Indonesia Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Indonesia Foodservice Market is Segmented by Type (Full-service Restaurant, Self-service Restaurant, Fast Food, Street Stall and Kiosk, Cafe and Bar, and 100% Home Delivery Restaurant) and Structure (Independent Consumer Foodservice and Chained Consumer Foodservice). The report offers market size and forecasts in value terms in USD million for all the above segments.

Market Snapshot

Indonesia Foodservice Market Summary
Study Period: 2016 -2027
Base Year: 2021
CAGR: 8.44 %
Indonesia Foodservice Market Major Players

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Market Overview

The Indonesian foodservice market was valued at USD 34,985.26 million in 2021 and is forecast to record a CAGR of 8.44% during the forecast period of 2022-2027.

Indonesia initiated the norms of social distancing and lockdowns within months of the COVID-19 outbreak in 2020. Indonesia initiated the norms of social distancing and lockdowns within months of the commencement of the pandemic. The pandemic impacted people’s health and quality of life and disrupted the national economy and supply chains all over the country. However, with dine-in activities prohibited, many restaurant businesses continued operations by relying solely on takeaway and online delivery demand. Limited mobility and other movement restrictions also discouraged consumers from further purchases. While food delivery services initially lost the support of most customers, initiatives such as regular sanitation and temperature checks resulted in customers rewarding the services with more positive ratings, which, in turn, impacted these online services positively.

Over the medium term, the Indonesian foodservice market is expected to be primarily driven by the increasing frequency of dining out amid time-pressed schedules and the growing influence of western dietary patterns due to the presence of international companies, particularly in tier-1 cities, such as Jakarta, Surabaya, and Medan. Additionally, the market is being driven by factors such as the growing percentage of the young and working population and the availability of organized foodservice restaurants offering quality food and services. Moreover, the growing disposable income of consumers and the increase in exposure to different varieties and cuisines of food over the last few years has led to an increase in the demand for restaurants that offer a complete dining experience. Furthermore, Indonesia is an attractive market for international foodservice companies. Over the past few years, there has been an increase in export opportunities for suppliers of food and beverages in the United States, especially in the restaurant and hotel sector, due to the growing tourism sector in the country. This is expected to continue during the forecast period, thus, leading to the growth of the market in the country.

Scope of the Report

Foodservice defines those businesses, institutions, and companies responsible for any meal prepared outside the home. By type, the Indonesian foodservice market is segmented into full-service restaurants, quick-service restaurants, cafés and bars, street stalls and kiosks, and 100% home delivery restaurants. By structure, the market studied is segmented into independent consumer foodservice and chained consumer foodservice. The report offers market size and forecasts in value terms in USD million for all the above segments.

By Type
Full-service Restaurant
Self-service Restaurant
Fast Food
Street Stall and Kiosk
Cafe and Bar
100% Home Delivery Restaurant
By Structure
Independent Consumer Foodservice
Chained Consumer Foodservice

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Key Market Trends

Growing Tourism Sector in the Country

The tourism sector is an integral part of Indonesia’s economy, accounting for around 4% of its gross domestic product. However, the popularity of international tourism varies greatly from region to region, with the island of Bali being Indonesia’s most popular tourist destination. The number of hotels in Indonesia increased significantly from 16,685 to 30,823, with 870,783 rooms between 2013 and 2020. Although most international hotel chains are in Jakarta, Bali, Bandung, Surabaya, Yogyakarta, and Medan, more are expanding into secondary cities due to infrastructure development and the promotion of new tourist destinations. The growth of the tourism sector and the foodservice industry are interdependent. The market studied is highly diverse, comprising high-end hotels and restaurants that serve local and international cuisines, fast-food outlets, cafes and bars, bakeries, low-end small restaurants, street-side restaurants known as “warungs,” and vendors that sell food to customers on the street. The growth of these businesses has been in line with the development of tourism and the growing middle-class population. In addition to incorporating popular local dishes into the national food category, the UN World Tourism Organization (UNWTO) announced Bali, Joglosemar (which includes Yogjakarta, Solo, and Semarang), and Bandung as culinary destinations that are in line with the standards set by it. Therefore, the tourism sector in Indonesia, which has been growing gradually over the past decade, is expected to continue augmenting the growth of the market over the forecast period.

