Coffee Consumption to Experience 17% Uptick in Indonesia in 2015 as Consumers Become more Affluent

The Association of Indonesia Coffee Exporters and Industries expects that Indonesians will consume 17% more coffee in 2015 as compared to the previous year. Expressed in volumes, this will translate into a demand of 350,000 metric tons in 2015, against approximately 300,000 tons in 2014. In 2010, Indonesia’s coffee consumption approximated 190,000 tons.

According to the chairman of the Association, Irfan Anwar, there will be an upsurge in the consumption of coffee in Indonesia thanks to an increasingly affluent middle class that is willing to spend more on premium coffee as well as slashed exports. The country is the third largest producer of robusta globally.

Coffee exports from Indonesia saw a downslide between 2013 and 2014. While the country exported 382,000 tons of coffee in 2014, the figure was marginally higher at 432,000 tons in 2013. This dip in exports has occurred because of a rising demand for coffee beans from the domestic market.

And, it’s not just coffee that Indonesians seem to be consuming copiously. The domestic demand for nearly all of Indonesia’s key export products, such as palm oil, is rising every year. This comes as no surprise considering that Indonesia is the fourth most populous country and has a thriving economy. The country ranks among the top importers of sugar and wheat worldwide. Improvements in lifestyle have brought about a parallel increase in demand for fine foods and high-quality ingredients.

The expansion of the coffee culture in Indonesia can be gauged from the fact that Excelso, an Indonesian coffee chain, which set up shop in Jakarta in 1991 today operates more than 100 coffee shops across 28 cities in the country.

Moreover, Indonesians are now drinking high-quality coffee and have come to possess a better understanding of the difference between fine and mediocre coffee, which has changed the demand dynamics in the domestic market.


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