Insights into Bali's Food & Beverage Industry

August 1, 2025

Bali's food and beverage (F&B) industry continues to thrive as one of the island’s most dynamic and profitable sectors. Powered by tourism and evolving consumer preferences, it offers significant opportunities for investors and entrepreneurs. 

At Smart Advisory Solutions (SAS), we work closely with F&B businesses across Bali, helping them navigate compliance and growth. Here’s a data-driven look at the sector’s performance, latest trends, and what you need to know before investing. 

Bali F&B Industry: A Key Driver of Economic Growth 

The F&B sector, grouped with accommodation services, is Bali’s largest economic contributor. According to BPS Bali (Q4 2024): 

  • 21.75% of Bali’s economy comes from accommodation and F&B services. 
  • The sector grew 10.24% year-on-year (YoY) and 11.95% cumulative (c-to-c) in 2024. 
  • It added IDR 17.04 trillion in value during Q4 2024. 
  • It contributed 1.86% to Bali’s overall economic growth — the highest of any industry. 

These figures confirm that the Bali F&B industry is not only vibrant but a primary engine of growth. 

1. Health-Conscious Dining 
Consumers are seeking nutritious, sustainable, and locally sourced options. Plant-based menus, raw food cafés, and gluten-free bakeries are in high demand — particularly in tourist hotspots like Ubud, Canggu, and Uluwatu. 

2. Experience-Focused Concepts 
It’s not just about the food — ambience, design, and storytelling matter. Venues that offer a distinctive experience (think jungle views, fire shows, or sustainable interiors) attract more foot traffic and social media buzz. 

3. Delivery and Digitalisation 
The rise of GoFood, GrabFood, and Instagram marketing has shifted how restaurants engage customers. Cloud kitchens and delivery-only brands are expanding fast, especially in areas with dense expat populations. 

4. International Tastes, Local Fusion 
Balinese consumers and tourists alike are increasingly adventurous with cuisine. Successful venues often offer a unique blend of global flavours with local ingredients — from gourmet tacos with sambal matah to espresso martinis with arak. 

Challenges for F&B Entrepreneurs in Bali 

While the market is enticing, the barriers to entry — especially for foreign investors — can be complex: 

1. Licensing & Zoning 
It’s critical to ensure your chosen property is properly zoned for commercial F&B activity and that all building permits (IMB/SLF) are in order. A residential property or unlicensed venue can trigger serious operational setbacks. 

2. Permits & Hygiene Compliance 
To legally operate, you’ll need multiple permits including a NIB (business ID), operational and environmental permits, and a hygiene certificate from the local health office. These requirements vary depending on the size and type of establishment. 

3. Alcohol Licensing 
Selling beer, wine, or spirits requires a separate set of permits — and securing them as a foreign-owned PT PMA can be challenging without local partnerships and a clear legal structure. 

4. Manpower and Payroll 
Balancing local hiring obligations, payroll compliance, and employee benefits like BPJS (social security) and THR (religious holiday allowance) is essential. The hospitality sector in Bali has high employee turnover, so building fair, legal employment practices can become a competitive advantage. 

Why Invest in Bali’s Food and Beverage Industry? 

With tourism recovering strongly and consumer preferences evolving, Bali’s F&B sector offers excellent investment potential. The combination of high profitability, strong economic contribution, and growing demand makes it an attractive market for restaurants, cafés, and hospitality ventures. 

Compliance: The SAS Approach 

SAS supports F&B businesses at every stage — from legal structuring and land due diligence to licensing, payroll, and ongoing tax compliance. Here’s how we help: 

  • PT PMA Incorporation tailored to the F&B industry 
  • Land and zoning due diligence to ensure your venue is viable 
  • Alcohol and operational licensing strategy and support 
  • Payroll and HR systems to keep your business compliant and efficient 
  • Monthly tax and accounting services, including VAT, WHT, and annual CIT filings 

Our goal is to ensure your business doesn’t just open — it operates sustainably and scales with confidence. 

The F&B industry in Bali is full of potential — but standing out in a saturated market requires more than a good concept. It demands compliance, clarity, and a deep understanding of the local business landscape. 

Whether you’re launching a new café, managing a franchise, or revamping an existing venue, SAS is here to support your journey with practical, strategic advice. 

Ready to launch or expand your F&B business in Bali?

Standing out in Bali's F&B industry takes more than a great menu – it requires compliance, strategic planning, and a clear understanding of the local market.

Contact Smart Advisory Solutions today to build a solid, compliant foundation for your F&B success. 

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