Hot Drinks in Indonesia
Euromonitor International's Hot Drinks in Indonesia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 74 | Publication date: May 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Hot drinks market puts in good performance in 2008
Although Indonesia witnessed a higher cost of living in 2008, especially in the first half of the year, due to higher fuel and commodity prices, hot drinks still put in a good performance. With tea as one of the biggest volume contributors to hot drinks, coupled with the growing number of health-conscious consumers who are looking for healthier products such as green tea, the market managed to sustain strong growth in both volume and value terms. Furthermore, aggressive marketing campaigns and minimal price increases from manufacturers also contributed to the market’s robust performance .
Growing demand for convenient and flavoured hot drinks
The shift towards convenient and flavoured hot drinks continued in 2008. Indonesian consumers are tending to consume more convenient 2-in-1 and 3-in-1 products that are packaged in sachets for a single serving such as fresh ground coffee, instant coffee and malt-based hot drinks, while more convenient tea in tea bags was also on the rise. There was also observed a growing consumer preference for various fruit/herbal tea flavours and standard instant coffee flavours, in particularly cappuccino, mocha and vanilla, as well as the emergence of green bean and banana-flavoured powder drinks. These aimed to capture the huge number of younger consumers in Indonesia who are more active and looking for more variety in their hot drinks.
Gunung Slamat PT remains undisputed leading hot drinks player
Gunung Slamat PT, the biggest tea company in Indonesia, maintained its leadership of hot drinks in 2008 largely thanks to its strong presence in tea. Despite many large competitors in hot drinks, such as Unilever Indonesia Tbk PT and Nestlé Indonesia PT, the company was able to maintain its position through leveraging the strong distribution network of affiliate company Sinar Sosro PT. Gunung Slamat was also aided by the fact that tea remains the bigger contributor to hot drinks sales.
Rise of modern chained grocery retailers benefits hot drinks
Modern chained grocery retailers continued to expand across Indonesia over the review period, particularly beyond Java. This expansion enabled branded and packaged hot drinks products to reach more consumers. Supermarkets/hypermarkets and convenience stores are slowly gaining in importance at the expense of independent small grocers. However, independent small grocers still accounted for the greatest distribution share of hot drinks in 2008.
Steady performance expected over the forecast period
Hot drinks is expected to continue to perform well over the forecast period, achieving stronger growth in constant value terms than that of the review period. Growth will be fuelled by convenient products as consumers seek practical and timesaving hot drinks options. The addition of healthy ingredients will also stimulate growth of hot drinks over the forecast period. However, the global economic slowdown is expected to have an impact over the short term as it will lead to a reduction in consumers’ disposable income.
Table of contents
HOT DRINKS IN INDONESIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Hot drinks market puts in good performance in 2008
Growing demand for convenient and flavoured hot drinks
Gunung Slamat PT remains undisputed leading hot drinks player
Rise of modern chained grocery retailers benefits hot drinks
Steady performance expected over the forecast period
KEY TRENDS AND DEVELOPMENTS
Flavours in hot drinks becoming more diverse and unique
Segmentation still at a nascent stage
Leading multinationals strengthen their positions
Small and convenient are good
Growing presence of hot drinks fortified with new ingredients
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Hot Drinks Company Shares by Value 2004-2008
Table 12 Hot Drinks Brand Shares by Value 2005-2008
Table 13 Penetration of Private Label by Sector 2004-2008
Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 15 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 23 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 24 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 25 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - INDONESIA
GUNUNG SLAMAT PT - HOT DRINKS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Gunung Slamat PT: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 3 Gunung Slamat PT: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 4 Gunung Slamat PT: Competitive Position 2008
MAYORA INDAH TBK PT - HOT DRINKS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Mayora Indah Tbk PT: Key Facts
Summary 6 Mayora Indah Tbk PT: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 7 Mayora Indah Tbk PT: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 8 Mayora Indah Tbk PT: Competitive Position 2008
SANTOS JAYA ABADI PT - HOT DRINKS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Santos Jaya Abadi PT: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 10 Santos Jaya Abadi PT: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 11 Santos Jaya Abadi PT: Competitive Position 2008
TEH 2 BURUNG FACTORY - HOT DRINKS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Teh 2 Burung Factory: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 13 Teh 2 Burung Factory: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 14 Teh 2 Burung Factory: Competitive Position 2008
COFFEE IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 Coffee Machine Sales: 2002-2007
Table 27 Instant Coffee by Speciality Type 2004-2008
Table 28 Instant Coffee by Speciality Type 2004-2008
Table 29 Retail Sales of Coffee by Type: Volume 2003-2008
Table 30 Retail Sales of Coffee by Type: Value 2003-2008
Table 31 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 32 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 33 Standard Vs Coffee Pods 2004-2008
Table 34 Coffee Company Shares 2004-2008
Table 35 Coffee Brand Shares 2005-2008
Table 36 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 37 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 38 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 39 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 40 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
Table 41 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 42 Retail Sales of Tea by Subsector: Value 2003-2008
Table 43 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 44 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 45 Tea Company Shares 2004-2008
Table 46 Tea Brand Shares 2005-2008
Table 47 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 48 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 49 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 50 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 51 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 52 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 53 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 54 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 55 Other Hot Drinks Company Shares 2004-2008
Table 56 Other Hot Drinks Brand Shares 2005-2008
Table 57 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 58 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 59 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 60 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013