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Foodservice Profile – Indonesia

August 2019

Executive summary

Indonesia, with a population of approximately 267 million, is the largest foodservice market in the Association of Southeast Asian Nations (ASEAN) region. With rising incomes among the growing middle class and changing lifestyles, the foodservice sector in Indonesia grew at a compound annual growth rate (CAGR) of 4.2% from 2015 to 2018, reaching US$49.5 billion sales in 2018. That is US$18.6 billion higher than the rate of the second top country in the region, Thailand. Indonesia's foodservice sector is projected to grow at a CAGR of 3.4% from 2019 to 2022, reaching US$56.7 billion in 2022.

Restaurants are Indonesia's largest foodservice subsector, reaching US$34.8 billion in 2018, with a CAGR of 4.9% from 2015 to 2018. The subsector is expected to reach US$40.7 billion by 2022, with a CAGR of 3.9%. Workplace cafés are ranked second in terms of value sales (US$5.1 billion) in 2018, followed by accommodation venues (US$2.9 billion), leisure locations (US$2.1 billion) and pubs, clubs and bars (US$2.0 billion). All subsectors grew steadily from 2015 to 2018 and are expected to grow from 2019 to 2022.

Indonesian consumers spent a total of US$1.6 billion on alcoholic beverages, US$23.1 billion on food and US$19.0 billion on non-alcoholic beverages in 2017. The categories grew at a CAGR of 3.2%, 1.8% and 0.7%, respectively.

The top five Indonesian foodservice companies in 2017 were KFC, Pizza Hut, McDonald's, Es Teler 77 and Starbucks. Four of these companies are well-known worldwide franchises.

Canada's agri-food and seafood exports to Indonesia grew at a CAGR of 4.1% from 2014 to 2018, and were valued at US$606.3 million in 2018.

Market overview

Association of Southeast Asian Nations market

Canadian agri-food and seafood exports to the ASEAN market were valued at US$1.5 billion in 2018, accounting for 2.9% of Canada's total exports to the world (US$51.9 billion). The percentage distribution of Canada's exports to the region were relatively small. However, with export values from Canada increasing by a CAGR of 4.1% from 2014 to 2018, the ASEAN region remains an emerging market for Canadian agri-food and seafood exporters. Canada's agri-food and seafood exports to Indonesia also grew at a CAGR of 4.1% from 2014 to 2018 with a value of US$606.3 million.

Canada's exports to Association of Southeast Asian Nations (ASEAN) partners in agri-food and seafood (HS6), in US$ millions
Country 2014 2015 2016 2017 2018 CAGR* % 2014-2018
ASEAN 1,286.9 1,531.7 1,157.8 1,677.6 1,510.7 4.1
Indonesia 515.9 528.5 368.0 496.4 606.3 4.1
Philippines 166.3 291.8 147.9 254.9 252.5 11.0
Viet-Nam 221.5 284.3 203.0 475.6 243.2 2.4
Malaysia 136.0 158.4 166.3 175.2 142.3 1.1
Thailand 122.4 177.3 133.5 129.4 139.2 3.3
Singapore 119.8 76.7 99.7 100.3 71.3 −12.2
Cambodia 0.5 8.2 21.9 27.5 45.4 213.4
Myanmar 4.0 5.9 17.1 17.8 9.4 23.7
Brunei 0.51 0.54 0.35 0.41 0.58 3.3
Laos 0.00 0.05 0.13 0.07 0.37 N/C

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate

N/C: Not Calculable

Indonesia is a net agri-food and seafood importer from Canada with a net value of US$398.0 million. Canada imported US$208.3 million in agri-food and seafood imports from Indonesia, while its exports to Indonesia were valued at US$606.3 million in 2018.

