Indonesia, a bustling nation with over 275.5 million people, has a growing number of young families. With an average of 2.2 children per woman, many families raise young children. This offers a great opportunity for businesses that sell products for young families, including baby milk.

While there are many opportunities for growing milk premium (GUM) in mini markets, some challenges could affect its growth. GLI studied how people bought GUM in mini markets in 2023 and 2024 to learn more about these challenges.

The GUM Premium segment is facing a double challenge in acquiring new members: not only are the number of new members declining, but each new member is also buying less than in the past. This is particularly concerning because 75.7% of new members are entirely new to the GUM segment, indicating that the brand is struggling to attract new customers.

In the first quarter of 2024, GUM Premium saw a decrease in customer loyalty. This means that fewer people who bought GUM Premium in the past continued to buy it in 2024. This suggests that GUM Premium may be losing customers to other brands or that customers are simply buying less of the product.

Some GUM Premium customers switched to buying mainstream baby milk, while others stopped buying baby milk altogether. The number of customers who stopped buying baby milk at mini markets has increased compared to the previous year, indicating a growing trend of consumers choosing alternatives to premium baby milk.

The decline in new members and retention rates for GUM Premium highlights the challenges facing the segment in mini markets. The increasing competition from mainstream brands, changing consumer preferences, and economic factors may contribute to these difficulties. To address these challenges, GUM brands must focus on differentiating themselves, offering added value, and building stronger relationships with consumers

But where are these customers going? Are they switching to mainstream brands, buying baby milk online, or exploring other options?

We hope these insights and data are beneficial for you. Suppose you want to know more about your product. We can help you because we have more than 16 million members with millions of daily transactions for analysis, such as consumer behavior and other product data.