The local government is expected to impose a sugar tax on instant coffee mixes over the forecast period. Hence, players like White Café Sdn Bhd, Power Root and others are predicted to reformulate their products by altering the sugar content to avoid the sugar tax and higher selling price that would be passed on to consumers.
The dominant NBO in fresh ground coffee pods, Groupe SEB Malaysia (GBO: Nestlé SA), is likely to expand the plant-based range after the successful launch of Nescafé Dolce Gusto Plant-Based Flat White in August 2022. Meanwhile, Nestlé (M) Bhd is expected to follow a similar path by launching plant-based coffee in the forecast period, since consumers are increasingly demanding quality coffee.
The cost of production is predicted to rise continuously over the forecast period, especially due to increasing packaging, transportation and sugar prices. Players are expected to pass on price hikes to consumers.
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This is the aggregation of fresh coffee and instant coffee. Please note that foodservice sales of coffee are volumes sold to the on-trade (foodservice) sector and not those sold to the consumer.See All of Our Definitions
This report originates from Passport, our Coffee research and analysis database.
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