1. Grab-and-go coffee models offer different value proposition compared to the traditional dine-in coffee/beverage players

Grab-and-go coffee players have been able to address the unmet consumer needs by offering 1) convenience in placing their orders, 2) easier accessibility via multiple outlets and delivery to their preferred location and 3) affordable price points.

These new players have bene addressing consumers pain point by leveraging technology in multiple ways i.e. from logistics to sales & marketing to customer deliveries.

Note(s): 1 Indicative figures

2. New Age Players are expected to continue their market share gains led by pandemic-induced changes as well as evolving consumers behavior

Grab-and-go coffee models have witnessed strong traction in the last few years and gained share from traditional players. In addition, they have been targeting high-traffic areas like residential / sub-urban areas, gas stations etc. to offer convenient access to their outlets. Players are also diversifying their product and service portfolio. For example, Kopi Kenangan is offering dine-in options with its Kenangan Heritage and Rumah Kenangan outlets. We expect this trend of market share shift to the grab-and-go models to continue led by higher customer penetration as well as increasing diversity of offerings.

Indonesia Grab-and-go Coffee Market Size, US$ Bn

3. Most new-age players have pursued aggressive network expansion, while some are tapping-into the dine-in segment

With their franchise business model, the new-age players can open to 10-15 new outlets per week. Hence, most of these players have been able to increase their footprint very quickly in a relatively short period of time.

Grab-and-go Coffee Players, Number of Outlets

4. Investors are supporting the new-age players’ ambition to expand their footprint and sustain their growth momentum

The strong growth momentum at the new-age coffee players has attracted investors’ interest. The capital raised is intended to expand their network reach. For example, Flash Coffee plans to have a store every 500 meters in major Asian cities, while Kopi Kenangan plans to expand its presence beyond Indonesia.

SEA Grab-and-go Coffee Funding 2021, US$ Bn