While urban consumers tend to do their food shopping in modern supermarkets and hypermarkets, many owned by international retail chains and often located within shopping centres, most low-income consumers reside in rural areas where there are far fewer modern retailers and therefore they tend to shop in traditional grocery retailers. Towards the end of the review period, higher food prices squeezed household budgets.
Traditional grocery retailers in Malaysia is a well-distinguished channel, catering to different races in neighbourhoods and communities in cities, towns, and villages. There are food stores or mini-marts that carry only halal products targeting the Muslim community, or carry mainly Asian products aimed at the Chinese or Indian communities.
Bakery retailers lead traditional grocery retailers, with the largest players including King’s Confectionery, Leong Hup Holdings, BreadStory, Rotiboy Bakeshoppe Sdn Bhd and BreadTalk Group. Bakery products are essential in Malaysia and treated as part of breakfast.
With an increasingly urbanised population and expanding mid-income group enjoying higher incomes, there has been a surging increase in demand for better quality and better value items. An increasing number of consumers are being motivated by the trend for natural foods and healthy living.
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