Tea in Indonesia

PROSPECTS

With the formation of AISTea, Indonesian speciality tea is set to gain more attention

In tea overall, there has been limited product innovation seen in the Indonesian marketplace, especially in the modern trade offer of black tea. While incumbent brands remain strongly present in “other” grocery retailers as well as in supermarkets, there is plenty of room for tea to grow in line with population growth over the forecast period.

Tea players and tea connoisseurs boost consumer awareness with innovative marketing activities and events

Despite lacklustre performance in retail outlets, tea players still continue to rely on marketing activities to boost consumer awareness of their tea, especially in the foodservice channel. For example, Teh Poci has set up tea shops in several shopping centres in Java to boost interest in its tea, which is noted for being served in earthen teapots.

Tea bag sachets with as many as 20 per pack appeal to consumers looking for convenience at low prices

The availability of tea bags in sachet packaging is increasing, and the products are increasingly appealing to consumers seeking convenience with simple packaging and low prices. Examples include Sosro’s Teh Celup, a teabag package containing 20 sachets, and Teh Cap Botol, a Bottle Top brand, which also contains 20 sachets.

COMPETITIVE LANDSCAPE

Leading player Unilever Indonesia’s latest campaign promotes Indonesia’s diversity of customs

Unilever Indonesia, which leads in tea on the strength of its Sariwangi brand, saw its leading value share within black tea increase slightly in 2019. In January, the company launched a new “Let's talk about Indonesia” campaign that promotes the diversity of customs in Indonesia.

Distribution strength helps Tangmas improve its rank in tea, despite a lack of promotional activities and new launches

Tangmas surpassed Sinar Sosro to become the second-ranked player in tea. This is despite the fact that Tangmas, the long-time leading player in green tea, saw slower value growth and slightly lost retail value share within that category as well as in black tea in 2019.

Sinar Sosro loses value share in 2019, largely due to its lack of development in green tea

Sinar Sosro did not carry out promotional activities or launch new products or variants in 2019 either. However, it lost more value share than Tangmas over the year, particularly due to its lack of development in green tea.

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