Indonesian consumers are embracing a robust spending pattern, as revealed by NielsenIQ's latest Retail Spend Barometer. Total expenditures on fast-moving consumer goods (FMCG) and technology products reached Rp 256 trillion in Q3 2024. FMCG dominated the spending landscape, accounting for 81% (Rp 208 trillion) of the total, while the remaining 19% was allocated to consumer technology items such as smartphones, tablets, and PCs.

FMCG Growth Driven by Beverages and Food

The FMCG sector witnessed a year-on-year (YoY) growth of 1.1%, supported by Indonesia's stable inflation rate of 1.8% and GDP growth of 4.9%. Essential categories, including beverages and ambient food, were primary drivers of this growth. Improved economic stability allowed consumers to slightly increase their spending on household essentials, reversing a sluggish performance in earlier quarters.

Moreover, holiday seasons, including Christmas and New Year celebrations, are expected to further boost consumer spending in Q4 2024. This seasonal spike underscores the resilience of the FMCG market amidst global economic uncertainties.

Consumer Tech: Smartphones and Tablets Take Center Stage

Consumer tech products saw a YoY growth of 4.3%, fueled by rising demand for smartphones and tablets. Spending on technical consumer goods surged by 6.2% in Q3 2024, reflecting a 12.7% increase compared to the previous year. Indonesian consumers prioritize devices offering high value and functionality, making gadgets a focal point for discretionary spending.

Despite the strong performance of smartphones and tablets, other categories like home improvement and appliances recorded a decline. Spending on DIY products dropped 14.8%, with LED lighting seeing the sharpest fall at 16.9%. Home appliances like washing machines and air conditioners also showed a marginal decline, highlighting shifting priorities among consumers.

Future Outlook: Optimism Amid Stability

As inflation stabilizes and the economy continues to grow, consumer spending on both FMCG and technology products is expected to rise in 2025. Analysts predict that heightened activity during the holiday season will pave the way for stronger performance in both sectors.

Manufacturers and retailers can capitalize on this momentum by focusing on consumer preferences for high-value products and festive promotions. Understanding these spending patterns will be critical to sustaining growth in Indonesia's evolving market dynamics.