Indonesia has a large market in the Food & Beverage industry. However, the COVID-19 pandemic has enforced innovations for business strategies. We discussed the current market outlook on the Indonesian market for Food & Beverage industry last week. You can access the link https://youtu.be/chc6WIbMxu8 for the full webinar and the slides below. We are excited to host this webinar and hope to do it again next time. Stay tuned.

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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