Instant coffee market more attractive

JAKARTA. The business opportunity of instant coffee becomes more attractive. Indeed, the producers of instant coffee do not want to miss the moment of the increase in domestic coffee consumption. In order to expand market, instant coffee producers are active in increasing product variations.

One of tha major instant coffee market players is PT Santos Jaya Abadi, which is famous for the brands of Kapal Api and Kopi ABC. Managing Director of PT Santos Jaya Abadi Paulus Nugroho claimed that the instant coffee business has high potential growth. “Instant coffee (business) has a larger potential growth in the future. We will also follow the market development,” Paulus told KONTAN on Wednesday (26/10).

Paulus project a double-digit of increase in sales in this year. Paulus also claimed that Santos Jaya Abadi has control 60% of market shares. Aside of promotion, PT Santos Jaya Abadi is also active in creating the variants of its products, such as Kapal Api, Kopi ABC, White Coffee, Good Day, and others.

Another food and beverage producer PT Mayora Indah Tbk also enjoys the growing market of instant coffee.
Similar with other market players, Mayora is also active in creating new products variants. The newest one is Torabika Creamy Latte. “The product is designed for those who have concern on health, mainly for those who cannot consume too much sugar”, said Corporate Communication Division Head of PT Mayora Indah Tbk Sribugo Suratmo.
According to the financial report of Mayora, during the first semester of 2016 the company reaped an IDR4.7 trillion of incomes from coffee sales and processed cacao.

Meanwhile, Wings Food, which is famous for the brand of TOP Coffee has released a new product variant, namely TOP White Coffee. Marketing Manager of TOP White Coffee Tan Yen Man said that the product targets the segment of youngster lifestyle. Tan is optimistic that the new brand will boost the sales growth to double-digit in this year.

Export of instant coffee

According to Association of Indonesian Coffee Exporter (AEKI), domestic coffee consumption in average increases by 8% per year. “This year, the total consumption may reach 350,000 ton, 90% of which will be absorbed by instant coffee producers”, said Chairman of AEKI Irfan Anwar.

Report of United States Department of Agriculture (USDA) mentioned that the Indonesian instant coffee producers are active in increasing production in order to catch up with the increase in domestic coffee consumption, which reached 11% during the last three years.

Instant coffee producers like Mayora not only enjoy domestic market, but also export markets. “We have sold Kopiko White Coffee to Malaysia”, Sribugo said.

Aside of Malaysia, the demands for Mayora’s instant coffee also come from Middle East countries. In referring to the data of AEKI, the market of Indonesian instant coffee comprises of the Philippines (73.3%), Malaysia (9.1%), Singapore (3.2%), Australia (0.9%), and others (10%).

(Muhammad Farid/Translator)