Alcoholic beer market in Indonesia

Earlier Report Observations

The Indonesian alcoholic beer market saw its volume rise from 211 million liters in 2018 to 227 million liters in 2019, amidst a series of regulatory changes that tightened licensing, labeling, and separate sales requirements for alcoholic beverages. After a contraction to 192 million liters in 2020, the market rebounded sharply, reaching 270 million liters in 2021 and 323 million liters in 2022.

This strong recovery was primarily driven by two key developments. The 2021 presidential decree, which channeled new investment in alcohol production into just four provinces, concentrated capital and accelerated the expansion of local manufacturing capacity. Subsequently, the first-ever exports of Indonesian beer to the United States in 2022 provided a new outlet, further boosting production volumes.

Market growth stabilized in 2023 at 324 million liters as the landscape evolved. The entry of new domestic competitors via IPOs increased rivalry, while strict rules confining sales to specific retail channels and successive excise duty hikes continued to shape market access and consumer prices.

Production alcoholic beer in Indonesia

In kind, 2018-2021, M l

Top producers of alcoholic beer, 2018-2021

World map of production of alcoholic beer, 2018-2021

In Indonesia, alcoholic beer production reached 277.0 million liters in 2021, marking a significant year-over-year increase of 38.5%. Over the period from 2018 to 2021, production grew by 24.8%, with a compound annual growth rate of 7.7%. The lowest production level was recorded in 2020 at 200.0 million liters, which also saw the largest decline of 14.9%.

Annual dynamics of production in Indonesia in kind, 2018-2021, M l

In value, 2018-2021, M $ US

The value of alcoholic beer output in Indonesia stood at 212.2 million US dollars in 2021, reflecting a substantial year-over-year rise of 42.3%. From 2018 to 2021, production value increased by 34.2%, with a compound annual growth rate of 10.3%. The minimum value was observed in 2020 at 149.1 million US dollars, which experienced the largest decline of 16.6%.

Annual dynamics of production in Indonesia in value, 2018-2021, M $ US

Exports alcoholic beer from Indonesia

Exports in kind, K l

Alcoholic beer exports from Indonesia declined for the third consecutive year. In 2021, exports were recorded at 7 448 thousand liters, representing a substantial drop of 16.0% compared to the previous year. Between 2018 and 2021, exports decreased by 45.5%, equating to an annualized decline rate of 18.3%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, K l

From 2018 to 2021, Malaysia, Thailand, and Russia remained the primary buyers of alcoholic beer from Indonesia in terms of volume. Malaysia accounted for 24.0% of exports, Thailand for 22.1%, and Russia for 11.4%, collectively forming 57.5% of total exports in kind.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, K $ US

Indonesia's alcoholic beer export value declined for the third year in a row. In 2021, exports amounted to 5 706 thousand US dollars, showing a strong decrease of 13.6% compared to the previous year. Over the period from 2018 to 2021, export value fell by 41.3%, with a compound annual decline rate of 16.3%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, K $ US

Throughout 2018 to 2021, Malaysia, Thailand, and Russia were the key partners for Indonesia's alcoholic beer exports in value terms. Malaysia represented 24.1% of exports, Thailand 22.4%, and Russia 10.0%, together accounting for 56.6% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports alcoholic beer to Indonesia

Imports in kind, K l

The market displayed volatility during the observed period. Imports peaked in 2018 and reached their lowest point in 2020, with a 6.7-fold difference between these years. In 2021, cross-border shipments of alcoholic beer into Indonesia stood at 676 thousand liters, which is 84.6% higher year-over-year. The minimum value was recorded in 2020 at 366 thousand liters, which also saw the largest decline of 83.0%.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, K l

From 2018 to 2021, Mexico, Vietnam, and Singapore were the largest sources of imports in kind for Indonesia, together accounting for 79.7% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, K $ US

The market exhibited an unstable trend throughout the timeframe. Imports peaked in 2018 and bottomed in 2020, with a 5.9-fold gap between these years. In 2021, Indonesia's alcoholic beer imports were valued at 908 thousand US dollars, equivalent to a sharp year-over-year advance of 100.5%. The minimum value was recorded in 2020 at 453 thousand US dollars, which experienced the largest decline of 77.5%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, K $ US

In the period from 2018 to 2021, Mexico, Singapore, and Vietnam were the main destinations in the geographical breakdown of Indonesia's alcoholic beer imports in value terms. Mexico accounted for 39.9% of imports, Singapore for 18.0%, and Vietnam for 15.2%, with a combined share of 73.1% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021