Price rises limit volume growth, while the health trend is particularly evident in tea
Hot drinks in Malaysia saw moderate retail value growth in 2025, but a continued decline in retail volume sales. Tea outperformed other categories, driven by its relative affordability and health benefits. The health trend boosted sales of green tea, valued for its antioxidants and potential health benefits. Hot drinks is expected to see both volume and value growth over the forecast period as price rises ease, with a continued move to healthier products expected. Meanwhile, foodservice volume sales are anticipated to rise substantially, driven by the consumer desire to socialise over hot drinks.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks 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.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks 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 Hot Drinks 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 Hot Drinks in Malaysia?
- To what extent are health considerations impacting consumption of Hot Drinks in Malaysia?
- What are the traditional preferences in Hot Drinks 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 Hot Drinks in Malaysia?
- Which are the leading brands in Hot Drinks in Malaysia?
- How are products distributed in Hot Drinks 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 Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in Malaysia
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
Coffee in Malaysia
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
Tea in Malaysia
KEY DATA FINDINGS
Tea performs well as it is affordable and is perceived as healthy
A variety of factors ensure continued growth for tea in Malaysia
The health properties of green tea maintain its dynamic rising trend
Tea likely to benefit from a switch from pricier coffee, and from its health benefits
Aid programmes anticipated to continue and help maintain growth
Sustainability initiatives anticipated to continue to expand
Boh Plantations extends its lead in tea thanks to its long history and new products
Dynamic growth for green tea leads Odani Kokufun to see strong growth
Hypermarkets and small local grocers together dominate sales of tea
Convenience stores sees the most dynamic growth due to outlet expansion
Other Hot Drinks in Malaysia
KEY DATA FINDINGS
Rising prices and health concerns limit growth, but opportunities still remain
Retail values rise, but retail volume sales fall as consumers switch to other beverages
Foodservice volumes continue to see a dynamic increase as consumers switch channels
Even the best-performing category, other plant-based hot drinks, fails to see volume growth
Growth anticipated as consumers seek nutritious products, and as Nestlé rebounds
New product launches and expansion of convenience stores set to drive growth
Other plant-based hot drinks likely to benefit from growing health awareness
Nestlé sees a slight share rebound and maintains its dominance
Quaker benefits from its health initiative and associated rewards programme
Hypermarkets offer a wide product range and run marketing campaigns
Supermarkets sees the best performance due to price promotions
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Hot Drinks
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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
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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This report originates from Passport, our Hot Drinks research and analysis database.
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