A comprehensive study by Momentum Works, featured within the “Coffee in Southeast Asia” report, found that Southeast Asia currently spends roughly $3.4 billion annually on modern coffee consumption. The report accommodates a comprehensive evaluation of the dynamics of the retail beverage market within the region, with particular emphasis on coffee.
The popularity of coffee in Southeast Asia will not be surprising. As one in every of the biggest coffee-producing regions on the earth, there’s an abundance of high-quality coffee beans. With a growing variety of coffee shops and cafes across the region, coffee is becoming more accessible and reasonably priced, fueling the expansion of a broad consumer base.
For many Southeast Asians, a cup of coffee has turn into an integral a part of their each day routine. Whether it was a source of energy, a cure for sleepiness or a approach to chill out, coffee won the hearts of hundreds of thousands of individuals within the region.
According to Momentum Works research, the biggest modern coffee markets within the region are Indonesia and Thailand. Indonesia leads the way in which with annual revenues of $947 million, characterised by intense competition between various local and international brands. It is closely followed by Thailand, with annual revenues of USD 807 million.
Vietnam, the Philippines, Malaysia and Singapore contribute USD 572 million, USD 445 million, USD 364 million and USD 284 million respectively, each with distinct market characteristics and leading brands.
Café Amazon is the leading modern coffee brand in Southeast Asia in 2023, with over 3,900 outlets. Starbucks and Dunkin take second and third place with over 2,000 and 1,300 locations across the region.
While the coffee shop market in Southeast Asia is booming, consumer spending stays relatively low. Euromonitor data shows that per capita coffee spending in Southeast Asia in 2023 was just $7.3, significantly lower than the worldwide average of $14. However, there is important growth potential, with consumption expected to extend by 7% annually until 2028.
Competition between brands is anticipated to accentuate, with only the strongest players more likely to survive. To maintain their advantage, coffee chains might want to make significant investments in expansion despite the challenge of high global rates of interest. Additionally, product innovation and diversification of distribution channels shall be key to attracting and retaining consumers.
