Malaysia - The Future of Foodservice to 2021
GDP per capita in Malaysia continued to grow between 2011 and 2016 but the growth rate has fluctuated. Between 2015 and 2016 the country saw annual growth at a rate of 4.7% with a GDP per capita of MYR 39,104 in 2016. Consumer prices have continued to rise moderately, with 2016 prices 15% higher than in 2010. However, this is higher amongst food and beverages, with currency depreciation making imports more expensive.
Malaysian profit sector has seen value grow at a CAGR of 4.7% between 2014 and 2016. Growth has relied heavily on transactions as the population continues to urbanize quickly, reducing opportunities to expand outlet footprints. Future growth is forecast to accelerate substantially, with LCU growth seen at a CAGR of 5.3%, with growth in USD even more rapid, at a CAGR of 9.2%.
Revenue in Malaysia’s QSR channel rose at a strong CAGR of 5.3% (in MYR terms) between 2014 and 2016, reaching a value of 12.6 Billion. As of 2016, QSR claimed a 21.9% share of the country’s total foodservice profit sector, and value in the channel is forecast to keep growing at an expanded CAGR of 6.1% to 2021. QSR market is fairly consolidated, with international chains dominating sales. KFC, McDonald's, Domino’s and Subway are all present, reflecting the popularity of western food and culture. Indeed, 4 of the top 5 operators are foreign brands, accounting for 33.2% of the market. Overall, chains generated 49% of revenues in the channel.
Valued at MYR 13.3 Billion in 2016, the FSR channel accounts for just over 23.0% of Malaysia’s total foodservice profit sector revenue and is forecast to continue growing at a sector-leading CAGR of 6.9% to 2021. Strong sales performance in the channel will be driven by Malaysia’s growing numbers of urban, middle-class consumers looking to spend their extra income on experiential out-of-home meal occasions.
Starbucks leads the Malaysian coffee & tea shop market with a 13.4% share of the market. Below, a variety of local and regional players also present, offering a variety of local Kopi style coffee houses, as well as local interpretations of western coffee shops. Overall, it is consolidated, with chains generating 58% of sales.
The report Malaysia - The Future of Foodservice to 2021 provides extensive insight and analysis of the Malaysian foodservice market over the next five years (2016-2021) and acts as a vital point of reference for operators or suppliers.
In depth, this report provides the following analysis -