Canada's agri-food and seafood imports from Association of Southeast Asian Nations (ASEAN), in US$ millions
Country 2014 2015 2016 2017 2018 CAGR* % 2014-2018
ASEAN 1,555.9 1,496.8 1,501.3 1,564.7 1,617.8 1.0
Thailand 613.0 588.2 579.5 581.2 589.2 −1.0
Viet-Nam 395.7 371.1 368.8 410.1 448.1 3.2
Indonesia 182.5 169.5 205.0 215.2 208.3 3.4
Malaysia 181.6 171.3 165.2 162.6 163.6 −2.6
Philippines 154.6 168.6 143.2 162.8 149.0 −0.9
Singapore 20.1 18.5 21.4 20.8 50.6 25.9
Myanmar 7.2 8.7 9.5 10.5 6.4 −2.9
Cambodia 0.6 0.5 8.0 1.0 1.3 22.7
Laos 0.1 0.1 0.3 0.3 1.1 78.0
Brunei 0.5 0.3 0.5 0.4 0.2 −14.8

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate

Global market

Indonesia's total agri-food and seafood imports from the world were valued at US$21.6 billion in 2018, of which US$656.7 million was from Canada, representing 3.0% of Indonesia's total agricultural imports. The gap between Indonesia's imports from the world and Canada was US$20.9 billion in 2018.

Canada's gross export gap to Indonesia in agri-food and seafood (HS6), in US$ millions
Import supplier 2014 2015 2016 2017 2018 CAGR* % 2014-2018
Indonesia's imports from the world 19,249.6 16,188.8 17,693.6 19,164.3 21,587.3 2.9
Indonesia's imports from Canada 589.8 622.6 505.9 555.9 656.7 2.7
Gross export gap with Canada 18,659.8 15,566.2 17,187.8 18,608.4 20,930.6 2.9

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate.

Indonesia's top imported products from the world in 2018 were wheat (US$2.6 billion), oilcake (US$2.0 billion), raw cane sugar (US$1.8 billion) and cotton (US$1.4 billion). Imports of semi-milled or wholly milled rice (US$870.0 million) grew the fastest at a CAGR of 38.0% from 2014 to 2018, followed by imports of frozen, boneless bovine meat at a CAGR of 17.1%.

Indonesia's top 10 agri-food and seafood imports from the world, in US$ millions, 2014-2018
HS6 code Description 2014 2015 2016 2017 2018 CAGR* % 2014-2018
World total 19,249.6 16,188.8 17,693.6 19,164.3 21,587.3 2.9
100199 Wheat and meslin (excludes seed for sowing, and durum wheat) 2,348.8 2,045.0 2,322.6 2,637.3 2,571.0 2.3
230400 Oilcake and other solid residues 2,194.9 1,814.0 1,573.9 1,641.7 2,045.3 −1.8
170114 Raw cane sugar, in solid form 1,260.7 1,226.5 1,994.3 2,017.2 1,754.9 8.6
520100 Cotton 1,400.8 1,087.6 1,087.2 1,325.2 1,441.9 0.7
120190 Soybeans (excludes seed for sowing) 1,176.9 1,034.4 959.0 1,150.8 1,103.1 −1.6
100630 Semi-milled or wholly milled rice 240.2 201.3 402.7 0.2 870.0 38.0
240120 Tobacco, partly or wholly stemmed or stripped 364.4 329.3 398.5 558.2 630.6 14.7
010229 Live cattle (excludes pure-bred for breeding) 675.2 540.6 599.1 515.8 564.0 −4.4
180100 Cocoa beans, whole or broken, raw or roasted 341.4 169.7 184.7 486.5 528.9 11.6
020230 Frozen, boneless bovine meat 278.3 199.7 418.4 387.9 523.4 17.1

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate

Indonesia's agri-food and seafood imports from Canada grew at a CAGR of 2.7% from 2014 to 2018, to reach US$656.7 million in 2018. Indonesia's top imported products from Canada in 2018 were wheat (US$571.7 million), followed by soybeans (US$24.7 million), frozen crab (US$23.7 million) and canary seed (US$7.7 million). Canada's canary seed accounted for 97.2% of Indonesia's total imports of that product from the world. Canada's dried, shelled peas accounted for 75.1% of Indonesia's total imports from the world. Soybeans had the largest import growth with a CAGR of 17.0% from 2014 to 2018, while skim powder milk was in decline with a CAGR of −20.6% over the same period.

