Importance of Ramadan for the food retail sector in Malaysia and Indonesia
Ramadan is the most important time of the year for food vendors in Malaysia and Indonesia. Although daytime is characterized by abstaining from food and drink, nighttime is quite the opposite. In Malaysia, night bazaars packed with street food vendors would spring up in every city and village. The Indonesian practice of bukber, or breaking of the fast out of home, mean that food sales tend to increase during this time. Malaysians too make an event of breaking fast out of home, especially with friends.Food FMCG retail sales also increase during Ramadan, as families prepare for Eid. The tradition of serving guests sweet drinks, as well as sweet baked goods, lead to an increase in the retail growth of food products such as baking ingredients and non-alcoholic beverages compared to the non-Ramadan period.
The preparation for Eid is also an important time in the retail calendars of Malaysia and Indonesia. In Malaysia, the Ramadan and Hari Raya season is among its most anticipated sales period. In Indonesia, all employees receive a 13th month bonus, the Tunjangan Hari Raya, a month before their respective religious holiday. Apart from spending on food, alms and donations, Indonesian Muslim consumers also planned for purchasing new clothing when budgeting for their holiday spending.
