Hot drinks sector in Indonesia to grow nearly 8% through 2027

This is thanks to increased outdoor mobility and tourism rebound, GlobalData reported. 

The hot drinks sector in Indonesia is expected to rise by 7.9% compound annual growth rate to $4.4b over 2022 to 2027, GlobalData reported. 

This will be driven by the increasing outdoor mobility as well as the rebound in foreign tourist arrivals. 

“With consumers returning to their workplaces and educational institutions, dining out or socializing more often at tea shops and cafés, on-premise consumption of hot drinks in Indonesia is accelerating,” Tim Hill, Key Account Director at GlobalData Singapore, said.

“On-premise dynamics will improve further once authorities recall all the COVID-19 travel restrictions and the tourism sector fully recovers. Despite Indonesia being a major global producer of tea and coffee, value sales are disproportionately low as cheaper products dominate the mass market, while high-quality tea leaves and coffee beans are exported.”

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He added that despite high food inflation, the sector’s sales will continue to improve, mainly due to affordable black tea and instant coffee.

Across the sector, GlobalData noted that the hot tea category will register the fastest growth rate of 8.5%, whilst hot coffee and other hot drinks will likely record 7.6%.