Ready-to-Drink (RTD) Coffee & Tea - Indonesia

The Ready-to-Drink (RTD) Coffee & Tea market in Indonesia has been experiencing significant growth in recent years.

Customer preferences: Indonesian consumers have shown a growing preference for convenience and on-the-go products, which has contributed to the rise of the RTD Coffee & Tea market. With busy lifestyles and increasing urbanization, consumers are seeking convenient and portable beverage options that can be consumed anytime, anywhere. RTD Coffee & Tea products provide a convenient solution for consumers who want to enjoy their favorite beverages without the hassle of brewing or preparing them.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Indonesia is the increasing popularity of local flavors and ingredients. Indonesian consumers have a strong affinity for traditional flavors and ingredients, and beverage companies have been quick to capitalize on this trend. Local flavors such as pandan, coconut, and ginger are being incorporated into RTD Coffee & Tea products, appealing to the taste preferences of Indonesian consumers. Another trend in the market is the growing demand for healthier and more natural options. Indonesian consumers are becoming more health-conscious and are actively seeking beverages that are made with natural ingredients and have reduced sugar content. As a result, beverage companies are introducing RTD Coffee & Tea products that are low in sugar, made with natural sweeteners, and enriched with functional ingredients such as antioxidants and vitamins.

Local special circumstances: Indonesia is the fourth most populous country in the world, with a large and young consumer base. The country's young population, coupled with increasing disposable incomes, has contributed to the growth of the RTD Coffee & Tea market. Younger consumers are more open to trying new and innovative beverage options, making them a key target demographic for RTD Coffee & Tea brands. The tropical climate of Indonesia also plays a role in the popularity of RTD Coffee & Tea products. The hot and humid weather makes cold beverages a preferred choice for many consumers. RTD Coffee & Tea products offer a refreshing and convenient way to stay cool and hydrated in the Indonesian climate.

Underlying macroeconomic factors: The growing middle class in Indonesia has led to an increase in consumer spending power, which has positively impacted the RTD Coffee & Tea market. As more consumers have discretionary income to spend on non-essential items, the demand for RTD Coffee & Tea products has grown. Additionally, the expansion of modern retail channels, such as supermarkets and convenience stores, has made RTD Coffee & Tea products more accessible to consumers across the country. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Indonesia is experiencing growth due to changing customer preferences for convenient and on-the-go beverages, the popularity of local flavors and healthier options, the country's young and large consumer base, the tropical climate, and the growing middle class and expansion of modern retail channels. These factors have created a favorable environment for the development and expansion of the RTD Coffee & Tea market in Indonesia.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.