Dairy Products In Malaysia: A Market Analysis

This report covers the market for dairy products in Malaysia. The Malaysian dairy market is composed of three broad sectors: Liquid Milk, Milk Powder Cold Storage Dairy, which includes butter, cheese, yoghurt and ice-cream.

Executive Summary:

The growth in demand for dairy products in Malaysia is driven by the changes in dietary preferences, growth of quick service restaurants (particularly pizza and hamburger chains), and robust economic growth in the last two decades that resulted in increased urbanisation and a growing middle-income society.

In addition, increased awareness of the health benefits of drinking milk, along with rising disposable income and growth of food retail chains in Malaysia, which led to a greater availability of retail shelf space and a wider variety for dairy products, have stimulated and increased consumption of dairy among Malaysians.

Malaysia relies heavily on imports for its dairy needs, such as milk powder for its dairy product industry and finished products such as cheese and butter. Major import countries are Australia and New Zealand.

The major dairy items produced in Malaysia are milk powder (full cream, Skimmed and infant formula), sweetened condensed milk, evaporated milk, liquid milk and milk drinks (fresh, ultra high temperature, pasteurised and homogenised), yoghurt and ice cream. Most advertising dollars in Malaysia target infants, children and pregnant and feeding mothers.