Increasing Landscape of Indonesia Spirits Market Outlook: Ken Research

0


According to study, “Country Profile: Spirits In Indonesia” some of the major companies that are working in the spirits in Indonesia are Bacardi Limited, Beam Inc., Brown-Forman Corporation, Casa Cuervo S.A. de C.V, Davide Campari-Milano S.p.A., Diageo plc, Fortune Brands Inc, Illva Saronno S.p.A., Lucas BolsN.V., LVMH Moet Hennessy – Louis Vuitton, McDonald’s Corp, Orang Tua Group.

The Indonesia spirits sector is led by the whiskey category in both value and volume terms. Spirit is a fermented mixture and a potable alcoholic beverage. In Indonesia, alcoholic beverages are classified in three classes. Alcoholic level of class A is 1-5% e.g. stout and beer. Alcoholic level of class B is more than 5-20%, e.g. wine, vermouth, and grape must. Additionally alcoholic level of class C is more than 20-55%, e.g. brandy, whiskeys, and vodka.

The sale of spirits is permitted in dedicated retail stores and licensed outlet such as bars, restaurants, and nightclubs. All hotels serving alcoholic beverages in their facilities are required to have a valid liquor license issued by the local police authorities. The license is an annual permit issued by the Criminal Investigation Department of the police department in the country. It is only issued to non-Muslim residents of Indonesia who are at least 21 years of age.

Trade of spirits in the country is allowed for designated distributors, hypermarkets & supermarkets, department stores, convenience stores, drugstores & pharmacies, food & drinks specialists, warehouse clubs, dollar stores, variety store & general merchandise retailers, vending machines, e-retailers, and retailers. Trade can be divided into two broad segments, which are; on-site consumption and off-site consumption. On-site consumption is used to refer to consumption on the premises where alcohol is bought like hotels, bars, nightclubs etc. off-site consumption is used to refer to consumption off/or away from the retail store. Off-site consumption is limited, due to tight government regulation and high taxation.

The spirit sector can be divided on the basis of packaging material such as glass, paper & board, rigid plastics, flexible packaging, and rigid metals etc. Glass is the most commonly used package material. Moreover, pack types are a bottle, bag-in-box, carton-liquid, stand up the pouch and can etc. There are many brands available for spirits such as arak, Jim beam, ballo, topi miring, ciu, Asoka, Brem, tual, sopi, and sauger. Asoka, topi miring, and Jim Beam are the leading brands in the Indonesian spirits sector.

In Indonesia, spirits are regulated by some authorities, who are; the ministry of industry, the ministry of trade, the national agency of drug & food control, national standardization agency and ministry of finance. Ministry of the industry is responsible to control and monitor for industrial production of spirits. Ministry of trade is responsible to regulate & control procurement, circulation and the distribution of spirits. The national agency of drug & food control is responsible to issue permit brand of product for local product, laboratory testing, inspection, and enforcement. National standardization agency is responsible to regulate the product quality and standard. Additionally, the ministry of finance is responsible to regulate taxes, export/import duty of the circulated products.

Indonesia has long grappled with the problem of fake or bootleg spirit. According to official statistics, 500 people died from the consumption of unlicensed liquor between 2014 and 2018. Every year more than 100 people are killed in the country after drinking bootlegged alcohol.

The Indonesian spirits market had total revenues of $341.6m in 2017, representing CAGR of 6.9% in 2017.  Country’s spirit market consumption volume increased with a CAGR of 5.6%, to reach a total of 8.6 million liters in 2017. In 2017, the spirits sector accounted for value and volume shares of 0.1% and 0.04%, respectively, in Asia-Pacific. Per capita consumption of specialty spirits was higher compared to other spirits in the country.

Indonesia is trying to ban alcohol ban by the support of two Islamist parties: the United development party and the prosperous justice party. These parties have introduced the alcohol prohibition bill to parliament. If the bill passed it will make it illegal to sell, distribute, and to consume drinks with more than 1 percent alcohol content. In 2018, major trends of spirits are premium drinks, craft beer, craft spirits, sparkling wine, blended drinks, healthy options non-alcoholic options and convenience. The majority of Indonesian consumers are not in the habit of drinking at home, which limits the demand for spirits. It is expected that the performance of domestic spirits will remain slow or negative.

To Know More, Click On The Link Below:-

https://www.kenresearch.com/food-beverage-and-tobacco/alcoholic-beverages/profile-spirits-indonesia/156585-11.html

Related Reports:

https://www.kenresearch.com/food-beverage-and-tobacco/alcoholic-beverages/profile-spirits-us/156604-11.html

https://www.kenresearch.com/food-beverage-and-tobacco/alcoholic-beverages/profile-spirits-sweden/156599-11.html

Contact Us:

Ken Research

Ankur Gupta, Head Marketing & Communications

sales@kenresearch.com

+91-9015378249

Share.

Comments are closed.