Indonesia's top 10 agri-food and seafood imports from Canada, in US$ millions, and Canada's share, 2014-2018
HS6 code Description 2014 2015 2016 2017 2018 CAGR* % 2014-2018 Canada's share % in world 2018
Canada total 589.8 622.6 505.9 555.9 656.7 2.7 3.0
100199 Wheat and meslin (excludes seed for sowing, and durum wheat) 466.2 533.3 445.5 485.4 571.7 5.2 11.9
120190 Soybeans (excludes seed for sowing) 13.2 13.5 3.7 5.9 24.7 17.0 2.2
030614 Frozen crabs 19.8 15.1 13.0 28.7 23.7 4.6 35.4
100830 Canary seed 7.0 10.9 8.0 4.5 7.7 2.4 97.2
040210 Skim milk powder <= 1.5% fat 14.4 6.9 7.3 6.5 5.7 −20.6 1.8
200410 Frozen potatoes 8.1 8.0 6.4 6.0 5.1 −10.8 8.9
071310 Dried, shelled peas 5.1 2.3 3.9 3.3 3.6 −8.0 75.1
070190 Fresh or chilled potatoes (excludes seed) 3.6 6.1 3.6 3.3 2.6 −7.7 19.4
210690 Food preparations, n.e.s.[1] 1.3 2.0 1.2 2.4 2.2 13.5 0.4
230330 Brewing or distilling dregs and waste 1.7 2.3 0.0 0.2 2.1 5.0 1.3

Source: Global Trade Tracker, 2019

*CAGR: Compound Annual Growth Rate

1: not elsewhere specified

Consumer behaviour

Consumer trends

Within the foodservice sector, Indonesian customers spent US$1.6 billion on alcoholic beverages, US$23.1 billion on food and US$19.0 billion on non-alcoholic beverages in 2017. The categories grew at a CAGR of 3.2%, 1.8% and 0.7%, respectively.

Due to strict control by the Indonesian government for religious reasons, consumer expenditure on alcoholic drinks per capita in Indonesia is the lowest in ASEAN.

Food service: consumer expenditure by category, in US$ millions, 2013-2017
Category 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Alcoholic beverages 1,371.6 1,379.5 1,055.9 1,475.6 1,555.8 3.2
Food 21,550.5 20,545.2 19,797.8 21,578.5 23,112.3 1.8
Non-alcoholic beverages 18,504.9 17,966.9 17,235.7 18,725.5 19,041.9 0.7
Total 41,426.9 39,891.6 38,089.4 41,779.5 43,709.9 1.4

Source: GlobalData, 2019

*CAGR: Compound Annual Growth Rate

Traditionally, Indonesian consumers enjoy savoury flavours and rice-related products. Vegetables with fish or chicken is a typical side dish, accompanied by rice. However, recently, more Indonesian people are replacing rice with bread, potatoes, noodles, oatmeal or corn. For example, many urban young people have bread and coffee for breakfast. Bread consumption has been rising for many years and is well-established in Indonesia. Expectations are for the market for bread and bakery products to grow 4%-5% per year.

The growing number of working mothers has led Indonesian families to eat out more often. For high-income consumers, food may not be the primary factor in choosing foodservice outlets as they also consider ambience and branding. For low-income consumers, eating out is regarded as a typical time for family gatherings. Thus, regardless of the branding, these consumers usually visit foodservice outlets within shopping centres.

Health awareness is also growing among Indonesian consumers. Health-conscious consumers are seeking healthier food and drink options in restaurants and other foodservice channels.

