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Indonesia Dominates Global Retail Coffee Market

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6 March 2017 23:32 WIB

TEMPO.CO, Jakarta - Indonesia increases its dominance over the global retail coffee market with an average sales growth of 19.6 percent each year throughout the last five years, followed by India (15.1 percent average growth) and Vietnam (14.9 percent average growth in second and third position, respectively.

The data gathered by Mintel also revealed that the growth of the global retail coffee market in 2016 had reached 2.7 percent from the previous 2.5 percent in 2015. Meanwhile, Asia continues to dominate the fastest growth in the global coffee market.

According to the data, the slowest growth in the global coffee market throughout 2011-2016 is recorded by Finland with a -3.7 percent average growth, followed by Australia with a 0 percent growth, Poland with a 0.1 percent growth, Dutch with a 0.5 percent growth, and Belgium with a 0.5 percent growth.

Mintel's Global Drinks Analyst Jonny Forsyth, stated that Asia's coffee market is increasingly growing following the high level of innovations in various processed coffee products in the region. Throughout the same period, the number of newly introduced coffee products in Asia grows by 95 percent.

In comparison, the number of new tea products introduced in Asia in the same period only grew by 55 percent. Jonny asserted that the numbers showed that the majority of Asian citizens have shifted from the tradition of consuming tea to coffee.

"In 2016, there was a drastic increase in the number of new coffee products that rivals the previously booming tea product in Asia. It is true tea drinking tradition has been the main obstacle for Asia's coffee products. But, currently there are many tea-coffee hybrid products that have been introduced in order to solve the problem," Jonny explained.

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