The restaurant business market outlook in Indonesia for 2024 is positive and promising, as the industry is expected to recover from the impact of the COVID-19 pandemic and grow at a fast pace. According to various sources, the Indonesia foodservice market size is estimated at USD 55.25 billion in 2024, and is expected to reach USD 103.76 billion by 2029, growing at a CAGR of 13.43% during the forecast period (2024-2029).
The key drivers for the market growth are:
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.
The extensive networks of food delivery apps, such as GrabFood and GoFood, that expose various independent and chained outlets to their target consumer base.
The growing inclination toward gourmet coffee, as well as the introduction of chains such as Janji Jiwa and Starbucks, that boost the cafes and bars segment.
The government’s plan to protect the tourism industry from the effects of the COVID-19 outbreak by waiving hotel and restaurant taxes in 10 tourist destinations, such as Bali, Mandalika, and Labuan Bajo.
The development of luxury hotels and resorts in Mandalika, West Nusa Tenggara (NTB), that attract more visitors and create more demand for foodservice.
However, the market is also expected to face some challenges, such as:
The rising health awareness and preference for home- cooked meals among some consumers.
The competition from street food vendors and traditional eateries that offer cheaper and more authentic options.
The uncertainty and volatility of the economic and political situation in the country.
For information, the restaurant market is segmented by foodservice type, outlet, and location. The full service restaurants segment is expected to have the largest share, followed by the quick service restaurants segment. The independent outlets
segment is expected to dominate the market, while the chained outlets segment is expected to grow faster. The standalone location is expected to be the most preferred, while the retail location is expected to witness the highest growth.
Sources: mordorintelligence.com (processed)
