While the impact of the COVID-19 pandemic has been felt across all industries, nowhere is such impact more apparent than the trends in the Food & Beverage (F&B) sector. The pandemic has certainly changed the way people consume. This will unsurprisingly have long-lasting impact of an industry that has always been driven by consumer behavior.

 Here are Indonesian F&B industry trends.

The Trend of Online Consumption 

Despite an initial loss of around 30% amid lockdown and dine-in restrictions early on, the F&B industry has quickly bounced back as customers all over the world adjusted their consumption pattern. In Indonesia, the availability of online platforms was a big part of this. Grab Food online food delivery saw an increase of 4% in March 2020, amounting to an overall increase of 10% across all online delivery platforms throughout 2020, according to a 2021 report.

This F&B trends are expecting to continue. Indonesia already has the largest online food delivery service market in Southeast Asia, accounting for 31% of the market. As more customers adopt digital means to purchase their food, this number will continue to grow. By 2023, the revenue generated through online sales is predicted to reach 99% of the total F&B revenue in the country. 

Bahtera is seeing the effect of online food delivery services. After a slight dip early in the pandemic, the F&B market began to increase. Ultimately, we saw more clients expand their distribution channels and new products as they shifted to online platforms. 

Health is the Name of the Game

The pandemic has also driven customers to look for healthier and natural options. This came as no surprise as the pandemic has made health the top issue in everyone’s mind. However, it appears that there’s a bit more at play here. Studies show that most people experience a loss of control during a big event such as the pandemic, which drives them towards the familiar. When it comes to food, this amounts to two options: junk food and healthy food. 

While the two seem paradoxical, the numbers have confirmed this. In the second week of the pandemic in Indonesia, McDonald’s saw an increase of 170% in average daily transaction value. On the other hand, spending on health products in Indonesia has grown by 77% after the pandemic. In the first quarter of 2021, sales of healthy food on the online platform Tokopedia saw a six-fold increase.  

A 2020 report by Food Industry Asia (FIA) shows that the trend is here to stay. The survey found that 99% of Indonesian consumers are looking to improve their diet. As the Indonesian government ramped up action to address the country’s severe malnutrition problem, food companies in the country show their support by improving nutritional value in their products. A total of 83% of the companies surveyed said that they have started the reformulation process, while 22% said they have completed their plans. 

The bakery segment is another promising segment for the healthy food trend. We have seen an increase in demand for natural coloring and healthier emulsifier options. Moreover, we see growing demands for natural extracts as more clients begin to develop herbal drink products. 

Frozen Food is Trending

Another trend to look out for in Indonesia is the rise of ready-to-eat food products. Demands for frozen food had been increasing in Indonesia even before the pandemic. Between 2016 and 2019, Indonesia’s packaged food market increased from $18.59 million to $19.76 million. Due to the growth of urban dwellers, convenience store boom, and improved freezing technologies in the country. 

As people were forced to stay at home during the pandemic, demand for frozen food further increased by 19%. In 2020, the value of the Indonesian frozen food market reached $995.79 and is projected to grow by 8.49% annually between 2021 and 2026.