Beer - Malaysia

The Beer market in Malaysia has experienced significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customer preferences in the Beer market in Malaysia have shifted towards craft beers and premium offerings. Consumers are increasingly seeking unique and high-quality beer options, leading to a rise in demand for craft beers produced by local breweries. This trend is driven by a growing appreciation for the flavors and craftsmanship associated with craft beers, as well as a desire to support local businesses. Additionally, there is a rising demand for premium imported beers, as consumers are becoming more adventurous in their beer choices and are willing to explore different flavors and brands from around the world.

Trends in the market: One of the key trends in the Beer market in Malaysia is the increasing popularity of low-alcohol and non-alcoholic beers. This trend is driven by a growing health consciousness among consumers, who are seeking alternatives to traditional alcoholic beverages. Low-alcohol and non-alcoholic beers offer a lighter and more refreshing option for consumers, while still providing the taste and experience of drinking beer. This trend is also influenced by changing social norms and a desire for moderation in alcohol consumption. Another trend in the market is the growing popularity of beer festivals and events. These events provide a platform for breweries to showcase their products and engage with consumers. Beer festivals offer a unique and immersive experience for beer enthusiasts, allowing them to sample a wide variety of beers and learn about different brewing techniques. These events also contribute to the growth of the craft beer industry, as they provide exposure and visibility for smaller breweries.

Local special circumstances: The Beer market in Malaysia is subject to certain local special circumstances that influence its development. One of these circumstances is the strict regulations and taxation policies imposed on alcoholic beverages. These regulations include restrictions on advertising and promotion, as well as high excise duties on alcoholic products. While these regulations can pose challenges for breweries and distributors, they also create a barrier to entry for new players, which can benefit established brands.

Underlying macroeconomic factors: The growth of the Beer market in Malaysia is also influenced by underlying macroeconomic factors. The country's strong economic growth and rising disposable incomes have contributed to an increase in consumer spending on discretionary items, including alcoholic beverages. Additionally, the growing urbanization and changing lifestyles in Malaysia have led to a shift in consumer preferences towards more premium and experiential products, including craft beers. These factors, combined with a young and increasingly affluent population, create a favorable environment for the growth of the Beer market in Malaysia. In conclusion, the Beer market in Malaysia is experiencing growth due to changing customer preferences towards craft beers and premium offerings, the popularity of low-alcohol and non-alcoholic beers, the rise of beer festivals and events, local special circumstances such as strict regulations and taxation policies, and underlying macroeconomic factors including strong economic growth and rising disposable incomes. These factors are driving the development and evolution of the Beer market in Malaysia, providing opportunities for both local and international breweries.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.