Price hikes and innovation drive value growth in hot drinks amidst channel shifts
Hot drinks in Indonesia experienced value growth in 2025, largely driven by price increases due to higher raw materials costs and continuous flavour innovation, despite a slight volume decline. Coffee's value growth stemmed from global price hikes, while tea saw marginal volume growth through sachets and health-focused products. Matcha consumption surged among younger demographics, impacting foodservice and retail. Small local grocers remained dominant in distribution, leveraging sachet sales and exclusive promotions, although retail e-commerce was the most dynamic, driven by aggressive pricing and a wide product range. Foodservice continued to grow due to café culture, yet retail still accounted for the overwhelming majority of volume sales.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Indonesia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks industry in Indonesia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in Indonesia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Hot Drinks in Indonesia?
- To what extent are health considerations impacting consumption of Hot Drinks in Indonesia?
- What are the traditional preferences in Hot Drinks in Indonesia? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in Indonesia?
- Which are the leading brands in Hot Drinks in Indonesia?
- How are products distributed in Hot Drinks in Indonesia?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in Indonesia
Price hikes and innovation drive value growth in hot drinks amidst channel shifts
KEY DATA FINDINGS
Price rises and innovation drive value growth in hot drinks
Price hikes drive coffee value sales, while tea finds volume growth in health and convenience
Growing matcha consumption impacts hot drinks, led by younger demographics
Value growth to be driven by price hikes and innovation amidst maturity
Hot drinks brands to blend promotions and education for enhanced loyalty
Electric motorcycle charging at convenience stores to fuel growth in hot drinks
Leaders in hot drinks navigate intensifying competition
Innovation and distribution important for the top performers in hot drinks
Sachet sales and local access drive growth for small local grocers in hot drinks
Value and variety drive the rise of retail e-commerce in hot drinks
Café culture and affordable options drive dynamic shifts in coffee in foodservice
COUNTRY REPORTS DISCLAIMER
Coffee in Indonesia
KEY DATA FINDINGS
Price hikes drive dynamic value growth for coffee amidst stagnant volumes
Despite stagnant volumes, coffee achieves strong value growth through price rises
Fresh ground coffee pods is dynamic, and instant coffee mixes resilient
Future growth will hinge on price stability and youth-focused innovation
From mass-market promotions to premium regional products and flavoured offers
Convenience and customisation to drive growth in coffee
Santos Jaya Abadi leads through brand building and consumer engagement
Mayora Indah achieves strongest volume growth via promotions and partnerships
Small local grocers dominates distribution by accessibility and micro-transactions
Price promotions and premium exclusivity drive growth for retail e-commerce
Tea in Indonesia
KEY DATA FINDINGS
Tea is saturated yet growing – players adapt with smaller packs and online reach
Price hikes drive value growth for tea amidst volume saturation
Affordability and youth engagement fuel success of black tea in Indonesia
Tea expected to see smaller packs and younger consumers in the forecast period
The evolving landscape of Indonesian tea consumption
Iced tea boom to fuel sales of loose black tea in Indonesia
Flavour innovation and aggressive marketing drive Unilever's leadership in tea
Small local grocers is dominant in tea distribution due to accessibility and credit
Product range and promotions fuel growth for retail e-commerce in tea
Other Hot Drinks in Indonesia
KEY DATA FINDINGS
Value growth amidst saturation, driven by youth focus and innovation
Price hikes and large young consumer group propel value growth for other hot drinks
New variants and child-centric strategies drive growth for other plant-based hot drinks
Value growth for other hot drinks amidst saturation, led by plant-based innovation
Child-centric innovation to drive the future of other hot drinks in Indonesia
Dual strategy of discounts and school engagement will aim to drive brand loyalty
Nestlé leads other hot drinks through brand strength and strategic innovation
Targeted innovation powers Mayora’s growth in plant-based hot drinks
Sachet sales and proximity to consumers cement lead of small local grocers
Retail e-commerce sees dynamic growth and reshapes hot drinks in Indonesia
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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This report originates from Passport, our Hot Drinks research and analysis database.
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