Hot Drinks in Malaysia
Euromonitor International's Hot Drinks 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.
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Tables: 58 | Publication date: Jan 2008
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
Coffee; Other hot drinks; Tea
Executive summary
Hot drinks continued performing well
The hot drinks industry in Malaysia continued to enjoy growth in 2006. Hot drinks are firmly established in the daily diets of most Malaysians, with coffee being the best performing. Nonetheless, the proliferation of coffee shops and Western-style cafés in Malaysia, which immediately proved extremely popular among young people, spurred on-trade consumption of hot drinks over the review period. In addition, the influx of chained coffee shops, led by franchises such as The Coffee Bean & Tea Leaf and Starbucks, further encouraged consumers to try out different products. As a result, consumers have become increasingly aware of and keen to try hot drinks such as speciality coffee and black speciality tea at home.
Coffee dominates the hot drinks industry
Coffee is by far the largest hot drinks range, largely due to Malaysia being a coffee-drinking nation. Malaysians mostly drink instant standard coffee because fresh coffee is much more expensive, and largely remains an urban lifestyle choice of affluent and sophisticated consumers. Moreover, the convenience factor of instant coffee and large number of new product developments introduced over the review period have been the main driving factors behind the popularity of coffee.
Health trend boosts tea and other hot drinks
Rising health consciousness among Malaysians is one of the major trends driving growth of hot drinks sales in Malaysia. Consequently, manufacturers have been quick to reposition their products to focus on nutritious goodness such as enrichment with vitamins and minerals. Among the various hot drinks, tea and other hot drinks continued to post stronger growth over the review period riding on the back of rising health awareness. Moreover, major hot drinks players also launched new healthier variants in a bid to maintain consumer interest throughout the review period.
Sugar supply shortages impact manufacturing costs
Malaysia encountered a sugar shortage largely due to low sugar cane supply in the international marketplace. As a result, the manufacturing costs of hot drinks, especially for instant products increased due to rising sugar prices. However, manufacturers did not increase the retail price of their hot drinks products for fear of losing industry share. Hence, this dampened their profit margins and, if the sugar shortage issue is not resolved in the short-term, the government will increase the price of sugar in Malaysia in the forecast period, which will affect the hot drinks industry further.
Future growth expected spurred by improved economy and new products
Over the forecast period, hot drinks sales are expected to increase steadily. Growth will largely be due to stable demand for such products which manufacturers will support through the launch of further new variants or different flavours to sustain consumer interest. Within hot drinks, coffee will continue to be the fastest growing range and growth will once again be driven by instant coffee. Although sales of tea and other hot drinks will remain low over the forecast period, both product groups are expected to experience healthy growth rates as consumers embrace healthier lifestyles.
Table of contents
HOT DRINKS IN MALAYSIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Hot drinks continued performing well
Coffee dominates the hot drinks industry
Health trend boosts tea and other hot drinks
Sugar supply shortages impact manufacturing costs
Future growth expected spurred by improved economy and new products
KEY TRENDS AND DEVELOPMENTS
Slowing economy
Young population lead the evolution in perception and lifestyle
Higher costs due to sugar supply shortages
Health trend
Competition heightens but key players continue to dominate
Supermarkets/hypermarkets remains the primary distribution channel
MARKET DATA
Table 1 Sales of Hot Drinks by Sector: Volume 2001-2006
Table 2 Sales of Hot Drinks by Sector: Value 2001-2006
