RTD tea potential in Indonesia is still growing. Large fast moving consumer goods (FMCG) companies in Indonesia, such as Mayora (Pucuk Harum), Sosro (Frestea, Teh Botol), Wings (Rio, Javana), Garudafood (Mountea) and even foreign companies like Asahi (Ichi Ocha), Suntory (Mirai Ocha), Ito En (Kiyora), Charoen Pokphand (Fiesta White Tea) and Pokka (Pokka Green Tea) have all dived into the RTD tea industry. In hot pursuit are the companies that previously manufactured dry tea products, such as Teh Poci, Teh 2 Tang & Teh Tong Tji, all trying their game in the RTD tea industry ( Tea Bag). All of this makes this industry an attractive competition. This is clearly indicated by the RTD tea industry life circle which is still in its “Growing” stage with an industrial growth of >10% per year, with 2011 -2012 showing the most significant growth (>40%). As a result, the demand for tea leaves increases each year. But on the other hand, the crop output from the tea plantations decreases by 3,000 tons each year. This is caused by the decrease in plantation area due to conversions to more profitable crops such as palm oil and organic vegetables, and even conversions to real estates. Therefor in the next 10 years the RTD tea players will potentially compete for dry tea leaves supply because of the supply and demand parity.
Supervisor: Harris Turino
(CONFIDENTIAL 21 NOVEMBER 2025)