The Indonesia instant coffee market is projected to grow at a CAGR of 12.98% during the forecast period.
The preference of kopi or instant coffee is high among the older and middle-aged individuals while the younger consumers are going to cafes to consume specialty roasts and blends.
The older and the 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, the younger individuals tend to visit cafes to drink coffee for the specialty roasts and blends available and to socialize. Their rising preference to visit the cafes can also be attributed to the Muslim population, which makes up about 90% of the population in Indonesia and 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 coffee. Urban areas are also showing 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 the 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 flavor and aromas among others by existing and new players in different markets is estimated to lead to a rise in the consumption and augment the market growth further over the forecast period.
Starbucks Coffee Company, which is among the most famous coffee chains globally, is also offering different blends and roasts of whole bean and instant coffee. They offer four types of instant to cater to the demands of consumers in the Indonesian market. Some of the products they offer are called the “Starbucks VIA Veranda Blend” and the “Starbucks VIA House Blend”. The first product in their offering is a special blend made using Latin American beans that have the aroma and flavor of cocoa and lightly toasted nuts. This product is known as a blonde roast product. The other product is made the signature blend of Starbucks, is offered in a convenient package, and is made using quality Latin American beans which has a lively and balanced flavor. 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.