COMPETITIVE LANDSCAPE
Nestlé maintains its lead, but its share declines for another year
In 2025, Nestlé (M) Bhd maintained its leadership of coffee in Malaysia in retail value terms, driven by the popularity of its Nescafé, Nespresso, and Starbucks brands. However, the company experienced a second consecutive year of declining share.
Innovation helps drive growth for Luigi Lavazza
In 2025, Luigi Lavazza SpA was the most dynamic company in coffee in Malaysia for a second year, despite starting from a relatively low base. The company successfully leveraged an omnichannel approach to reach consumers, offering ongoing price promotions through its official stores on e-commerce platforms such as Shopee and Lazada.
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Overview:
Understand the latest market trends and future growth opportunities for the Coffee industry in Malaysia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Coffee industry in Malaysia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Coffee in Malaysia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Coffee in Malaysia?
- To what extent are health considerations impacting consumption of Coffee in Malaysia?
- What are the traditional preferences in Coffee in Malaysia? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Coffee in Malaysia?
- Which are the leading brands in Coffee in Malaysia?
- How are products distributed in Coffee in Malaysia?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Coffee?
- Where is future growth expected to be most dynamic?
Coffee in Malaysia - Category analysis
KEY DATA FINDINGS
Rising prices hamper volume growth, but fresh coffee still performs well
Retail sales impacted by rising prices and competition from foodservice
Fresh coffee benefits from habit persistence and new launches
Fresh ground coffee pods anticipated to be a growth driver
Strategies to address the rising price of coffee beans
Challenges expected from the competition from foodservice, and potential tax rises
Nestlé maintains its lead, but its share declines for another year
Innovation helps drive growth for Luigi Lavazza
Hypermarkets dominates due to the wide product range available
Supermarkets extends its share due to convenience and affordable pricing
Hot Drinks in Malaysia - Industry Overview
Price rises limit volume growth, while the health trend is particularly evident in tea
KEY DATA FINDINGS
Continued price rises drive retail value growth and volume decline
Opportunities remain for premium variants
Tea sees the best performance due to lower price rises and health benefits
Sustainability is a growing trend in hot drinks
Growth is anticipated, with a move towards healthier products expected
Instant coffee mixes to see growth despite potential challenges due to demand for convenience
A focus on promotions likely, to encourage consumers to purchase
Nestlé’s sales return to growth thanks to new launches, but its share continues to decline
Omnichannel strategy and new launches drive growth for Luigi Lavazza
Product launches and switches drive solid growth for Boh Plantations
Small local grocers dominates distribution in value terms, but hypermarkets in volume terms
Supermarkets performs well due to outlet openings and increasing footfall
Foodservice share of volume sales continues to rise
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Coffee
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
Coffee
This is the aggregation of fresh coffee and instant coffee. Please note that foodservice sales of coffee are volumes sold to the on-trade (foodservice) sector and not those sold to the consumer.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Coffee research and analysis database.
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