Organic Packaged Food in Malaysia

PROSPECTS

Slowdown in category growth due to organic baby food

Organic baby food recorded a spike in retail selling price in 2018 compared to the review period. Imported brands dominate organic baby food and were thus already sold at premium price points prior to the price increase.

Organic packaged food gains traction due to growing consumer awareness

Consumers are highly aware of organic packaged food due to the influence of social media of the health benefits of organic products. Organic packaged food such as soy drinks, sweet spreads, breakfast cereals and pasta are increasingly introduced through internet retailing.

Healthy growth potential of organic products

Growing health-consciousness is encouraging consumers to seek out organic products as part of their journey towards a healthy diet. Consumers are seeking products that contain no pesticides and chemicals with more brands seeing this as an opportunity to introduce organic options.

COMPETITIVE LANDSCAPE

Niche brands are increasingly being distributed through internet retailing

Organic packaged food is increasingly prevalent through internet retailing. Various conventional bricks and mortar chained supermarkets and hypermarkets, namely Jaya Grocers and Tesco, are expanding their online sales presence and pushing organic packaged foods.

Traditional players are incorporating organic ingredients into existing product lines

A Clouet, a traditional player in processed meat and seafood, expanded its shelf stable seafood ranges by introducing tuna with added organic olive oil and organic broth in October 2017. These organic ingredients are first of their kind to be incorporated in shelf stable seafood and are drawing the attention of health concerned consumers.

Evolution of organic food likely to be stifled by high unit prices

Other packaged food players are predicted to add organic ingredients into packaged food in order to serve an increasingly health-conscious populace. Organic olive oil is also likely to be added into pasta sauce or frozen ready meals as this trend evolves and gains momentum.

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