Millennials across Indonesia love coffee and they are pushing coffee consumption to record highs.
Domestic demand for coffee in Indonesia may increase by as much as 36% in 2019 over last year, according to a spokesman for the Association of Indonesian Coffee Exporters and Industries. The growth totals about 5.3 million bags, about half of the country’s expected output.
Alcohol is discouraged in this nation where more than 90% of the population is Muslim, spokesman Moelyono Soesilo told Bloomberg News, “so cafes are the go-to places for youngsters to hang out and socialize.”
The popularity of ready-to-drink and other high-value beverages is pushing officials to look for ways to grow more beans. Indonesia, which ranks as the third-largest grower of robusta beans, wants to increase arabica production from 15% of its total national output to a much higher 40% share.
The coffee rush doesn’t stop at the farm, according to Bloomberg News. Coffee chain startup Kopi Kenangan has raised $28 million in venture capital to increase its number of outlets from 100 to 2,000 by the year 2022.