Foodservice closures as part of large-scale social restrictions and social distancing measures have had a considerably negative impact on foodservice coffee sales, as the country has looked to limit the threat of COVID-19. Due to the decline in foodservice sales, some coffee players have started to sell products in bottled RTD format for collection at their outlets or via e-commerce, eg Anomali Coffee and Union.
Santos Jaya Abadi PT is maintaining its strong lead in retail coffee sales. Good product availability in the market, especially in traditional sales channels, is a major reason for the company’s success.
Retail volume growth of coffee is moderate in 2020, but slightly slower overall than in the previous year, continuing the review period trend, with category maturity playing a role as well as a fall in purchasing power. Instant coffee is seeing the higher growth compared with fresh coffee, as players have increasingly used local artists to promote their products in TV adverts, social media and YouTube videos.
Foodservice coffee’s performance is expected to mostly recover in 2021, as social distancing measures are eased, leading to better footfall in foodservice outlets such as cafés, restaurants or kiosks at shopping centres. Consumption will particularly benefit as drinking coffee is part and parcel of modern lifestyles, while the addition of new consumer segments of teenagers and middle-to-upper-income earners, along with the emergence of modern coffee cafés will support ongoing volume growth over the forecast period.
Over the forecast period, players are expected to continue using social media and other online marketing strategies to promote their coffee products in Indonesia, and as Indonesians will continue to enjoy coffee at home as well as outside the home, retail value sales of fresh coffee and instant coffee are both set to rise. However, while value growth of fresh coffee is set to be strong, instant coffee – and specifically regular instant coffee mixes – is expected to benefit the most from the trending sales strategies; unlike for fresh coffee, instant coffee’s value CAGR is set to be higher than it was over the review period.
Premiumisation is set to grow within the foodservice channel, driven in large part by Nespresso’s entry into Indonesia with the opening of its first Nespresso boutique, at Plaza Indonesia in Jakarta in February 2019. The innovative boutique has introduced domestic consumers seeking sophisticated tastes to a wide range of Nespresso premium portioned coffee and is educating them on coffee brewing as well as the various sources of its coffees.
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Understand the latest market trends and future growth opportunities for the Coffee 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.
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This report originates from Passport, our Coffee research and analysis database.
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