Indonesia Cassava Market Size was estimated at 4.68 (USD Billion) in 2023. The Indonesia Cassava Market Industry is expected to grow from 4.87(USD Billion) in 2024 to 9.97 (USD Billion) by 2035. The Indonesia Cassava Market CAGR (growth rate) is expected to be around 6.724% during the forecast period (2025 - 2035)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
In Indonesia, the cassava market is experiencing notable trends driven by several key market drivers. One significant driver is the increasing demand for cassava as a staple food source, particularly in rural areas, where it serves as an essential carbohydrate source. The rising interest in cassava-based products, such as tapioca flour and starch, further propels the market growth, especially given Indonesia’s status as one of the world's largest producers of cassava.
Additionally, there is a growing recognition of cassava's potential for biofuel production, contributing to the expanding diversification of its applications in the energy sector.Undeniably, the cassava market in Indonesia is an attractive business opportunity, especially in improving processing methods aimed at increasing product quality. Exportable value-added products for both the local and international markets can be developed.
Farmers can benefit from technological progress in agriculture to increase their production and minimize post-harvest damages.Moreover, cooperation with policies targeted at increasing the efficiency of agriculture output and its sustainability will improve the supply chain of cassava. There has also been a change in eating habits over the recent past, with more focus on gluten free and healthier food alternatives.
This trend has positioned cassava as a favorable alternative to wheat, tapping into the health-conscious consumer segment. The growing popularity of plant-based diets has also led to more innovation in food products that utilize cassava, such as snacks and ready-to-eat meals. Given these evolving preferences and the supportive regulatory environment in Indonesia, the cassava market is poised for significant growth and transformation in the coming years.
Increasing Demand for Cassava-Based Food Products
The Indonesia Cassava Market Industry is witnessing a significant increase in demand for cassava-based food products due to changing dietary preferences and an increase in population. The Ministry of Agriculture of Indonesia has reported that the consumption of cassava in various forms – such as flour, chips, and snacks – has risen by over 15% in the last five years. As a staple food, cassava is not only vital for food security but also a source of income for many smallholder farmers.This surge in demand is driven by urbanization trends, where convenience food is increasingly preferred. Established organizations, such as the Indonesian Food and Beverage Industry Association, predict that the growth in the snacks and processed foods sector directly contributes to the rising popularity of cassava products. This growth highlights a sustainable market opportunity, reinforcing the importance of cassava in the Indonesian diet and economy.
The Indonesian government has shown a strong commitment to enhancing cassava production through various policy initiatives and support programs. The National Development Planning Agency (BAPPENAS) has set ambitious targets to increase cassava yield by 20% over the next decade through improved agricultural techniques and research investment. These initiatives are crucial for the Indonesia Cassava Market Industry, as they not only provide financial support but also promote innovation in farming practices.Coupled with subsidies for fertilizers and access to better seed varieties, these policies cultivate a conducive environment for farmers to increase production. The emphasis on cassava as an alternative food source underscores its importance in ensuring food sovereignty and increased farmer livelihoods, driving overall market growth.
Rising Utilization of Cassava in Industrial Applications
Cassava's versatility makes it a key ingredient in various industrial applications, including biofuels, cosmetics, and pharmaceuticals. This trend is representative of the broader shift in how agricultural products are being utilized. The Indonesian Ministry of Industry has highlighted the potential of cassava in the production of bioethanol, estimating that the country could produce up to 2.5 million tons of bioethanol from cassava by 2025. This industrial application not only diversifies the revenue streams for farmers but also positions cassava as a critical component in sustainable industrial processes.The involvement of established firms in cassava processing further accelerates the growth of the Indonesia Cassava Market Industry, providing significant economic opportunities across the supply chain.
Export Opportunities for Processed Cassava Products
Indonesia's strategic location and favorable trade agreements have opened up significant export opportunities for processed cassava products. With countries like Japan, Korea, and Australia actively seeking cassava imports, especially in its processed forms, Indonesia is well-positioned to become a leading exporter. According to data from the Ministry of Trade, exports of cassava products have increased by 30% over the last two years, showing robust demand in international markets.This burgeoning export market is vital for the Indonesia Cassava Market Industry, allowing local farmers and processors to benefit from higher prices and expanded market reach. The government is also facilitating access to international markets through trade partnerships and quality assurance programs.