The overall foodservice market

According to a Euromonitor report, the consumer foodservice industry in Indonesia performed well over the past two years, generating a growth rate above that of the nation's overall economy and showing strong potential. Indonesian people are willing to spend more on food outside the home.

Indonesia is the fourth most populous country in the world. The two major population groups in Indonesia that are deemed attractive target consumer bases for the nation are the middle-income group and millennials (born between 1981 and 2000), due to their large numbers and unique consumption behaviours. Another factor is the high urbanization rate.

The emergence of digital communications in recent years has further diversified the foodservice industry. Indonesian consumers are more active on social media than the global average, and food outlets benefit from the digital word-of-mouth tactic through social networking services like Instagram, as well as review sites like Trip Advisor, Zomato, Qraved and Google Reviews. Social media influencers continue to rise in popularity and food operators continue to employ their services as a marketing tactic to reach their target market.

Additionally, online ordering via apps such as Go-Jek's Go-Food app have provided a more seamless delivery service. As of August 2018, approximately 100,000 food operators were listed on the app, from small local nasi goreng (fried rice) stalls to pricey sushi restaurants. New technology and food delivery apps have since enabled new players to enter the market at a relatively low cost and continue to drive the growth of the foodservice industry in Indonesia.Footnote 1

Indonesia, with a population of approximately 267 million, is the largest foodservice market in the ASEAN region. With rising incomes among the growing middle class and changing lifestyles, the country's foodservice sector grew at a CAGR of 4.2% from 2015 to 2018, reaching US$49.5 billion sales in 2018, which is US$18.6 billion higher than that of the second top country in the region, Thailand. Indonesia's foodservice sector is projected to grow at a CAGR of 3.4% from 2019 to 2022, reaching US$56.7 billion in 2022. Thailand's foodservice sector grew at a CAGR of 3.3% from 2014 to 2018, reaching US$30.9 billion in 2018.

Association of Southeast Asian Nations foodservice value sales by country, in US$ millions, 2015-2022
Country 2015 2018 CAGR* % 2015-2018 2019 2022 CAGR* % 2019-2022
Indonesia 43,773.7 49,510.6 4.2 51,349.2 56,730.3 3.4
Malaysia 17,342.5 20,068.1 5.0 20,985.3 23,796.3 4.3
Philippines 11,504.9 13,190.9 4.7 13,847.3 16,205.1 5.4
Singapore 8,600.1 9,788.7 4.4 10,150.9 11,485.7 4.2
Thailand 28,035.8 30,910.2 3.3 31,625.7 33,475.8 1.9

Source: GlobalData, 2019

*CAGR: Compound Annual Growth Rate

Note: No data available for the other five ASEAN countries (Viet-Nam, Brunei, Cambodia, Burma, Laos)

Restaurants are Indonesia's largest foodservice subsector, with sales of US$34.8 billion in 2018, for a CAGR of 4.9% from 2015 to 2018. This subsector is expected to reach US$40.7 billion by 2022, with a CAGR of 3.9%. Workplace cafés ranked the second biggest in terms of value sales (US$5.1 billion) in 2018, followed by accommodation venues (US$2.9 billion), leisure locations (US$2.1 billion) and pubs, clubs and bars (US$2.0 billion). All subsectors grew well from 2015 to 2018 and are expected to grow steadily from 2019 to 2022.

Value sales and growth of Indonesia's foodservice by subsector, in US$ millions
Subsector 2015 2018 CAGR* % 2015-2018 2019 2022 CAGR* % 2019-2022
Accommodation 2,601.5 2,858.1 3.2 2,942.4 3,185.8 2.7
Leisure 1,966.0 2,115.5 2.5 2,164.8 2,306.9 2.1
Mobile operator 345.9 373.5 2.6 382.3 407.7 2.2
Pub, club & bar 1,821.6 2,019.5 3.5 2,083.8 2,272.8 2.9
Restaurant 30,131.0 34,805.4 4.9 36,297.2 40,676.1 3.9
Retail 1,748.2 1,882.8 2.5 1,926.2 2,051.6 2.1
Travel 366.9 388.2 1.9 395.3 415.6 1.7
Workplace café 4,792.7 5,067.7 1.9 5,157.2 5,413.8 1.6
Total 43,773.7 49,510.6 4.2 51,349.1 56,730.3 3.4

