Sales of RTDs have been in decline ever since the presidential regulation in 2015 prohibited all alcoholic drinks sales in convenience stores, with this channel having previously been key to the distribution of RTDs in Indonesia. Consumers who drank RTDs used to hang out outside of convenience stores with friends while consuming RTDs.
In Indonesia, RTDs faces strong competition from two main categories, those being flavoured/mixed lager and cider/perry. For flavoured/mixed lager, both have similar price points, but the branding and marketing activities are much stronger for flavoured/mixed lager as compared to RTDs.
The COVID-19 pandemic has severely limited demand for RTDs through the on-trade, with consumers being less inclined to visit bars and clubs even when they were permitted to reopen. Additionally, the growing interest in cocktails also detracted from sales of RTDs with many consumers preferring to drink a freshly mixed cocktail.
E-commerce and online marketing will likely become increasingly important to the future success of RTDs. This is part of an industry-wide trend that was already in evidence prior to the onset of the COVID-19 pandemic, but which has taken on a life of its own since the second quarter of 2020, when the initial PSBB quarantine regulations were introduced.
Soju is one of the most dynamic categories within alcoholic drinks in Indonesia, with this being driven by the widespread popularity of K-Pop, with soju being a traditional Korean spirit. The dynamism of the category is expected to have a negative impact on sales of RTDs, but especially spirit-based RTDs.
In order to cope with the dynamic changes in the market, new product launches might be one of the most effective ways for players to bring momentum back to RTDs. With consumers having already changed their preferences during the pandemic, it could be a good time for players to think outside of the box and to develop new products that are suitable for the changing consumer demands.
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Understand the latest market trends and future growth opportunities for the RTDs industry in Indonesia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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RTD stands for ‘ready-to-drink’. Other terms which may be used for these products are FABs, alcopops and premixes. The RTDs sector is the aggregation of malt-, wine-, spirit- and other types of premixed drinks. These drinks usually have an alcohol content of around 5% but this can reach as high as 10% ABV. Premixes containing a high percentage of alcohol of around 15%+ combined with juice or any other soft drink are included here. RTDs are usually marketed as products to be drunk neat, with ice, or as a cocktail ingredient. Fruit-flavoured, vodka-based spirits with an alcohol content of between 16-21% are classified here. Examples: Alizé, Ursus Roter, Berentzen Fruchtige, Kleiner Feigling.See All of Our Definitions
This report originates from Passport, our RTDs research and analysis database.
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