The Indonesia Cassava Market is experiencing substantial growth, with various dynamics influencing its progress. Within the Category Outlook, the market is divided into Conventional and Organic segments, which together showcase the industry's versatility and adaptability to consumer preferences. The conventional segment is critical in meeting the higher demand for cassava-based products in Indonesia, given its established supply chain and agricultural practices. This segment benefits from traditional farming methods and wider accessibility, making cassava staples widely available in both domestic and export markets.
On the other hand, the organic segment is gaining momentum, driven by increasing health consciousness among consumers and a rising preference for natural and sustainably sourced products. Organic cassava appeals to a niche market that values food quality and environmental impact, fostering growth amid an evolving industry landscape. These trends point towards a significant opportunity for both segments as they cater to diverse market needs. The Indonesia cassava market also reflects a broader trend in agricultural diversification, ensuring food security and bolstering rural economies.
Moreover, government initiatives aiming to boost crop productivity and support farmers are expected to positively affect the cassava market statistics and enhance overall industry health. As the country stands as one of the global leaders in cassava production, it holds a significant position in the Asian agricultural landscape. The combination of established conventional practices and emerging organic trends showcases the adaptability and growth potential within the Indonesia Cassava Market, highlighting opportunities for further innovations, investment, and market expansion.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Indonesia Cassava Market displays robust growth potential, particularly within the Form Outlook segment, which encompasses both Solid and Liquid forms. The Solid form of cassava is notably significant, as it is widely utilized in various food products and traditional dishes and is a key ingredient for starch production. Its versatility contributes to its demand, particularly in the domestic market, where cassava-based products are staples in everyday meals. On the other hand, the Liquid form of cassava is gaining traction, primarily due to its application in beverages and as a raw material for the biofuel industry, reflecting the growing trend toward sustainable energy sources.
The market dynamics indicate that both forms serve essential roles within Indonesia's agricultural sector, facilitating both food security and innovation in production techniques. The regional climate and soil conditions in Indonesia further enhance the viability of cassava cultivation, making this market segment pivotal for the local economy. The increasing awareness of the nutritional benefits of cassava and its products will likely propel this segment's growth in the coming years, stimulating the overall Indonesia Cassava Market revenue and further diversifying its applications.
The Application Outlook for the Indonesia Cassava Market highlights its diverse utilization across various sectors, with substantial opportunities for growth. In this dynamic landscape, the Food Beverages segment is notably significant, as cassava serves as a key ingredient in traditional Indonesian dishes and processed foods, catering to local and international markets alike. The Animal Feed segment equally plays a crucial role, capitalizing on the increasing demand for livestock feed driven by the country's growing animal husbandry sector. The Others category encapsulates various applications, including the production of starches and biofuels, which have gained traction in recent years.With the overall increasing focus on sustainable practices and innovative solutions, these segments present considerable potential for Indonesia's economy.
As per the latest statistics, Indonesia is one of the largest cassava producers globally, reinforcing the importance of these applications within the country's agricultural framework. The emphasis on improving cassava yields and processing efficiency continues to drive these segments forward, facilitating the Indonesia Cassava Market growth and providing opportunities for both investors and stakeholders in the industry.
The Indonesia Cassava Market is characterized by a diverse array of players and unique competitive dynamics that reflect the local agricultural landscape and consumer preferences. The market is shaped by domestic demand for cassava products, driven primarily by various end-use applications such as food, beverages, and developing biofuel alternatives. With the rising awareness regarding the health benefits attributed to cassava and its potential as a gluten-free ingredient, businesses have increasingly focused on innovation and quality enhancement to gain competitive advantages.
Additional factors such as government regulations, agricultural practices, and distribution networks play a substantial role in determining the market landscape, influencing how companies operate and strategize to capture market share.PT. Sari Gourmet Foods stands out in the Indonesia Cassava Market due to its commitment to quality and innovation. This company has established a strong market presence through its focus on producing high-quality cassava snacks and food products that cater to the evolving tastes of Indonesian consumers. The ability of PT. Sari Gourmet Foods leveraging traditional recipes while incorporating modern production techniques has been a significant strength, allowing it to maintain a loyal customer base.
