Navigating rising costs and the health trend in soft drinks
In 2025, soft drinks in Malaysia experienced low off-trade RTD volume growth, constrained by rising costs and the increased sugar tax, which prompted consumers to seek more affordable brands. Conversely, on-trade sales saw significant growth, driven by indulgence, portion control, and a boost in tourism. New product launches, particularly healthier options, targeted younger demographics. Future growth is anticipated to be stable, supported by government aid and evolving health trends, with product reformulation likely due to expected further rises in sugar taxes. F&N maintained its leadership in 2025, while Kara Marketing demonstrated dynamic growth, thanks rising demand for healthy coconut water.
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Overview:
Understand the latest market trends and future growth opportunities for the Soft 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:
- Bottled Water
- Carbonates
- Concentrates
- Juice
- RTD Coffee
- RTD Tea
- Energy Drinks
- Sports Drinks
- Asian Speciality Drinks
If you're in the Soft 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 Soft 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 Soft Drinks in Malaysia?
- To what extent are health considerations impacting consumption of Soft Drinks in Malaysia?
- How are changing social attitudes and legislation (eg sugar tax) reshaping demand and consumption?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Soft Drinks in Malaysia?
- Which are the leading brands in Soft Drinks in Malaysia?
- What potential exists for multinational or domestic soft drinks companies to expand in Malaysia?
- How are products distributed in Soft Drinks in Malaysia?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How have home seclusion and social distancing measures following COVID-19 impacted sales of Soft Drinks?
- How are sustainability issues, such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, impacting the soft drinks industry?
- Where is future growth expected to be most dynamic?
Soft Drinks in Malaysia
Navigating rising costs and the health trend in soft drinks
KEY DATA FINDINGS
Inflation and sugar tax limit the growth of soft drinks in 2025
On-trade growth as consumers indulge and tourist arrivals rise
Soft drinks sees innovation drive youth engagement amidst off-trade slowdown
Government aid and health trend expected to drive stable growth in soft drinks
Sugar tax pressures to reshape soft drinks, with focus on reformulation
Tourists will prioritise safety, driving demand for bottled water and coconut water
F&N maintains its lead in soft drinks, leveraging diverse portfolio against rising costs
Local sourcing, broad distribution, and engaging campaigns propel dynamism for Kara Marketing
Small local grocers maintains its lead amidst intensifying channel competition
Convenience stores, forecourt retailers, and supermarkets see distribution growth
On-trade surges with convenience and tourism, outpacing minimal off-trade growth
Fountain sales in Malaysia
COUNTRY REPORTS DISCLAIMER
Bottled Water in Malaysia
KEY DATA FINDINGS
Hot climate and health awareness drive continued growth for bottled water
Malaysia’s hot weather drives growth, although filtered water prevents a stronger rise
Flavoured bottled water competes successfully with sugary soft drinks
Continued growth as consumers turn to healthier soft drinks options
A move towards vending, and an increasing focus on sustainability
CAP calls on the government and consumers to take action, which could hamper growth
Marketing, launches, and wide shelf presence maintain volume lead for Spritzer
Divergent performances for Coca-Cola brands Schweppes Soda Water and Dasani
Large pack sizes which offer value for money favoured in hypermarkets
Travellers appreciate the product range offered by convenience retailers
Carbonates in Malaysia
KEY DATA FINDINGS
Health trend and high sugar tax hamper growth but reduced sugar carbonates grows
Switch to on-trade, rising prices, and health trend contribute to slight volume decline
Launches contribute to growth for other non-cola carbonates
A return to volume growth, driven by reduced sugar carbonates
New product launches and marketing campaigns will contribute to growth
A focus on sustainability to mitigate the impact of sugar taxes
Marketing initiatives help Coca-Cola Bottlers maintain its lead
Competitive prices and product launches help Fraser & Neave see dynamism
Small local grocers maintains its lead, but has to compete with supermarkets
Travellers boost sales for forecourt retailers
Concentrates in Malaysia
KEY DATA FINDINGS
Economic appeal drives growth amidst evolving tax and health landscape
Economic appeal drives growth amidst rising tax pressures
Liquid concentrates drives growth, bolstered by Vimto's strategic entry
Health concerns to drive innovation in packaging and trade strategy
AI set to boost efficiency in the concentrates supply chain
Concentrates will brace for higher sugar tax, driving reformulation efforts
Sunquick leads concentrates with quality and creative engagement
Boh Plantations navigates the sugar tax, while the smallest brands see dynamic growth
Small local grocers leads, but supermarkets intensifies the competition
Supermarkets attract shoppers of concentrates with wide range and promotions
Concentrates conversions
Juice in Malaysia
KEY DATA FINDINGS
Price sensitivity and health concerns limit growth
Growth limited by sugar tax, health trend, and sales of fresh juice in foodservice
Health trend drives growth for coconut and other plant waters
Growth will be harder to achieve as consumers become more health-conscious
Focus on using AI for operational efficiency, and modern retailers for distribution
Potential further increase in the sugar tax could impact growth
Malaysia Milk extends its lead thanks to quality, wide presence, and marketing
Local ingredient sourcing and wider distribution boost sales for Kara Marketing
Hypermarkets maintains its distribution lead due to wide product range
Outlet expansion and popularity among younger consumers drives growth for convenience stores
RTD Coffee in Malaysia
