Asian Speciality Drinks in Malaysia

PROSPECTS

New packaging designs are introduced amidst the decline in volume sales

In 2017, the poor performance of Asian speciality drinks was due to the decline in the performance of the economy, further worsened by the weakening of the currency. In order to boost sales, players revamped their packaging to create interest amongst consumers.

Forecast period trends

Over the forecast period, it is expected that Asian speciality drinks will continue declining in retail value terms at constant 2017 prices, due to the maturity of the category, as well as the rising competition from other categories with a strong health positioning, such as RTD tea. Furthermore, consumers are still likely to prefer the unpackaged Asian speciality drinks found in foodservice channels, due to their fresh taste.

COMPETITIVE LANDSCAPE

Yeo Hiap Seng leads Asian speciality drinks

Despite the category facing a decline in 2017, Yeo Hiap Seng continued to lead Asian speciality drinks in both retail volume and value terms. The leader benefits from its wide product portfolio, which is long-established in Malaysia, such as grass jelly and bandung.

Domestic players continue to dominate

In 2017, domestic players such as Yeo Hiap Seng and Fraser & Neave Holdings continued to lead Asian speciality drinks in both retail volume and value terms, due to their wide distribution networks and ability to appeal to the taste preferences of local consumers. Furthermore, they have introduced new packaging designs to generate interest and target younger consumers.

Forecast period trends

Over the forecast period, it is expected that Yeo Hiap Seng will continue to lead Asian speciality drinks, due to its strong brand equity amongst consumers, who grew up drinking it. Nonetheless, with strong competition from other categories, such as RTD tea, as well as new brands such as Calpis, it will be critical that the company continues to appeal to consumers’ growing health-consciousness by investing in healthier variants, such as reduced sugar products.

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