Source: GlobalData, 2019

*CAGR: Compound Annual Growth Rate

Within the restaurant subsector, full-service restaurants recorded the highest sales of US$31.4 billion in 2018, followed by fast food restaurants (US$2.98 billion). These top two outlets accounted for 98% of total sales within the restaurant subsector (US$34.8 billion). Both outlets grew well at a CAGR of 5.0% and 4.6%, respectively, from 2015 to 2018 and are forecast to grow at a CAGR of 3.9% and 3.7%, respectively from 2019 to 2022. Coffee & tea shops performed well at a CAGR of 3.0% from 2015 to 2018, reaching sales of US$416.6 million in 2018.

Within the workplace café subsector, "industrial" workplaces recorded the highest sales of US$2.4 billion in 2018, followed by retail and financial institutions (US$1.8 billion). These top two outlets accounted for 82.3% of total sales within the workplace subsector (US$5.1 billion). The two outlets grew at a CAGR of 2.0% and 1.8%, respectively, from 2015 to 2018 and are forecast to grow at a CAGR of 1.7% and 1.6%, respectively, from 2019 to 2022.

Within the accommodation subsector, hotels & motels recorded the highest sales of US$1.4 billion in 2018, followed by holiday parks (US$824.5 million). These top two outlets accounted for 82.8% of total sales within the accommodation subsector (US$2.9 billion). The two outlets grew at a CAGR of 3.6% and 2.9%, respectively, from 2015 to 2018 and are forecast to grow at a CAGR of 3.0% and 2.5%, respectively, from 2019 to 2022.

Within the pub, club and bar subsector, pubs & bars recorded the highest sales of US$1.7 billion in 2018, followed by nightclubs (US$190.2 million) and private clubs (US$65.0 million). These three outlets grew at a CAGR of 3.5%, 3.3% and 3.3%, respectively, from 2015 to 2018 and are forecast to grow at a CAGR of 2.9%, 3.1% and 3.1%, respectively, from 2019 to 2022.

Indonesia's foodservice by subsector and outlet,in US$ millions, historical and forecast
Subsector Outlet 2015 2018 CAGR* % 2015-2018 2019 2022 CAGR* % 2019-2022
Accommodation Bed and breakfast 33.2 35.5 2.2 36.2 38.4 1.9
Caravan park 1.9 2.0 1.8 2.1 2.2 1.6
Guest house 334.6 359.7 2.4 367.4 390.3 2.0
Holiday park 757.5 824.5 2.9 846.8 910.7 2.5
Hostel 19.4 21.1 2.9 21.7 23.3 2.5
Hotel and motel 1,403.8 1,560.2 3.6 1,611.9 1,760.6 3.0
Others 51.1 55.1 2.5 56.4 60.2 2.2
Leisure Entertainment 640.7 690.6 2.5 706.9 754.1 2.2
Venue 779.3 844.5 2.7 866.2 928.5 2.3
Visitor attraction 546.0 580.4 2.1 591.7 624.3 1.8
Mobile operator Other mobile operators 138.4 149.6 2.6 153.1 163.4 2.2
Vans 207.5 223.9 2.6 229.2 244.3 2.2
Pub, club and bar Nightclub 190.2 209.5 3.3 216.3 237.3 3.1
Private club 65.0 71.7 3.3 74.0 81.1 3.1
Pub and bar 1,566.4 1,738.3 3.5 1,793.6 1,954.4 2.9
Restaurant Coffee/tea shop 381.3 416.6 3.0 428.2 461.9 2.6
Full-service restaurant 27,109.0 31,365.7 5.0 32,725.9 36,716.0 3.9
Ice cream parlour 37.8 41.2 3.0 42.2 45.3 2.3
Fast food restaurant 2,602.9 2,981.8 4.6 3,100.9 3,453.0 3.7
Retail Baker 868.7 929.8 2.3 949.8 1,007.6 2.0
Convenience store 424.3 460.5 2.8 471.9 504.8 2.3
Delicatessen 55.1 58.8 2.2 60.0 63.5 1.9
Department store 27.3 29.4 2.5 30.1 32.1 2.1
Other retail 17.5 18.3 1.6 18.6 19.4 1.4
Service station forecourt 253.2 272.2 2.4 278.2 295.4 2.0
Supermarket, hypermarket 102.1 113.8 3.7 117.7 128.9 3.1
Travel Air 174.9 185.2 1.9 188.6 198.4 1.7
Rail 167.4 177.1 1.9 180.3 189.6 1.7
Sea 24.6 25.9 1.8 26.4 27.6 1.6
Workplace café Government 807.5 850.8 1.8 865.2 906.6 1.6
Industrial 2,257.1 2,393.0 2.0 2,436.2 2,560.0 1.7
Retail, financial 1,728.1 1,823.8 1.8 1,855.8 1,947.2 1.6

