Malaysian consumers have larger disposable incomes than Chinese consumers, especially when cost of living is taken into account. The market is shifting away from huge local and worldwide brands’ low-cost products and toward lesser-known brands and flavor profiles. Quality and health are becoming more important, especially in wealthier urban areas.
Soft Drinks & Juice
Malaysia’s soft drinks and juice market is valued US$ 2.1 billion and is expected to expand at a rate of over 5% each year until 2025. Big brands like Pepsi and Coca-Cola continue to dominate the soft drinks market in the country, but space is opening up for new and healthier options, particularly among the well-heeled and urban consumers.
The majority of sales in this product category are made up of low-cost Asian juices (e.g. tropical fruits); however, interest in and willingness to pay for less common imported juices—such as those made from berries—is growing, particularly among Malaysia’s young consumers and people in larger urban areas in general.
On top of existing revenues of US$ 1.78 billion, the Malaysian alcohol business would grow at a 7.87 percent CAGR through 2025. As people’s wages rise, they’re gravitating toward mid-market and premium beer selections with greater ABV and richer flavor profiles. Cognac is the most popular alcohol, as it is in much of Asia, although tipplers are also interested in whiskey and other spirits, as well as grape wines. As earnings rise, this trend will pick up speed.
Malaysia’s food sector is predicted to rise to about US$ 44 billion in sales by the end of 2021, with a 5.19 percent compound annual growth rate (CAGR) through 2025, according to Statista. Malaysian customers are young, and when their incomes improve, they want food goods and brands that reflect their socioeconomic goals. This entails greater quality, more unique products, and the use of imported brands.
Consumers in the area are a mix of individuals looking for good value for money and those who prioritize quality over price. The majority of growth in these industries will be driven by increased diversity and more organic and healthier options. In Malaysia, food and beverage brands that can capitalize on either of these trends would perform well.