Executive Summary

Jul 2019
PROSPECTS
Other spirits volume sales dipped following new ruling on compounded hard liquor

In December 2017, the Malaysian government enforced a new ruling to impede alcohol misuse encouraged by a wide availability of cheap, compounded hard liquor sold in small pack sizes. Under the new Regulation 386A, compounded hard liquor can only be sold in glass bottles with minimum volume of 700ml, driving the product’s unit price to increase.

Rum and gin in on-trade taps into rising cocktail trend

In 2018, cocktail culture in Malaysia further popularised, boosting on-trade volume growth for rum and gin, which are highly sought after as cocktail bases. With local consumers’ growing knowledge of cocktails, bar and pub operators enhanced their unique selling points to spark consumer interest.

Cocktail movement expected to spread to second-tier cities

As the on-trade cocktail movement continues to develop, it is expected to penetrate second-tier cities like Penang, Johor, and Melaka over the forecast period, with more openings of cocktail-focused bars and pubs. Furthermore, with the marketing push through social media and digital journalism, gin and rum are expected to further popularise and attract interest from a wider consumer base, which includes young professionals and partygoers aside from the affluent working class and expatriates.

COMPETITIVE LANDSCAPE
Pernod Ricard grows its volume share with aggressive product launches

In 2018, Pernod Ricard continued to lead spirits category in Malaysia and saw a large increase in its total volume share. To engage consumers continually, the player introduced new flavour variants throughout the year across several categories including cognac, blended Scotch whiskies, and dark rum.

International players gain ground with robust performance

The spirits category is dominated by international players, which saw robust volume sales growth in 2018, whilst several local players were heavily impacted by the drop of sales in the “other” spirits category. The strong performance by international players can be accredited to their aggressive marketing initiatives and strategic expansion in distribution network.

Following artisanal and premiumisation trends is imperative in this landscape

Moving forward, international players are expected to maintain leading positions with their strong brand equities and overarching distribution networks compared to local players. Although with the growing cocktail culture in Malaysia, consumers are constantly demanding new and exciting variants, it is imperative for international players to tap into artisanal and premiumisation trends that are gaining popularity, such as The Botanist gin under Fortier Wine & Spirits’ portfolio.

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Spirits in Malaysia

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Overview

Discover the latest market trends and uncover sources of future market growth for the Spirits industry in Malaysia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Spirits industry in Malaysia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Spirits in Malaysia market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market volume shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Spirits in Malaysia?
  • What are the major brands in Malaysia?
  • Are consumers switching from international spirits to ‘cheaper’ local spirits as consumer spending is being squeezed?
  • What is the most popular price point for blended Scotch; super-premium, premium, standard or economy and has the recession resulted in a switch?
  • How do premium vs standard vs economy brands compete for sales?
  • What are the key flavours in vodka?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Alcoholic Drinks market research database.

Spirits in Malaysia - Category analysis

HEADLINES

PROSPECTS

Other spirits volume sales dipped following new ruling on compounded hard liquor
Rum and gin in on-trade taps into rising cocktail trend
Cocktail movement expected to spread to second-tier cities

COMPETITIVE LANDSCAPE

Pernod Ricard grows its volume share with aggressive product launches
International players gain ground with robust performance
Following artisanal and premiumisation trends is imperative in this landscape

CATEGORY BACKGROUND

Vodka, gin, other blended Scotch whisky, dark rum and white rum price band methodology
Summary 1 Benchmark Brands 2018

CATEGORY DATA

Table 1 Sales of Spirits by Category: Total Volume 2013-2018
Table 2 Sales of Spirits by Category: Total Value 2013-2018
Table 3 Sales of Spirits by Category: % Total Volume Growth 2013-2018
Table 4 Sales of Spirits by Category: % Total Value Growth 2013-2018
Table 5 Sales of Spirits by Off-trade vs On-trade: Volume 2013-2018
Table 6 Sales of Spirits by Off-trade vs On-trade: Value 2013-2018
Table 7 Sales of Spirits by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 8 Sales of Spirits by Off-trade vs On-trade: % Value Growth 2013-2018
Table 9 Sales of Dark Rum by Price Platform: % Total Volume 2013-2018
Table 10 Sales of White Rum by Price Platform: % Total Volume 2013-2018
Table 11 Sales of Other Blended Scotch Whisky by Price Platform: % Total Volume 2013-2018
Table 12 Sales of English Gin by Price Platform: % Total Volume 2013-2018
Table 13 Sales of Vodka by Price Platform: % Total Volume 2013-2018
Table 14 Sales of Vodka by Flavoured vs Non-flavoured: % Total Volume 2013-2018
Table 15 GBO Company Shares of Spirits: % Total Volume 2014-2018
Table 16 NBO Company Shares of Spirits: % Total Volume 2014-2018
Table 17 LBN Brand Shares of Spirits: % Total Volume 2015-2018
Table 18 Forecast Sales of Spirits by Category: Total Volume 2018-2023
Table 19 Forecast Sales of Spirits by Category: Total Value 2018-2023
Table 20 Forecast Sales of Spirits by Category: % Total Volume Growth 2018-2023
Table 21 Forecast Sales of Spirits by Category: % Total Value Growth 2018-2023

Alcoholic Drinks in Malaysia - Industry Overview

EXECUTIVE SUMMARY

Alcoholic drinks registers solid growth due to better consumer sentiment in 2018
Tax holiday does little to boost beer and cider sales in 2018
International players dominate alcoholic drinks market in 2018
Strong performance in on-trade channel drives category volume growth
Alcoholic drinks set to see faster growth mainly driven by premiumisation trend

MARKET BACKGROUND

Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments
Table 22 Number of On-trade Establishments by Type 2013-2018

TAXATION AND DUTY LEVIES

Summary 2 Taxation and Duty Levies on Alcoholic Drinks 2018

OPERATING ENVIRONMENT

Contraband/parallel trade
Duty free
Cross-border/private imports

KEY NEW PRODUCT LAUNCHES

Outlook

MARKET INDICATORS

Table 23 Retail Consumer Expenditure on Alcoholic Drinks 2013-2018

MARKET DATA

Table 24 Sales of Alcoholic Drinks by Category: Total Volume 2013-2018
Table 25 Sales of Alcoholic Drinks by Category: Total Value 2013-2018
Table 26 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2013-2018
Table 27 Sales of Alcoholic Drinks by Category: % Total Value Growth 2013-2018
Table 28 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2018
Table 29 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2018
Table 30 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume 2018
Table 31 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Value 2018
Table 32 GBO Company Shares of Alcoholic Drinks: % Total Volume 2014-2018
Table 33 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2013-2018
Table 34 Distribution of Alcoholic Drinks by Format and by Category: % Off-trade Volume 2018
Table 35 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2018-2023
Table 36 Forecast Sales of Alcoholic Drinks by Category: Total Value 2018-2023
Table 37 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2018-2023
Table 38 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 3 Research Sources