Source: GlobalData, 2019

*CAGR: Compound Annual Growth Rate

Foodservice: chain franchises versus independent operators

The number of chain franchises in Indonesia continues to grow at a faster rate than the number of independent operators, although independent operators occupy bigger shares than the chain franchises within the eight subsectors. International food brands, such as Pizza Hut, McDonald's and KFC, have followed tourists and returning nationals into the country. However, recent surveys have shown that while Indonesian consumers like to try new cuisines, they still have a preference for Asian foods. International brands that have customized their menu to suit Indonesian taste buds have experienced greater success.

A single meal in a franchised fast food outlet ranges from US$2.40 to US$3.40, whereas a meal in an inexpensive domestic restaurant can be as low as US$1.20. In comparison, a meal for two in a mid-range domestic restaurant ranges from US$6.70 to US$18.10. Across the sector, the average revenue per user (ARPU) is about US$8.30 for restaurant owners, whether domestic or franchised. The prospects for food franchises in Indonesia look good, with a positive and significant growth outlook. The key to success will be standardizing food operations and logistics, including delivery processes.Footnote 1

Despite the faster growth of the chain franchises, within the restaurant subsector, independent restaurant sales accounted for 90.9% of total sales while chain restaurants accounted for 9.1% in 2018. Within the accommodation sector, independent sales accounted for 88.4% of total sales while chain accommodation sales accounted for 11.6%. Within the pub, club & bar subsector, independent sales accounted for 95.9% of total sales while chain franchise sales accounted for 4.1%.

Historical and forecast sales of Indonesia's foodservice sector: chain franchises versus independent operators, in US$ millions
Chain vs Independent Subsector 2015 2018 CAGR* % 2015-2018 2019 2022 CAGR* % 2019-2022
Chain Accommodation 298.4 330.5 3.5 341.1 371.6 2.9
Independent 2,303.2 2,527.6 3.1 2,601.3 2,814.2 2.7
Chain Leisure 606.5 648.2 2.2 661.9 701.6 2.0
Independent 1,359.5 1,467.3 2.6 1,502.8 1,605.2 2.2
Chain Mobile operator 18.5 20.7 3.8 21.4 23.4 3.1
Independent 327.4 352.8 2.5 360.9 384.3 2.1
Chain Pub, club and bar 74.3 82.8 3.7 85.6 93.7 3.1
Independent 1,747.3 1,936.7 3.5 1,998.2 2,179.1 2.9
Chain Restaurant 2,592.1 3,141.1 6.6 3,303.5 3,813.5 4.9
Independent 27,538.9 31,664.3 4.8 32,993.7 36,862.6 3.8
Chain Retail 604.1 654.7 2.7 670.9 717.4 2.3
Independent 1,144.1 1,228.1 2.4 1,255.4 1,334.3 2.1
Unspecified Travel 366.9 388.2 1.9 395.3 415.6 1.7
Workplace 4,792.7 5,067.7 1.9 5,157.2 5,413.8 1.6
Total for above 43,773.7 49,510.6 4.2 51,349.2 56,730.3 3.4
Total for chain franchises 4,193.8 4,877.94 5.2 5,084.3 5,721.3 4.0
Total for independent operators 34,420.4 39,176.8 4.4 40,712.4 45,179.6 3.5

