Key Takeaways
- In 2023, the Indonesian food and beverage market reached a value of USD 228.5 billion, growing at a CAGR of 8.2% from 2018-2023.
- The F&B sector contributed 3.5% to Indonesia's GDP in 2022, with projections to reach 4.1% by 2027.
- Online F&B sales in Indonesia surged to IDR 150 trillion in 2023, representing 15% of total F&B revenue.
- 68% of Indonesians dine out at least once a week in 2023 urban survey.
- Plant-based food consumption rose 28% YoY in 2023 among millennials.
- 75% of consumers prefer halal-certified products, up from 70% in 2022.
- Palm oil production in Indonesia reached 47.8 million tons in 2023, 58% of global supply.
- Rice production totaled 34.5 million tons in 2023, self-sufficiency at 98%.
- Coffee bean output was 760,000 tons in 2023, 5th largest globally.
- Indofood as largest F&B company reported revenue of IDR 127 trillion in 2023.
- Mayora Indah sales reached IDR 32.5 trillion in 2023, up 12%.
- Unilever Indonesia F&B division contributed 55% of total sales IDR 38 trillion.
- 65% of F&B imports regulated under TKDN policy in 2023.
- Food safety violations reported 12,000 cases by BPOM in 2023.
- Halal certification mandatory for all F&B by 2024, 85% compliant now.
Indonesia's robust food and beverage industry grew significantly in 2023, led by strong domestic consumption.
Challenges and Regulations
- 65% of F&B imports regulated under TKDN policy in 2023.
- Food safety violations reported 12,000 cases by BPOM in 2023.
- Halal certification mandatory for all F&B by 2024, 85% compliant now.
- Sugar import quota set at 3.2 million tons for 2023.
- Inflation control measures capped F&B price hikes at 6% in 2023.
- 40% SMEs in F&B faced supply chain disruptions from weather in 2023.
- Labor minimum wage rise 8% impacted F&B costs in 2023.
- Plastic packaging tax introduced, adding 5% to costs for F&B in 2023.
- 25% reduction in illegal food imports seized USD 50M in 2023.
- Sustainability mandates require 30% recyclable packaging by 2025.
- Post-COVID recovery saw 15% outlet closures in F&B sector 2023.
- Energy costs for F&B manufacturing up 18% due to global oil prices 2023.
- BPOM recalled 450 products for labeling issues in 2023.
- VAT on luxury F&B items increased to 12% effective 2023.
- Water usage regulations limited F&B factories to 80% efficiency in 2023.
- Food estate program underperformed, only 30% capacity.
- 18% rise in food adulteration cases detected.
- Export bans on palm oil lifted but quotas remain.
- MSME credit access only 40% for F&B sector.
- Climate change reduced rice yield 5% in key areas.
- Labeling rules updated for allergens, 20% non-compliant.
- Fuel subsidy cuts hiked transport costs 12%.
Challenges and Regulations Interpretation
Consumer Preferences and Trends
- 68% of Indonesians dine out at least once a week in 2023 urban survey.
- Plant-based food consumption rose 28% YoY in 2023 among millennials.
- 75% of consumers prefer halal-certified products, up from 70% in 2022.
- Online food delivery users reached 45 million in 2023, 25% penetration rate.
- Health-conscious snacks demand grew 19% in 2023, low-sugar variants leading.
- 82% of Gen Z prefer sustainable packaging in F&B purchases in 2023.
- Coffee consumption per capita increased to 1.2 kg in 2023 from 0.9 kg in 2020.
- Street food remains favorite for 55% of consumers, spending avg IDR 50k/visit.
- Functional beverages like kombucha sales up 35% in 2023 urban areas.
- 40% of consumers shifted to premium ice cream brands in 2023.
- Vegan product trial rate at 15% in 2023, highest in Southeast Asia.
- Ready-to-drink tea market share hit 42% of non-alcoholic beverages in 2023.
- Home cooking frequency dropped to 4.2 times/week in 2023 from 5.8 in 2020.
- Organic food sales grew 25% to IDR 12 trillion in 2023.
- 62% prefer local brands over international in snacks category 2023 survey.
- 72% of urban consumers prioritize convenience foods in 2023.
- Low-calorie beverage preference rose to 38% among women.
- 51% increased spending on healthy snacks post-pandemic.
- Delivery app usage daily for 32% of millennials in 2023.
- Bubble tea outlets grew 40%, popular with 65% youth.
- 47% avoid MSG in food choices per 2023 survey.
- Craft beer microbreweries up 25% but niche 2% market.
- Meal kit subscriptions reached 1.5 million users.
- 59% prefer cashless payments for F&B purchases.
- Superfoods like quinoa imports up 50% in demand.
Consumer Preferences and Trends Interpretation
Major Players and Competition
- Indofood as largest F&B company reported revenue of IDR 127 trillion in 2023.
- Mayora Indah sales reached IDR 32.5 trillion in 2023, up 12%.
- Unilever Indonesia F&B division contributed 55% of total sales IDR 38 trillion.
- Gojek-Gofood platform handled 1.2 billion orders in 2023, 40% market share.
- GrabFood captured 35% delivery market share with 900 million orders.
- Wings Food revenue hit IDR 45 billion in 2023 from snacks and noodles.
- Nestle Indonesia F&B sales IDR 22 trillion, coffee leading at 30%.
- Aqua (Danone) bottled water market share 52% in 2023.
- ABC Group (Heinz) sauces segment leader with 45% share.
