Beer in Malaysia
Euromonitor International's Beer in Malaysia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of volume and value market sizes including on-trade and off-trade, company and brand shares, distribution and pricing data.
Tables: 52 | Publication date: Mar 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Dark beer; Lager by origin; Lager by price platform; Low/non- alcohol beer; Stout
Executive summary
In 2007, a new brewery, Napex Corporation Sdn Bhd, surfaced in beer. Being the third brewery in Malaysia, Napex Corporation Sdn Bhd has created quite a stir since its launch. In addition, with its key brand Jaz being priced 20% cheaper than other competing brands, this further created more excitement in beer in 2008.
The stagnant excise duty for beer in 2008 was one key contributory factor for beer’s faster volume growth in 2008 than 2007. Coupled with a rigorous clampdown on smuggling, duty-paid beer thus benefited substantially in 2008. The entry of Napex Corporation Sdn Bhd and intensive marketing campaigns for existing brands further stimulated interest in beer among consumers.
Domestic economy lager accounted for the strongest volume growth, brought about by the entry of Napex Corporation Sdn Bhd. Although the company was noted by competitors to be small and insignificant, its entrance in Malaysia still created some excitement among consumers, who gave the brand a try during 2008.
The unit price of beer increased slightly in 2008, with the rise in raw materials costs as the main culprit. High and middle income consumers were also sticking to their usual premium brands due to the perceived better product quality, which further brought about a rise in the beer unit price.
Stout remains a popular drink in Malaysia among blue-collar workers and consumers of the older generation. Towards the end of the review period, stout was also noted as gaining popularity among the younger generation as well as female drinkers, especially with the various marketing campaigns by manufacturers. This, in turn, contributed to the stronger volume growth of stout in 2008 as opposed to 2007.
Standard lager remains the key driver for beer with dominant brands like Tiger and Carlsberg present in this category. Affordable pricing and reasonable product quality were some key factors that sustained interest among consumers. Premium lager brands were also noted to be rising in popularity among consumers during 2008, as they become more appreciative of the finer product quality in these brands.
On-trade and off-trade trends remained similar in 2008 as compared to the review period, with consumers still using the on-trade channels as a place to drink during social gatherings, while the off-trade is pretty much for family occasions or during regular TV-watching sessions.
Lager and dark beer still see standard strength lying between 4.5% and 5.5%, with only selected brands such as Carlsberg Special Brew and Baron’s Extra Strong Brew exhibiting a stronger abv for lager. On the other hand, stout sees standard strength at 8%, with the two key brands both having this alcohol content. As of 2008, there were no new products highlighting a shift towards low- or high-strength beer, with consumers still sticking to the existing brands.
At on-trade establishments, beer is commonly found in glass bottles and on draught. Bottled beer is usually consumed in coffee shops and restaurants, where it was noted as accounting for the largest amount of beer sales during 2008. On the other hand, draught beer is normally sold in pubs and hotel outlets. For off-trade establishments, cans are the most common type of beer found in most retail outlets, as consumers can easily consume a can in one go, preventing any wastage. This also meant that canned beer was the second largest contributor to beer sales over the review period.
Production, Imports and Exports
Malaysia is mainly focused on the production of malt liquor products such as beer and stout. There are official statistics of domestic beer production. However, the production data from the government are not updated, being available for the 2002-2005 period only.
Up to 2008, the national statistics office released data on import and export figures for beer. However, these official figures should not be used as a primary source of data because the huge difference between imports and exports of beer highlights the small fraction of beer that enters Malaysia via duty-paid channels.
Sales of domestic lager dominate the beer environment in Malaysia due to the dominance of Carlsberg Brewery Malaysia Bhd and Guinness Anchor Bhd. Imported beer is unable to achieve sustainable demand due to excise duty and import tax charges, which are very high, and thus they are hardly able to compete with domestic lager products.
Table of contents
BEER IN MALAYSIA : MARKET INSIGHT
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 1 Lager by Price Band 2008
Published data comparisons
SECTOR DATA
Table 1 Sales of Beer by Subsector: Total Volume 2003-2008
Table 2 Sales of Beer by Subsector: Total Value 2003-2008
Table 3 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 4 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 5 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 6 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 7 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 8 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 9 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 10 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 11 Beer Exports by Country of Destination: Total Value 2002-2007
Table 12 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 13 Beer Imports by Country of Origin: Total Value 2002-2007
Table 14 Company Shares of Beer by National Brand Owner 2003-2007
Table 15 Company Shares of Beer by Global Brand Owner 2003-2007
Table 16 Brand Shares of Beer 2004-2007
Table 17 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 18 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 19 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 20 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013
LOCAL COMPANY PROFILES - MALAYSIA
ALBERT WINES & SPIRITS (M) SDN BHD - ALCOHOLIC DRINKS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Albert Wines & Spirits (M) Sdn Bhd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Albert Wines & Spirits (M) Sdn Bhd: Competitive Position 2007
CHUA SONG SENG SDN BHD - ALCOHOLIC DRINKS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Chua Song Seng Sdn Bhd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
MILAWA (M) SDN BHD - ALCOHOLIC DRINKS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Milawa (M) Sdn Bhd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
P H PRODUCTS SDN BHD - ALCOHOLIC DRINKS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 P H Products Sdn Bhd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 P H Products Sdn Bhd: Competitive Position 2007
TONG WOH ENTERPRISE SDN BHD - ALCOHOLIC DRINKS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Tong Woh Enterprise Sdn Bhd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
ALCOHOLIC DRINKS IN MALAYSIA
EXECUTIVE SUMMARY
No increase in excise duty leads to a better performance for alcoholic drinks
Cocktail concoctions enjoy rising popularity among consumers
Multinational players dominate
Supermarkets/hypermarkets command the largest distribution share
Positive outlook for alcoholic drinks
KEY TRENDS AND DEVELOPMENTS
Limited edition products attract consumer interest
Developments in secondary towns benefit alcoholic drinks
Themed activities by manufacturers to build brand image
Exposure to more premium brands in on-trade channels
Cocktail drink trend among younger drinkers
Specialist Retailers
Summary 9 Leading Specialist Retailers 2007
Market Merger and Acquisition Activity
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 21 Taxation and Duty Levies on Alcoholic Drinks 2008
Table 22 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 23 Selling Margin of a Typical Domestically Produced Beer Brand 2008 – Carlsberg
Table 24 Selling Margin of a Typical Imported Wine Brand 2008 – Lindemans Cawarra
Table 25 Selling Margin of a Typical Domestically Produced Spirits Brand 2008 – Joker 10
Table 26 Selling Margin of a Typical Imported Spirits Brand 2008 – Chivas Regal 12 YO
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 27 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 28 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 29 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 30 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 31 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 32 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 33 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 34 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 35 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 36 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 37 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 38 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 39 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 40 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 41 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 42 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Sources
Summary 10 Research Sources