# Indonesian food and beverage industry development

> Live situation record from CLSTR: https://clstr.news/situations/indonesian-food-and-beverage-industry-development
> Updated: 2026-09-19T03:31:38.000Z. Sources: 7. Developments: 3.

The Indonesian food and beverage industry is demonstrating growth and strategic expansion. In the coffee sector, the government is pursuing a downstreaming strategy to increase economic value by boosting the capacity utilization rate of the coffee processing industry from approximately 51 percent to 86.6 percent by 2029.

Broadly, the food and beverage sector contributed 41.86% to the non-oil and gas manufacturing GDP during the first half of 2026. Industry developments include the Food Ingredients (Fi) Asia Indonesia 2026 exhibition and shifts in consumer behavior, with products increasingly treated as lifestyle choices. Companies are also expanding distribution networks, such as PT Indosari Mandiri’s partnership with pharmacies to increase the accessibility of halal-certified snacks.

Recent consumer data highlights coffee and tea as the most popular beverages in Indonesia, with consumption rates of 72% and 71% respectively. Coffee consumption is notably high among Gen X (79%) and Millennials (74%), while tea remains a staple across all age groups. The milk tea market is also expanding, featuring brands such as Taiwan’s Teazzi, Tianlala, which serves the Jabodetabek and Bandung regions, and the premium Chinese brand Chagee.

As consumption patterns evolve, health considerations have emerged. Experts advise that pairing coffee with citrus fruits may trigger acid reflux, while combining it with fried foods may increase cardiovascular risks. Additionally, consuming coffee with milk may interfere with optimal calcium absorption.

## Timeline

### 2026-09-19: Indonesia beverage trends: Coffee and tea lead consumption

Coffee and tea lead beverage consumption in Indonesia, with a growing milk tea market featuring brands like Teazzi and Chagee. Health experts also note dietary precautions for coffee drinkers.

2 sources. https://clstr.news/cluster/indonesia-beverage-trends-coffee-and-tea-lead-consumption

### 2026-09-16: Indonesia food and beverage industry shows growth and innovation

Indonesia's food and beverage industry shows strong growth, driven by innovation at Fi Asia 2026 and expanded FMCG distribution networks to meet evolving consumer lifestyle demands.

3 sources. https://clstr.news/cluster/indonesia-food-and-beverage-industry-sees-growth-in-distribution-and-innovation

### 2026-09-09: Coffee industry sees heritage brand growth and Indonesian downstreaming push

The coffee industry is seeing a rise in heritage brand investment and a strategic push in Indonesia to increase economic value through enhanced downstream processing and higher capacity utilization.

2 sources. https://clstr.news/cluster/coffee-industry-sees-heritage-brand-growth-and-indonesian-downstreaming-push

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Cite as: Indonesian food and beverage industry development. CLSTR, https://clstr.news/situations/indonesian-food-and-beverage-industry-development