Foodservice Market: International Tourist Arrivals in million, Indonesia, 2017-2019

Rising Preferences for Online Food Delivery

In line with the increasing urbanization, there has been a surge of consumers seeking services with the most convenience. The use of the internet, e-commerce, and online platforms has increasingly become popular, given many small-chained outlets, higher penetration, and acceptability among consumers. The establishment of new chained outlets and expansion of the existing ones is being witnessed, thus increasing their popularity among consumers. Owing to this, the online channel in the country is growing at the fastest pace. The food delivery apps such as Go-Jek's ‘Go-Food’ are involved in offering a much more seamless delivery service, which has gained a significant number of users in recent years. There has also been an increasing shift toward online food ordering via mobile applications among consumers in Indonesia, which has been boosting the overall Indonesian foodservice market. Consumers are increasingly ordering local Indonesian cuisine from these online food applications, thus, prompting a shift toward Indonesian food. Witnessing the growing demand through delivery apps, many restaurant owners and family-owned businesses are increasingly looking forward to operating through this platform in order to increase sales. Hence, the online channels are boosting the foodservice sector in the country.

Foodservice Market: Online Food Delivery, By Revenue (in USD million), Indonesia, 2017-2021

Competitive Landscape

The Indonesian foodservice market is fragmented, with the major market share held by prominent local and global players, such as McDonald's Corporation, Yum! Brands Inc., Johnny Andrean Group, and Eka Bogainti PT. Major players in the market have been engaging in strategies like product innovation and geographical expansions, predominantly in the Indonesian foodservice market. Production innovation is a key strategy adopted by the major players operating in the market studied. Key players are actively expanding their innovative product ranges and increasing their product offerings to meet the growing demand for consumer-led natural, organic, vegan, and safer products. Several international companies and restaurants are expanding their commercial activities and gaining a competitive advantage by exploring new markets and introducing new product innovations to cater to Indonesian consumers' demand. These players are now focusing on social media strategies and online distribution channels for the online marketing and branding of their products to attract more customers and expand their chain of physical retail outlets and acquire or merge with other major consumer brands.

Major Players

  1. McDonald's

  2. Starbucks Coffee Company

  3. Domino's Pizza, Inc

  4. Yum! Brands RSC

  5. Eka Bogainti PT.

Indonesia Foodservice Market Concentration

Recent Developments

· In December 2021, KFC Indonesia’s franchise holder, PT Fast Food Indonesia (FAST), announced plans to invest IDR 300 billion in 2022 in order to add 25 new restaurant outlets.

· In October 2021, Subway, in partnership with PT Sari Sandwich Indonesia, launched its first restaurant in Indonesia and opened its flagship outlet in Townsquare Cilandak Mall. Subway will deliver its globally-revered F&B experience to the Indonesian market with its tantalizing, convenient, affordable, and ‘freshly-made better-for-you’ selections.

· In May 2021, Burger King Indonesia launched Plant-based Whopper in partnership with Unilever-owned The Vegetarian Butcher. The new product is made from a vegan beef patty supplied by The Vegetarian Butcher. It is topped with egg-based mayonnaise, onions, tomatoes, lettuce, pickles, and ketchup.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Full-service Restaurant

      2. 5.1.2 Self-service Restaurant

      3. 5.1.3 Fast Food

      4. 5.1.4 Street Stall and Kiosk

      5. 5.1.5 Cafe and Bar

      6. 5.1.6 100% Home Delivery Restaurant

    2. 5.2 By Structure

      1. 5.2.1 Independent Consumer Foodservice

      2. 5.2.2 Chained Consumer Foodservice

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 PT Top Food Indonesia

      2. 6.4.2 McDonald's

      3. 6.4.3 Starbucks Coffee Company

      4. 6.4.4 Domino's Pizza Inc.

      5. 6.4.5 Yum! Brands RSC

      6. 6.4.6 Quality Is Our Recipe LLC

      7. 6.4.7 Burger King

      8. 6.4.8 The Wendys Company

      9. 6.4.9 Johnny Andrean Group

      10. 6.4.10 Eka Bogainti PT

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability
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Frequently Asked Questions

The Indonesia Foodservice Market market is studied from 2016 - 2027.

The Indonesia Foodservice Market is growing at a CAGR of 8.44% over the next 5 years.

McDonald's, Starbucks Coffee Company, Domino's Pizza, Inc, Yum! Brands RSC, Eka Bogainti PT. are the major companies operating in Indonesia Foodservice Market.

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