Better for you beverages were negatively impacted in 2020 by reduced store opening hours, especially in modern channels and during PSBB (large-scale social restrictions or Pembatasan Sosial Berskala Besar (PSBB)), which were in place in Indonesia to prevent the spread of the COVID-19 pandemic. There was no trend of stockpiling of beverages in the year.
Sales of better for you beverages continue to be dominated by reduced sugar soft drinks in 2020. Nevertheless, the promotion of reduced sugar and sugar free soft drinks remains limited.
BFY carbonates remains a relatively small category in Indonesia, and Coke Zero is usually only available in modern grocery retailers, whose sales were affected in 2020 by shorter operating hours and a decline in footfall to some outlets, especially those located in shopping malls. Carbonates overall are also often still perceived as unhealthy, hence consumers may switch to other types of beverages rather than BFY carbonates.
The lack of product choices, very low level of availability accompanied by the lack of promotional efforts focusing on BFY beverages such as low sugar carbonates or RTD tea will result in limited growth for this category going forward. Regardless, 2021 may see some recovery as the disruption in modern trade operations is expected to improve in 2021 as social distancing measures are eased.
Modern grocery retailers are expected to remain the major distribution channel for better for you beverages over the forecast period to 2025 as a lack of consumer awareness about the benefits of consuming these products, especially amongst the lower-middle income segment, will continue to constrain the distribution of this product in the traditional channel. Also, many consumers in the mid- to low-income segment still prefer to consume sweet beverages, impacting future category growth potential.
The prospect for better for you beverages is also weak because the products are not really seen as healthier by Indonesian people. Instead of healthier products, consumers are expected to opt for drinks they perceive to be healthy to benefit from the healthier living trend, for instance products containing Vitamin C, a powerful antioxidant that can strengthen the body’s natural defences.
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Understand the latest market trends and future growth opportunities for the Better For You Beverages industry in Indonesia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Better For You Beverages research and analysis database.
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