Coffee in Malaysia

PROSPECTS

Fresh coffee beans gains foothold in foodservice amidst recovering consumer sentiment

In 2018, volume sales of fresh coffee beans increased at a faster pace in the foodservice channel than in the retail channel, as out-of-home consumption gained traction due to recovering consumer sentiment – consumers spent more in foodservice channels. Patronising specialist coffee shops became part of the local lifestyle; consumers socialise and enjoy freshly-brewed coffee at these outlets.

Premiumisation and sophistication of fresh ground coffee pods in retail

Influenced by the developing coffee culture in the foodservice channel, consumers sought to elevate their coffee-drinking experience at home by recreating the quality of freshly-brewed barista coffee. Fresh coffee pods in retail witnessed a trend towards premiumisation and flavour sophistication.

COMPETITIVE LANDSCAPE

Nestlé (M) Bhd remains the leader

Despite the rising popularity of new and local coffee brands in the retail channel, Nestlé (M) Bhd remained the leading player in terms of retail value share. The player had a significant presence through its wide product range and product mix, and continued to entice consumers with frequent promotional activities such as roadshows and sweepstakes.

Competition intensifies in the internet retailing channel

Internet retailing registered strong retail value growth over the review period in Malaysia, as more consumers shopped online for reasons of convenience and for the frequent discounts. Major food and grocery retailers established online stores, and many coffee players followed suit to create an online presence through branded stores and collaborations with e-commerce platforms.

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