- Frisian Flag dairy market share 28% in UHT milk category 2023.
- Siantar Top TOP instant coffee 60% market dominance.
- Kaldu Ayam Tropicana brand holds 40% seasoning market.
- Starbucks Indonesia outlets reached 600 in 2023, revenue IDR 2.5T.
- McDonald's Indonesia 300 outlets, 15% growth in sales.
- Foodpanda exited but ShopeeFood grew to 25% share in 2023.
- PepsiCo Indonesia invests IDR 2T in production expansion.
- KFC Indonesia 1,000 outlets milestone in 2023.
- Indofood Sukses Makmur noodles 80% market share.
- Sari Roti bread leader 35% share in baked goods.
- Teh Botol Sosro 90% RTD tea market dominance.
- Uniqlo no, wait Coca-Cola Indonesia volume 2B liters.
- Black Sheep Coffee chain expanded to 50 outlets.
- 70% market concentration by top 10 F&B firms.
- Local coffee chains like Kopi Kenangan 500 stores.
- Alfamart F&B sales 25% of total revenue IDR 120T.
Major Players and Competition Interpretation
Market Overview and Growth
- In 2023, the Indonesian food and beverage market reached a value of USD 228.5 billion, growing at a CAGR of 8.2% from 2018-2023.
- The F&B sector contributed 3.5% to Indonesia's GDP in 2022, with projections to reach 4.1% by 2027.
- Online F&B sales in Indonesia surged to IDR 150 trillion in 2023, representing 15% of total F&B revenue.
- The packaged food segment in Indonesia's F&B market grew by 7.8% YoY in 2023 to USD 45 billion.
- Beverage market in Indonesia was valued at USD 32.4 billion in 2023, with non-alcoholic drinks dominating at 62% share.
- Indonesia's F&B export value hit USD 5.2 billion in 2023, up 12% from 2022.
- Halal-certified F&B products accounted for 92% of the market in 2023, valued at USD 210 billion.
- The quick-service restaurant (QSR) segment expanded by 11.5% in 2023, reaching 25,000 outlets nationwide.
- F&B industry employment reached 12.5 million jobs in 2023, 5% of total workforce.
- Projected F&B market size for Indonesia in 2028 is USD 350 billion at 9.1% CAGR.
- Urban F&B consumption grew 14% YoY in 2023, driven by Jakarta and Surabaya.
- Traditional food market share stood at 35% of total F&B in 2023, valued at USD 80 billion.
- Ready-to-eat meals segment boomed to USD 8.5 billion in 2023, up 22%.
- Alcoholic beverages market remained at USD 2.1 billion in 2023 due to regulations.
- F&B inflation rate in Indonesia was 5.8% in 2023, highest among sectors.
- In 2023, the Indonesian F&B e-commerce penetration reached 18%, valued at USD 25 billion.
- The snack food market in Indonesia grew to USD 12.3 billion in 2023.
- Confectionery sales volume increased by 6.5% to 1.2 million tons in 2023.
- The overall F&B market is expected to grow at 8.5% CAGR to 2027.
- Instant coffee market valued at USD 1.8 billion with 10% growth.
- 55 million middle-class consumers drive premium F&B segment growth.
- F&B retail modern trade share 28% in 2023 from 22% in 2020.
- Energy drinks market expanded to USD 900 million in 2023.
- Processed meat products market at USD 4.2 billion, 7% growth.
- Tea market volume 250,000 tons, black tea 70% share in 2023.
Market Overview and Growth Interpretation
Production and Supply Chain
- Palm oil production in Indonesia reached 47.8 million tons in 2023, 58% of global supply.
- Rice production totaled 34.5 million tons in 2023, self-sufficiency at 98%.
- Coffee bean output was 760,000 tons in 2023, 5th largest globally.
- Cocoa production hit 200,000 tons in 2023, facing supply shortages.
- Seafood production reached 12.3 million tons in 2023, 60% aquaculture.
- Sugar cane harvest yielded 2.7 million tons in 2023, import dependency 45%.
- Poultry meat production grew to 4.8 million tons in 2023, up 6%.
- Instant noodle production capacity at 18 billion packs/year in 2023.
- Bottled water production volume was 45 billion liters in 2023.
- Dairy production totaled 1.2 million tons in 2023, import reliance 70%.
- Fruit processing industry output reached 3.5 million tons in 2023.
- Supply chain digitalization adopted by 35% of F&B firms in 2023.
- Cold chain logistics capacity expanded 20% to 500,000 pallet positions in 2023.
- Edible oil refining capacity at 25 million tons/year in 2023.
- Wheat import volume was 11.5 million tons in 2023 for bakery industry.
- Spice exports from Indonesia totaled USD 250 million in 2023.
- Bakery product manufacturing output grew 9% to IDR 120 trillion in 2023.
- Soybean imports for tofu/tempeh 2.8 million tons.
- Banana production 8.2 million tons, largest fruit crop.
- 1,200 F&B processing factories registered in 2023.
- Logistics costs 14% of F&B GDP contribution issue.
- 70% F&B supply chain still traditional wet markets.
- Vegetable production 12 million tons, imports fill 20% gap.
- Canned fish output 450,000 tons exported mainly.
- Flour milling capacity 15 million tons annually.
- 28% farms adopted precision agriculture in F&B chain.
- Port congestion delayed 10% F&B imports in Q4 2023.
Production and Supply Chain Interpretation
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