Indonesia targets global artisan food markets as demand surges

Indonesia targets global artisan food markets as demand surges

Indonesia is positioning itself to capitalize on surging global demand for artisan food and beverage products by strengthening its agro-based industries, Deputy Minister of Industry Faisol Riza announced Monday at the opening of the 2026 Specialty Indonesia Exhibition and Business Matching event in Jakarta.

The global artisan food and beverage market, valued at US$332 billion in 2025, is forecast to reach US$627.3 billion by 2032, representing a compound annual growth rate of 9.5 percent. This expansion is fueled by consumer preferences for premium quality, authentic flavors, strong provenance, and sustainable production methods.

Faisol identified cocoa, tea, coffee, horticulture, dairy, cigars, and locally based fermented products as sectors with significant development potential, noting that the growth trend creates substantial opportunities for Indonesian artisan products to strengthen domestically while expanding their international footprint.

Cocoa industry leads export performance

Indonesia stands as the world's fourth-largest producer of processed cocoa products and seventh-largest producer of cocoa beans. The sector demonstrated robust performance in 2025, with total cocoa exports reaching US$3.5 billion, marking a 36 percent increase from the previous year. Cocoa butter and cocoa oil products drove this growth, accounting for approximately 62 percent of total cocoa exports at a value of US$2.2 billion. The United States and India emerged as Indonesia's primary cocoa markets, each importing approximately US$619 million and US$618 million respectively, representing about 17 percent of total cocoa exports each.

Coffee sector achieves record output

As the world's fourth-largest coffee producer overall and third-largest Robusta coffee producer after Vietnam and Brazil, Indonesia achieved record coffee output in 2025. Robusta production for 2025/26 is forecast to reach 11.0 million 60-kilogram bags. Processed coffee exports totaled US$692 million in 2025, up 4.36 percent from the previous year. Domestically, coffee consumption reached 288,000 tons in 2025, positioning Indonesia as the world's fifth-largest coffee consumer after the European Union, United States, Brazil, and Japan, with consumption expanding at approximately 5 percent annually.

Tea faces export challenges despite production strength

Indonesia ranks fifth globally in tea production, with West Java accounting for around 70 percent of national output. The global tea extract market expanded from US$3.6 million in 2019 to US$5.6 million in 2025, while the green tea supplement market reached US$909.9 million in 2025 and is projected to hit US$1.33 billion by 2033. However, Indonesian tea exports have declined from US$178.5 million in 2010 to approximately US$90 million in recent years. Malaysia, Russia, and the United States collectively represent 41 percent of Indonesian tea exports by value.

Horticulture and dairy show expansion potential

Indonesia's horticulture sector, supported by substantial national fruit and vegetable production, generated US$544.8 million in exports during 2025, with canned pineapple among the leading products. The dairy processing industry also presents expansion opportunities, particularly through value-added products such as cheese and gelato, which are gaining popularity alongside the growth of culinary, hotel, restaurant, and cafe sectors.

Tobacco and fermented products offer strategic opportunities

The tobacco products industry remains a strategic manufacturing sector based on local resources. Continued export growth has established Indonesia as a major tobacco exporter, with approximately 74 percent of cigarette exports destined for ASEAN markets, particularly the Philippines. The industry holds a 6.08 percent global market share.

Faisol emphasized the development potential of locally based fermented products, which require transformation into a national industrial ecosystem. The global fermented food market reached US$788.33 million in 2025 and is projected to grow to US$1.24 billion by 2034. Tempeh, a traditional Indonesian fermented soybean product originating from Java and first documented in the 1600s, exemplifies this category. Produced using the fungus Rhizopus oligosporus, tempeh has gained international recognition as a plant-based protein source and demonstrates the potential for Indonesian fermented products to create added value and generate competitive products in global markets.