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Strong growth in dairy drinks cushion fall in Indonesian beverage industry

According to GlobalData, the Indonesian beverages market posted a year-on-year (y-o-y) volume fall of 1.7% in Q4 2020, cushioned by a sturdy dairy drinks’ sector growth of 7.9%.

GlobalData’s report, ‘Indonesia Beverages Consumption Trends and Forecasts Tracker, Q4 2020’, revealed that consumption of hot drinks, the largest sector among all the beverage sectors, fell by 0.8% on y-o-y basis in Q4 2020, dragged down by a decline in hot coffee volumes, even as hot tea and other hot drinks grew in the final quarter of 2020 compared to Q4 of 2019.

Dairy drinks grew by 7.9% in the quarter over Q4 2019, led by strong gains made by white milk, followed by flavoured milk, condensed milk and ‘drinking yogurt’ in the same period.

Soft drinks saw their volumes fall, with carbonates declining at 14.8%, followed by energy drinks and sports drinks falling by 12.1% and 11.7% respectively.

Cider, a niche category, was the only bright spot among alcoholic drinks. However, the overall volumes of alcoholic drinks fell by 9.1% with beer posting the strongest decline.

“The fall in the beverage volumes is consistent with the global trend of declining ‘on-trade’ volumes, attributed to the lockdown and restrictions that plagued businesses in the wake of COVID-19,” said Sukanya Kabali, Consumer Analyst at GlobalData. “The beverages industry will see a revival in 2021 as the government’s vaccination campaign will expedite the economic recovery.”

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