Y&S Insights: Jakarta’s Ice Cream Market; Still Sweet, But Evolving

A Universal Favorite with a Modest Appetite

Despite its universal appeal, ice cream remains a modest indulgence in Indonesia’s culinary landscape. This sweet, refreshing treat is adored by people of all ages—children and adults, men and women alike. Despite its popularity, ice cream is considered a non-essential food, so its consumption rate is relatively modest compared to staples like rice, vegetables, or meat. In 2023, the average Indonesian consumed approximately 12 bowls of ice cream per year—an increase from 11 bowls five years ago. While the growth isn’t particularly significant, the wide appeal of ice cream still secures its position as a favorite dessert, especially in hot cities like Jakarta.

The Retail Segment Still Dominates

When it comes to market share, Jakarta’s ice cream industry is still largely dominated by affordable retail ice cream products priced between IDR3,000 to 20,000. Brands like Wall’s, Aice, and Campina are household names, known for their accessible prices and wide availability. These factors contribute to their continued dominance in the mass-market segment.

Chinese Franchise Wave and the Rise (and Fall) of Mixue

Apart from retail giants, the ice cream market has also been influenced by a wave of Chinese-origin franchises that combine ice cream with trendy beverages. Leading the charge was Mixue, which rose to prominence around 2020. However, its popularity has started to fade due to oversaturation—too many outlets opening in close proximity, leading to “cannibalization” among branches. The brand has also faced heavy imitation, with many new players copying its business model. As a result, several Mixue outlets have closed. Still, with affordable pricing between IDR 8,000 to 20,000, these types of outlets maintain a loyal customer base.

The Premium Side of the Market: Gelato

As the capital city, Jakarta is also home to more premium ice cream offerings—namely, gelato. Gelato differs from regular ice cream in both texture and composition. With less air content and more milk, gelato has a denser, creamier consistency and is often considered a healthier option thanks to its natural flavorings and lower fat content. This quality comes at a price—typically between IDR25,000 to 47,000 per scoop.

Flavor variety is also a key selling point for gelato, with some brands introducing on-trend and unique options such as non-alcoholic “alcohol” gelato flavor and the trending Dubai pistachio flavor.

More Than Dessert: A Lifestyle Experience

The premium positioning of gelato has encouraged brands to focus not only on flavor but also on creating memorable dining experiences. Gelato shops in Jakarta have evolved into lifestyle destinations and social hubs. One notable example is Vilo Gelato, which recently launched a sprawling 3.9-hectare outlet in Depok featuring a lakeside park and playground concept. Gure Gelato offers a coastal gelato experience in North Jakarta, while Macks Creamery appeals to a younger, trend-conscious audience with its futuristic silver-toned interior and in-store photo booth.

Conclusion: Affordability Still Leads, but Lifestyle Shapes Growth

In conclusion, Jakarta’s ice cream market remains largely driven by affordable options, as ice cream is still seen as a non-essential indulgence. People tend to opt for products that are both budget-friendly and easily accessible. However, the rise of café culture and the influence of social media are fueling a new wave of premium gelato shops. Over the past five years, this lifestyle-driven segment has seen notable growth, adding a new dimension to Jakarta’s evolving dessert scene.●

^{YAMADA Consulting & Spire (Y&S) merupakan perusahaan riset dan konsultasi bisnis terkemuka di dunia dengan kantor pusat di Tokyo, Jepang, dan kantor pusat regional Asia Pasifik di Singapura. Sebelum diakuisisi oleh Yamada Consulting Group, perusahaan ini dikenal dengan nama Spire Research and Consulting.}

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