Indonesia’s food and beverage industry is a robust and promising sector poised for substantial growth. As we approach 2024, investing in this thriving industry presents a strategic opportunity for local entrepreneurs and international investors. 

With a burgeoning consumer market and evolving culinary preferences, Indonesia’s food and beverage industry offers a fertile ground for innovation and prosperity.

How Big is the F&B Industry in Indonesia?

The food and beverage (F&B) sector is crucial for Indonesia’s economy. It contributes to growth, job opportunities, and culinary development. Furthermore, population growth and rising incomes drive this sector’s success.

The industry players are motivated to create high-quality products that appeal to the consumer’s preferences. Of course, the motivation is also supported by the people and improved purchasing power and the demand for F&B products keeps growing.

In 2022, the F&B industry saw a 4.90% annual growth per Statistics Indonesia (BPS) data. The sector was able to reach IDR 813.062 billion in annual growth. This growth is closely linked to increased F&B production.

Looking ahead to 2023, CRIF predicts a 5% growth in the F&B industry. This is influenced by the industry’s sensitivity to economic changes. Its promising prospects, especially in the post-COVID-19 national economic recovery context, further contribute to this influence.

The Outlook for Indonesia’s F&B Industry in 2024

Indonesia’s F&B industry remains strong, driven by its large population of 275.7 million, a growing middle class, and increasing per capita spending. In 2019, the average monthly per capita spending on food and beverages was IDR 572,551.

Despite the challenges of COVID-19, this figure rose to IDR 603,236 in the following year. In 2021, per capita spending increased to IDR 622,845, reaching IDR 665,757 by the end of 2022, even amid high inflation caused by geopolitical events.