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Top Growth Opportunities: Dairy & Soy Food in Malaysia

Top Growth Opportunities: Dairy & Soy Food in Malaysia


Malaysia ranks amongst the smallest markets in the global Dairy & Soy Food sector in terms of per capita expenditure in US dollar terms, although it is larger than the Philippines, China, and Indonesia. Although both the Malaysian population and their disposable income are increasing, wealth remains concentrated in specific urban areas and a large, poor, rural population remains. This means that overall per capita expenditure in US dollar terms is low, and that manufacturers and retailers need to carefully select regions within the country to focus on.

Malaysia is a relatively small Dairy market, but it will see very strong growth over the next five years, with a CAGR of 8.9% by 2021. Rising disposable incomes and a growing middle class will drive further dairy consumption in Malaysia, as part of a healthy diet, as dairy contains high levels of protein and calcium. Younger generations’ growing preference for Westernized products, and further urbanization, will also be among the drivers behind growing dairy consumption.

Further urbanization, rise of middle class, and young generations increasing Westernization are driving growth in Dairy consumption, and fast growth of 8.9% CAGR is expected for the 2016-2021 period. This is the third fastest growth among the ten countries studied. The US withdrawal from the TPP agreement will increase uncertainty about the import driven dairy products supply in Malaysia. The country imports most of the dairy products it consumes, and the US is its third bigger exporter, accounting for 10% of imports in 2015, according to USDA. The TPP agreement cancelation will not harm dairy consumption growth as most of imports come from New Zealand and Australia, summing together 60% of imports.

The Off-trade Dairy sector accounted for a higher value in US dollar terms than the On-trade, although On-trade growth was slightly better during the 2011-2016 periods, favored by the increasing availability of Dairy products in restaurants, coffee shops, and QSR operators. However, both Off-trade and On-trade Dairy sectors recorded a decline in terms of growth in US dollar terms due to a weakening of the Malaysian Ringgit against the US dollar during the last five years.

Over the past couple of years the Malaysian government has been accused of corruption, after allegations made by the Wall Street Journal against the current Prime Minister Najib Razak for transferring RM1.7 Billion (US$700 million) from a state-owned investment firm where he was a chairman, to his personal account. Malaysia is one of the fastest growing economies in the Asia-Pacific region, with the potential to become the world's 21st largest economy by 2050, according to HSBC. However, the recent political scandal against its current prime minister has caused the sharp depreciation of the Malaysian Ringgit since 2015.

The report Top Growth Opportunities: Dairy & Soy Food in Malaysia identifies the key demographic groups driving consumption, and what motivates their consumption. When combined with an in-depth study of market and category dynamics, readers are able to identify key opportunities, and what they need to do in order to target them.

In particular, this report provides the following analysis -

  • Key consumer demographic groups driving consumption within the Malaysian market. The figures showcase the number of times consumers of specific ages and gender consume Dairy & Soy Food, as well as identifying whether these demographic groups over consume in the category (i.e. they account for a higher proportion of occasions than the proportion of society they represent overall).
  • A study of market value and volumes over 2011-2016 for Malaysia, supplemented with category, brand and packaging analysis that shows the current state of the market, and how it will evolve over the 2016-2021 period.
  • The degree of influence that the 20 key consumer trends identified by GlobalData have on Dairy & Soy Food consumption volumes, with granular analysis on the extent that degree of influences varies between gender and age group.
  • Insight into the implications behind the data, and analysis of how the consumer needs will evolve in the short-to-medium term future.
  • Examples of international and Malaysia-specific product innovation targeting key consumer needs.
Companies mentioned in this report: Cold Storage, Giant Supermarket, Aeon Big, Tesco, Econsave, 7-Eleven, KK Super Mart, MyMart, TF Value-Mart, PASAR RAYA MaxValu/MaxValu Prime, Nestle, Royal Friesland Campina, Fonterra Group

