18 Nov 2021
Posted in Consumer
Indonesia’s hot drinks market to reach US$3.1bn by 2025, forecasts GlobalData
The Indonesian hot drinks market is projected to grow from Rp34.8 trillion (US$2.4bn) in 2020 to Rp47.8 trillion (US$3.1bn) by 2025 at a compound annual growth rate (CAGR) of 6.5% over the five-year period, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Indonesia Hot Drinks – Market Assessment and Forecasts to 2025’ reveals that the market is majorly driven by growth in the hot tea category, which is forecast to register the fastest value CAGR of 7.7% during 2020–2025. The category is followed by ‘other hot drinks’, which are together expected to record a CAGR of 7% during the same period.
Vishakha Rastogi, Consumer Analyst at GlobalData, says: “The instant coffee segment witnessed highest value sales in Indonesia in 2020 being a convenient go-to drink for young consumers.”
‘Convenience stores’ was the leading distribution channel in the Indonesian hot drinks market in 2020, followed by ‘hypermarkets & supermarkets’ and e-retailers.
Per capita expenditure (PCE) of hot drinks in Indonesia increased from US$6.8 in 2015 to US$8.9 in 2020 and is expected to reach US$11.1 by 2025. However, it was way lower than the per capita expenditure of hot drinks, both at the global (US$31.8) and the APAC (US$20.4) levels.
Nestlé, PT Gunung Slamat and Pt Kapal Api Global were the top three companies in the Indonesian hot drinks market by value in 2020, while Nestle and Sosro were the leading brands.
Rastogi concludes: “Hot Drinks with claims of low or no sugar, inclusion of more “natural” ingredients will likely appeal to the consumers across all age groups as they look for heathier alternatives to the hot drinks categories.”