Stakeholders in Indonesia’s food and beverage (F&B) industry expect to see a 15% increase in sales during the Ramadan month and Idul Fitri celebrations (compared to normal conditions). Although the Ramadan is Muslims’ fasting month, it is also a period when household consumption tends to rise sharply in Indonesia, specifically spending on food and drinks as well as clothes, bags and shoes grows significantly.
Rachmat Hidayat, spokesman for a local food and beverage industry association in Indonesia (FLAIMM), said many food and beverage companies are currently already preparing their stocks, consisting of various food and drink products, in the regions in anticipation of higher demand during the Ramadan and subsequent Idul Fitri celebrations. Meanwhile, food and beverage companies have also been boosting spending on advertisement in media recently.
Last year, turnover in Indonesia’s food and beverage industry reached around Rp1,200 trillion, hence approximately Rp100 trillion per month. Thus, the expected 15% increase should boost turnover in the industry to Rp115 trillion in this year’s Ramadan/Idul Fitri period.