  • The Malaysian Dairy & Soy Food market saw a small decline in US$ between 2011 and 2016, due to the depreciation of the Malaysian Ringgit. However, the growth is forecast to change to positive in the next five years between 2016 and 2021.
  • Malaysia ranks among the smallest markets in the global Dairy & Soy Food sector in terms of per capita consumption.
  • Opportunities for premiumization in Dairy & Soy Food have been limited over the past five years, but this situation is expected to improve between 2016 and 2021.
  • International Dairy & Soy Food brands in Malaysia have outperformed domestic ones.
Reasons to buy
  • This report brings together consumer analysis and market data to provide actionable insight into the behavior of Malaysia's Dairy & Soy Food consumers.
  • This is based on GlobalData's unique consumer data, developed from extensive consumption surveys and consumer group tracking, which quantifies the influence of 20 consumption motivations in the Dairy & Soy Food sector.
  • Category, brand, and packaging dynamics are also examined.
  • This allows product and marketing strategies to be better aligned with the leading trends in the market.

  • Introducing a top growth market for dairy & soy food
    • Top opportunity markets for Dairy & Soy Food
    • GlobalData Consumer's opportunity scoring methodology
    • Top 10 global growth opportunities scores
    • Top global issues
    • Assessment against global strategic issues
    • GlobalData's strategic issues map
    • Predicted future issues for the Global Dairy sector
    • Malaysia reward and risk assessment
    • Opportunity score - Malaysia Overview
    • Consumer dairy spending trends - peer group comparisons
    • Political, Economic, Social and Technological: Analysis
    • Enablers and inhibitors of growth
    • Dairy & Soy Food - Rewards and opportunities for growth
      • Table Market value of Malaysia's Dairy & Soy Food market, 2011 - 2016
    • Summary of the Dairy & Soy Food market in Malaysia
  • Market insight - identifying the opportunities to move into
    • Market growth by category
    • Value growth of Malaysia's Dairy & Soy Food market by category
    • Contribution to change by value
      • Table Category values (US$ millions)
    • Volume growth of Malaysia's Dairy & Soy Food market by category
    • Contribution to change by volume
      • Table Category volumes (millions Kg)
    • Level of premiumization by category
    • Category analysis - key drivers of change in Dairy & Soy Food
  • Retail and distribution insight - key channels and retailers driving growth
    • Dairy & Soy Food retail channel share - Malaysia
    • Key Retail Channel trends
    • Routes to market - retail overview
    • Routes to market - key retailers
    • Drivers of change in the Malaysian Dairy & Soy Food sector
  • Company and brand insight - the competitive landscape defined
    • Dairy & Soy Food category fragmentation
    • Company and brand strength
    • International and domestic brand analysis
      • Table Top 5 international Dairy & Soy Food brands
      • Table Top 5 domestic Dairy & Soy Food brands
    • Company and brand strength summary
  • Consumer insight - who, what, when, where and why
    • Strategic issues map - pitfalls and opportunities
    • Key consumer drivers for Dairy & Soy Food
    • Key consumers trends in Malaysian Dairy & Soy Food
    • Consumer Groups - Key consumer targets
      • Table 2016 Consumption volume shares by consumer group
    • Key Health & Wellness trends
    • How Health & Wellness benefits will contribute to growth
    • Penetration of Health and Wellness claims by category
    • Consumer trends summary
  • Product and packaging insights -
    • Key Product Insights in Dairy & Soy Food
    • Trends and strategic issues - other notable product trends
    • Product & Packaging insights - Key product innovation case studies
    • Key product innovation case study : Bio-Life ImunCol+ Probiotix Gold
    • Key Packaging Insights
    • Trends and strategic issues - packaging material trends
    • Trends and strategic issues - packaging closure
    • Product launch key takeouts
  • White spaces and innovation opportunities - space to move into
    • Highest growth segments to target when entering the Malaysian Dairy & Soy Food sector
    • Consumer spaces to target when entering the Malaysian Dairy & Soy Food market
      • Table Top volume CAGR categories 2011 - 2016
    • Segment focus - opportunities
    • Product launch key takeouts
    • Recommendations for new ways to enter the Dairy & Soy Food sector in Malaysia
  • Appendix
    • Definitions
      • Category Definitions
      • Channel Definitions
    • Research Methodology
      • Market Data - 50 Country Methodology
      • Market Data - Additional 152 Country Methodology
      • Consumer Graphics Methodology
      • Health & Wellness Methodology

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