INDONESIA HALAL FOOD & BEVERAGE MARKET FORECAST 2023-2030

Due to the country’s sizable Muslim population and the rising demand for halal goods and services globally, Indonesia’s halal industry has experienced tremendous growth and development in recent years. However, to further enhance product quality and meet both domestic demand and international export requirements, it was essential to implement various improvements and upgrades in the production processes.

Also, before 2014, only a quarter to a third of the food and beverages produced in Indonesia were genuinely halal. Subsequently, in 2016, comprehensive regulatory frameworks were introduced to bolster halal food and beverage security and foster consumer trust. As a result, a majority of food and beverage manufacturers in the country have chosen to transition to 100% halal-certified production facilities.

These advancements in ensuring halal compliance not only open up new opportunities within the domestic market but also position Indonesia as a significant player in the global halal industry. With a continued commitment to maintaining stringent halal standards, Indonesia can strengthen its position and capitalize on the growing demand for halal products both domestically and internationally.

The Indonesia halal food & beverage market segmentation includes product type, distribution channel, and user demographic. The product type segment includes halal supplement, halal beverage, and halal food. The halal food segment is further subdivided into halal meat products, halal bakery & confectionery products, halal grain products, halal dairy products, and other halal foods.

Halal beverages encompass tea, coffee, and RTD beverages. The halal tea segment has also experienced growth, mainly driven by the rising consumption of green tea in the region. Additionally, the price of halal green tea is comparable to conventional green tea, making it an appealing choice for consumers.

The general increase in tea consumption and the growing awareness of the detoxifying properties of these products are projected to boost sales volume during the forecast period. Market preferences lean towards brands such as Lipton and Twinings Teas. 

Furthermore, the allure of natural-flavored halal drinks is drawing consumers towards RTD beverages, particularly in the realm of energy drinks, which are often available with synthetic flavoring. Consequently, to tap into a larger consumer base, manufacturers of halal beverages like Moloko and Pure Bio Energy Drink are incorporating natural flavorings into their products, resulting in better-flavored drinks with higher market demand.

Whereas smaller enterprises are engaging in the expansion of the specialty coffee market to enhance the diversity of their product portfolio. This strategic move creates favorable prospects for suppliers dealing in organic, halal, and kosher traceable, high-quality coffee products. In addition, manufacturers within the industry are actively exploring the acquisition of halal and kosher certifications for their coffee and other food items. 

Some of the key firms operating in the Indonesia halal food & beverage market are PrimaBaguz Sdn Bhd, Cargill Incorporated, BRF SA, Nestlé SA, etc.

PrimaBaguz Sdn Bhd manufactures premium quality halal frozen meat and non-meat-based products. It offers a range of exceptional high-quality products in 4 main categories, meatballs and patties, gourmet soups and sauces, cold cuts, and frankfurters & sausages. It majorly serves restaurants & caterers (HORECA) and quick service restaurants (QSR) and hotels. The company primarily operates in Malaysia, with headquarters in Selangor, Malaysia. 

One of its key products, FRANKFURTERS & SAUSAGES, encompasses a range of footlong sausages, chipolatas, grill sausages, and breakfast sausages and offers non-smoked and traditionally-smoked variety made from selected halal meat & natural ingredients.