15 Oct 2020
Posted in Consumer
Indonesian hot drinks sector to reach 450.5 million kg at CAGR of 3.5% by 2024, says GlobalData
Increasing urbanization and rising number of coffee outlets in Indonesia are expected to drive the hot drinks sector from 378.6 million kg in 2019 to 450.5 million kg in 2024 at a compounded annual growth rate (CAGR) of 3.5%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Indonesia Hot Drinks – Market Assessment and Forecasts to 2024’, reveals that the hot tea category is forecast to register the highest value growth at a CAGR of 8.5% during 2019-2024 and is closely followed by other hot drinks category which stood at 8.2% in the same year. The hot coffee category remained the largest category in volume terms with 164.8 million kg in sales in 2019.
Anchal Bisht, Consumer Analyst at GlobalData, says: “The per capita expenditure of Indonesian consumers on hot drinks is lower than the regional and global levels, depicting room for further growth. While hot coffee is relatively mature than hot tea, the emergence of coffee shops in various public places such as office buildings and malls is leasing a new life into the category, offering myriad varieties to entice consumers, including premium coffees. This is well supported by rising popularity of instant coffees in off-premise channels.”
Convenience stores are the leading channels for the distribution of hot drinks in Indonesia, followed by hypermarkets and supermarkets. Sales through on-trade channels are not popular among the Indonesians and accounted for just 6.2% of the overall hot drinks sales in 2019.
Nestle SA, PT. Gunung Slamat and Pt Kapal Api Global were the top companies in the Indonesian hot drinks sector. Nescafé, owned by Nestle SA, is the leading brand in the Indonesian hot drinks sector in value terms in 2019.
Ms Bischt concludes: “Coffee constitutes an integral part of Indonesian consumers’ lifestyle. Apart from urbanization, rising number of coffee outlets in the country and growing curiosity to try out unique coffee varieties are further driving the consumption of hot coffee that is expected to further facilitate the expansion of the sector going forward.”