From dominating global instant noodle consumption with over 12.5 billion packs sold annually to fostering a vibrant $215.6 billion food and beverage market poised for massive growth, Indonesia's F&B sector is a dynamic powerhouse fueled by youthful demographics, digital innovation, and deep cultural currents.
Key Takeaways
- In 2023, the Indonesia food and beverage market was valued at USD 215.6 billion, projected to reach USD 300.4 billion by 2028 with a CAGR of 6.9%
- The F&B sector accounted for 3.8% of Indonesia's GDP in 2022, employing over 4.5 million people directly
- Ready-to-eat food segment grew by 12.5% YoY in 2023, driven by urbanization
- Palm oil production in Indonesia reached 46.8 million tons in 2022, accounting for 59% of global supply
- Rice paddy production totaled 54.5 million tons in 2023, up 1.2% YoY
- Corn output was 13.7 million tons in 2023 across 2.8 million hectares
- Per capita rice consumption was 114 kg in 2023, down from 120 kg in 2019 due to diversification
- Instant noodle consumption totaled 5.2 kg per capita in 2023
- Palm oil consumption for food use was 15 million tons in 2023
- Indonesia exported palm oil worth USD 26.3 billion in 2023, 54% of total agri-exports
- Palm kernel oil exports reached 8.2 million tons valued at USD 7.5 billion in 2023
- Shrimp exports totaled USD 1.4 billion in 2023, mainly to US and Japan
- F&B FDI inflows reached USD 2.5 billion in 2023, led by beverage giants
- Number of modern supermarkets grew to 15,000 outlets in 2023, up 8%
- Halal certification approvals for F&B rose 20% to 12,000 products in 2023
Indonesia's food and beverage industry is large, rapidly growing, and driven by modern consumer trends.
Consumption Patterns
- Per capita rice consumption was 114 kg in 2023, down from 120 kg in 2019 due to diversification
- Instant noodle consumption totaled 5.2 kg per capita in 2023
- Palm oil consumption for food use was 15 million tons in 2023
- Poultry meat consumption per capita reached 13.5 kg in 2023
- Fish consumption averaged 56 kg per capita in 2023, highest in Southeast Asia
- Milk consumption per capita was 17 liters in 2023, up 12% from 2020
- Soft drinks consumption hit 45 liters per capita in 2023
- Bottled water consumption was 25 liters per capita in 2023
- Snack foods intake averaged 8 kg per capita annually in 2023
- Sugar consumption per capita stood at 25 kg in 2023
- Coffee consumption per capita increased to 1.5 kg in 2023
- Tea consumption averaged 0.4 kg per capita in 2023
- Fruit consumption was 45 kg per capita in 2023
- Vegetable intake reached 95 kg per capita in 2023
- Edible oil consumption per capita was 18 liters in 2023
- Beef consumption per capita was 2.1 kg in 2023
- Eggs consumption totaled 180 units per capita in 2023
- Ready-to-drink tea consumption was 15 liters per capita in 2023
- Energy drinks intake grew to 3 liters per capita in 2023
- 68% of urban consumers preferred packaged snacks in 2023 survey
- 45% of millennials consumed functional foods daily in 2023
- Home cooking frequency dropped to 4.2 times/week in 2023 from 5.5 in 2019
- Out-of-home dining expenditure averaged IDR 150,000/month per urban household in 2023
- Plant-based milk consumption rose 25% YoY to 0.5 liters per capita in 2023
- Dark chocolate consumption increased 18% in 2023 among health-conscious consumers
- Frozen ready meals consumption grew 22% to 2 kg per capita in 2023
- 72% of consumers aged 18-34 bought online groceries in 2023
Consumption Patterns Interpretation
While Indonesians are wisely eating more vegetables and fish than anyone else in the region, their collective diet reads like a modern paradox: they're cooking less at home, drinking more energy drinks, and being health-conscious enough to buy dark chocolate while still managing to consume their weight in instant noodles and sugar.
