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As of the second quarter of 2025, traditional trade held the highest market share of ** percent in the fast-moving consumer goods (FMCG) sector in Indonesia. Mini markets followed with ** percent market share in the FMCG sector. Traditional trade has been an important part of many Indonesians’ lives. It is a familiar sight in Indonesian neighborhoods and a place for bargaining and purchasing various consumer products. 

The benefits of traditional trade

Traditional trade, which encompasses traditional markets, “warung” or small kiosks, and other family-run establishments, has been preferred by Indonesian consumers due to its accessibility. This has been a great alternative for them as logistics have proven to be challenging in a country where its *** million people are spread out in thousands of islands. Although traditional trade has its benefits, it has struggled to compete with its modern competitors in terms of convenience. This problem was also amplified in some areas of the country due to the decreasing amount of people living in rural areas. As the value of retail sales from convenience stores continues to increase, these modern alternatives will continue to gain a foothold across Indonesia.

The market outlook

The market share of mini-markets for FMCG in Indonesia has decreased by *** percent since the third quarter of 2020. Though still dwarfed by that of traditional markets, the same could not be said about their popularity. However, Indonesians may still trust and support traditional trade more due to its consistent pricing strategies. Unlike traditional retail, modern trade channels such as hypermarkets and supermarkets follow the loss leader strategy by selling some items at a loss to gain more by selling other products at a more expensive price.