Indonesia’s Coffee Retail Market Shows Lots of Promise

“Coffee culture has surged in Asia with more and more specialty coffee houses setting up shop in countries like Japan, Singapore and Indonesia. Big-brand coffee chains are also increasing their expansion efforts in the region,” Jonny Forsyth, associate director at Mintel Food & Drink, said in a statement.

The number of specialty coffee outlets and chain-store coffee shops in Indonesia has doubled to 1,025 and 1,083 respectively, between 2012 and 2016, with most of the new outlets in Jakarta, according to data compiled by research group Euromonitor.

Since United States-based coffee giant Starbucks entered Indonesia in 2002, it has expanded to 22 cities with around 240 stores across the archipelago.

According to data compiled by the International Coffee Organization, coffee consumption in Indonesia, the world’s fourth-largest coffee producer, surged to 276,000 tons in 2016 from only 108,000 tons in 2000.

The Mintel study also showed strong growth in single-serve coffee in emerging Asian markets, thanks to rapid economic growth and urbanization, unlike more developed countries.

In an annual report by Mintel released last year, Indonesia was ranked as the world’s fastest-growing consumer of packaged coffee, including instant coffee, ready-to-drink coffee and coffee in pods or capsules, between 2011 and 2016.

“Asia’s emerging markets have led global coffee growth in years past and will continue with Indonesia leading this charge,” Forsyth said.