Source: GlobalData, 2019

*CAGR: Compound Annual Growth Rate

In the Indonesian foodservice sector, the highest value per transaction in 2018 occurred in independent fine dining restaurants (US$28.5), followed by night clubs (US$17.6), and hotel & motel chains (US$16.0). Fast food restaurants recorded the highest CAGR of 2.9% (chain) and 2.8% (independent) from 2015 to 2018 and are expected to grow at a CAGR of 3.2% (chain) and 3.4% (independent), respectively, from 2019 to 2022. Social clubs are expected to grow the fastest at a CAGR of 3.8% (chain) and 3.7% (independent) from 2019 to 2022.

Value per transaction in chain and independent foodservices by outlet, in US$, historical and forecast
Subsector Chain vs independent Outlet 2015 2018 CAGR* % 2015-2018 2019 2022 CAGR* % 2019-2022
Accommodation Independent Bed and breakfast 4.4 4.6 1.2 4.6 4.9 2.2
Caravan park 6.8 6.9 0.7 6.9 7.3 1.8
Guest house 4.8 4.9 1.0 4.9 5.2 1.9
Chain Holiday park 9.8 10.1 0.9 10.1 10.6 1.8
Independent Holiday park 8.2 8.5 0.9 8.4 8.9 1.9
Hostel 4.4 4.5 1.2 4.6 4.9 2.2
Chain Hotel and motel 15.6 16.0 1.0 16.0 16.9 1.9
Independent Hotel and motel 11.9 12.3 1.0 12.3 13.1 1.9
Others 5.3 5.3 −0.1 5.2 5.4 1.0
Leisure Chain Entertainment 4.3 4.5 1.9 4.5 4.9 2.7
Independent 3.4 3.5 1.8 3.6 3.9 2.7
Chain Venue 5.8 5.9 1.0 6.0 6.3 1.9
Independent 4.5 4.6 1.0 4.6 4.9 2.0
Chain Visitor attraction 3.7 3.8 0.7 3.8 4.0 1.8
Independent 3.5 3.6 0.7 3.6 3.8 1.7
Mobile operator Chain Other mobile operators 1.8 1.9 1.0 1.9 2.0 1.9
Independent 1.6 1.7 0.9 1.7 1.8 1.9
Chain Vans 2.2 2.3 0.8 2.3 2.4 1.7
Independent 2.0 2.1 0.8 2.0 2.2 1.8
Pub, club and bar Chain Bar 8.0 8.6 2.3 8.7 9.5 3.0
Independent Bar 7.1 7.6 2.3 7.7 8.4 2.9
Nightclub 16.4 17.6 2.4 17.8 19.9 3.7
Private club 13.2 13.9 1.9 14.1 15.5 3.3
Chain Pub 9.8 10.3 2.0 10.4 11.3 2.7
Independent 8.7 9.3 2.0 9.3 10.1 2.7
Chain Social club 11.2 12.1 2.6 12.3 13.7 3.8
Independent 10.6 11.4 2.6 11.6 12.9 3.7
Restaurant Chain Casual dining 14.7 15.6 2.2 15.6 16.6 2.2
Independent 8.9 9.3 1.2 9.3 9.8 1.9
Chain Coffee/tea shop 2.1 2.2 1.4 2.2 2.3 2.2
Independent 1.3 1.3 −0.3 1.3 1.3 1.2
Fine dining 27.4 28.5 1.4 28.5 30.3 2.0
Chain Ice cream parlour 2.3 2.3 0.8 2.3 2.4 1.7
Independent 1.9 1.9 0.5 1.9 2.0 1.5
Chain Fast food restaurant 3.1 3.4 2.9 3.4 3.7 3.2
Independent 1.9 2.0 2.8 2.1 2.3 3.4
Retail Chain Baker 1.9 1.9 0.8 2.0 2.1 1.7
Independent 1.8 1.8 0.7 1.8 1.9 1.8
Chain Convenience store 1.9 1.9 0.7 2.0 2.1 1.7
Independent 1.7 1.7 0.7 1.7 1.8 1.7
Delicatessen 2.2 2.3 1.0 2.3 2.4 2.0
Chain Department store 2.3 2.3 0.6 2.3 2.5 1.6
Independent 2.3 2.3 0.5 2.3 2.4 1.6
Chain Other retail 2.3 2.3 −0.1 2.3 2.3 1.0
Independent 2.2 2.2 −0.1 2.1 2.2 1.0
Chain Service station forecourt 1.8 1.8 0.1 1.7 1.8 1.1
Independent 1.6 1.6 0.1 1.6 1.7 1.1
Chain Supermarket, hypermarket 2.2 2.3 0.3 2.2 2.3 1.3
Independent 2.0 2.0 0.3 2.0 2.1 1.3

