Wednesday 29 June 2022

Indonesian hot drinks sector to grow at 7.7% value CAGR through 2023, says GlobalData

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MILAN – The Indonesian hot drinks sector, which includes coffee, tea and other hot drinks, is forecast to grow from Rp30.1 trillion (US$2.1bn) in 2018 to reach Rp43.7 trillion (US$2.9bn) by 2023, recording a compound annual growth rate (CAGR) of 7.7%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Indonesia Hot Drinks – Market Assessment and Forecasts to 2023’, reveals that hot coffee was the leading category with value sales of Rp13 trillion (US$914.8m) in 2018.

It was followed by hot tea with sales of Rp11.1 trillion (US$778.3m). Hot tea, which recorded a double digit growth during 2013–2018, will continue to be the fastest growing category with a CAGR of 8.9% during the forecast period (2018–2023), closely followed by other hot drinks (chocolate and malt-based hot drinks) and hot coffee with CAGRs of 8.5% and 6.3%, respectively.

Instant tea remained the fastest growing segment, closely followed by green tea, and fruit and herbal tea during 2013–2018. A similar trend is expected during the next five years.

Mohammed Masiuddin Shajie, Consumer Analyst at GlobalData, says: “Although, instant and green teas are growing at a higher rate, black tea, which is predominantly grown locally, is not far behind in terms of growth. Black specialty tea and black standard tea segments are expected to record double digit growth during the next five years.”

Convenience stores are the leading channels for distribution for the  Indonesian hot drinks sector, 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 2018.

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