Table 3 Sales of Hot Drinks by Sector: % Volume Growth 2001-2006
Table 4 Sales of Hot Drinks by Sector: % Value Growth 2001-2006
Table 5 Hot Drinks Company Shares by Value 2002-2006
Table 6 Hot Drinks Brand Shares by Value 2003-2006
Table 7 Sales of Hot Drinks by Distribution Format: % Analysis 2001/2006
Table 8 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2006
Table 9 Forecast Sales of Hot Drinks by Sector: Volume 2006-2011
Table 10 Forecast Sales of Hot Drinks by Sector: Value 2006-2011
Table 11 Forecast Sales of Hot Drinks by Sector: % Volume Growth 2006-2011
Table 12 Forecast Sales of Hot Drinks by Sector: % Value Growth 2006-2011
DEFINITIONS
LOCAL COMPANY PROFILES - MALAYSIA
AIK CHEONG COFFEE ROASTER SDN BHD - HOT DRINKS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Aik Cheong Coffee Roaster Sdn Bhd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 2 Aik Cheong Coffee Roaster Sdn Bhd: Production Statistics 2006
COMPETITIVE POSITIONING
BOH PLANTATIONS SDN BHD - HOT DRINKS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Boh Plantations Sdn Bhd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 4 Boh Plantations Sdn Bhd: Production Statistics 2006
COMPETITIVE POSITIONING
IN-COMIX FOOD INDUSTRIES SDN BHD - HOT DRINKS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 In-Comix Food Industries Sdn Bhd: Key Facts
Summary 6 Hup Seng Industries Bhd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 7 In-Comix Food Industries Sdn Bhd: Production Statistics 2006
COMPETITIVE POSITIONING
POWER ROOT (M) SDN BHD - HOT DRINKS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Power Root (M) Sdn Bhd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 9 Power Root (M) Sdn Bhd: Production Statistics 2006
COMPETITIVE POSITIONING
SUPER FOOD TECHNOLOGY SDN BHD - HOT DRINKS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Super Food Technology Sdn Bhd: Key Facts
Summary 11 Super Coffeemix Manufacturing Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 12 Super Food Technology Sdn Bhd: Production Statistics 2006
COMPETITIVE POSITIONING
COFFEE IN MALAYSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 13 Sales of Coffee by Type: Volume 2001-2006
Table 14 Sales of Coffee by Type: Value 2001-2006
Table 15 Sales of Coffee by Type: % Volume Growth 2001-2006
Table 16 Sales of Coffee by Type: % Value Growth 2001-2006
Table 17 Standard Vs Coffee Pods 2004-2006
Table 18 Coffee Company Shares 2002-2006
Table 19 Coffee Brand Shares 2003-2006
Table 20 Foodservice Sales of Coffee by Distribution Format 2001/2006
Table 21 Forecast Sales of Coffee by Type: Volume 2006-2011
Table 22 Forecast Sales of Coffee by Type: Value 2006-2011
Table 23 Forecast Sales of Coffee by Type: % Volume Growth 2006-2011
Table 24 Forecast Sales of Coffee by Type: % Value Growth 2006-2011
TEA IN MALAYSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 25 Sales of Tea by Subsector: Volume 2001-2006
Table 26 Sales of Tea by Subsector: Value 2001-2006
Table 27 Sales of Tea by Subsector: % Volume Growth 2001-2006
Table 28 Sales of Tea by Subsector: % Value Growth 2001-2006
Table 29 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2006
Table 30 Tea Company Shares 2002-2006
Table 31 Tea Brand Shares 2003-2006
Table 32 Forecast Sales of Tea by Subsector: Volume 2006-2011
Table 33 Forecast Sales of Tea by Subsector: Value 2006-2011
Table 34 Forecast Sales of Tea by Subsector: % Volume Growth 2006-2011
Table 35 Forecast Sales of Tea by Subsector: % Value Growth 2006-2011
OTHER HOT DRINKS IN MALAYSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 36 Sales of Other Hot Drinks by Subsector: Volume 2001-2006
Table 37 Sales of Other Hot Drinks by Subsector: Value 2001-2006
Table 38 Sales of Other Hot Drinks by Subsector: % Volume Growth 2001-2006
Table 39 Sales of Other Hot Drinks by Subsector: % Value Growth 2001-2006
Table 40 Other Tea by Type: % Off-trade Volume 2005-2006
Table 41 Other Hot Drinks Company Shares 2002-2006
Table 42 Other Hot Drinks Brand Shares 2003-2006
Table 43 Forecast Sales of Other Hot Drinks by Subsector: Volume 2006-2011
Table 44 Forecast Sales of Other Hot Drinks by Subsector: Value 2006-2011
Table 45 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2006-2011
Table 46 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2006-2011