Industry Trends and Investments
- F&B FDI inflows reached USD 2.5 billion in 2023, led by beverage giants
- Number of modern supermarkets grew to 15,000 outlets in 2023, up 8%
- Halal certification approvals for F&B rose 20% to 12,000 products in 2023
- E-commerce platforms captured 15% of F&B retail sales in 2023, USD 8 billion
- Plant-based product launches increased 35% in 2023 to 450 new SKUs
- Food tech startups funding hit USD 1.2 billion in 2023, led by GoTo and Grab
- Sustainability investments in palm oil reached USD 500 million in 2023 for RSPO certification
- Labor productivity in F&B manufacturing grew 5.2% to IDR 250 million/worker in 2023
- Digital payment adoption in foodservice hit 65% transaction value in 2023
- Women-owned F&B SMEs increased to 55% of total 2.5 million units in 2023
Industry Trends and Investments Interpretation
In 2023, Indonesia's F&B sector proved it's serving far more than just meals, with a potent cocktail of global investment, digital savvy, ethical consumerism, and women entrepreneurs fundamentally reshaping how the nation eats, shops, and pays.
Market Overview
- In 2023, the Indonesia food and beverage market was valued at USD 215.6 billion, projected to reach USD 300.4 billion by 2028 with a CAGR of 6.9%
- The F&B sector accounted for 3.8% of Indonesia's GDP in 2022, employing over 4.5 million people directly
- Ready-to-eat food segment grew by 12.5% YoY in 2023, driven by urbanization
- Beverage market in Indonesia reached IDR 450 trillion in 2022, with non-alcoholic beverages dominating 65%
- Halal-certified F&B products market size hit USD 18 billion in 2023, expected to grow at 8.2% CAGR to 2027
- Instant noodles consumption per capita was 4.5 kg in 2023, making Indonesia the world's largest market with 12.5 billion packs sold
- Packaged food sales increased by 7.8% in 2023 to IDR 1,200 trillion
- E-commerce F&B sales surged 25% YoY to USD 5.2 billion in 2023
- Foodservice industry revenue reached IDR 650 trillion in 2022, recovering 95% from pre-COVID levels
- Organic food market valued at USD 250 million in 2023, growing at 15% CAGR due to health trends
- Snack food segment market size was USD 8.5 billion in 2022, with 9.2% CAGR forecast to 2030
- Dairy products market hit IDR 120 trillion in 2023, led by milk consumption rise to 16 liters per capita
- Confectionery sales grew 6.5% to USD 2.1 billion in 2023
- Functional beverages market expanded to USD 1.8 billion in 2023, with 11% growth
- Frozen food market reached IDR 45 trillion in 2022, up 18% YoY
- Bakery products industry valued at USD 4.2 billion in 2023
- Edible oils consumption totaled 18 million tons in 2022
- Processed meat market size was USD 3.5 billion in 2023, growing 7.5%
- Soft drinks market volume hit 12 billion liters in 2023
- Health food and supplements F&B segment reached USD 1.2 billion in 2022
- Coffee consumption per capita rose to 1.2 kg in 2023 from 0.9 kg in 2019
- Tea market value stood at USD 1.5 billion in 2023
- Rice consumption averaged 132 kg per capita annually in 2022
- Sugar consumption totaled 7.5 million tons in 2023
- Poultry meat production reached 3.8 million tons in 2023
- Fish production hit 12.5 million tons in 2022, with aquaculture contributing 60%
- Fruit production totaled 22 million tons in 2023, led by bananas at 8 million tons
- Vegetable output was 12 million tons in 2023
- Palm oil production achieved 47 million tons in 2023, Indonesia leading globally
- F&B manufacturing industry had 25,000 establishments in 2022
Market Overview Interpretation
The statistics suggest that Indonesia is an unstriated noodle of a market: a vast, steaming plate of economic might and cultural habits, from the world-leading instant noodle slurps and booming halal sector to the ambitious dairy sippers and e-commerce snackers, all proving that while the nation's appetite is colossal, its business savvy is the real main course.
