Judul : Here are the Opportunities and Challenges in the Food and Beverage Industry in the Second Half of 2025
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Here are the Opportunities and Challenges in the Food and Beverage Industry in the Second Half of 2025
Best for you.CO.ID - JAKARTA Food and beverage (mamin) industry still has potential to attract investment and expand export reach. However, the mamin industry has not yet overcome challenges such as weakened purchasing power and availability of raw materials in some product segments.
Deputy Minister of Industry (Wamenperin) Faisol Riza said that the food industry is one of the pillars of the manufacturing sector. The food industry has attracted investments worth Rp 22.64 trillion in the first quarter of 2025, consisting of Foreign Direct Investment (PMA) worth Rp 9.03 trillion and Domestic Investment (PMDN) amounting to Rp 13.60 trillion.
One realization of investment in the food and beverage industry is the PT PepsiCo Indonesia factory, which was inaugurated on June 18, 2025. PepsiCo invested US$ 200 million, or about Rp 3.3 trillion, to build a factory with an installed capacity of 24,000 tons per year for three snack production lines.
In addition to new investments, Faisol highlighted the potential for strategic partnerships with global companies to expand export market access. Opportunities arise from the growing demand for halal-certified products.
For example, the cooperation between PT Niramas Utama and two Japanese companies, Tarami Corporation and Kawasho Foods Corporation. This partnership aims to produce halal-certified jelly products targeting the global market.
In addition, Faisol looked at the potential of specialty food products amid consumer trends that favor premium quality products with sustainable production processes. Faisol gave examples of cocoa processing industry products, tea, fruit processing, coffee, as well as dairy processing industries.
Nevertheless, Faisol acknowledged that the development of the food industry is still shadowed by several challenges. One of them is the availability of raw materials within the country to meet the demand on an industrial scale.
"The problems faced are more in the upstream sector. Raw materials are limited, while the volume and export demand for processed food products are high, so some materials are still imported. We hope that the industrialization of agro-based industries can continue," said Faisol at the Ministry of Industry Office on Thursday (7/3).
Cocoa and milk are examples of raw materials with still high import proportions. Director General of Agro Industry, Putu Juli Ardika from the Ministry of Industry provided an overview, stating that the minimum cocoa requirement for the food industry reaches 300,000 tons per year. Meanwhile, local cocoa supply can only meet around 200,000 tons.
Meanwhile, the demand for milk in the food industry has reached more than 4 million tons. However, domestic supply can only meet about 20%. Yet, exports of dairy products have increased over the past four years, rising from US$ 144.2 million in 2021 to US$ 233.5 million in 2024.
On the other hand, companies in the food and beverage industry are shadowed by the weakening purchasing power and consumer spending amid increasingly intense market competition. Separately contacted, the Director of PT Siantar Top Tbk ( STTP ), Armin, revealed that industry players also pay attention to geopolitical dynamics.
If geo-political escalation heats up again, it could affect the economic conditions, raw material supplies, and export markets. Nevertheless, Armin believes there are still opportunities to improve performance in the second half of 2025.
STTP is not changing the target, still aiming for double-digit performance growth. "The economy is declining, competition is becoming tougher, plus there is (escalation) of geopolitical issues. It's indeed not easy, but we are still striving to achieve it," Armin emphasized.
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