Malaysia beverages Retail Market

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Malaysia Beverages Retail Market
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Beverages consist of alcoholic and non-alcoholic
beverages. The alcoholic beverages segment
includes caffeinated alcoholic beverages, fruity
alcoholic beverages, beer, flavoured alcoholic
beverages, spirits, wines such as still wines and
sparkling wines and gluten-free alcoholic
beverages. Non-alcoholic beverages consist of
less than 0.5 alcoholic content by volume. These
beverages include soft drinks, juices, carbonated
soft drinks, juice concentrate, functional
drinks, ready-to-drink tea and coffee, flavoured
water, nectars, still drinks, squash/syrups
bottled water, energy or sports drinks, and
non-alcoholic beer and wine. Other non-alcoholic
beverages are dairy, soy drinks and milk
alternatives are condensed milk, drinking yogurt,
evaporated milk, flavoured milk, soymilk, white
milk. Hot drinks are variants in hot coffee, hot
tea and hot chocolate beverages.
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The increasing consumption of healthy drinks is
one of the primary growth factors of
non-alcoholic drink market. Majority of the
Malaysian consumers are increasingly demanding
for drinks made from natural and organic
ingredients due to the awareness in health
benefits and hazardous effects of ingredients.
Malaysians are steadily adopting health and
wellness food trends and demanding for low and
zero calories, low and zero sugar, and other
kinds of soft drinks. Also, the soft drink
manufacturers are developing low-fat and
low-sugar soft drinks to cater to the
health-conscious consumers. There is also a
demanding for super-premium soft-drinks, in
addition to the premium soft drinks. Millennials
are aware about the increasing health
consciousness and are encouraging the vendors to
offer authentic and sophisticated beverages.
Specialty drinks or super-premium soft drinks are
formulated using simple ingredients, lesser
calories, and natural sweeteners such as stevia.
The non-alcoholic drinks market is fragmented
with the presence of several international and
domestic players. It was observed that there is a
stiff competition between the non-alcoholic drink
manufacturers in terms of product
differentiation, price, quality, distribution,
and marketing.
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Alcoholic drinks include beer, cider, wine,
spirits, and RTD pre-mixes. Premiumization of
drinks is the key factor witnessing a positive
impact on the growth of the alcoholic drinks
market. Malaysians are demanding for premium
drinks due to better taste, smoothness and status
symbol. It was observed that the alcoholic drinks
market is growing drastically under the premium
alcoholic drinks segment. Majority of the
consumers are following a healthier lifestyle and
demanding for alcoholic drinks with a low volume
of alcohol. These are known as lighter alcoholic
drinks with less health risks. Manufacturers are
offering light alcoholic drinks and flavoured
cocktails which are low in calorie and alcohol
content. Almost all the beverages are available
in the supermarkets, hypermarkets and grocery
stores in Malaysia.
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According to the study Malaysia Beverage
Forecasts March 2017, the hot drinks sector in
Malaysia is leading by hot coffee followed by hot
tea market in terms of sales. Hot coffee market
is expected to record a quick growth in the
future due to the increasing popularity of coffee
among the younger consumers, rising cafe culture
and increasing demand for healthy hot beverages
such as herbal and fruit tea in the country. BOH
Plantations Sdn. Bhd, Unilever and OLDTOWN Berhad
are the leading market players in hot drinks
market in Malaysia. Whiskey is the largest
consumed spirit in Malaysia, while Gin and
Genever also witnessed a rapid growth in the
recent years. Glenfiddich, Dewar's and Johnnie
Walker are the leading competitors in the spirits
sector. The variants of wines available in
Malaysia are sparkling grape wines, other grape
wines, unfermented grape, Vermouth and other
flavoured grape wines and other other fermented
beverages. Fortified Wine market in the country
will witness a rapid growth during over the
coming years. Treasury Wine Estates Vintners
Limited, Pernod Ricard SA and E J Gallo Winery
are the leading market players in Malaysia. Wine
consumption in Malaysia is low compared to the
rest of the world.   
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Malaysians are concerned about the potentially
negative health effects of different chemicals
and artificial ingredients found in beverages.
With better educated consumers, who tend to be
more health-conscious are demanding for naturally
healthy beverages. Manufacturers are using
fortification process to add value to their
beverages. Fortified vitamins A, C and E are
added to fruit juices and hot drinks are
fortified with malted oats, brown rice, barley
and wheat extract that supplies complex
carbohydrates. Several international, regional,
and domestic players in Malaysian beverages are
competing based on factors such as quality,
pricing, product differentiation, packaging,
innovation, distribution, and marketing
strategies. Many beverage manufacturers are using
social media platforms to market their products.
The rapid technological changes and increasing
competition will impact the beverages market in
Malaysia over the coming years.   
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Guide   Contact Us Ken Research Ankur Gupta,
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