The level of industry concentration is high in Indonesian soft drinks

The level of industry concentration is high in Indonesian soft drinks

The Coca-Cola Co said this morning (16 August) that it is looking to invest long-term in Indonesia. Here just-drinks takes a look at the soft drinks industry in the country, with the help of Euromonitor's reports on Carbonates in Indonesia and Fruit/vegetable Juice in Indonesia, as well as the DIS-IBISWorld Industry Report, Soft Drink Manufacturing in Indonesia.

  • Mineral water accounts for a higher percentage of drinks sales by value than carbonated soft drinks. Mineral water accounts for 35% of value sales, with CSDs on 23%, bottled tea on 20%, fruit juice on 12% and other drinks making up the remaining 10%.
  • The level of industry concentration is high. Net sales of the top seven companies in the market account for around 70% of the sector's value.
  • Coca-Cola Indonesia continued to lead carbonates in 2010 with a commanding 91% off-trade volume share.
  • Ultrajaya Milk Industry & Trading Co led the off-trade market for fruit/vegetable juice, with a value share of 25% in 2010.
  • DIS has predicted that soft drinks sales in Indonesia will increase by 20.44% to IDR68.26bn (US$8bn) between 2010 and 2014. Over the next five years, mineral water and CSDs are expected to be more robust than other soft drink offerings, particularly in areas such as Sumatra, Java and Bali, thanks to population demographics, a growing business community and tourism.