SEA beverage market grows 52% as digitalisation drives scale
Indonesia's beverage sector alone was valued at $3.51b this year
Southeast Asia’s modern coffee and tea chains are entering a new phase of competition, with the total market size reaching $9.9b in 2025, a 52% increase from last year, according to Momentum Works.
The report said this was the result of rapid expansion of modern beverage chains enabled by improved productivity through digitalisation, expanded customer segments, and the rise of online platforms.
Indonesia, with a market size of $3.51b in 2025, is the largest player in the coffee and tea segment, with most of the leading chains emerging in the current decade. This is followed by Thailand ($2.25b), with the top three coffee chains affiliated with petrol stations. Vietnam is the third largest, followed by Malaysia.
Coffee brands are said to have demonstrated stronger scalability, with multiple players surpassing the 1,000-store mark. Interestingly, there isn’t a Chinese brand amongst the top seven coffee chains in SEA.
Tea is more fragmented, with fewer players reaching the 1,000th milestone. Fast food tea and ice cream chain Mixue leads the segment.
A separate report by Intel Market Research said that the Southeast Asia bubble tea market is projected to grow from $3.84b in 2026 to $11.31b by 2034, representing a compound annual growth rate (CAGR) of 20.7%, attributed to consumer demand for beverages that combine flavour, texture, and visual appeal.