Moreover, the company's distribution network enables it to reach various retail channels efficiently, ensuring that its products are widely available across the country. The brand's emphasis on quality control and sustainable sourcing of cassava has further bolstered its reputation and market position.PT. Dwi Karya Indah has carved its niche in the Indonesia Cassava Market by focusing on the production of cassava-based industrial ingredients and consumer products. The company plays a vital role in supplying vital components for food processing sectors, which has granted it considerable industry influence, with a robust portfolio of products that includes tapioca flour and starch, PT. Dwi Karya Indah addresses the growing demand for these ingredients in various applications.
The company's strengths lie in its established relationships with local farmers for sustainable cassava sourcing and its commitment to stringent quality assurance processes. Moreover, PT. Dwi Karya Indah has actively pursued partnerships and collaborations within the ecosystem to enhance its market offering, aligning with local industry trends and pursuing strategic mergers and acquisitions that expand its capabilities in the Indonesian cassava sector.
Recent developments in the Indonesia cassava market indicate a thriving sector driven by local demand for cassava-based products and increasing global interest in alternative food sources. Companies such as PT. Sari Gourmet Foods and Indofood Sukses Makmur continue to expand their offerings, focusing on cassava flour and starch as substitutes for wheat products in terms of mergers and acquisitions, PT. Budi Starch and Sweetener acquired a local processor in early 2023, enhancing their production capacity and market reach in Indonesia, bolstered by robust backing from industry stakeholders.
The market valuation for cassava-based products has seen significant growth, attributed to rising health consciousness and the shift towards gluten-free diets. Several key players, including Cargill Indonesia and Dharma Satya Nusantara, have invested in plant expansions to cater to this trend. Notably, in 2022, the Sinar Mas Agro Resources and Technology also reported a substantial increase in cassava yield thanks to concerted efforts in sustainable farming practices, reflecting the commitment of major companies to innovation in the sector. Overall, the interplay between increasing domestic demand and strategic expansions by notable firms is shaping a dynamic landscape for the Indonesian cassava market.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 4.68(USD Billion) |
| MARKET SIZE 2024 | 4.87(USD Billion) |
| MARKET SIZE 2035 | 9.97(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 6.724% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | PT. Sari Gourmet Foods, PT. Dwi Karya Indah, PT. Mitra Sari Sejati, Cargill Indonesia, PT. Tropicana Roti, Thai Wah Public Company Limited, Sukamanis Group, Arrowroot Limited, Sinar Mas Agro Resources and Technology, Indofood Sukses Makmur, Dharma Satya Nusantara, PT. Budi Starch and Sweetener, Wilmar International |
| SEGMENTS COVERED | Category Outlook, Form Outlook, Application Outlook |
| KEY MARKET OPPORTUNITIES | Increasing demand for biofuels, Growing snack food market, Expansion of tapioca production, Rising investment in agritech, Export potential to Asia-Pacific |
| KEY MARKET DYNAMICS | rising domestic demand , export potential growth , price volatility , climate change impacts , technological advancements in processing |
| COUNTRIES COVERED | Indonesia |
Frequently Asked Questions (FAQ) :
The Indonesia Cassava Market is projected to be valued at 4.87 USD Billion in 2024.
By 2035, the market is expected to grow to 9.97 USD Billion.
The anticipated CAGR for the Indonesia Cassava Market from 2025 to 2035 is 6.724 %.
In 2024, the Conventional category is projected to be valued at 3.14 USD Billion.
The Organic category is expected to reach a value of 3.42 USD Billion by 2035.
Key players in the market include PT. Sari Gourmet Foods, Cargill Indonesia, and Indofood Sukses Makmur among others.
The growth of the Indonesia Cassava Market is driven by increasing demand for both conventional and organic products.
Cassava is primarily used for food products, animal feed, and industrial applications.
By 2035, the Conventional category is expected to grow significantly to 6.55 USD Billion, while the Organic category is expected to reach 3.42 USD Billion.
There is a rising trend towards organic cassava due to health and sustainability concerns.
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