Overview of Indonesian Food and Beverages Market: Trends, Growth, and Opportunities
The Indonesian Food and Beverages (F&B) market is a thriving sector that contributes significantly to the country’s economy. With impressive revenue figures and promising growth projections, this market presents a wealth of opportunities for businesses. In this article, we will explore the key insights and trends shaping the F&B sector in Indonesia.
Currently, Food and Beverages sector in Indonesia has significantly increased by 4.90% (year-on-year) in 2022, compared to previous year that increased by 2,54%. Contribute 38.35% of national GDP in 2022, the highest among all other sectors. The increasing on production of food and beverage commodities is the main driving factor.
Picture 1: GDP of Indonesia’s Food and Beverages Industry 2018-2022 (Source: BPS)
Current market condition of Food in Indonesia
Based on Statista, the revenue in the Food market is projected to reach a substantial USD 273.57 Billion in 2023, reflecting the market’s size and economic impact. The market is expected to grow at an annual rate of 7.08% from 2023 to 2028, presenting long-term growth prospects for businesses.
Picture 2: Indonesia’s Food Market Revenue 2021-2028 (Source: Statista)
The largest segment in the Food market is bread & cereal products, with an estimated market volume of USD 38.4 billion in 2022 that covering 15.3% of total food market revenue in 2022, followed by confectionery & snacks (14.1%) and meat products (12.7%).
Picture 3: Indonesia’s Food Market Revenue by Segment in 2022 (Source: Statista)
The strong presence of bread & cereal products indicates the high demand for essential food items in Indonesia. Nonetheless, there are also favorable prospects for companies operating in confectionery & snacks and meat product sectors. By meeting the diverse preferences of consumers and leveraging the market’s growth potential, businesses can position themselves for prosperity and take advantage of the thriving Food market in Indonesia.
Current market condition of beverages in Indonesia
While, the Beverages market in Indonesia is projected reach revenue around USD 273 billion in 2023 and expected grew annually by 4.78% during 2023 to 2028 period, this indicating the expanding opportunities for business in Indonesia. This sector offers diverse opportunities in bottled water, juices, Ready-to-Drink (RTD) coffee & tea, and soft drink.
Picture 4: Indonesia’s Beverages Market Revenue 2021-2028 (Source: Statista)
In 2022, soft drink beverages is dominated the beverages market by covering 54% total beverages market revenue in 2022, followed by bootled water (37%) and RTD coffee & tea products (6%).
Picture 4: Indonesia’s Beverages Market Revenue by Segment in 2022 (Source: Statista)
The Beverages market in Indonesia presents a lucrative prospect for businesses, with substantial revenue growth and a diverse range of product opportunities. Soft drinks have a strong foothold in the market, reflecting consumer preferences. However, there is also considerable potential for growth and innovation in other segments such as bottled water and RTD coffee & tea.
Conclusion
The Food and Beverages (F&B) market in Indonesia is flourishing, providing profitable prospects for businesses. The market exhibits remarkable revenue growth and a robust demand for F&B products, making it an advantageous landscape for suppliers, manufacturers, and distributors in the Indonesian market. Additionally, with the increasing prominence of online sales, evolving consumer preferences, and a sizable consumer base, businesses in the F&B industry have abundant opportunities to prosper and achieve success.
Hebronstar Strategy Consultants
Muhammad Ari Bagaskara / Business Analyst
Sources:
Statista. 2023. Beverages – Indonesia. https://www.statista.com/outlook/cmo/non-alcoholic-drinks/indonesia
Statista. 2023. Revenue of the food market in Indonesia from 2018 to 2027. https://www.statista.com/forecasts/1220026/indonesia-revenue-total-food-market
