Indonesia Retail Industry Report, By Type of Products Sold, Store Format, Distribution Channel, Ownership Model, Business Model, Age Group, Income Group, Urbanization, Business Type, and Forecast 2025-2033

Market Overview:

The Indonesia retail industry was valued at US$ 261,584.1 Million in 2024 and is expected to register a CAGR of 4.6% over the forecast period and reach US$ 391,473.1 Million in 2033.

Report Attributes	Details
Base Year	2024
Forecast Years	2025-2033
Historical Years	2022-2023
Indonesia Retail Industry Growth Rate (2025-2033)	4.6%

The Indonesian retail industry is among the largest and fastest growing industry in Southeast Asia. It is a vital link between producers and consumers. Even more, it significantly contributes to economic growth. It encompasses all forms of outlets, whether traditional neighbourhood stores or local markets, or modern supermarkets, hypermarkets, convenience stores, specialty stores, shopping mall, or e-commerce. The mix shows Indonesia’s cultural diversity, growing middle class, and evolving consumer aspirations.  The retail sector will be promoting jobs, innovation and investment in the near future. In the today’s industry, competition, modernization and customers are changing business models.

The modern and the traditional formats coexist in the industry, which caters to consumers with different needs.  Though modern retailing outlets are quickly growing in urban areas, the rural and semi-urban areas are still dominated by traditional stores. The process of digital transformation, backed by internet and mobile penetration, has led to a strong push for online retailing. The ongoing evolution of retailing is making competition fierce. Local and global players are competing for consumer loyalty with innovative offerings, diverse products and convenience-driven services. Consequently, Indonesia is becoming a retail destination that reflects modern retail while capturing the essence of local culture.

Indonesia Retail Industry Trends and Drivers:

The Indonesia retail industry is seeing trend shifts in consumers’ behaviour, technology adoption, and lifestyle factors. The rise of e-commerce and mobile shopping has been magnificent because online sites offer purchasing a variety of products at competitive prices with easy payment options. More and more shoppers are visiting physical stores and also using their digital devices. Shopping malls with a blend of entertainment and shopping are beginning to gain popularity.  This has seen the growth within the organic food, green packaging, and ethical clothing industry. The retail environment will be more personalized and experience-driven, thanks to these trends.

Key factors driving growth in the Indonesia retail industry include the growing middle class with rising disposable incomes, urbanization, and the young population who are willing to try new platforms. The support rendered by the government for digital payments, logistics improvement policies and investment encouraging policies have further supported the sector. In addition, changing family structures and cultural diversity are leading to new consumer demands for packaged food, ready-to-eat food, electronics, personal care and lifestyle products. Together these drivers reflect a positive foundation for long-term retail growth in the country.

Indonesia Retail Industry Restraining Factors:

The retail industry is facing some significant restraints that stop its full potential being reached. The modern retail infrastructure in India faces the challenge of uneven development, where urban areas are witnessing state-of-the-art formats and technologies, rural and semi-urban areas depend heavily on the mom-and-pop outlets. Not everyone will have access to the same product, pricing, and experience.  Another constraint is the increasing operational cost in prime locations due to high rents, logistics challenges, coupled with rising labour costs, putting pressure on smaller retailers. The organized retail growth and development is inhibited by these structural barriers.

Furthermore, the industry’s ability to adapt to external economic changes like inflation, currency fluctuations, and consumer spending behaviour will determine overall industry stability. Certain categories are heavily reliant on imports which makes the sector vulnerable to supply chain issues globally. The organized retail penetration is also getting hampered by regulatory obstacles and the dominance of unorganized retail structures that prevent modern formats from fully benefitting from consumer demand in the country. Overcoming these challenges will be key for Indonesia to achieve the true potential of its retail industry.

Indonesia Retail Industry Opportunities:

The opportunity for growth in the Indonesia retail industry remain high despite these constraints. E-commerce is booming, and you have never had a greater opportunity to take advantage of this. As retail spending grows, digital platforms are expected to capture a greater share of the retail euro. Retailers combining their physical stores with online services are likely to enhance consumer trust and loyalty. Food grocery retail has great growth potential. Especially growth of fresh, packaged and convenience products is rising in urban and developing areas. Small retailers are also becoming digital and reaching more customers due to this change.

Options for premium or niche products are also on the rise, including products aimed at health, sustainability or luxury/lifestyle. The demand for innovative and eco-friendly offerings is being driven by younger consumers. Also, international partnerships and investment are bringing in the global best. Taking retail to the suburbs and the countryside with the help of better ways and digital access offers a whole new market. As the economy developed, urbanized, and digitalized, Indonesia’s retail industry will grow steadily and increasingly competitive globally. This shows that the industry is likely to turn more consumer-oriented by the businesses and innovation driven in time to come.

