Instant Coffee Booming in Indonesia | Be Korea-savvy

Instant Coffee Booming in Indonesia


Increasing income levels and urbanization have pushed Indonesians to seek products that offer improved convenience, which is believed to be the leading factor driving the rapid growth of the instant coffee market. (image: KobizMedia/ Korea Bizwire)

Increasing income levels and urbanization have pushed Indonesians to seek products that offer improved convenience, which is believed to be the leading factor driving the rapid growth of the instant coffee market. (image: KobizMedia/ Korea Bizwire)

JAKARTA, May 27 (Korea Bizwire) – Indonesia is the second-largest producer of coffee in Asia, and the fourth-largest in the world. Brewed coffee brands from regions like Sumatra, Bali, and Java are well known among not only domestic but also foreign coffee enthusiasts. 

But contrary to popular practice, the county’s instant coffee market has become exceedingly popular in recent years. Last year Indonesia’s instant coffee market was valued at 4.8 trillion rupiah ($353 million), surpassing the 4.6 trillion rupiah ($338 million) brewed coffee market.

The instant coffee market has grown by an annual average of 15.8 percent since 2010, also overshadowing the brewed coffee market’s average growth of 10.8 percent.

Global food and beverage company Nestlé currently leads the Indonesian instant coffee market with a 32 percent market share, followed by local coffee giant PT. Santos Jaya Abadi.

Instant coffee products that include both sugar and cream are more popular than unsweetened black coffee. 

Increasing income levels and urbanization have pushed Indonesians to seek products that offer improved convenience, which is believed to be the leading factor driving the rapid growth of the instant coffee market.

By Kevin Lee (kevinlee@koreabizwire.com)

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