In 2018, cider/perry continued to gain traction amongst millennial consumers for consumption at home as well as for drinking occasions at dinners and parties. This can be attributed to its low alcoholic content and sweet taste, which amateur drinkers and the female population easily accept, coupled with a friendly price tag when compared to wine or spirits.
Driven by cider players’ strong promotional efforts, the category is foreseen to deliver solid growth over the forecast period. Cider/perry is set to benefit from the premiumisation trend, as consumers are willing to pay for higher-quality brands, as well as from the continual growth of craft ciders.
Cider/perry is increasingly viewed as an affordable alternative to champagne and sparkling wines due to its sweet fruity taste and the similar bubbly sensation it offers. To portray the drink as an alternative to champagne and sparkling wine, cider/perry is often presented in wine glasses and tall champagne glasses in marketing activities, communicating a premium and upscale image.
Carlsberg Brewery Malaysia maintained its leading position within cider/perry in 2018 with its strong brand presence and aggressive marketing push. To enhance its product offerings, Carlsberg launched a new flavour variant Somersby Elderflower Lime in 2018, which further boosted its competitiveness against its biggest competitor Heineken Malaysia.
In 2018, the cider/perry category saw fierce competition amongst international players aiming to tap into the strong growth potential in Malaysia. Whilst category leader Carlsberg focused on expanding its brand offerings and presence, the second leading player Heineken Malaysia enhanced its distribution network and expanded its penetration to the on-trade channel by introducing a draught format for its Apple Fox cider in 2018.
Holding two leading brands Strongbow and Apple Fox under its belt, Heineken Malaysia is expected to gain higher volume share over the forecast period and strengthen its foothold in the cider/perry category. On the other hand, with limited marketing activities and a declining presence, local players like Luen Heng Agency and Cave & Cellar will face great threats from the leading players.
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This industry report originates from Passport, our Alcoholic Drinks market research database.