Indonesia's Food and Beverage Industry Adapts and Grows During Covid-19
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Indonesia's food and beverage (F&B) industry is projected to grow at an annual rate of 15.3% from 2020-2024, primarily driven by culinary services which account for 41.40% of the market. The full-service restaurant segment dominates, contributing 77.53% of the food and drink services revenue, with a notable rise in small and medium-sized establishments. E-commerce in the F&B sector has also increased due to a shift in consumer demand during the COVID-19 pandemic.
Indonesia's Food and Beverage Industry Adapts and Grows During Covid-19
- 1. Indonesia’s F&B Industry Adapts and Grows During Covid-19 Mr. Jeffrey Bahar Deputy CEO Spire Research and Consulting 23rd September 2020 Spire LIVE Webinar
- 2. Source: Indonesia’s Statistic Bureau, Statista, Spire’s Primary Analysis Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 15.3% Culinary was the main contributor at 41.40%, or 410.3 trillion IDR in value, followed by Fashion at 18.01% (178.37 trillion IDR) and Handmade crafts at 15.40% (152.52 trillion IDR). 41.40% 18.01% 15.40% 8.27% 6.32% 2.34%1.86% 0.81%0.48%0.46% CulinaryFashionHandmadeTv & RadioBooksArchitectureApplication & Game AdvertisementMusicPhotography CULINARY as a part of Indonesia CREATIVE ECONOMY (in trillion IDR) 410.03178.37152.5281.9162.5923.1818.428.024.754.56 Food and Drink Services Industry Taking the perspective of Food and Beverage (F&B) as a service (Culinary)
- 3. • Full-service restaurant is the main contributor in the Food and Drink Services industry at 77.53% or IDR 229.2 Trillion. • The growth of full-serviced restaurant is expected to be derived by the increase of small and medium size restaurant. • Based on BPS data, the credit loan by small and medium size restaurant has grown 26.7%. • While the growth of large/premium restaurant is expected to be lower due to change of consumption pattern and the premium price. • Café (including Bar) currently taking 6.41% is expected to take the 2nd place in the near future. Full-service restaurant is the biggest contributor to the Food and Drink Services industry Food and Drink Services Industry Restaurants is the still main segment, mostly Small and Medium. Café soon becomes the second Source: Indonesia’s Statistic Bureau, Spire’s Primary Analysis Food and Drink Services Breakdown IDR 295.6 Trillion 77.53% Full-Service Restaurant 8.11% Catering Services 6.41% Café/ Bar 4.50% Fast Food 3.46% Street Stall/ Kiosk 38.57% Premium, Large 61.43% Small and Medium
- 4. • Food ingredients sourcing trend is increasing due to growing number of MSMEs player in food industry • Small size restaurants continue to look to increase its efficiency by sourcing semi-processed food ingredient due to smaller buying volume and reducing inventory waste 21.48 23.39 25.47 27.74 30.21 32.90 - 5.00 10.00 15.00 20.00 25.00 30.00 35.00 2017 2018 2019 2020f 2021f 2022f Food Ingredients or Product Sourcing from Indonesia F&B Industry (In IDR Trillion) Food Outsourcing CAGR 2017-2022 Source: Primary Sources, Indonesia’s Statistic Bureau, Spire Analysis Food and Drink Services Industry Increasing trend for sourcing semi-processed food ingredients
- 5. 213,765.0 217,739.0 221,588.0 225,316.0 228,907.0 232,391.0 2019 2020 2021 2022 2023 2024 IDRBILLION INDONESIA FOOD AND DRINK E-COMMERCE FORECASTS: VALUE 2019-2024 Source: Spire analysis from published industry reports, trade associations, trade press, company research, trade interviews, trade sources Food and Drink Services Industry E-Commerce sales of food and drink is attractive market
- 6. During Covid-19 Pandemic Rising household demand for food ingredients and RTE/RTD Indonesian Consumption Patterns During the Covid-19 Pandemic Source: Indonesia’s Statistic Bureau 2020, Spire’s Primary Analysis 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Fuel Public Transportation Electricity Ready to Eat & Drink Phone Credit/ Data Package Food Ingredients Health Product Up Stable Down
- 7. -60 -40 -20 0 20 40 60 80 Beer Soft Drink Flavored Drink Candy Liquor Frozen Vegetable Frozen Fruit Ice cream & Frozen Dessert Bottle Water Processed Meat Energy Bars Cereal; Havermut; Granola; Porridge Dried Beans; Peas; Lentils Juice Fresh Meat & Poultry Milk Product Tea/ Coffee Fish Flour; Rice; Wheat Fresh Fruit Fresh Vegetable Percent Consumption Switching in Indonesia during the pandemic Source: Katadata During Covid-19 Pandemic Drink products are on the rise: tea/coffee, milk product, juice
- 8. Source: Google -100 -50 0 50 100 150 200 250 Ticket Restaurant Recipes Netflix Mixer Electric Bike Barbel Strava Tie-dye Percent Google Keywords during the Covid-19 Pandemic During Covid-19 Pandemic INTERESTING FACT: ‘Are you contributing to these increases/decreases?’
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