, local production capacity, and development strategies.
All three countries are experiencing rising dairy consumption due to urbanisation, growing middle classes, and dietary shifts.
However, consumption patterns differ.
In the Philippines, for example, powdered milk and condensed milk dominate, driven by price sensitivity and limited cold-chain infrastructure.
Cheese, yoghurt, and flavoured milk are growing segments but remain niche.
See also: Philippines Dairy Market: Imports, Consumption, and More
Vietnam shows strong demand for fresh milk and value-added dairy products like yoghurt and dairy snacks.
Its retail market has evolved rapidly with improved cold-chain logistics and strong domestic brands.
See also: Vietnam’s Dairy Market: Overview
Indonesia, similar to the Philippines, has widespread consumption of powdered and sweetened condensed milk, but fresh milk and yoghurt are gaining popularity in urban centres.
What’s next?
Indonesia’s dairy market continues to expand, driven by a growing middle class, urbanisation, and shifting dietary preferences toward more protein-rich and functional foods.
However, local production remains limited, meeting only 20–25 percent of demand.
As a result, Indonesia remains heavily reliant on imports, particularly for powdered milk, infant formula, and processed cheese, with countries like New Zealand, the United States, and Australia among the top suppliers.
That is to say, there is plenty of opportunity for foreign dairy producers.
With this in mind, firms operating in the dairy space keen to keep up with the latest developments in Indonesia’s dairy market should do so by subscribing to the-shiv.
First published April 25, 2025. Last updated February 20, 2026.