Soft Drink Business Slumps as Purchasing Power Weakens and Utilisation Falls

Amid global economic and geopolitical turmoil, Indonesia’s soft drink industry is facing the challenge of pressured purchasing power accompanied by a surge in raw material import costs. Chairman of the Indonesian Soft Drink Industry Association (ASRIM), Triyono Prijosoesilo, stated that throughout 2025, beverage sales volume was recorded at minus 0.5 per cent. Meanwhile, in the first quarter of 2026, it grew by 2 per cent, supported by the Lebaran moment which was still dominated by bottled drinking water (AMDK), but tea, juice, and milk beverages actually declined due to pressured purchasing power. Furthermore, the beverage industry is also experiencing under-utilisation as a result of declining purchasing power, which has prevented demand from reaching its maximum potential, consequently eroding profitability. In response to this, the industry is targeting growth sources in market segments that still hold potential, such as the low-sugar beverage segment.