Source: GlobalData, 2019

*CAGR: Compound Annual Growth Rate

Top 10 foodservice companies in Indonesia

KFC was the top foodservice company with a value sale of US$397.9 million in 2017, representing a 1.2% share of the foodservice market in Indonesia. It was followed by Pizza Hut (US$337.9 million), McDonald's (US$183.5 million), Es Teler 77 (US$174.5 million) and Starbucks (US$116.6 million). Among the top five companies, four of them are well-known worldwide franchises, while only one is a local company (Es Teler 77). However, there are four other local companies among the top 10 foodservice companies in Indonesia (Sederhana, Rumah Makan; J Co Donuts & Coffee; HokBen; and Edam Burger).

Top 10 foodservice companies in Indonesia by value sales and share, 2017, in US$ millions
Company US$ million Share %
KFC 397.9 1.2
Pizza Hut 337.9 1.0
McDonald's 183.5 0.5
Es Teler 77 174.5 0.5
Starbucks 116.6 0.3
Sederhana, Rumah Makan 107.8 0.3
J Co Donuts & Coffee 105.2 0.3
HokBen 100.9 0.3
A&W 97.7 0.3
Edam Burger 77.1 0.2
Others 32,243 95.0
Total 33,942.1 100.0
Source: GlobalData, 2019

Opportunities

Indonesia is the world's fourth most populous nation, and thus a large market opportunity for Canadian exporters. It also remains the biggest importer of Canadian agri-food and seafood products in the ASEAN market with a CAGR of 2.7% from 2014 to 2018, for a value of US$656.7 million in 2018.

Indonesia is the largest foodservice market among all ASEAN countries, with US$49.5 billion value in sales in 2018 at a CAGR of 4.2% from 2015 to 2018. The value of sales in the foodservice sector are expected to increase to US$56.7 billion by 2022 at a CAGR of 3.4% from 2019 to 2022. The Indonesian foodservice market provides the Canadian foodservice industry with opportunities to expand into Indonesia and to compete with other existing international food franchises, along with local foodservice companies.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International agri-food market intelligence page, arranged by region.

For additional information on Food and Hotel Asia 2020, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and Agri-Food Canada
ben.berry@canada.ca

Resources

Foodservice Profile – Indonesia
Global Analysis Report

Prepared by: Hongli Wang, Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2019).

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