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MARKET OVERVIEW

Semarang FBC

The Food, Beverage, and Chef market in Indonesia is a dynamic and rapidly growing sector driven by strong domestic demand, a growing middle class, and increasing urbanization. With a population projected to surpass 281 million by 2025, Indonesia boasts a large consumer base with evolving preferences towards convenience foods, health-conscious products, and innovative offerings. The expanding middle class, with more disposable income, fuels the demand for premium and specialty food items, pushing companies to innovate and cater to this demographic.

  • Economic Contribution

    The food and beverage (F&B) industry is a significant contributor to Indonesia's economy, accounting for around 7.15% of the GDP in the first half of 2024. The sector is projected to grow by 4.53% by the end of the year.

  • Consumer Base

    With a population of over 275 million, expected to surpass 281 million by 2025, Indonesia has a large and growing consumer base. Urbanization and rising incomes are shifting consumer preferences towards convenience foods, health-conscious products, and innovative offerings such as plant-based and organic options.

  • Key Segments

    The market includes various segments such as packaged food, beverages, snacks, frozen foods, and halal-certified products. The demand for halal-certified products remains robust due to Indonesia's Majority-Muslim population.

  • Foreign Investment

    The F&B sector is attractive to foreign investors, thanks to its strong economic contributions and expanding business opportunities. Processed food exports, raw material imports, and cold-chain solutions are key areas of interest.

  • Challenges

    Despite its growth potential, the sector faces challenges such as rising production costs, logistical constraints, and limited refrigeration infrastructure. However, the upward trajectory underscores its importance to Indonesia's economy and its appeal to foreign investors.