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: 56 | Publication date: Jul 2007
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 enjoys marginally faster volume growth
In 2006, total volume sales of hot drinks grew at a marginally faster rate than in 2005, despite the already quite well-established culture of drinking hot drinks in Indonesia. Both tea and other hot drinks posted marginally slower growth in 2006, largely due to consumers shifting from tea to RTD tea and cold tea powder concentrates and from other hot drinks to dairy drinks and breakfast cereals. However, coffee managed to perform better in 2006, driven by manufacturers’ efforts to revive the demand for coffee through new launches, product innovations, and heavy promotions, as well as rapid expansion of specialist coffee shops.
Tea remains the major force of hot drinks
Tea remained the most popular and displayed the strongest volume and current value growth among hot drinks in 2006. Given that tea had already penetrated all income levels, most age groups and various regions in the country; its growth towards 2006 was largely fuelled by more frequent consumption of the existing consumers rather than expansion of the consumer base. The rising popularity of more convenient tea bags format of black tea and the appealing health benefits of green tea helped to retain the positive overall volume growth of tea in 2006.
The shift towards convenient and flavoured hot drinks
The trend towards increased consumption of convenient and flavoured hot drinks continued in 2006. Consumer preference increasingly shifted towards convenient 3-in-1 and 2-in-1 products packed in single-serving sachets for fresh ground coffee and malt-based hot drinks. The more convenient tea in tea bags format was also on the rise. There was also growing consumer preference for mocha mixes of fresh ground coffee and instant speciality coffee types. Cappuccino, mocha, and vanilla were particularly popular and the emergence of green tea- and banana-flavoured powder drinks was also noted. This trend spiced up the hot drinks industry in Indonesia and drove the healthy performance of hot drinks as a whole in 2006.
More intense competition between multinationals and local players
Multinationals including Nestlé Indonesia PT and Unilever Indonesia Tbk and local companies, especially Gunung Slamat PT, Duta Serpack Inti PT, and Santos Jaya Abadi PT were increasingly involved in intense competition in the hot drinks industry in 2006. Despite their long presence in Indonesia, these domestic players managed to strengthen their presence in 2006, thanks to heavy investment in new product and variant launches as well as promotional activities, especially to meet growing consumer demand for more convenient and flavoured hot drinks.
A steadier performance awaits hot drinks
Demand for hot drinks is forecast to grow healthily, as economic conditions in the country are expected to recover in the long term. Manufacturers will also play an important role in improving or at least maintaining the stable performance of hot drinks throughout the forecast period through new launches and promotional activity. Given its already significant volume base however hot drinks is expected to maintain stable volume growth in the forecast period. As hot drinks, especially tea and coffee, already penetrate the mass population and are considered to be commodity products, growth will be largely driven by increased frequency of consumption. The government is likely to make minimal efforts to promote hot drinks consumption in the forecast period.