KEY DATA FINDINGS
Convenience and product launches drive growth
RTD coffee sees low growth amidst rising costs, thanks to on-the-go convenience
New product innovations sustain demand in RTD coffee in Malaysia
Off-trade growth to be driven by continuous product innovation and partnerships
Imported brands set to diversify the category with unique flavours and strategic distribution
Sugar tax pressures likely to encourage RTD coffee manufacturers to reformulate
Nestlé leads RTD coffee, overcoming challenges with product and retail strategy
Extensive distribution and diverse variants drive growth for Etika Beverages
Small local grocers leads distribution despite growing competition
Vending and e-commerce are dynamic channels, driven by convenience and value
RTD Tea in Malaysia
KEY DATA FINDINGS
A landscape of health-driven innovation and competitive dynamics
Health trend, tourism, and product launches fuel moderate growth for RTD tea
Health concerns drive reduced sugar still RTD tea to extend its dominance
RTD tea set to see dynamic growth, driven by demand for healthy soft drinks
New products and global partnerships to drive the evolution of RTD tea
Higher sugar tax fuels competition and strategic shifts in reduced sugar RTD tea
Fraser & Neave leads RTD tea with diverse portfolio and strategic marketing
Ace Canning and Pokka Ace see dynamic growth through affordability
Small local grocers leads RTD tea distribution through proximity and value
Forecourt retailers is the most dynamic channel, catering to on-the-go demand
Energy Drinks in Malaysia
KEY DATA FINDINGS
Urbanisation, competition, and distribution innovation shape energy drinks
More affordable product launch contributes to growth for energy drinks
Regular energy drinks drives sales and growth
Urbanisation to fuel steady growth in energy drinks, but competitive pressures mount
Tech-enhanced vending and multipacks set to reshape energy drinks retail
Sugar tax surge may prompt consumer shift and impact marketing
Red Bull leads thanks to a blend of quality, distribution, and strategic engagement
Yee Lee Marketing drives dynamism but Power Root aims to challenge shelf dominance
Accessibility and multipacks drive sales of energy drinks in small local grocers
Vending is the most dynamic distribution channel amidst retail cost pressures
Sports Drinks in Malaysia
KEY DATA FINDINGS
Rising prices lead to greater consumer caution and volume decline
Rising prices and the resultant switch to other soft drinks prevents volume growth
The growth of reduced sugar sports drinks cannot prevent overall decline
Rising health awareness and price stabilisation expected to drive a return to growth
Companies will respond to increasing consumer demand for sustainable options
Potential competition for Fraser & Neave in reduced sugar sports drinks
Catering to everyday hydration allows Fraser & Neave to maintain its dominance
Etika Beverages sees a better volume performance
Small local grocers and hypermarkets remain stable in the leading positions
Slower off-trade volume declines for convenience retailers and vending
Asian Speciality Drinks in Malaysia
KEY DATA FINDINGS
On-trade surges amidst off-trade decline, impacted by health and prices
Off-trade volume decline driven by sugar tax and health concerns
The on-trade channel benefits from comparative affordability and variety
Consumer health concerns and tourism to reshape Asian speciality drinks
AI and multipacks likely to be key strategies in Asian speciality drinks
Anticipated sugar tax hikes to drive reformulation in Asian speciality drinks
Local sourcing and strategic festive promotions drive Yeo Hiap Seng's lead
Affordable pricing and multipacks drive solid growth for Ace Canning
Small local grocers lead distribution through price and proximity
Convenience channels sees dynamism in Asian speciality drinks
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Soft Drinks
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- Carbonated Natural Mineral Bottled Water
- Carbonated Spring Bottled Water
- Carbonated Purified Bottled Water
-
- Still Flavoured Bottled Water
- Sparkling Flavoured Bottled Water
- Functional Bottled Water
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- Still Natural Mineral Bottled Water
- Still Spring Bottled Water
- Still Purified Bottled Water
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- Regular Carbonates
- Reduced Sugar Carbonates
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- Regular Cola Carbonates
- Reduced Sugar Cola Carbonates
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- Regular Non-Cola Carbonates
- Reduced Sugar Non-Cola Carbonates
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- Regular Lemonade/Lime
- Reduced Sugar Lemonade/Lime
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- Regular Tonic Water/Mixers/Other Bitters
- Reduced Sugar Tonic Water/Mixers/Other Bitters
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- Regular Orange Carbonates
- Reduced Sugar Orange Carbonates
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- Regular Other Non-Cola Carbonates
- Reduced Sugar Other Non-Cola Carbonates
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- Liquid Concentrates
- Powder Concentrates
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- Not from Concentrate 100% Juice
- Reconstituted 100% Juice
- Coconut and Other Plant Waters
- Juice Drinks (up to 24% Juice)
- Nectars
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- RTD Coffee
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- Carbonated RTD Tea and Kombucha
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- Regular Still RTD Tea
- Reduced Sugar Still RTD Tea
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- Regular Energy Drinks
- Reduced Sugar Energy Drinks
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- Regular Sports Drinks
- Reduced Sugar Sports Drinks
- Asian Speciality Drinks
Soft Drinks
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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This report originates from Passport, our Soft Drinks research and analysis database.
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