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November 16, 2023

Sustainable Rice in Indonesia: Insights from Consumer Behaviors and Perceptions

SRP recently shared the results of an extensive consumer survey [1] that sheds light on emerging trends in sustainable rice consumption across Asia. This comprehensive survey spanned multiple countries, collecting data from rice consumers in India, Indonesia, Pakistan, Thailand, and Vietnam. In this article, we will delve into the key findings from the Indonesian segment of the survey to gain a nuanced understanding of the rice market in Indonesia.

Indonesia’s Rice Consumption Habits

Indonesians are prominent rice consumers, with 100% of those surveyed enjoying it at least five times a week. The survey highlights that white rice is a staple in almost every household, with 97% of respondents consuming it daily across all regions. Additionally, the consumption of red rice, though lower overall, stands out among older consumers and upper-class households, particularly in Greater Jakarta, where 25% of respondents regularly purchase it.

Purchase Patterns: A Glimpse into Consumer Behavior

Middle-aged consumers (45-54) exhibit a preference for procuring rice from fresh markets and wholesalers. Notably, 67% of respondents in this age group spend more than 12,000 IDR (EUR 0.73) in a single transaction and buy at least 5 kg. Intriguingly, the majority (61%) of those aged 25-34, spending 14,001 IDR (EUR 0.86) and above on rice, signal a shifting trend in purchasing behavior. Quality and price emerge as the top considerations when purchasing rice. While 61% of those aged 35-44 prioritize price, nutritional value is crucial for 39% of the 18-25 age group. The top five factors influencing choices include quality (70%), price (59%), nutritional value (34%), food safety (30%), and the type of rice (28%).

Sustainability and Consumer Preferences

Consumers showcase a growing interest in sustainable rice, citing quality, price, and type of rice as the primary reasons for choosing such products. Older customers, particularly those over 55, prioritize quality, health, and taste when opting for sustainable food, emphasizing the significance of these factors in the decision-making process. Health emerges as a key attribute for sustainable rice, with characteristics like minimal use of chemical inputs (45%) and improved farmer livelihoods (43%) influencing purchasing decisions.
A significant portion of surveyed Indonesian consumers (60%) relies on social media for rice-related information, with older demographics (45 and above) forming the majority.

Willingness to Pay for Sustainable Rice

The survey indicates that consumers in Greater Surabaya are more willing to pay a premium for sustainable rice, with 29% expressing interest in a 10% increase, compared to the national average of 17%. Buyers of sustainable rice tend to be well-educated, affluent millennials and elders who frequently consume white rice, primarily from cities outside Java, and prefer local markets and wholesalers.

Based on survey insights, consumers willing to pay a premium for sustainable rice are likely to be aged 25-34 or 55 and above, from upper-class households with higher education levels. Quality, health, and taste are crucial factors influencing their purchase decisions.

Conclusion

In conclusion, these insights from the consumer survey provide a comprehensive understanding of the Indonesian rice market, offering valuable insights for stakeholders. As the nation continues to evolve, these findings serve as a guide for producers and retailers aiming to cater to the diverse preferences of Indonesian consumers, fostering a sustainable and thriving rice industry.

The full summaries of the consumer survey can be accessed here:

• Emerging Trends in Asia’s sustainable rice consumption
• Emerging Trends in Indonesia’s sustainable rice consumption

SRP members can access the complete survey results through the member area on the SRP website.

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[1] The survey was commissioned by GIZ and conducted by YouGov in March 2022. Funded through the develoPPP programme which Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH implements on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and in collaboration with private companies. The support was provided through the Mainstreaming Sustainable Rice project, which aims to scale sustainable rice production and demand globally. The study targeted respondents who regularly consume rice and are responsible for household food purchases in India, Indonesia, Pakistan, Thailand, and Vietnam.

Sustainable Rice in Asia: Insights from Consumer Behaviors and Perceptions

Sustainable Rice in India: Insights from Consumer Behaviors and Perceptions