Bottled Water - Malaysia

The Bottled Water market in Malaysia has experienced significant growth in recent years, driven by changing consumer preferences and local special circumstances.

Customer preferences: In Malaysia, consumers have shown a growing preference for bottled water over other beverages. This can be attributed to several factors, including concerns about the safety and quality of tap water, the convenience and portability of bottled water, and the perception that it is a healthier alternative to sugary drinks. Additionally, the rise of the health and wellness trend has led to increased demand for bottled water as consumers seek out low-calorie and sugar-free options.

Trends in the market: One of the key trends in the Malaysian bottled water market is the increasing popularity of functional and flavored waters. Consumers are looking for added benefits in their beverages, such as vitamins, minerals, and electrolytes. This has led to the introduction of a wide range of flavored and functional bottled waters in the market, catering to different consumer preferences and needs. Another trend in the market is the growing demand for premium bottled water. Consumers are willing to pay a premium price for bottled water that is sourced from natural springs or has a unique and distinctive taste. This trend is driven by the perception that premium bottled water is of higher quality and offers a more enjoyable drinking experience.

Local special circumstances: Malaysia's tropical climate and high humidity levels contribute to the demand for bottled water. The hot and humid weather makes it essential for consumers to stay hydrated throughout the day, leading to increased consumption of bottled water. Additionally, the popularity of outdoor activities and sports in Malaysia further drives the demand for bottled water as consumers seek to replenish their fluids.

Underlying macroeconomic factors: The growing middle class in Malaysia has contributed to the growth of the bottled water market. As disposable incomes rise, consumers are able to afford premium bottled water and are willing to spend more on healthier beverage options. Additionally, urbanization and the increasing pace of life have led to a shift in consumer lifestyles, with more people opting for on-the-go and convenient options like bottled water. In conclusion, the Bottled Water market in Malaysia has experienced significant growth due to changing consumer preferences, including a preference for healthier and convenient beverage options. The market has also been influenced by local special circumstances, such as the tropical climate and the popularity of outdoor activities. The underlying macroeconomic factors, such as the growing middle class and urbanization, have further fueled the growth of the market. Overall, the future of the bottled water market in Malaysia looks promising, with continued growth expected in the coming years.

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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.