Tea in Indonesia

PROSPECTS

Tea remains uneventful in 2018

The lack of new products, flavours and promotional activities in tea were contributing factors in tea’s slower growth in 2018, in addition to the economic slowdown in Indonesia. High tea consumption, even in remote areas, has led tea to approach saturation, although in terms of per capita volumes, there is still room for the growth, with tea being consumed more often.

Black tea bags to achieve strong growth

Black tea bags significantly outperformed loose black tea in 2018. With the convenience of being able to make tea without having to filter loose tea, consumers are increasingly comfortable with these products.

Slower retail volume growth due to declining consumer purchasing power

Given that tea is approaching saturation, it has strong distribution to all the regions in Indonesia, and the innovation and promotional strategies undertaken by tea producers will therefore have an impact on brand switching among consumers. In addition, considering that tea is not a primary need for Indonesian people, tea consumption tends to decline along with decreasing purchasing power.

COMPETITIVE LANDSCAPE

Unilever Indonesia retains its lead

Unilever Indonesia continued to lead tea in 2018 with its Sariwangi brand. The player’s ability to to maintain its quality enabled the brand to remain the leader in black tea bags.

Sinar Sosro retains its seconf place in 2018

Sinar Sosro maintained its second place in black tea bags with a slight increase in its retail value share in 2018, while remaining under the shadow of Unilever Indonesia. Sinar Sosro’s brand image is strong, accompanied by a solid distribution network, and it is expected that the company will continue to achieve positive growth over the forecast period.

Files are delivered directly into your account within a few minutes of purchase.