Indonesia Instant Coffee Market Size, Share, COVID-19 Impact, Opportunities, And Trends By Type (Freeze-Dried Instant Coffee, Spray-Dried Instant Coffee, Others), By Distribution Channel (Offline (Foodservice, Retail (Supermarket/Hypermarket, Convenience Stores, Others)), Online), And By Province - Forecasts From 2022 To 2027

Published:  Jun 2022 Report Code: KSI061613695 Pages: 120

Indonesia’s instant coffee market is expected to grow at a compound annual growth rate of 13.40% over the analyzed period to reach a market size of US$4584.042 million in 2027 from US$1900.372 million in 2020.

The preference for kopi or instant coffee is high among older and middle-aged individuals, while younger consumers go to cafes to consume speciality roasts and blends.

The older and middle-aged individuals among the population are sticking to the older and prevalent trends of drinking instant and ready-to-drink coffee (kopi), which is available easily at the many roadside coffee stalls and carts. However, younger individuals tend to visit cafes to drink coffee for the speciality roasts and blends available and to socialize. Their rising preference to visit cafes can also be attributed to the Muslim population, which makes up about 90% of the population in Indonesia. As alcohol is prohibited in their religion; they prefer drinking coffee.

Moreover, according to statistics provided by the Food and Agriculture Organization (FAO), the consumption for the year 2018-2019 increased to 4.3 million bags, owing to the increasing interest and rising demand among the consumers to consume roasted soluble (instant) and ready-to-drink variants of the coffee. Urban areas also show significant prospects and contribute to the rise in consumption. Thus, these factors are leading to an increased demand for instant and RTD coffee and acting as drivers for market growth.

Product Offerings by the market players in the Indonesian Instant Coffee Market

The offering of better and advanced varieties of Instant coffee with enhanced flavour and aromas, among others, by existing and new players in different markets is estimated to lead to a rise in consumption and augment the market growth further over the forecast period.

Starbucks Coffee Company, among the most famous coffee chains globally, also offers different blends and roasts of whole beans and instant coffee. They offer four types of instant coffees to cater to the demands of consumers in the Indonesian market. Some products they offer are the “Starbucks VIA Veranda Blend” and the “Starbucks VIA House Blend.” The first product in their offering is a unique blend made using Latin American beans with the aroma and flavour of cocoa and lightly toasted nuts. This product is known as a blonde roast product. The other product is made from the signature blend of Starbucks, is offered in a convenient package, and is made using quality Latin American beans, which have a lively and balanced flavour. This product is a medium roast product.

Robusta coffee is estimated to hold a considerable market share owing to the fact that it is produced more due to better climates in the Southern Sumatra region, which contribute to a majority of the production of the Robusta coffee and is preferred by the consumers more due to its lower prices.

Robusta is majorly produced in the Southern Sumatra region, and its production is more than the Arabica variety, as the Southern Sumatra region does not face adverse climates as compared to the West Java region, where Arabica coffee is grown. Moreover, an increasing number of consumers prefer it as it is available at more affordable prices than the arabica variety.

Key Developments in the Market:

  • In May 2020, Kopi Kenangan, an Indonesian coffee startup, has raised US$109 million in Series B funding. The company intends to use the money to expand its business operations in Indonesia as well as to introduce new products, invest in technology to better meet customers' needs, and safeguard staff members from the COVID-19 pandemic.
  • In May 2021, For Ramadan, Nescafe Kurma Latte, the first kurma coffee, was introduced in Indonesia. For individuals who are fasting for the entire month of Ramadan, the RTD coffee beverage (220 ml) with kurma or date offers an energy "recharge."

COVID-19 Insights:

COVID-19 had a negative Indonesian instant coffee market. The surge in active cases and enforcement of lockdown led to the closure of the institutions, corporations, food outlets, coffee houses, and many other public places, causing the sales to decline in these segments. The volatile prices of coffee also had a significant impact on the market. Nevertheless, this led to increased sales in the domestic segment. The rapid adoption of the e-commerce segment further propelled the growth. 

Segmentation

  • By Type
    • Freeze-Dried Instant Coffee
    • Spray-Dried Instant Coffee
    • Others
  •  By Distribution Channel
    • Offline
      • Foodservices
      • Retail
        • Supermarket/Hypermarket
        • Convenience Stores
        • Others
    • Online
  •  By Province
    • Jakarta
    • Bali
    • Java
    • Others
1. INTRODUCTION
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. RESEARCH METHODOLOGY  
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. INDONESIA INSTANT COFFEE MARKET, BY TYPE
5.1. Introduction
5.2. Freeze-Dried Instant Coffee
5.3. Spray-Dried Instant Coffee
5.4. Others

6. INDONESIA INSTANT COFFEE MARKET, BY DISTRIBUTION CHANNEL
6.1. Introduction
6.2. Offline
6.2.1. Foodservices
6.2.2. Retail
6.2.2.1. Supermarket/Hypermarket
6.2.2.2. Convenience Stores
6.2.2.3. Others
6.3. Online 

7. INDONESIA INSTANT COFFEE MARKET, BY PROVINCE
7.1. Introduction
7.2. Jakarta
7.3. Bali
7.4. Java
7.5. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES
9.1. Nestlé
9.2. Boncafe Indonesia
9.3. Mayora Group
9.4. Starbucks Coffee Company
9.5. PT. Aroma KopiKrim Indonesia

Nestlé

Boncafe Indonesia

Mayora Group

Starbucks Coffee Company

PT. Aroma KopiKrim Indonesia

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