Food and Beverage Market in Malaysia 2012
CONTENTS
1 MARKET STRUCTURE
1.1 Market Overview
1.2 Market Drivers
1.3 Market Potential
1.4 Import Trends
1.5 Key Players in the Market
1.6 Regulatory
1.7 Sustainability
2 MARKET ENTRY AND DEVELOPMENT
2.1 Market Entry Strategies
2.2 Points of Differentiation
2.3 Long Term Strategic Issues
2.4 Distribution Channels
3 MARKET RESOURCES AND CONTACTS
1.1 Market Overview
Malaysia is regarded as an upper middle income group country. Gross Domestic Product (GDP) growth is forecast at 4 percent for 2012, with this expected to expand to 5.6 percent in 2013-2016.i Sales within the Malaysian food and beverage retail industry were forecast to reach of US$15.69 billion in 2011 and are predicted to grow to US$21.17bn by 2015.
Processed foods
According to Euromonitor, the overall packaged food industry reached US$5.5 billion in 2011 and is forecast to grow to US$5.9 billion by 2016. The highest value segments of packaged foods in 2011 were estimated to be ‘dried processed foods’ at US$955.9 million, followed by ‘dairy’ at US$948 million, and ‘bakery’ at US$765.9 million.
Wine
Malaysia’s population of 27.7 million is approximately 65 percent Malays, 27 percent Chinese and 8 percent Indians. The Malays are predominantly Muslims who, for religious reasons, are not permitted to consume any alcoholic drinks. Although this limits the size of the market for wine to just over one third of the total population, the Chinese segment does form the wealthiest group of consumers in Malaysia. This segment numbers around seven million people and forms a solid target base for imported wines.
Wine is usually not consumed at home. It is a social drink usually consumed on special occasions. The consumption of red wine has increased in recent years mainly due to perceived health benefits of drinking red wine.
The overall wine industry reached US$102.2 million in 2011 and is forecast to grow to US$108.5 by 2016. In 2011, the highest value segment was ‘still light grape wine’ at US$98 million. Within this category, the market for red wine is approximately double that of the market for white.
Fish and seafood
Malaysia has the largest daily intake of fish and seafood consumption per capita within the ASEAN group of countries. Domestic fish supply was estimated to reach 1.6 million tonnes in 2011, with around one third of this being imported product.
Meat
There is strong consumer demand for imported beef, mutton and halal products as 60 percent of the population are Muslim. Euromonitor reports that the total Malaysian meat market reached 1.4 million tonnes in 2011. Chicken is the meat of choice in Malaysia, 4/ Exporter Guide | Malaysia | Food and Beverage | January 2012 accounting for approximately two thirds of meat sales. Pork follows at around 20 percent of sales, trailed by beef at 5 percent and sheep meat at less than 1 percent.
