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Malaysia - The Future of Foodservice to 2021

Malaysia - The Future of Foodservice to 2021

Summary

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 -

  • Overview of the Malaysian macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on the Malaysian foodservice market including GDP per capita, consumer price index, population growth and annual household income distribution.
  • Growth Dynamics: In-depth data and forecasts of key channels (QSR, FSR, Coffee & Tea Shops) within Malaysia’s foodservice market, including the value of the market, number of transactions, number of outlets and average transaction price.
  • Customer Segmentation: identify the most important demographic groups, buying habits and motivations that drive out-of-home meal occasions among segments of the Malaysian population.
  • Key Players: Overview of market leaders within the three major channels including business descriptions and number of outlets.
  • Case Studies: Learn from examples of recent successes and failures within the Malaysian foodservice market.
Companies mentioned in this report: KFC, McDonald's Corporation, Hot & Roll, Domino's Pizza, Subway, Pizza Hut, Secret Recipe, Sushi King, The Chicken Rice Shop, Kenny Rogers Roasters, Starbucks, OldTown White Coffee, Chatime, Big Apple Donuts & Coffee, Dunkin' Donuts, Tealive.

Scope
  • Rising prices are ‘putting the squeeze’ on consumers. While they remain cautious, profit sector foodservice continues to grow, reflecting a cautious optimism.
  • The urban/rural divide continues to be a major obstacle to the expansion of foodservice outside of cities. Additionally, as the country becomes more urbanized, there is downward pressure on outlet expansion.
  • Core consumers pushing foodservice growth are the growing middle class. While these consumers are expected to come under renewed pressure due to rising prices, they do not show signs of retreating from the market.
Reasons to buy
  • Specific forecasts of the foodservice market over the next five years (2015-2020) will give readers the ability to make informed business decisions through identifying emerging/declining markets.
  • Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR, Coffee & Tea shops) will allow readers understand the wants and needs of their target demographics.
  • Relevant case studies will allow readers to learn from and apply lessons discovered by emerging and major players within Malaysia's foodservice market.


  • Introduction
    • Report Guide: Main Sections
    • Report Guide: Sub-Sections
    • Executive Summary
    • Executive Summary: Consumer Trends
  • Macroeconomic context
    • Macroeconomic Overview
    • Demographic Overview: Population
    • Demographic Overview: Income Bands
  • Introducing consumer segments
    • Introducing Consumer Segments: Constructing the Segments
    • Introducing Consumer Segments
    • Introducing Consumer Segments: Frugal Convenience-Seekers
    • Introducing Consumer Segments: Time-Poor Experimenters
    • Introducing Consumer Segments: Sporadic Splurgers
    • Introducing Consumer Segments: Regimented Routiners
    • Introducing Consumer Segments: Inbetweeners
    • Introducing Consumer Segments: Key Channel Overview
  • Profit sector
    • Profit Sector Metrics
      • Table Despite economic uncertainty, growth in the profit sector is set to accelerate
    • Profit Sector: Value and Share by Channel
    • Profit Sector: Value Growth by Channel
    • Profit Sector: Outlets and Growth by Channel
    • Profit Sector: Transactions and Growth by Channel
    • Profit Sector: Operator Buying Volumes and Growth by Channel
    • Profit Sector: Channel Historic Growth Dynamics
    • Profit Sector: Channel Future Growth Dynamics
    • Profit Sector: Restaurant: Outlet-Type Growth Dynamics
      • Table Restaurant outlet types 2016 Value (MYR million)
      • Table Restaurant outlet types 2016 value growth
    • Profit Sector: Restaurant: Type of Ownership Growth Dynamics
      • Table Restaurant owner types 2016 Value (MYR million)
      • Table Restaurant owner types 2016 value growth
  • Quick service restaurants (QSR)
    • QSR: Summary
    • QSR: Metrics: Growth Dynamics
      • Table Inflation and rising footfall drive QSR growth
    • QSR: Key Players
    • QSR: Key Consumers: Segment Overview
    • QSR: Key Consumers: Frugal Convenience Seekers
    • QSR: Key Consumers: Time-Poor Experimenters
    • QSR: Key Consumers: Sporadic Splurgers
    • QSR: Key Consumers: Regimented Routiners
    • QSR: Key Consumers: Inbetweeners
    • QSR: Key Consumers: Opportunity Areas
    • QSR: Why?
    • QSR: What?
    • QSR: What?: Food and Drink Splits
      • Table Operator Buying Price value MYR million (USD$ million)
    • QSR: Where?
    • QSR: What Next?
  • Full service restaurants (FSR)
    • FSR: Summary
    • FSR: Metrics: Growth Dynamics
      • Table FSR to lead growth in profit sector foodservice
    • FSR: Key Players
    • FSR: Key Consumers: Segment Overview
    • FSR: Key Consumers: Frugal Convenience Seekers
    • FSR: Key Consumers: Time-Poor Experimenters
    • FSR: Key Consumers: Sporadic Splurgers
    • FSR: Key Consumers: Regimented Routiners
    • FSR: Key Consumers: Inbetweeners
    • FSR: Key Consumers: Opportunity Areas
    • FSR: Why?
    • FSR: What?
    • FSR: What?: Food and Drink Splits
      • Table Operator Buying Price value MYR million (USD$ million)
    • FSR: Where?
    • FSR: What Next?
  • Coffee and tea shops
    • Coffee & Tea Shops: Summary
    • Coffee & Tea Shops: Metrics: Growth Dynamics
      • Table Growth in fairly small coffee & tea shop channel set to expand
    • Coffee & Tea Shops: Key Players
    • Coffee & Tea Shop: Key Players: Chatime: Failure Case Study
    • Coffee & Tea Shops: Key Consumers: Segment Overview
    • Coffee & Tea Shops: Key Consumers: Frugal Convenience Seekers
    • Coffee & Tea Shops: Key Consumers: Time-Poor Experimenters
    • Coffee & Tea Shops: Key Consumers: Sporadic Splurgers
    • Coffee & Tea Shops: Key Consumers: Regimented Routiners
    • Coffee & Tea Shops: Key Consumers: Inbetweeners
    • Coffee & Tea Shops: Key Consumers: Opportunity Areas
    • Coffee & Tea Shops: Why?
    • Coffee & Tea Shops: What?
    • Coffee & Tea Shops: What?: Food and Drink Splits
      • Table Operator Buying Price value MYR million (USD$ million)
    • Coffee & Tea Shops: Where?
    • Coffee & Tea Shops: Where: OldTown White Coffee: Case Study
    • Coffee & Tea Shops: OldTown White Coffee: Trends Targeted
    • Coffee & Tea Shops: Where: OldTown White Coffee: How
    • Coffee & Tea Shops: What Next?
  • Cost sector
    • Cost Operator Trends: Historic Growth
    • Cost Operator Trends: Future Growth
    • Cost Operators: Data Breakdown
      • Table Education leads cost sector channels
  • Appendix
    • Trade and Sectors Definitions
    • Channel Definitions
    • Other Definitions
    • Key Components – Market Intelligence

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