In 2025, Malaysia’s snacks market is being reshaped by economic pressures and shifting consumer sentiment. A key driver is the country’s persistently low wage levels and underemployment, which have left many Malaysians with limited disposable income and savings. This economic strain has led to more cautious spending behaviour, especially on non-essential items like snacks. At the same time, since 2024 some consumers have been avoiding buying Western brands sparked by political and ethical concerns which has significantly impacted multinational companies such as Nestlé, Unilever, and Mondelez. These players have struggled to regain consumer trust, resulting in a notable decline in demand.
In 2025, Malaysian consumers are increasingly split between two ends of the snacking spectrum: premium indulgence and budget-conscious practicality. On one side, affluent consumers are gravitating towards high-end products, such as Häagen-Dazs ice cream, which offer rich flavours and sophisticated textures. These products are seen as occasional luxuries, often purchased for self-reward or gifting. On the other hand, a large section of the population, constrained by stagnant wages and rising living costs, are turning to low-cost alternatives. Dollar stores and small local grocers have become essential shopping destinations, offering affordable snacks that meet basic cravings without straining household budgets. This polarisation reflects a broader economic divide and signals the need for brands to tailor offerings to both ends of the income spectrum either by increasing value through improved quality and experience or by innovating in cost-effective formats.
Despite maintaining their positions at the top, the leading multinational companies in Malaysia’s snacks market Mondelez, Nestlé, and Unilever—experienced notable declines in 2024 and have struggled to recover in 2025. Mondelez, which ranks first, has seen its strong lead in sweet biscuits eroded as consumers shift toward local alternatives. Products like Oreo and Chips Ahoy! Chipsmore now face stiff competition from homegrown brands that offer similar taste profiles at lower prices. Nestlé, in second place, and Unilever, in third, have also struggled to maintain momentum, particularly in categories like savoury snacks and ice cream. While these players and their brands still benefit from strong distribution and brand recognition, their growth has slowed due to the impact of some local consumers shunning Western brands. Mondelez, in particular, must act swiftly to secure its leadership by localising offerings and reinforcing its relevance in a market that is increasingly favouring regional authenticity and affordability.
In 2025, small local grocers continue to play a vital role in Malaysia’s snacks distribution landscape. These outlets remain especially dominant in categories like savoury snacks and impulse ice cream. Their strength lies in their accessibility and cultural familiarity—Malaysians often visit these shops as part of their daily routine, making them ideal for spontaneous snack purchases. For savoury snacks, which are often shared among family and friends, small local grocers offer a convenient and trusted source. These stores also cater to price-sensitive consumers, offering affordable options in smaller pack sizes. Despite the rise of modern retail formats, the emotional and habitual connection Malaysians have with their neighbourhood stores ensures that these traditional channels remain relevant and resilient.
Looking ahead, local brands are expected to maintain strong momentum, particularly in categories like savoury snacks and sweet biscuits. These categories have proven to be highly responsive to local preferences, offering flavours and formats that resonate with Malaysian consumers. Brands such as Julie’s, Hup Seng, and Munchy’s have built trust through their affordability, familiarity, and consistent quality. Meanwhile, Western brands will continue to dominate more consolidated categories like ice cream, where brand equity and product innovation remain key. However, even in these categories, local players are beginning to challenge the status quo. For example, F&N’s King’s Potong ice cream, with its culturally relevant flavours like durian and red bean, is gaining traction. The future will likely see a more balanced market, where local and international brands coexist, each carving out their niche.
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Understand the latest market trends and future growth opportunities for the Snacks 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.
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