Indonesia’s tea producers work up a thirst for advertising
INDONESIA’S tea industry has risen over the past decade to become the seventh largest in the world, spurring an eightfold rise in advertising for tea products over that period.
Data from market research firm Nielsen showed that advertising for tea products on television and in print media soared to 2.6 trillion rupiah (Bt6.8 billion) last year from 311.6 billion rupiah a decade ago.
From last year’s figure, ad spending for ready-to-drink (RTD) or bottled tea contributed the most with 77 per cent, while the remainder came from non-ready-to-drink products or tea bags.
“The development in the processed tea industry has been incredible and it still has vast room to grow, given low tea consumption in Indonesia at about 390 grams per person per year,” National Tea Board chairman Rachmat Badruddin said on Saturday.
“Firms are competing to come up with their own RTD tea drinks because tea carried a healthy drink image and Indonesians are used to non-carbonated drinks like this.”
For 2007-16, advertising on RTD tea brands increased from 12 to 20, while the number of producers in the industry rose from seven to 16.
Teh Pucuk Harum (Mayora Indah) was the top ad spender last year, followed by Teh Gelas (Orang Tua Group) and FresTea (Coca Cola Group).
Over the past years, new brands like Teh Sisri, Teh Javana and Ichi Ocha have appeared.
