Indonesian Food And Drinks Industry Is Projected To Witness 10% Growth

March 13, 2009 - PRLog -- Indonesian food and drinks industry is projected to witness 10% growth

The Indonesian food and drinks industry is projected to witness 10% growth rate in 2009 on the back of surging demand.

According to Thomas Darmawan, Chairman of the Association of Food and Beverage Producers, the Indonesian food industry is expected to grow at the rate of 10% in the current year, despite the decline in industrial production of food and beverages amidst economic turmoil, as reported by JakartaGlobe.

In 2009, the value of Indonesian food industry output is predicted to be around Rp 400 Trillion ($33.6 Billion). Moreover, up to 30% of imports, which amounted to nearly $1.8 Billion during the first eleven months of 2008, would probably be replaced by the locally produced food products. In addition to the locally produced 3.8 Million Tons, 500,000 Metric Tons of wheat flour was imported in 2008. Overall, the growth of food industry remained at 15% in 2008.

The Indonesian food and beverages industry is expected to grow positively despite uncertainties in the global economic environment. The prime reason for this prospective growth is the strong demand for food items and the election campaigns that would assist the industry to maintain its production capacity. Moreover, the industry is hoping that the government would announce stimulus packages to boost exports.

Food producers are looking to increase exports of processed foodstuffs like cacao cake and powder, canned fruits, milk, and butter. The Association has also prioritized the substitution of raw material imports, like crude palm oil, wheat flour and fruits, with the locally produced ones.

However, an area where the negative effects of global economic turmoil are clearly visible is the Indonesian coffee bean industry. While the manufacturers of primary agricultural products might be suffering on account of economic instability, the overall scenario for secondary producers appears encouraging.

According to the report “Indonesia Food and Drinks Market: Emerging Opportunities” Indonesia has emerged as one of the fastest growing food and drinks market in South East Asia. This growth is attributed to various factors such as economic growth and increasing urbanization. Thus, realizing the immense growth potential, several domestic and international players have established their facilities to penetrate this flourishing market.

Related Market Research Reports:
http://www.bharatbook.com/Market-Research-Reports/Indones...