Pastry market in Indonesia

Earlier Report Observations

In 2018, pastry consumption in Indonesia was supported by bread becoming the third staple food after rice and noodles, reflecting a broader increase in bakery product demand. Financial activities, such as FKS Multi Agro Tbk's syndicated loan agreement, indicated ongoing investment in the food sector. By 2020, the COVID-19 pandemic significantly altered consumer behavior, boosting online demand for food including pastries and leading to a sharp rise in market volume to 144.2 thousand tons, despite supply chain disruptions and raw material price volatility.

The pandemic's influence continued into 2021, with sustained consumer preference for fresh and hygienic bakery products pushing market volume to 150.4 thousand tons, although ingredient availability issues posed challenges. In 2022, the introduction of Government Regulation Perppu Number 2 of 2022 on Job Creation clarified food safety and halal certification requirements, affecting market access for producers. Concurrently, companies like FKS Food Sejahtera Tbk launched new product varieties, while consumer shifts towards healthier, plant-based options helped maintain market volume.

By 2023, pastry trends in Indonesia aligned with global movements emphasizing wholesome products, natural sugar replacements, and vegan choices. Innovations in design and technology, including AI and 3D printing, began influencing product development, and industry events like Food & Hotel Indonesia 2023 highlighted sector growth, contributing to a market volume increase to 154.4 thousand tons.

Production pastry in Indonesia

In kind, 2018-2021, K t

Indonesia ranked 25th globally in pastry production from 2018 to 2021.

Top producers of pastry, 2018-2021

World map of production of pastry, 2018-2021

Indonesia's pastry production volume declined after two years of growth. In 2021, the country produced 162.6 K t of pastry, marking a slight year-over-year reduction of 1.0%. Over the 2018-2021 period, production increased by 31%, with a compound annual growth rate of 9.4%. The highest production volume was recorded in 2020 at 164.2 K t, which represented the largest increase of 31.6% during this timeframe.

Annual dynamics of production in Indonesia in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Indonesia's pastry production value rose for the second consecutive year. In 2021, output was valued at 366.9 M $ US, showing a moderate 8.5% increase compared to 2020. Between 2018 and 2021, production value grew by 30.4%, equating to an annualized rate of 9.2%. The lowest value was recorded in 2019 at 247.4 M $ US, which saw the largest decline of 12.1%. In contrast, 2020 experienced the largest increase of 36.7%.

Annual dynamics of production in Indonesia in value, 2018-2021, M $ US

Exports pastry from Indonesia

Exports in kind, t

After two years of growth, Indonesia's exported pastry volumes declined. In 2021, the country exported 32 899 t of pastry, representing a 6.1% decrease year-over-year. Over the 2018-2021 period, exports increased by 14.9%, with a compound annual growth rate of 4.7%. The peak volume was recorded in 2020 at 35 046 t, which also saw the largest increase of 19.8%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, t

From 2018 to 2021, Indonesia's pastry exports in kind were relatively evenly distributed. Japan accounted for 17.1% of exports, Australia for 13.5%, and Malaysia for 12.6%, with these three countries together representing 43.2% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, K $ US

Indonesia's pastry export value increased for the second consecutive year. In 2021, export volume reached 74 214 K $ US, showing a small rise of 2.8% from 2020. Between 2018 and 2021, exports grew by 14.4%, equating to an annualized rate of 4.6%. The lowest value was recorded in 2019 at 57 972 K $ US, which experienced the largest decline of 10.7%. The largest increase occurred in 2020 at 24.5%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, K $ US

From 2018 to 2021, the partner structure for Indonesia's pastry exports in value terms was balanced rather than concentrated. Japan accounted for 18.9% of exports, Australia for 14.7%, and Malaysia for 10.9%, with these three countries jointly representing 44.5% of total flows. Many other countries accounted for the remaining 55.5%.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports pastry to Indonesia

Imports in kind, t

In 2021, Indonesia's pastry import volume amounted to 20 699 t, indicating a dramatic year-over-year advance of 37.6%. Over the 2018-2021 period, imports increased by 24.1%, with a compound annual growth rate of 7.5%. The lowest volume was recorded in 2020 at 15 046 t, which saw the largest decline of 10.9%.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, t

From 2018 to 2021, Malaysia, Vietnam, and Thailand were the main sources for Indonesia's pastry imports in kind. Malaysia accounted for 35.8% of imports, Vietnam for 22.6%, and Thailand for 22.2%, with these three countries together taking 80.6% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, K $ US

In 2021, Indonesia's pastry import volume amounted to 73 977 K $ US, which is 39.4% higher compared to 2020. Between 2018 and 2021, imports increased by 38.9%, equating to an annualized rate of 11.6%. The lowest value was recorded in 2020 at 53 071 K $ US, which experienced the largest decline of 3.0%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, K $ US

Throughout 2018 to 2021, Malaysia, Vietnam, and Thailand remained the key directions for Indonesia's pastry imports in value terms. Malaysia accounted for 49.5% of imports, Vietnam for 21.1%, and Thailand for 11.3%, with these three countries together taking 81.8% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021