Ready-to-Drink (RTD) Coffee - Indonesia

Indonesia

Highlights

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Ready-to-Drink (RTD) Coffee market amounts to US$409.70m in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$5.67m in 2024.
Revenue, combined amounts to US$415.30m in 2024.
The revenue, at home is expected to grow annually by 5.28% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated Japan (US$12bn in 2024).
In relation to total population figures, the average revenue per capita, at home of US$1.46 are generated in 2024.
In the Ready-to-Drink (RTD) Coffee market, volume, at home is expected to amount to 111.50m L by 2024.
Volume, out-of-home is expected to amount to 632.40k L in 2024.
Volume, combined is expected to amount to 112.10m L in 2024.
The Ready-to-Drink (RTD) Coffee market is expected to show a volume growth, at home of 4.5% in 2025.0.
The average volume per person, at home in the Ready-to-Drink (RTD) Coffee market is expected to amount to 0.40L in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Ready-to-Drink (RTD) Coffee market in Indonesia is experiencing significant growth and development in recent years.

Customer preferences: Indonesian consumers are increasingly embracing the convenience and variety offered by RTD coffee products. The busy lifestyle of urban dwellers and the growing popularity of coffee culture have contributed to the rising demand for RTD coffee in the country. Consumers appreciate the ready-to-consume nature of these products, as they can enjoy their favorite coffee flavors without the need for brewing or preparation. The convenience factor is particularly appealing to young professionals and students who are always on the go.

Trends in the market: One of the key trends in the RTD coffee market in Indonesia is the introduction of innovative flavors and packaging. Manufacturers are continuously launching new and exciting flavors to cater to the diverse tastes of Indonesian consumers. Additionally, there has been a shift towards more sustainable and eco-friendly packaging options, such as recyclable or biodegradable materials. This reflects the growing awareness and concern for the environment among Indonesian consumers. Another trend in the market is the increasing popularity of premium RTD coffee products. As disposable incomes rise and consumers become more discerning, there is a growing demand for higher-quality and premium coffee beverages. This has led to the emergence of premium RTD coffee brands that offer a more refined and luxurious coffee drinking experience.

Local special circumstances: Indonesia, being the fourth largest coffee producer in the world, has a strong coffee culture deeply ingrained in its society. The country is known for its rich and flavorful coffee, and this heritage plays a significant role in shaping the preferences of Indonesian consumers. The familiarity and love for coffee in the country have paved the way for the success of the RTD coffee market.

Underlying macroeconomic factors: Indonesia's growing middle class and urbanization have been key drivers of the RTD coffee market. As more people move to cities and experience higher disposable incomes, there is an increased demand for convenient and on-the-go food and beverage options. RTD coffee fits perfectly into this trend, offering a quick and satisfying caffeine fix for busy individuals. Furthermore, the rise of e-commerce and online shopping platforms has made RTD coffee products more accessible to consumers across the country. Online platforms provide a convenient way for consumers to purchase their favorite RTD coffee brands, further fueling the growth of the market. In conclusion, the Ready-to-Drink (RTD) Coffee market in Indonesia is thriving due to the convenience it offers to consumers, the introduction of innovative flavors and packaging, the emergence of premium products, the strong coffee culture in the country, and the underlying macroeconomic factors such as the growing middle class and urbanization. This market is expected to continue growing in the coming years as more consumers embrace the convenience and variety of RTD coffee products.

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.