Try Harder Coffee Hipsters, Indonesians Still Love Their Instant Coffee

A woman carries packets of instant coffee on her head as she looks for customers in Jakarta. (Reuters Photo/Darren Whiteside)

By : Sarah Yuniarni | on 10:53 AM March 03, 2017
Category : Business, Commodities, Featured

Jakarta. Indonesians are the world's fastest growing consumers of packaged coffee — including instant coffee in sachet, ready-to-drink coffee and coffee in pod or capsule — in the past five years, a report from global market research firm Mintel showed.

The report also indicated that most Indonesians prefer instant coffee or ready-to-drink coffee for the simple reasons of being "very affordable, easy to find and effortless to make," rather than fine artisanal coffee that they have to buy from hipster coffee shops.

Mintel researches at least 33,000 new household products every month in 62 of the world's major economies. The research gives insights and in-depth analyses of new product trends and innovations.

The latest report, entitled "Coffee Global Annual Review 2017," showed that the compound annual growth rate (CAGR) of packaged retail coffee in Indonesia rose 19.6 percent from 2011 to 2016, topping a list that includes Turkey, India, Vietnam and Chile.

Turkey was ranked second with a CAGR of 17.5 percent, followed by India with 15.1 percent, Vietnam with 14.9 percent and then Chile with 12.9 percent.

Meanwhile, the global coffee market shows a steady growth of 2.7 percent last year, up from 2.5 percent in 2015.

"The global coffee industry continues to experience a healthy growth, driven by Asian markets in particular. Asia has far more growth potential as traditionally tea drinking consumers are converted slowly but surely into coffee drinkers," Mintel global drinks analyst Jonny Forsyth said in a statement received by Jakarta Globe on Thursday (02/03).

Mintel also highlighted five countries with the lowest growth of packaged retail coffee in the past five years: Belgium (0.5 percent), Netherlands (0.5 percent), Poland (0.1 percent), Australia (zero percent) and Finland, where it actually dropped by 3.7 percent.

Mintel noted that in western markets, coffee drinkers are partial to artisanal coffee and show more interest in the process of making of a cup of their favorite coffee — from the harvesting of high-quality beans to the roasting and then the brewing method.

The report indicates most coffee drinkers in the world still put convenience above all else when it comes to getting their cuppa. Around 26 percent of new coffee products launched last year came in pods or capsules — single-serve coffee that can only be made using a specific machine. Ground coffee made up 21 percent of all new products.

Ready-to-drink or cold brew coffee — made by steeping fresh ground coffee in cold water between 12 and 24 hours — account for 16 percent of all new products. Coffee mixes in sachets that dissolve in hot water accounted for 14 percent. Instant coffee drinks stored in refrigerators at retail and grocery shops made up around 14 percent of the total and whole coffee beans made up only 9 percent.

Jonny said the report also showed that Asia last year saw a surge in innovative coffee products. In the past five years, the number of new coffee products launched in Asia rose by 95 percent, while the number of new tea products rose by a considerably lower 55 percent.

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