As health and wellness trends sweep across Asia, Indonesia's iconic herbal brand, Sido Muncul, is leading the charge with innovative solutions to meet changing consumer demands. Known for its legendary herbal syrup Tolak Angin—a staple remedy for generations—the company is embracing the sugar reduction movement while tackling climate-driven challenges in its supply chain.
The Heritage of Tolak Angin
For over seven decades, Sido Muncul has been synonymous with herbal health remedies in Indonesia. Its flagship product, Tolak Angin, meaning “Push Wind,” addresses the traditional belief that ‘wind entering the body’ causes minor ailments such as bloating or the common cold.
“Tolak Angin is a household name in Indonesia. Everyone carries it, especially when traveling, as it’s trusted for prevention rather than cure,” said Puspa A., Head of Sales and Marketing B2B, during the Fi Asia Indonesia 2024 show.
With a market share of approximately 75% in the cold remedy category, Tolak Angin’s formulation—featuring ginger, wild mint, fennel, and honey—has remained a closely guarded secret. However, the recent introduction of a sugar-free variant marks a significant shift in the brand’s legacy.
Riding the Sugar-Free Wave
The decision to launch a sugar-free Tolak Angin variant was driven by two key factors:
Anticipation of Indonesia’s Sugar Tax: Sido Muncul is proactively reducing sugar content to secure a better NutriGrade rating and stay ahead of regulatory changes.
Health-Conscious Consumers: Younger generations are increasingly opting for preventative care over treatment, aligning with the growing demand for herbal and low-sugar products.
“These trends resonate strongly with our values,” Puspa noted. “By offering a sugar-free version, we ensure our products remain relevant to modern consumer needs without compromising on their health benefits.”
Expanding Cultural Compatibility
Tolak Angin’s appeal goes beyond Indonesia, with exports to markets like the Philippines, Malaysia, Hong Kong, and Australia. These regions share a cultural acceptance of herbal remedies for illness prevention, making them ideal for the brand’s expansion.
Navigating Climate Challenges
As an herb-focused manufacturer, Sido Muncul faces a critical dependency on raw herbal crops, which have been significantly affected by climate change.
“The rising unpredictability of harvests has tripled raw material costs, creating a ripple effect on production,” Puspa shared. “With 80% of our business reliant on herbs, we’re working closely with farmers to mitigate these challenges and maintain product affordability.”
Looking Ahead
Sido Muncul’s innovation in sugar-free herbal remedies, coupled with its commitment to supporting farmers amidst climate challenges, underscores its position as a leader in Indonesia’s health and wellness sector. By staying attuned to consumer trends and preparing for regulatory shifts, the brand is not only preserving its rich legacy but also ensuring its relevance in a dynamic, health-conscious market.
As sugar reduction and preventative care trends gain momentum, Sido Muncul’s forward-thinking strategies are setting a benchmark for herbal product innovation in Indonesia and beyond.
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