Indonesia's ready-to-drink (RTD) beverage market has experienced rapid growth, driven by shifts in lifestyle, consumption habits, and cultural influences. This trend is especially prominent among Gen Z and Millennials, the country’s largest demographic groups. Their evolving preferences reflect broader cultural changes and underscore the rising importance of convenience, health, and innovation in the beverage industry.

49.25% of the population spends most of their money on food and beverages. Demographically, 53.81% of this group consists of Millennials and Generation Z, who are enthusiastic about trying new products and experiences.

In contrast, the beverage category has seen a decline across most segments over the past year.

In this article, we will explore the beverage consumption behavior of Generation Z and Millennials in Indonesia. PT Global Loyalty Indonesia (GLI) surveyed 100 respondents to investigate the reasons behind the reduction in beverage consumption.

Gen Z and Millennials consume ready-to-drink (RTD) beverages 1 to 3 times per week, primarily for their functional benefits, such as quenching thirst and health improvements. Additionally, some appreciate the emotional satisfaction these beverages offer, valuing their convenience and enjoyment as part of their lifestyle.

Flavor is a primary consideration when choosing ready-to-drink (RTD) beverages. Gen Z is more sensitive to price and quality, while Millennials are more focused on the benefits offered by the product.

Sugar intake is the main reason Gen Z and Millennials are cutting back on ready-to-drink (RTD) beverages. Gen Z and Millennials are becoming more aware of the health risks associated with high sugar levels, which is contributing to a reduction in their consumption of RTD beverages. Thus, they are shifting towards healthier lifestyles.

Social media plays a significant role in influencing Gen Z and Millennials to change their habits regarding ready-to-drink (RTD) beverages. Increased information on social media is making Gen Z and Millennials more aware of the need to reduce their consumption of RTD beverages.

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