Coffee in Southeast Asia: Modernising retail of the daily beverage

Coffee has long been a staple in the Southeast Asian way of life, with a history dating all the way back to the 1600s. The region is also one of the largest coffee producers globally. 

In recent years, modern and speciality coffee served by global and local coffee chains has been growing in the region. In 2023, Southeast Asia’s modern coffee market is estimated to be worth US$3.4 billion. Indonesia and Thailand are the largest markets, with US$947 million and US$807 million turnover respectively. 

This market is increasingly attractive to investors, entrepreneurs and conglomerates with large retail footprint, with many local and multinational chains seeking to enter or expand their presence within the region. In addition, Luckin Coffee’s initial success in 2018 – 2019 led to a surge of venture-backed tech-enabled coffee chains in the region. 

However, in this very crowded market, good value propositions (and good coffee) are no longer enough for players to grow and stay competitive. What are the key success factors? What lessons can coffee players learn from tech companies? What are the key lessons from Starbucks, Kopi Kenangan, Ya Kun Kaya Toast, Luckin Coffee & Flash Coffee?

Momentum Works’s ‘Coffee in Southeast Asia’ report provides in-depth analyses and insights into the business dynamics behind this staple drink through the following sections:

1. All about coffee in Southeast Asia
2. The business behind coffee chains
3. Competitive landscape and key players 
4. Conclusion & perspectives