Alcoholic Drinks - Malaysia

The Alcoholic Drinks market in Malaysia has experienced significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in Malaysia have shifted towards premium and craft alcoholic beverages, reflecting a growing demand for higher quality and unique products. Consumers are increasingly seeking out artisanal spirits, craft beers, and boutique wines, as they value the craftsmanship, authenticity, and distinct flavors these products offer. This preference for premium and craft beverages is also driven by a desire for a more sophisticated drinking experience and a willingness to explore new and diverse flavors. Trends in the market indicate a rising popularity of wine and craft beer among Malaysian consumers. Wine consumption has been on the rise, fueled by a growing middle class, increasing disposable income, and a growing appreciation for wine culture. This trend is further supported by the expanding availability of imported wines and the establishment of wine bars and specialty stores across the country. Craft beer, on the other hand, has gained traction among younger consumers who are drawn to its unique and innovative flavors, as well as its association with the hip and trendy lifestyle. Local special circumstances also contribute to the development of the Alcoholic Drinks market in Malaysia. The country has a predominantly Muslim population, and the consumption of alcohol is subject to religious and cultural sensitivities. As a result, the market for alcoholic beverages is regulated, with restrictions on advertising and sales. However, there is still a significant market for alcoholic drinks among non-Muslims and expatriates, contributing to the growth of the industry. Underlying macroeconomic factors also play a role in the development of the Alcoholic Drinks market in Malaysia. The country's strong economic growth, increasing urbanization, and rising disposable income levels have led to an expansion of the middle class and a higher standard of living. This has created a larger consumer base with greater purchasing power, driving demand for premium and higher-priced alcoholic beverages. Additionally, Malaysia's thriving tourism industry attracts a significant number of international visitors who contribute to the growth of the market. In conclusion, the Alcoholic Drinks market in Malaysia has experienced growth due to changing customer preferences towards premium and craft beverages, emerging trends in wine and craft beer consumption, local special circumstances surrounding alcohol consumption, and underlying macroeconomic factors such as economic growth and rising disposable income levels.

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.