Table of contents
HOT DRINKS IN INDONESIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Hot drinks enjoys marginally faster volume growth
Tea remains the major force of hot drinks
The shift towards convenient and flavoured hot drinks
More intense competition between multinationals and local players
A steadier performance awaits hot drinks
KEY TRENDS AND DEVELOPMENTS
Prices continue to increase
Country’s economic slow down
Convenience appreciated by hot drinks consumers
Hot drinks benefit from growing café culture
Rapid expansion of modern retail outlets
MARKET DATA
Table 1 Sales of Hot Drinks by Sector: Volume 2001-2006
Table 2 Sales of Hot Drinks by Sector: Value 2001-2006
Table 3 Sales of Hot Drinks by Sector: % Volume Growth 2001-2006
Table 4 Sales of Hot Drinks by Sector: % Value Growth 2001-2006
Table 5 Hot Drinks Company Shares by Value 2002-2006
Table 6 Hot Drinks Brand Shares by Value 2003-2006
Table 7 Penetration of Private Label by Sector 2002-2006
Table 8 Sales of Hot Drinks by Distribution Format: % Analysis 2001/2006
Table 9 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2006
Table 10 Forecast Sales of Hot Drinks by Sector: Volume 2006-2011
Table 11 Forecast Sales of Hot Drinks by Sector: Value 2006-2011
Table 12 Forecast Sales of Hot Drinks by Sector: % Volume Growth 2006-2011
Table 13 Forecast Sales of Hot Drinks by Sector: % Value Growth 2006-2011
APPENDIX
Production/Imports/Exports
Published Data Comparisons
DEFINITIONS
LOCAL COMPANY PROFILES - INDONESIA
GARUDAFOOD GROUP - HOT DRINKS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Garudafood Group: Key Facts
Summary 2 Garudafood Group: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 3 Garudafood Group: Production Statistics 2006
COMPETITIVE POSITIONING
KAKAO MAS GEMILANG PT - HOT DRINKS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Kakao Mas Gemilang PT: Key Facts
Summary 5 Mayora Indah Tbk PT: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
SANTOS JAYA ABADI PT - HOT DRINKS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Santos Jaya Abadi PT: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 7 Santos Jaya Abadi PT: Production Statistics 2006
COMPETITIVE POSITIONING
TORABIKA EKA SEMESTA PT - HOT DRINKS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Torabika Eka Semesta PT: Key Facts
Summary 9 Mayora Indah Tbk PT: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
COFFEE IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 14 Sales of Coffee by Type: Volume 2001-2006
Table 15 Sales of Coffee by Type: Value 2001-2006
Table 16 Sales of Coffee by Type: % Volume Growth 2001-2006
Table 17 Sales of Coffee by Type: % Value Growth 2001-2006
Table 18 Instant Coffee by Speciality Type 2004-2006: Off-trade Volume
Table 19 Instant Coffee by Speciality Type 2004-2006: Off-trade Value
Table 20 Coffee Company Shares 2002-2006
Table 21 Coffee Brand Shares 2003-2006
Table 22 Foodservice Sales of Coffee by Distribution Format 2001/2006
Table 23 Forecast Sales of Coffee by Type: Volume 2006-2011
Table 24 Forecast Sales of Coffee by Type: Value 2006-2011
Table 25 Forecast Sales of Coffee by Type: % Volume Growth 2006-2011
Table 26 Forecast Sales of Coffee by Type: % Value Growth 2006-2011
TEA IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 27 Sales of Tea by Subsector: Volume 2001-2006
Table 28 Sales of Tea by Subsector: Value 2001-2006
Table 29 Sales of Tea by Subsector: % Volume Growth 2001-2006
Table 30 Sales of Tea by Subsector: % Value Growth 2001-2006
Table 31 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2006
Table 32 Tea Company Shares 2002-2006
Table 33 Tea Brand Shares 2003-2006
Table 34 Forecast Sales of Tea by Subsector: Volume 2006-2011
Table 35 Forecast Sales of Tea by Subsector: Value 2006-2011
Table 36 Forecast Sales of Tea by Subsector: % Volume Growth 2006-2011
Table 37 Forecast Sales of Tea by Subsector: % Value Growth 2006-2011
OTHER HOT DRINKS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
Table 38 Sales of Other Hot Drinks by Subsector: Volume 2001-2006
Table 39 Sales of Other Hot Drinks by Subsector: Value 2001-2006
Table 40 Sales of Other Hot Drinks by Subsector: % Volume Growth 2001-2006
Table 41 Sales of Other Hot Drinks by Subsector: % Value Growth 2001-2006
Table 42 Other Hot Drinks Company Shares 2002-2006
Table 43 Other Hot Drinks Brand Shares 2003-2006
Table 44 Forecast Sales of Other Hot Drinks by Subsector: Volume 2006-2011
Table 45 Forecast Sales of Other Hot Drinks by Subsector: Value 2006-2011
Table 46 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2006-2011
Table 47 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2006-2011