Hot drinks in 2024: The big picture
The hot drinks market is expected to see flat growth in total volume terms in 2024, driven by soaring unit prices that have outpaced those of 2023. This trend is primarily fuelled by rising costs of coffee, cocoa, and sugar, exacerbated by adverse weather conditions linked to climate change, including prolonged droughts, excessive rainfall, and rising temperatures.
2024 key trends
Rising prices, particularly in essential commodities like sugar and coffee, are significantly impacting consumer purchasing habits in Indonesia. Price-sensitive consumers are becoming more cautious with their spending, prompting a shift from premium coffee options to more affordable alternatives like instant coffee mixes.
Competitive landscape
Santos Jaya Abadi PT remains the leading player in Indonesia's hot drinks market in terms of retail value, benefiting from its extensive distribution network that ensures widespread availability across both traditional and modern retail channels. However, heightened price sensitivity, driven by ongoing suboptimal economic conditions, has increased competition in 2024, particularly in staple hot drinks categories like standard fresh ground coffee and black tea.
Retailing developments
Small local grocers remain the preferred shopping channel for hot drinks in Indonesia and are expected to strengthen their share of retail volume sales in 2024. These outlets offer a more informal and personalised shopping experience compared to larger retailers like supermarkets and hypermarkets.
Foodservice vs retail split
Retail continues to account for an unusually high proportion of total hot drinks volume sales. While foodservice outlets are experiencing stronger growth compared to off-trade channels, demand is not expected to exceed pre-COVID-19 levels until 2026.
What next for hot drinks?
Volume sales of hot drinks in Indonesia are expected to experience only modest growth over the forecast period, primarily due to sluggish consumer sentiment amid ongoing suboptimal economic conditions. The new Indonesian government’s policies on inflation and taxation will be crucial in shaping the market, influencing both consumer spending habits and business operations.
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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
Hot drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
Coffee in Indonesia
KEY DATA FINDINGS
Coffee leads retail price growth in hot drinks, driven by production challenges
Santos Jaya Abadi PT maintains market leadership
Excelso leads fresh coffee bean market, but local brands gain momentum
Coffee consumption shifts to foodservice, following resurgence of out-of-home lifestyles
Instant coffee mixes to gain traction, although consumer engagement will be key to driving demand
Small local grocers will remain key distribution outlets for price sensitive consumers
Tea in Indonesia
KEY DATA FINDINGS
Rising sugar prices have negative impact on black tea consumption
Green tea sees improved performance as consumers opt for perceived healthier alternatives
Brand loyalty and tradition drive Sariwangi and Sosro's dominance, although price is becoming a more important factor
Stable growth expected, with black tea bags leading the way
Instant tea will struggle to gain traction
Artisanal teas set to capture attention of younger audiences
Other Hot Drinks in Indonesia
KEY DATA FINDINGS
Malt-based hot drinks see contraction amidst shifting brand preferences
Energen solidifies its dominance in other plant-based hot drinks
Small local grocers remain key distribution channel
Malt-based hot drinks will retain strong retail focus
Targeted advertising will be key for brands seeking to maintain market positioning
Growing post-exercise breakfast culture could spur opportunities for savoury breakfast drinks
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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Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Hot Drinks research and analysis database.
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