Soft Drinks - Malaysia

The Soft Drinks market in Malaysia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in Malaysia have shifted towards healthier beverage options, leading to an increased demand for low-sugar and natural drinks. Additionally, there has been a growing interest in functional beverages that offer additional health benefits. These changing preferences have influenced the development of the Soft Drinks market in Malaysia.

Customer preferences: In Malaysia, customers are increasingly seeking healthier beverage options. This shift in preferences can be attributed to a growing awareness of the negative health effects of excessive sugar consumption. As a result, there has been a rising demand for low-sugar and natural soft drinks in the market. Consumers are actively seeking out products that contain natural ingredients and have reduced sugar content. This trend has led to the introduction of a variety of healthier soft drink options in the market, such as fruit-infused waters and herbal teas.

Trends in the market: One of the prominent trends in the Soft Drinks market in Malaysia is the rise of functional beverages. Functional beverages are drinks that offer additional health benefits beyond basic hydration. These beverages often contain added vitamins, minerals, or other bioactive compounds that are believed to improve health and well-being. In Malaysia, there has been a growing interest in functional beverages, particularly those that offer energy-boosting or immune-boosting properties. This trend has led to the introduction of a range of functional soft drinks in the market, including energy drinks and fortified juices.

Local special circumstances: Malaysia's diverse cultural landscape has also influenced the development of the Soft Drinks market. The country is home to a multicultural population with different dietary preferences and traditions. This diversity has led to the availability of a wide range of soft drink options in the market, catering to different tastes and preferences. For example, Malaysia has a strong tea-drinking culture, which has resulted in the popularity of tea-based soft drinks, such as iced teas and milk teas. Additionally, the country's tropical climate has contributed to the demand for refreshing and hydrating soft drinks, such as coconut water and fruit juices.

Underlying macroeconomic factors: The Soft Drinks market in Malaysia is also influenced by underlying macroeconomic factors. The country's growing middle class and rising disposable incomes have contributed to increased consumer spending on beverages. As consumers have more disposable income, they are able to afford premium soft drink options and are willing to pay a higher price for healthier and functional beverages. Additionally, Malaysia's strong tourism industry has also played a role in the growth of the Soft Drinks market. Tourists visiting the country often seek out local soft drink options, leading to increased demand and market growth. In conclusion, the Soft Drinks market in Malaysia is experiencing growth due to changing customer preferences, emerging trends, and local special circumstances. Customers are increasingly seeking healthier beverage options, leading to a demand for low-sugar and natural soft drinks. The rise of functional beverages and the influence of Malaysia's diverse cultural landscape have also contributed to the development of the market. Underlying macroeconomic factors, such as a growing middle class and a thriving tourism industry, have further fueled the growth of the Soft Drinks market in Malaysia.

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.