Jago Coffee plans to expand its mobile coffee café fleet in Indonesia with 10,000 motorized bicycle coffee carts by 2026. With the expanded fleet, the homegrown startup will be better positioned to tap the post-COVID-19 rebound in on-the-go consumption, with overall coffee consumption from mobile operators in Indonesia set to surge by about 18-20% compound annual growth rate (CAGR) over 2022–26 *, according to GlobalData, a leading data and analytics company.
Bobby Verghese, Consumer Analyst at GlobalData, comments: “Indonesia is one of the world’s largest coffee producers with a significant number of its coffee plantations located in Java, Sumatra, Bali, and Sulawesi. Though domestic coffee consumption has been traditionally low as most consumers prefer tea, coffee consumption among Indonesian Millennials has skyrocketed over the past decade, influenced by Western culture. A strong coffee culture has taken root in the country with a multitude of multinational and regional cafés, and roasters mushrooming across the archipelago in recent years.”
Jago Coffee has taken the consumption experience of street coffee vendors to the next level with its “café on wheels” fleet that move around the capital city, Jakarta, delivering orders placed on its smartphone app. Such mobile kiosks are better positioned to tap the resurgence in on-the-go coffee consumption after the lifting of COVID-19 restrictions on public outdoor mobility.
GlobalData’s Q4 2022 consumer survey reveals that 36% of Indonesian respondents order food and drink from mobile operators/pop-up restaurants at least once a week**. The company’s mobile app is attracting digital immigrants and natives of the GenY and Gen Z consumer cohorts.
Verghese concludes: “While MNCs such as Starbucks are drawing affluent youth, local operators such as Jago Coffee target the mass-retail market with their affordable coffee. The pocket-friendly prices can emerge as the key success factor for the café chains in the light of rising inflation, given that 86% of Indonesian respondents in GlobalData’s consumer survey said they were starting to or would continue to switch to cheaper stores/outlets, or would do this more frequently over the next 3 months**. Mobile café fleets will play a pivotal role in boosting on-the-go coffee consumption among the nation of tea drinkers.”
* GlobalData Foodservice Intelligence Center – Market Analyzers, accessed in December 2022
** GlobalData Q4 2022 Consumer Survey–Indonesia, with 510 respondents, published in November 2022
