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The Channel market value (OSP) of the foodservice industry in Indonesia (2020 - 2028, USD million)

Industry: Foodservice
Current: Market Sizing & Shares

The Channel market value (OSP) of the foodservice industry in Indonesia reached USD 48,137.75 million in 2023
The indicator recorded a historical growth (CAGR) of 27% between 2020 to 2023 and is expected to grow by ...
GlobalData projects the indicator to grow ...

The Channel market value (OSP) of the foodservice industry in Indonesia (2020 - 2028, USD million)

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Indonesia foodservice market analysis

The overall value of the Indonesian foodservice profit sector declined during 2015 –2020. The decline in the foodservice profit sector was caused by the substantial reduction in the number of transactions in 2020 due to weaker purchasing power and operational restrictions on restaurants, cafés, and other foodservice outlets amid the COVID -19 outbreak. Take-aways and deliveries played a key role in mitigating the losses of foodservice businesses, especially in the QSR channel, due to convenience and digital and technological advancements. Independent operators dominate the profit sector, while chain operators fared better than independent operators during the pandemic in the QSR and FSR channels owing to the quick adjustments to evolving consumer habits. During 2020 –2025, Indonesia’s profit sector is forecast to grow at double-digit CAGR, primarily due to higher transactions.

Quick service restaurants: The second-largest channel, in value terms, the channel declined during 2015 –2020 owing to the challenging operating conditions in 2020. The channel’s decline in 2020 was mainly driven by the government-mandated operational restrictions amid the pandemic, which impacted consumer visits to the channel. However, quick adoption of delivery and take-away services cushioned the blow to the value sales and the QSR channel fared better than other profit sector channels. Digital capabilities are crucial for the growth of the QSR channel in future. Cloud kitchen formats are gaining pace in the channel owing to the evolving consumer habits.

Full-service restaurants: FSR was the largest channel in the Indonesian profit sector, the channel declined during 2015–2020, primarily due to the operational restrictions on restaurants and suspension of dine-in services along with social distancing norms in 2020. The trend of home consumption gained pace in Indonesia as most consumers limited their out-of-home consumption due to the pandemic. The channel is highly fragmented and is dominated by independent operators, which generate the majority of the value sales in the channel.

Coffee & tea shop: The coffee & tea shop channel registered sales decline during 2015–2020 as consumption occasions declined significantly in 2020. Take-aways grew, compared to dine-ins, which declined during 2015–2020. The channel was growing rapidly before the pandemic owing to the strong café culture in Indonesia, which was driven by increasing demand for speciality coffee and the strong expansion of local franchised brands.

Channel future growth highlights

The profit sector is set to recover during 2020–2025 in terms of sales value. This growth will be majorly driven by the growth in the number of transactions across all channels. FSR will remain the largest channel and is expected to recover with transactional growth, the transaction growth rate is expected to be the strongest in the travel channel, followed by the leisure channel. Coffee & tea shop channel is forecast to record the highest growth in the number of outlets, this growth will be largely driven by the expansion of popular chains. The entrance of new chains in the QSR channel will also support the outlet growth during 2020–2025.

Operator selling prices (OSP) represent the amount that the consumer spends on food and drinks in foodservice channels, once the foodservice operator has added on any fees and levies, and their margin. This is often known as “retail sales equivalent” and represents the end value of the foodservice market.