Malaysia Food & Drink Report

Published 17 April 2015

  • 117 pages
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$1,295.00
Malaysia Food & Drink Report

BMI View: We hold an optimistic view on the Malaysian consumer through to 2019, although conditions will remain challenging throughout the rest of 2015. Our Asia Country Risk team forecasts real private consumption growth at 4.0% in 2015, on the back of 4.2% real GDP growth. We expect the combination of increased taxes (GST has been implemented since April 1) a weaker currency and relatively high household debt to weigh on private consumption in Malaysia in 2015 and beyond. As a result, real private consumption will slow down from 7.3% in 2014 to 4.0% in 2015. Over the next five years, it will average 4.9% annually, down from 7.1% in the previous decade. Despite continuing concerns about fuel price hikes, we believe declining global grain prices, subdued money supply growth and benign wage price pressure will keep Malaysia's consumer price inflation moderate as we head through 2015.

Headline Industry Data

  • 2015 total food consumption sales growth (local currency): +3.7%; compound annual growth rate (CAGR) 2014-2019: +3.3%.

  • 2015 per capita food consumption sales growth (local currency): +2.1%; CAGR 2014-2019: +1.9%.

  • 2015 total soft drinks value sales growth (local currency): +3.6%; CAGR 2014-2019: +3.7%.

  • 2015 total MGR value sales growth (local currency): +7.3%; CAGR 2014-2019: +7.5%.

Key Industry Trends

Baby Food Market Reaches USD443mn In 2014: The overall value of baby food market in Malaysia increased by more than 60% to USD443mn in 2014 from 2008, according to Canadean. The growth has been attributed to rising incomes, a decline in births and the trend towards super-premium and specialised baby food. However, Malaysians purchased 33,413 tonnes of baby food in 2014, representing an increase of just 3.6% from 2008. The market is lead by multinational brands most notably Danone, Nestle and Dutch Lady, which together accounted for 75% of baby food sales by volume in 2014. Baby milk consumption in Malaysia reached around 29,375 tonnes in 2014,...

BMI Industry View
7
SWOT
10
Food
10
Drink
12
Mass Grocery Retail
14
Industry Forecast
16
Consumer Outlook
16
Food
19
Table: Food Consumption Indicators - Historical Data & Forecasts (Malaysia 2012-2019)
20
Confectionery
21
Table: Confectionery Value/Volume Sales, Production & Trade - Historical Data & Forecasts (Malaysia 2012-2019)
22
Fish
22
Oils And Fats
23
Dairy
24
Table: Dairy Volume Sales, Production & Trade - Historical Data & Forecasts (Malaysia 2012-2019)
24
Drink
26
Hot Drinks
26
Table: Hot Drink Value/Volume Sales, Production & Trade - Historical Data & Forecasts (Malaysia 2012-2019)
27
Alcoholic Drinks
28
Table: Alcoholic Drinks Value/Volume Sales, Production & Trade - Historical Data & Forecasts (Malaysia 2012-2019)
29
Soft Drinks
30
Table: Soft Drinks Sales, Production & Trade - Historical Data & Forecasts (Malaysia 2012-2019)
31
Mass Grocery Retail
34
Table: Mass Grocery Retail Sales By Format - Historical Data & Forecasts (Malaysia 2012-2019)
36
Table: Grocery Retail Sales By Type, Historical Data & Forecast (%)
36
Trade
37
Table: Trade Balance - Historical Data & Forecasts (Malaysia 2012-2019)
38
Macroeconomic Forecasts
39
Economic Analysis
39
Headwinds To Curtail Growth
40
Infrastructure The Sole Bright Spot
41
Table: Economic Activity (Malaysia 2010-2019)
42
Industry Risk Reward Index
43
Asia Pacific - Risk/Reward Index
43
Table: Asia Pacific Food & Drink Risk/Reward Index Q315
45
Malaysia Risk/Reward Index
48
Market Overview
49
Food
49
Food Production
49
Confectionery
49
Halal
50
Agriculture
52
Dairy
52
Drink
53
Soft Drinks
53
Hot Drinks
54
Alcoholic Drinks
55
Mass Grocery Retail
55
Table: Structure Of Mass Grocery Retail Market By Estimated Number of Outlets (Malaysia 2006-2015)
56
Table: Mass Grocery Retail Sales By Format (Malaysia 2006-2013)
57
Table: Mass Grocery Retail Sales By Format (Malaysia 2006-2013)
57
Table: Average Sales Per Outlet by Format - 2013
57
Industry Trends And Developments
58
Food
58
Key Industry Trends And Developments
58
Drink
65
Mass Grocery Retail
69
Key Industry Trends And Developments
69
Competitive Landscape
74
Table: Key Players In Malaysia's Food & Drink Sector
74
Table: Key Players In Malaysia's Mass Grocery Retail Sector
75
Company Profile
76
Aeon Malaysia
76
Dairy Farm
79
Dutch Lady
82
F&N Berhad
85
Permanis (Asahi)
88
Tesco Malaysia
91
Yeo Hiap Seng
94
Global Industry Overview
97
Table: Food and Drink Core Views - Q115 Roundup
104
Demographic Forecast
106
Table: Population Headline Indicators (Malaysia 1990-2025)
107
Table: Key Population Ratios (Malaysia 1990-2025)
107
Table: Urban/Rural Population & Life Expectancy (Malaysia 1990-2025)
108
Table: Population By Age Group (Malaysia 1990-2025)
108
Table: Population By Age Group % (Malaysia 1990-2025)
109
Glossary
111
Food & Drink
111
Mass Grocery Retail
111
Methodology
113
Industry Forecast Methodology
113
Sector-Specific Methodology
114
Sources
114
Risk/Reward Index Methodology
115
Table: Food & Drink Risk/Reward Index Indicators
116
Table: Weighting
117

