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F&B sector should target low-income consumers: Analyst
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Shoppers browse in a food and beverage section at a supermarket in Tangerang, Banten. (Antara/Lucky.R)
I
n a bid to develop the food and beverage industry, businesspeople need to expand their markets by targeting low-income people rather than only concentrating on increasing production output.
“When we speak about the equality gap, we speak about boosting demand, not the supply side. Without good demand, the industry won’t grow well,” said economist Aviliani from the Institute for Development of Economics and Finance (INDEF) on Tuesday.
While talking with stakeholders in the food and beverage industry at the Industry Ministry building Aviliani said improving demand or public spending was important especially with the expected increase in inflation this year.
(Read also: Food and beverage exporters lament ‘high import tariffs’ in new markets)
Inflation is expected to rise to 4 percent this year on the back of a recovery in the prices of oil, gas and other commodities, as well as rises in electricity prices.
She noted the number of Indonesians living in poverty was 29 million people and those living on the edge of poverty amount to 71 million. “So there are 100 million people whose demands need to be met,” she said.
The Indonesia Food and Beverage Association (GAPMMI) is aiming to see industry output grow at 8.5 percent this year to roughly Rp 1.51 quadrillion (US$113.52 billion) on the back of rising sales. (bbn)