Production Statistics
- Palm oil production in Indonesia reached 46.8 million tons in 2022, accounting for 59% of global supply
- Rice paddy production totaled 54.5 million tons in 2023, up 1.2% YoY
- Corn output was 13.7 million tons in 2023 across 2.8 million hectares
- Soybean production stood at 0.95 million tons in 2023, with imports covering 80% of demand
- Sugar cane harvest yielded 37.5 million tons in 2023 from 410,000 hectares
- Cassava production hit 22.4 million tons in 2023
- Poultry slaughter volume was 4.2 billion heads in 2023, producing 3.9 million tons meat
- Beef production reached 450,000 tons in 2023 from 3.5 million heads slaughtered
- Aquaculture fish production was 7.8 million tons in 2023, led by tilapia at 1.2 million tons
- Capture fisheries production totaled 7.2 million tons in 2023
- Banana production was 8.1 million tons in 2023 from 140,000 hectares
- Mango production reached 3.2 million tons in 2023
- Cabbage output was 1.1 million tons in 2023
- Chili production totaled 2.3 million tons in 2023 from 160,000 hectares
- Crude palm oil extraction rate averaged 23.5% in 2023 for major mills
- Instant noodle production was 13.2 billion packs in 2023 by top 5 companies
- Bottled water production reached 45 billion liters in 2023
- Flour milling capacity utilization was 78% in 2023, producing 12 million tons wheat flour
- Sugar refining output was 2.8 million tons white sugar in 2023
- Dairy processing produced 2.5 million tons milk products in 2023
- Edible oil refining capacity was 25 million tons annually in 2023, utilization 85%
- Frozen shrimp production hit 250,000 tons in 2023 from aquaculture
- Bread production totaled 1.8 million tons in 2023 by industrial bakeries
- Canned fish output was 450,000 tons in 2023
- Snack food manufacturing produced 1.2 million tons in 2023
- Soft drink production volume was 13.5 billion liters in 2023
- Beer production reached 2.8 billion liters in 2023 despite regulations
- Coffee roasting output was 350,000 tons green beans equivalent in 2023
- Tea processing produced 150,000 tons black tea in 2023
- Soy sauce production hit 1.5 million tons in 2023
- Instant coffee production was 120,000 tons in 2023
Production Statistics Interpretation
While Indonesia commands the global palm oil throne and feeds itself with mountains of rice and rivers of noodles, its national meal still relies on imported soy for its tempeh and a heroic chicken to do the heavy lifting.
Trade and Exports
- Indonesia exported palm oil worth USD 26.3 billion in 2023, 54% of total agri-exports
- Palm kernel oil exports reached 8.2 million tons valued at USD 7.5 billion in 2023
- Shrimp exports totaled USD 1.4 billion in 2023, mainly to US and Japan
- Coffee exports were 300,000 tons green beans worth USD 1.2 billion in 2023
- Cocoa beans exports hit 240,000 tons valued at USD 1.1 billion in 2023
- Processed fish exports reached USD 2.5 billion in 2023
- Instant noodles exports were 500 million packs worth USD 150 million in 2023
- Canned tuna exports totaled 120,000 tons valued at USD 600 million in 2023
- Palm oil imports by India from Indonesia were 9.5 million tons in 2023
- Wheat imports reached 11.2 million tons worth USD 4.5 billion in 2023
- Soybean imports totaled 2.8 million tons valued at USD 1.6 billion in 2023
- Sugar imports were 3.2 million tons in 2023 to meet domestic shortfall
- Dairy product imports hit USD 1.2 billion in 2023, mainly milk powder
- Frozen beef imports reached 300,000 tons valued at USD 1.8 billion in 2023
- Fruit imports totaled USD 450 million in 2023, led by apples from China
- Vegetable imports were USD 300 million in 2023
- Edible oil imports stood at 1.5 million tons in 2023 despite domestic production
- Tea imports reached 40,000 tons valued at USD 120 million in 2023
- Processed food exports grew 15% to USD 5.8 billion in 2023
- Halal food exports hit USD 3.2 billion in 2023, targeting Middle East markets
- Rubber exports related to F&B packaging were USD 2.1 billion in 2023
- Spices exports totaled USD 250 million in 2023, led by pepper
- Seaweed exports for food use reached 200,000 tons worth USD 300 million in 2023
- Beverage exports grew 12% to USD 800 million in 2023
- Confectionery exports were USD 180 million in 2023
- Bakery products exports hit USD 120 million in 2023 to ASEAN neighbors
- Snack exports totaled USD 250 million in 2023
Trade and Exports Interpretation
Indonesia is riding high on a lucrative tide of palm oil exports that paints its agricultural trade gold, yet its domestic plates remain curiously dependent on a vast and costly grocery list of imports, revealing an economy that expertly feeds the world while still needing to shop abroad for its own dinner.
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