Indonesia Retail Industry Segmentation:

By Type of Products Sold

• Food & Beverages
• Grocery
• Fashion and Apparel
• Electronics and Appliances
• Health and Beauty
• Automotive
• Sports and Outdoor
• Books & Stationery
• Toys & Baby Products
• DIY & Gardening
• Home & Living

In Type of Products Sold, Food and Beverages is expected to dominate the industry share during the forecast period. This is because people purchase daily essentials regularly almost every day; demand for packaged foods and ready-to-eat meals is rising; frozen and convenience foods are gaining importance; and this category is a frequent reason for consumers to visit stores or retail outlets. So, this category sees higher sales volume compared to discretionary categories.

By Store Format

• Modern Retail
  • Supermarkets
  • Hypermarkets
  • Convenience Stores
  • Department Stores
  • Specialty Stores
  • Shopping Malls & Lifestyle Centers
• Traditional Retail

Among Store Formats, Supermarkets is expected to dominate the industry share during the forecast period. This is because of their wide appeal across broad consumer categories, convenience of a wide assortment of products under one roof, competitive pricing strategies, availability of private labels and fast expansion into semi-urban areas where the consumer lifestyle is evolving in favour modern shopping formats.

By Distribution Channel

• Offline
• E-Commerce & Online

Considering Distribution Channel, Offline is expected to dominate the Indonesia industry share during the forecast period. The reason behind this is the entrenched habit of consumers to shop physically, the assurance that inspection gives them of the quality of the product, the instant gratification of getting the product at the same moment, and the trust of shopping at physical retail outlets. This trust and familiarity still outweigh the convenience that online shopping offers and thus they opt for real-world shopping.

By Ownership Model

• Domestic Retail Chains
• International Chains
• Franchise Models
• Cooperative Retailers

With respect to Ownership Model, Domestic Retail Chains is expected to dominate the industry share during the forecast period. This is because they have deep insights on cultural and regional usage patterns as well as competitive pricing that matches local affordability. Further, they are widely present in tier two and tier three cities. Plus, they quickly adapt product offerings to meet seasonal and regional demand as compared to global players.

By Business Model:

• B2C (Business to Consumer)
• B2B (Wholesale or Trade Retailing)
• C2C (Customer to Customer)

The B2C Business to Consumer is anticipated to have the major industry share in the forecast period. The increase in off-line shopping resulted from the growing shift towards direct consumer engagement, the sharper rise in omni-channel retail strategies that integrate off-line and on-line shopping, stronger focus on personalization of customer experience, and huge opportunity to target repeat consumer demand across essentials and discretionary categories.

By Age Group:

• Gen Z (18–25)
• Millennials (26–40)
• Gen X (41–56)
• Boomers (57+)

Regarding Age Group, Millennials is expected to dominate the industry share during the forecast period. The higher purchasing power of the segment compared to younger age groups, strong digital adoption for online retail, preference for convenience and lifestyle-driven products, and their role in shaping the consumption trends across categories such as food delivery, fashion, health, and tech.

By Income Group:

• Upper Class
• Middle Class
• Lower Income

The middle-class income group is predicted to have the largest industry share during the forecast period. Due to their increasing population, disposable income level and aspiration for branded and premium products. Additionally, active participation in traditional and modern retail formats and being the largest contributor to retail demand in the urban and semi-urban market.

By Urbanization:

• Urban
• Semi-Urban
• Rural

With respect to Urbanization, Urban is expected to dominate the industry share during the forecast period. This consumer shift is enabled by high concentration of consumers, advanced retail infrastructure, exposure to global consumption patterns, increasing dual-income households, and rising demand for convenience-oriented shopping in supermarkets, malls and lifestyle centres.

By Business Type:

• Mass Market Retailer
• Independent Retailers

The mass market retailer will likely dominate the industry share in the business type during the forecast. The reason for this is their capacity to cater to a large consumer base with affordable offerings, their extensive penetration in urban and semi-urban areas, their high-volume low-margin sales strategy, and being positioned to meet the daily necessity of a mass population, ensuring consistent demand.

Leading Companies in Indonesia Retail Industry & Competitive Landscape:

The Indonesia retail industry is continuously evolving and changing. The major players in this industry are PT Indomarco Prismatama (Indomaret) PT Sumber Alfaria Trijaya Tbk (Alfamart & Alfamidi) PT Trans Retail Indonesia (Transmart Carrefour) Lotte Mart and PT Matahari Putra Prima Tbk (Hypermart). These players are always expanding their chain to cover a larger customer base. Businesses are speeding up the use of digital technology and online shopping platforms and data-backed insights to improve customer experience and operational efficiency. The merging of online and offline shopping is omni-channel retailing, which gives a competitive edge. Many companies are building services outside retail, such as loyalty, finance, logistics and personalized shopping. Strategically teaming up with global brands and tech providers will allow better adaptability. Changing consumer preferences, regulatory requirements, and rising demand for convenience continue to intensify competition while fueling growth. Retailers in Indonesia must innovate, optimize costs, and deliver superior customer experiences to stay competitive in the evolving retail landscape.

