Hard Seltzer - Malaysia

The Hard Seltzer market in Malaysia is experiencing significant growth and development.

Customer preferences: Customers in Malaysia are increasingly seeking out healthier and low-calorie beverage options. Hard Seltzers, with their low alcohol content and refreshing flavors, are meeting these preferences. Additionally, the younger generation in Malaysia is embracing the trend of healthier living and wellness, and Hard Seltzers align with their lifestyle choices.

Trends in the market: One of the key trends in the Hard Seltzer market in Malaysia is the introduction of local flavors and ingredients. Manufacturers are incorporating traditional Malaysian flavors, such as mango, lychee, and coconut, into their Hard Seltzer offerings. This customization appeals to the local consumers who appreciate the familiarity and uniqueness of these flavors. Another trend is the increasing availability and variety of Hard Seltzer brands in the market. Several international and local players have entered the market, offering a wide range of flavors and alcohol content options. This variety caters to different consumer preferences and ensures that there is a Hard Seltzer option for everyone.

Local special circumstances: The tropical climate in Malaysia plays a significant role in the popularity of Hard Seltzers. The hot and humid weather makes refreshing and light beverages like Hard Seltzers highly desirable. Consumers are looking for drinks that can quench their thirst and provide a cooling sensation, and Hard Seltzers fit the bill perfectly. Furthermore, Malaysia has a large Muslim population, and Hard Seltzers with their low alcohol content appeal to this demographic. As Malaysia is an Islamic country with strict regulations on alcohol consumption, Hard Seltzers offer a permissible alternative for those who want to enjoy a light alcoholic beverage.

Underlying macroeconomic factors: The growing middle-class population in Malaysia is contributing to the development of the Hard Seltzer market. With increasing disposable incomes, consumers have more purchasing power and are willing to spend on premium and innovative beverage options. This has created a favorable environment for the growth of the Hard Seltzer market. Additionally, the rise of e-commerce platforms and online food delivery services has made it easier for consumers to access and purchase Hard Seltzers. The convenience and wide reach of these platforms have helped in expanding the market and reaching a larger consumer base. In conclusion, the Hard Seltzer market in Malaysia is growing due to customer preferences for healthier and low-calorie beverage options, the introduction of local flavors, the increasing availability and variety of brands, the tropical climate, the appeal to the Muslim population, and the underlying macroeconomic factors of a growing middle-class population and the rise of e-commerce platforms.

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.