The value added of the food, beverages, and tobacco sector in Indonesia has displayed a decreasing trend from 2013 to 2023, with a reduction from 6.22 to 5.26 units of GDP. The year-on-year variations show mostly negative growth, with only a slight increase in 2018. The recent years leading to 2023 have witnessed minor, consistent declines between -0.54% and -0.56%. The Compound Annual Growth Rate (CAGR) for the last five years stands at -0.55%.
Looking forward from 2024 to 2028, the value added is forecasted to continue its decline, with a projected forecast 5-year CAGR at -0.45%. This indicates a continued slow decrease in the sector’s contribution to GDP. Future trends include:
- The ongoing shift towards healthier and more sustainable food and beverages.
- Increasing regulations and taxes on tobacco products.
- Potential growth in the industry driven by innovations in plant-based and organic products.