These companies include:

• PT Indomarco Prismatama (Indomaret)
• PT Sumber Alfaria Trijaya Tbk (Alfamart & Alfamidi)
• PT Trans Retail Indonesia (Transmart Carrefour)
• Lotte Mart (Subsidiary of Lotte Group)
• PT Matahari Putra Prima Tbk (Hypermart)
• PT Hero Supermarket Tbk (Hero Supermarket)
• Pepito Supermarket
• PT Supra Boga Lestari Tbk (Ranch Market)
• GrandLucky Superstore
• Tip Top (Owned by Fonterra)
• PT Lion Super Indo (operates by the Salim Group and Ahold Delhaize)
• PT Matahari Department Store Tbk
• PT Panen Lestari Internusa
• PT Tozy Sentosa
• PT Mitra Adiperkasa (MAP)
• Galeries Lafayette Jakarta
• PT Ramayana Lestari Sentosa Tbk
• PT Delami Garment Industries
• PT Ace Hardware Indonesia Tbk
• PT Home Center Indonesia
• PT Electronic City Indonesia Tbk
• PT Lancar Wiguna Sejahtera
• PT Midi Utama Indonesia
• PT Circle K Indonesia Utama (Circle K)
• PT. Fajar Mitra Indah
• PT. Best Denki Indonesia
• AS Watson Group
• Lazada Group
• Catur Sentosa Adiprana
• Inter IKEA Systems B.V
• Apple

Recent Development:

• August 2025: A new fiscal stimulus package of US$1.5 billion, which includes social assistance programs and transportation discounts, is being implemented to stimulate domestic demand and boost retail activity. Since this provides a boost in the short run, consumer behaviour tends to remain cautious on account of stagnant wages and elevated youth unemployment.
• July 2025: The Indonesian government introduced a new regulation (PMK 37/2025) mandating e-commerce platforms to withhold a 0.5% income tax from domestic sellers. The policy that was implemented in July aims to boost tax compliance in the growing digital sector and to create a more even playing field between online and offline retailers.
• June 2025: The Ministry of Trade officially revoked four key import-related regulations, signaling a government effort to simplify trade barriers and stimulate the flow of goods into the country. This change in policy is likely to help industries that require global imports of cosmetics, food and drink, electronics and fashion.
• March 2025: A report highlights that major convenience store chains like Indomaret and Alfamart are driving market growth by expanding their outlet numbers, particularly in areas outside of Java. A major trend in Colombia's retail market, which until now has been led by physical distribution channels, is expansion.

Indonesia Retail Industry Research Scope

Report Metric	Report Details
Indonesia Retail Industry size available for the years	2022-2033
Base Year	2024
Forecast Period	2025-2033
Compound Annual Growth Rate (CAGR)	4.6%
Segment covered	By Type of Products Sold, Store Format, Distribution Channel, Ownership Model, Business Model, Age Group, Income Group, Urbanization, and Business Type
Fastest Growing Country in Indonesia	Bali and Surabaya
Largest Market	Java
Key Players	PT Indomarco Prismatama (Indomaret), PT Sumber Alfaria Trijaya Tbk (Alfamart & Alfamidi), PT Trans Retail Indonesia (Transmart Carrefour), Lotte Mart (Subsidiary of Lotte Group), PT Matahari Putra Prima Tbk (Hypermart), PT Hero Supermarket Tbk (Hero Supermarket), Pepito Supermarket, PT Supra Boga Lestari Tbk (Ranch Market), GrandLucky Superstore, Tip Top (Owned by Fonterra), PT Lion Super Indo (operates by the Salim Group and Ahold Delhaize), PT Matahari Department Store Tbk, PT Panen Lestari Internusa, PT Tozy Sentosa, PT Mitra Adiperkasa (MAP), Galeries Lafayette Jakarta, PT Ramayana Lestari Sentosa Tbk, PT Delami Garment Industries, PT Ace Hardware Indonesia Tbk, PT Home Center Indonesia, PT Electronic City Indonesia Tbk, PT Lancar Wiguna Sejahtera, PT Midi Utama Indonesia, PT Circle K Indonesia Utama (Circle K), PT Fajar Mitra Indah, PT Best Denki Indonesia, AS Watson Group, Lazada Group, Catur Sentosa Adiprana, Inter IKEA Systems B.V, Apple