Asian Speciality Drinks in Malaysia

PROSPECTS

Modernisation of the image of Asian speciality drinks fails to boost sales

Asian speciality drinks in Malaysia has long been dominated by traditional products, such as grass jelly, lychee, sugar cane, winter melon and bandung drinks. These are particularly popular during festive seasons, including Chinese New Year and Hari Raya.

Even lower sugar products attract the sugar tax

Asian speciality drinks has a challenging outlook, due to the price impact brought about by the sugar tax. Currently, even the majority of reduced sugar Asian speciality drinks still exceed the threshold for the sugar tax (5g/100ml).

The launch of products with stronger health appeal

Some consumers are moving away from Asian speciality drinks to RTD tea, bottled water and juice, which have stronger health appeal. Therefore, with the growing focus on clean labels, players are favouring the use of natural ingredients such as dates, honey and lemon to attract consumers.

COMPETITIVE LANDSCAPE

Yeo Hiap Seng and Fraser & Neave Holdings maintain their lead

Yeo Hiap Seng and Fraser & Neave Holdings remained the leading players in Asian speciality drinks in off-trade value terms in 2019. Although these players saw minor share increases in 2019, more rapid development was seen by small players, included under “others”.

Competition from RTD tea, although the players are the same

Asian speciality drinks faces strong competition from other categories, such as RTD tea and juice. Nevertheless, the two leading players in Asian speciality drinks both have wide product portfolios, and are also the leading players in RTD tea, in addition to having a presence in juice.

Local players set to remain dominant despite exit of MMD Beverage

Local player Mamee Dydo Distribution (MDD Beverage) withdrew from Asian speciality drinks in 2019, as it discontinued its Cheers grass jelly drink due to its weak performance. This share was taken by the two leading players and “others”.

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