How to sell wine to Indonesian consumers

The Indonesian wine market has grown steadily since the liberalization of the import of spirits in the early 1970s.

Sell to Indonesian consumers

The country is a large market with a definite potential for wine exporters. Market in Indonesia showed that the country is is both a consumer country and a producer of wine. It is the 12th world market for the consumption of still wines and the third largest wine consumer market in the Asia-Pacific region behind Australia and China. Consumption has steadily increased since the liberalization of the import of spirits in the 1970s, and then collapsed with the recession. After falling by 3.05% between 2003 and 2007, consumption has increased sharply since (+ 30.95% between 2008 and 2012), reaching 393.7 million liters in 2014, up from 15 % Compared to 2013 (342.1 million liters). By 2015, this consumption will have increased by only 1% (Euromonitor International, 2016), ie 397.63 million liters. Per capita consumption therefore remains low, but has risen from 1.88 liters per year in 2010 to 3.1 liters in 2014 and 2015. On the basis of calculations by the International Organization of Vine and Wine ), This represents 1.65% of world wine consumption in 2015.


This growth intensified from 1994. But the true boom dates from 1997, when Shinya Tasaki won the competition of best sommelier of the world. Growth slowed somewhat in 1999. At that time, Indonesian consumers were drinking 2.2 liters of wine a year on average. Since then, consumption, in volume terms, has not increased much – 2.5 liters per year on average today – but the distribution networks have changed. The wine merchants saw their market share increase while that of department stores and supermarkets decreased.

Market of wine in Indonesia

Year 2015, historical bad wine for French wine sales in Indonesia. For the first time in its history, the Archipelago preferred Chilean wine to it. In ten years, Chile climbed from fifth to first among wine imports: sales of Chilean wines were multiplied by more than six when French imports fell by 6.5%! The phenomenon is circumscribed in the country of the Rising Sun because in 2015, French wines grew by 24% in China, Hong Kong, Singapore and Taiwan.

Wine has become a very popular product among Indonesian, especially French wines. In 2015, Indonesia was the 10th largest importer of wine in the world (280 million liters, + 3.7% compared with 2014) and 6th in value, with a total of 1,319 million EUR, an increase of 9% Compared with 2014 (International Organization of Vine and Wine, OIV, 2016). Indonesia is also the second Asia-Pacific market for the consumption of imported wines, behind China, the third for total consumption behind Australia and China and the second for sparkling wine. In 2015, France will have been the country’s leading wine supplier with more than 51% of the market share and the second in volume terms, with over 23.5% of the market share. In 2015, the country imported 52.35 million liters of French wine worth EUR 325.11 million. Between 2013 and 2015, imports of French wine will have decreased by 9.8% in volume and 3.1% in value.


And it is largely explained by the free trade agreement signed by Jakarta and Santiago in 2007. The reduction in customs duties offers a comparative advantage to Chilean production compared to that of France, Wines (80% of the Indonesian market). French producers are eating away at the free trade agreement between Brussels and Jakarta, which has been carafing for years. “The Chileans are very aggressive. They import a lot of wine in bulk and have it re-bottled here, “says a French importer. “We cannot fight on the price. So we’re focusing on quality and storytelling, “he says. The wines at 500 yen (3 euros) for sale in the country’s small grocery stores are almost all Chilean. Today, a French wine costs on average 1029 yen in Indonesia, against 602 yen for a Chilean. Unbeatable. Only French grands crus remain unaffected by Chilean attacks. “On this front, the French are irreproachable,” says Ernie Singer, president of importer Millesimes.


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