Indonesia’s food and beverage industry performance strengthened in 2025, as the sector recorded solid growth, attracted strong investment, and remained resilient despite global economic pressure. Supported by rising domestic demand and abundant natural resources, the industry continued to play a central role in Indonesia’s manufacturing sector. At the same time, shifting consumer behavior reshaped growth patterns, favoring essential and practical food products over non-essential categories.
Indonesia’s Food and Beverage Industry Records Solid Manufacturing Growth
The Indonesian food beverage industry emerged as one of the strongest performers within the national manufacturing sector in 2025. According to the Ministry of Industry, the subsector recorded a growth rate of 6.49 percent in the third quarter of 2025, surpassing the average pace of national economic growth during the same period.
Merrijantij Punguan Pintaria, Director of Beverage, Tobacco Products, and Refreshment Materials at the Ministry of Industry, highlighted the sector’s role as a key driver of manufacturing. “In line with the positive performance of the manufacturing sector, which grew above the national economic growth average in the third quarter of 2025, the food and beverage subsector recorded strong performance with growth of 6.49 percent,” she said.
Beyond growth figures, the subsector also delivered a substantial contribution to industrial output. During the same period, food and beverage production accounted for 41.06 percent of Indonesia’s non-oil and gas manufacturing gross domestic product. This contribution positioned the industry as the largest GDP contributor within the non-energy manufacturing segment.
Food Beverage Growth 2025 Supported by Strong Exports and Investment
Food and beverage growth in 2025 also benefited from solid trade and investment performance. From January to August 2025, exports of food and beverage products reached USD 32.79 billion. This figure represented approximately 22.31 percent of total non-oil and gas manufacturing exports, which stood at USD 146.98 billion.
Meanwhile, investor confidence remained strong throughout the year. Pintaria emphasized the sector’s appeal to investors, stating, “In the third quarter of 2025, the food and beverage industry attracted investments worth IDR 80.48 trillion (USD 5.2 billion), consisting of IDR 26.22 trillion (USD 1.7 billion) in foreign direct investment and IDR 54.26 trillion (USD 3.5 billion) in domestic investment.” These figures reflected confidence in the industry’s long-term prospects and market fundamentals.
Shifting Consumer Consumption Drives Selective Industry Expansion
Despite strong aggregate growth, industry leaders noted that performance varied across product categories. Changes in consumer behavior played a major role in shaping selective expansion within the sector. Purchasing power pressure encouraged households to prioritize essential spending and value-driven choices.
Adhi Lukman, Chairman of the Indonesian Food and Beverage Association (GAPMMI), said overall industry performance remained positive in 2025. “On an aggregate level, food and beverage industry growth in 2025 is better than in 2024. By the third quarter alone, it has reached 6.49 percent, showing that the industry remains very resilient,” he said.
However, Adhi stressed that growth did not spread evenly across all segments. “Not all categories are experiencing this growth. Some are growing well, even very well, such as frozen food and bottled water. On the other hand, some categories are under pressure,” he explained.
Essential Food Demand Lifts Key Product Categories
Essential food demand emerged as the primary driver of growth within the industry. Products linked directly to daily household needs recorded strong and, in some cases, double-digit growth. Frozen food, instant food, seasonings, and bottled water continued to attract consumer interest throughout 2025.
According to Adhi, shifting consumption patterns are a key factor in this trend. “Purchasing power pressures are changing consumption patterns. More people are cooking at home, buying ingredients themselves, purchasing frozen food, and focusing on basic food items,” he said.
As a result, consumers favored practical and affordable products that supported their daily nutrition needs. In contrast, non-essential and secondary items, including certain juice beverages, faced slower growth as households tightened discretionary spending.
Industry Outlook Hinges on Policy and Consumer Purchasing Power
Looking ahead to 2026, the food and beverage industry faces ongoing challenges alongside continued opportunities. Global risks, including geopolitical tensions, climate change, and commodity price volatility, may impact raw material supply, logistics, and pricing.
“Global challenges such as geopolitics and climate change will remain. These can affect raw material supply, logistics, and prices, all of which are difficult to predict,” Adhi said.
He also warned that regulatory alignment remains critical, adding, “Regulations remain a challenge. There are many requirements the industry must meet, and if policies are not aligned, they can hinder growth.”
Despite these risks, industry leaders remain optimistic. Sustainable growth will depend on synchronized policies, industry readiness, and stable consumer purchasing power, reinforcing the sector’s role as a key driver of Indonesia’s economic growth.
Source: idxchannel.com, marketeers.com
Image: Sugiantara / Canva