The Malaysia Food & Drink Report features BMI Research's market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.

BMI's Malaysia Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in Malaysia.

Key Benefits

  • Benchmark BMI's independent food and drink industry forecasts for Malaysia to test other views - a key input for successful budgeting and strategic business planning in the Malaysian food and drink market.
  • Target business opportunities and risks in Malaysia through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering food and drink manufacturing and consumption and the mass grocery retail market.

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the food, drink and mass grocery retail sectors and within the broader political, economic and business environment.

BMI’s Food and Drink Risk Reward Index

BMI’s Risk Reward Index provides investors (food and drink manufacturers and mass grocery retailers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic points. These provide indices of highest to lowest appeal to investors, with each position explained.

Food Forecasts

BMI’s food chapter is divided into sections such as meat, fish, confectionary, dairy and canned foods, and provides insight into each market’s food industry, centred on a forecast to end-2019 for the sector. The chapter includes the following elements:

  • Industry Forecast Scenario: Historical data series and a forecast to end-2019 for growth of key indicators within a market’s food industry. Indicators include food consumption, food consumption as % of GDP, canned food sales, confectionery sales and food and drink imports and exports, among others.
  • Industry Developments: A summary of corporate developments, including news on M&As, FDI, expansions, closures and financial results, in addition to analysis and explanation of the latest industry events and how these could influence further investment.
  • Market Overview: An overview of the structure of the market, introducing the key players and discussing underlying trends.

Drink Forecasts

Segmented the same way as BMI’s food chapter, the drink section provides insight into each market’s drink industry, centred on a forecast to end-2019 for the sector. Forecast indicators include alcoholic and soft drink sales by value, volume and sub-sector and tea and coffee sales, among others.

Mass Grocery Retail Forecasts

Segmented the same way as BMI’s food and drink chapters, the mass grocery retail section provides insight into each market’s grocery retail industry, centred on a forecast to end-2019 for the sector. Forecast indicators include mass grocery retail sales by format (including supermarkets, hypermarkets, convenience and discount stores) and a breakdown of the organised retail sector versus the traditional sector, among others.

Competitive Landscape

Illustration of the mass grocery retail and food and drink industries via rankings tables comparing revenues, number of outlets and number of employees. This chapter also includes data-rich, in-depth regional analysis of the market position, business strategies and investment potential of the region’s leading mass grocery retail and food and drink operators.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Food & Drink reports draw on an extensive network primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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