Ready-to-Drink (RTD) Coffee & Tea - Malaysia

The Ready-to-Drink (RTD) Coffee & Tea market in Malaysia has been experiencing significant growth in recent years.

Customer preferences: Malaysian consumers have shown a growing preference for convenience and on-the-go consumption, which has contributed to the rise in popularity of RTD coffee and tea. The busy lifestyles of urban consumers, coupled with the increasing number of cafes and coffee shops in the country, have created a demand for ready-to-drink beverages that can be easily consumed anytime, anywhere.

Trends in the market: One of the key trends in the RTD coffee and tea market in Malaysia is the increasing demand for healthier and natural beverages. Consumers are becoming more health-conscious and are seeking products that are low in sugar, free from artificial additives, and made from natural ingredients. This has led to the emergence of a variety of RTD coffee and tea products that are marketed as "healthy" or "natural", catering to the preferences of health-conscious consumers. Another trend in the market is the growing popularity of premium and specialty RTD coffee and tea products. Malaysian consumers are willing to pay a premium for high-quality and unique flavors, and this has led to the introduction of a wide range of premium RTD coffee and tea options in the market. These products often feature unique brewing techniques, specialty beans, or exotic tea blends, appealing to consumers who are looking for a more indulgent and luxurious drinking experience.

Local special circumstances: Malaysia has a strong coffee culture, with coffee being a popular beverage among Malaysians. This cultural affinity for coffee has played a significant role in the growth of the RTD coffee market in the country. Additionally, the popularity of tea, particularly among the Chinese population, has also contributed to the demand for RTD tea products.

Underlying macroeconomic factors: The growing middle class in Malaysia has been a key driver of the RTD coffee and tea market. As disposable incomes rise, consumers have more purchasing power and are willing to spend on premium and convenient products. Additionally, the increasing urbanization and modernization of the country have led to changes in consumer lifestyles and preferences, with a greater emphasis on convenience and on-the-go consumption. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Malaysia is experiencing growth due to the preferences of busy, on-the-go consumers, as well as the demand for healthier and premium products. The strong coffee culture and increasing disposable incomes are also contributing factors to the market's development.

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.