In 2024, rice, a staple food in Indonesia, reached a retail sales value of around billion U.S. dollars. Noodles, with retail sales amounting to almost billion U.S. dollars.
Busy lifestyles: a key driver of packaged food sales
A fast-paced lifestyle, growing urban population, and increasing workforce participation continue to shape consumers’ behavior, including their behavior toward food and nutrition. Convenience food products, such as packaged food, have become the go-to option for many Indonesian consumers with such lifestyles. This, in turn, has been fueling the growth of the packaged food market in Indonesia. In 2022, the retail sales value of packaged foods in Indonesia amounted to approximately billion U.S. dollars, an increase of around billion U.S. dollars since 2017.
Online food delivery: another format of convenience
The online food delivery market in Indonesia has grown rapidly in recent years, reaching an annual revenue of more than billion U.S. dollars in 2022. While online food delivery services have been around for a long time, demand for these services surged during the pandemic. Social and mobility restrictions forced many businesses unfamiliar with this business model to adapt to stay afloat. Today, online food delivery continues to thrive in Indonesia, with penetration rates of the grocery and meal delivery segments at around and percent in 2022, respectively. This meets consumers’ growing demand for convenience in line with their busy lifestyles.