Food & Beverages

Indonesia, with the third fastest growing economy in the G20, has a substantial and attractive food and beverage market, as well as a very dynamic demand for food and beverages. During the period January to September 2017, investment value in the food and beverage sector has reached IDR 19.7 trillion (USD 1.4 billion) for foreign investment and IDR 27.9 trillion (USD 2 billion) for domestic investment.


  • In 2018, revenue from the food and beverage market was IDR 3.6 trillion (USD 253 million).
  • The Indonesian Ministry of Industry predicts that in 2018 the food and beverage sector will grow by 6.7%, totaling IDR 63.25 trillion (USD 4.6 billion).
  • In 2018, Indonesia has 256 million consumers and the value of the food and beverage processing industry is estimated to be in the range of IDR 1.238 trillion (USD 92.3 billion) with raw materials contributing IDR 791.8 trillion (USD 59 billion).
  • Revenue is expected to show an annual growth rate (CAGR 2018-2022) of 13.8%, resulting in a market volume of IDR 5.95 trillion (USD 423 million) in 2022.
  • Global food and beverage exports in Indonesia have exceeded (IDR 112.4 trillion) USD 8 billion.
  • Products in Indonesia that have a lot of demand are packaged food, fruit, vegetables, seafood, healthy food, cooking oil, gourmet food, tea, and coffee.
  • As of 2017, with more people opting for convenience over packaged foods, sales growth increased by 9.4%.
  • Halal food has a significant role, and halal regulation is becoming increasingly real, as 90% of Indonesia’s population is Muslim.


Devout Muslims buy Halal food, which has strict requirements for processing, packaging, and labeling.

Indonesia’s Halal Law requires all products (traded, distributed, and imported) in Indonesia to be certified halal. This requirement will come into effect five years after the enactment of the Halal Law, namely October 17, 2019. Halal products that do not have halal certification within the stipulated deadline will be considered non-halal. Learn more here.

The food and beverage sector is a sector where companies in Indonesia produce value-added products. The growth of this sector in Indonesia is supported by the basic human need for food and drink, a large population (265 million people in 2018), greater income, and higher expenditure on food from an increasing middle class.

Expenditures for Food and Beverages

Increased food and beverage consumption are closely associated with higher spending due to urbanization of lifestyles and diverse dietary patterns. Growth in this sector is also supported by developments in retail infrastructure, particularly malls and hypermarkets. The processed food market in Indonesia is dominated by several large local companies as well as international brands such as Nestle, Kraft, and Unilever. Multinational companies market their products attractively to the health-conscious middle class in Indonesia to strengthen their market position in Indonesia.

According to the Central Bureau of Statistics (BPS), there are approximately 6,000 large and medium-sized food and beverage companies employing 765,000 employees; and there are 1.61 million micro and small producers with 3.75 million employees. As of 2016, a growth of 6.9% was seen for large and medium-sized enterprises and a growth of 11.5% for small producers.

Popular Products

In 2016, the total soft drinks sold were close to 25.8 billion liters, which is IDR 123.59 trillion (USD 8.8 billion). The growth of the soft drink industry in Indonesia ranges from 8-9% per year, with ready-to-drink coffee and bottled water occupying the top spots.

In the food sector, there is a very strong demand for products such as packaged foods, fruit, vegetables, seafood, gourmet foods, and canned goods. The market for canned and packaged foods has grown significantly with most consumers preferring the convenience obtained from packaged ready-to-eat foods and beverages. This growth is expected to continue in 2018 and beyond.

There is also a demand for certain new products such as individually packaged snacks in flexible containers, single-serving coffee or tea, breakfast cereals, etc. This changing urban lifestyle will always shape the pattern of food and beverage consumption in Indonesia.

Resources Required

Currently, Indonesia needs a lot of raw materials for its food processing industry. Therefore, this demand opens wide opportunities for suppliers of materials from various parts of the world, especially neighboring countries. The food processing industry continues to grow and offers great potential for foreign investors.

For one full year during 2018, the Indonesian Ministry of Industry has set investment goals of IDR 53.18 trillion (approximately USD 3.9 billion) for the national food sector and IDR 10.07 trillion (approximately USD 735 million) for the beverage industry. Thus the total direct investment for the food and beverage industry in Indonesia is very positive, amounting to IDR 63.25 trillion (USD 4.6 billion).

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