In 2024, Malaysia’s Food and Beverage sector is undergoing a significant transformation, with several key trends shaping the industry’s growth and evolution.
From the rise of health-conscious choices to the integration of technological advancements, this article delves into the leading trends that are redefining the industry.
Recognizing these trends is essential for Food and Beverage (F&B) businesses to adapt to the dynamic landscape, tackle upcoming challenges, and formulate effective strategies to expand their business and differentiate themselves in a highly competitive market.
Malaysia’s Top 50 Food and Beverage (F&B) Companies
The F&B industry in Malaysia is a vibrant and opportunity-rich sector.
It presents a wealth of potential for diverse F&B companies, both small and large, to generate substantial long-term profits and establish a robust presence in the country.
Let’s take a look at the companies that have successfully carved out a place for themselves in Malaysia’s highly competitive yet profitable F&B market.
Based on data from Glassdoor.com, the top 50 F&B companies in Malaysia are:
- Nestlé
- Mondelēz International
- The Coca-Cola Company
- The HEINEKEN Company
- Danone
- Mars
- PepsiCo
- FrieslandCampina
- Carlsberg Group
- Kellogg Company
- Tetra Pak
- Red Bull
- Ajinomoto
- Ingredion
- Campbell Soup Company
- Fonterra
- General Mills
- ADM
- Secret Recipe
- Tyson Foods
- Nestlé USA
- XXX Energy Drink
- Wilmar
- Yakult
- Kraft Heinz Company
- Gloria Jean’s Coffees
- The Hershey Company
- Dutch Lady Milk Industries
- Coca-Cola FEMSA
- Pernod Ricard
- Moët Hennessy
- Tyson
- Lactalis
- Thorntons (UK)
- OLDTOWN White Coffee
- Charoen Pokphand Group
- Häagen-Dazs
- Suntory Group
- Bee Cheng Hiang
- Mamee-Double Decker
- Coca-Cola Bottling Company United
- PRAN-RFL Center
- William Grant & Sons
- Coway Malaysia
- Arla Fruits
- Tutti Frutti Frozen Yogurt
- Puratos
- Glanbia Performance Nutrition
- illy
- URC
The Top Trends in the F&B Industry in Malaysia
Understanding the latest trends is vital for businesses in the Food and Beverage (F&B) industry.
It enables them to adapt to market changes, tackle emerging challenges, and devise effective strategies for growth amidst stiff competition.
Here are the key trends shaping Malaysia’s food and beverage F&B industry:
- ‘Naturally Healthy’ Foods on the Rise: Consumers are increasingly seeking foods that naturally contain health-beneficial substances. Packaged food, especially snacks, are incorporating ingredients like ‘super’ seeds and whole grains to cater to this trend.
- Premium Supermarkets for High-Income Consumers: High-income consumers are opting for better quality food and imported ingredients. This has led to an increased demand for premium supermarkets offering a wide range of high-quality products.
- Supermarkets and Convenience Stores Thrive: Supermarkets and convenience stores remain popular due to their affordability. Traditional grocery retailers in residential neighbourhoods also saw an increase in sales during COVID-19 restrictions.
- Sustainability Matters: Sustainability has become an important consideration for Malaysian consumers. There is a growing demand for organic foods, plant-based foods, and eco-friendly products.
- Convenience Foods in Demand: As consumers return to school and work, they seek convenient, packaged foods that can be easily carried on-the-go.
- E-commerce and Online Grocery Shopping: Online grocery shopping is projected to grow in Malaysia, with the number of e-commerce users expected to reach 18 million by 2025.
- Increased Online F&B Spending: Online food and beverage spending experienced a significant increase in 2021, following the surge seen in 2020 due to store closures during the pandemic.
- Foodservice Sector Recovery Post-COVID-19: Following a growth rate of 22% in 2022, Malaysia’s F&B industry is expected to grow by 8% in 2023.
- Strong and Stabilizing Economy: Malaysia’s economy recovered strongly in 2022, growing at a rate of 7.8%, the fastest in over two decades.
Despite these promising trends, the F&B industry in Malaysia faces several challenges:
- Rising Costs: Increasing costs of food ingredients, rent, and utilities put pressure on food outlets to maintain competitive prices without compromising profitability.
- Shortage of Skilled Labor: The F&B industry heavily relies on foreign workers, but the government has implemented stricter policies to reduce their numbers. This has resulted in a shortage of skilled labor within the industry.
- Intense Competition: The F&B industry in Malaysia is fiercely competitive, with numerous players vying for their share of the market. This makes it difficult for existing businesses to maintain their market position and stand out from the crowd.
Final Thoughts: Navigating Challenges in Malaysia’s F&B Industry
The intensifying competition in Malaysia’s F&B market is a cause for concern for many businesses, including restaurants and cafes.
While opportunities and demand are abundant, the key question remains: how can businesses seize these opportunities, enhance their competitiveness, and distinguish themselves in a highly competitive market?
Exabytes New Retail Solution: Embracing the Online Shift As the world rapidly transitions towards the digital realm, including eCommerce, businesses that swiftly adapt and embrace this trend are likely to emerge victorious.
However, it’s crucial to understand that pure eCommerce is no longer the sole viable option.
The New Retail concept is set to dominate Malaysia in 2024 and beyond.
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