Ken Research - Malaysia Beverages Retail Market

Increase in Organic Beverages to Boost Beverage Market in Malaysia: Ken Research Beverages consist of alcoholic and non-alcoholic beverages. The alcoholic beverages segment includes caffeinated alcoholic beverages, fruity alcoholic beverages, beer, flavoured alcoholic beverages, spirits, wines such as still wines and sparkling wines and gluten-free alcoholic beverages. Non-alcoholic beverages consist of less than 0.5% alcoholic content by volume. These beverages include soft drinks, juices, carbonated soft drinks, juice concentrate, functional drinks, ready-to-drink tea and coffee, flavoured water, nectars, still drinks, squash/syrups bottled water, energy or sports drinks, and non-alcoholic beer and wine. Other non-alcoholic beverages are dairy, soy drinks and milk alternatives are condensed milk, drinking yogurt, evaporated milk, flavoured milk, soymilk, white milk. Hot drinks are variants in hot coffee, hot tea and hot chocolate beverages. The increasing consumption of healthy drinks is one of the primary growth factors of non- alcoholic drink market. Majority of the Malaysian consumers are increasingly demanding for drinks made from natural and organic ingredients due to the awareness in health benefits and hazardous effects of ingredients. Malaysians are steadily adopting health and wellness food trends and demanding for low and zero calories, low and zero sugar, and other kinds of soft drinks. Also, the soft drink manufacturers are developing low-fat and low-sugar soft drinks to cater to the health-conscious consumers. There is also a demanding for super-premium soft- drinks, in addition to the premium soft drinks. Millennials are aware about the increasing health consciousness and are encouraging the vendors to offer authentic and sophisticated beverages. Specialty drinks or super-premium soft drinks are formulated using simple ingredients, lesser calories, and natural sweeteners such as stevia. The non-alcoholic drinks market is fragmented with the presence of several international and domestic players. It was observed that there is a stiff competition between the non-alcoholic drink manufacturers in terms of product differentiation, price, quality, distribution, and marketing.