In 2025, concentrates in Malaysia saw growth, driven by its economic appeal for larger households, despite the rising sugar tax and other tax pressures. Liquid concentrates led sales and growth. Sunquick maintained its leadership through quality and engagement, although smaller brands showed the most dynamic growth. Small local grocers led distribution, but faced intensifying competition from supermarkets. Looking ahead, innovation is anticipated in products, packaging, and trade strategies, wit

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 produ

Despite rising costs, RTD coffee in Malaysia experienced low off-trade volume growth in 2025, sustained by on-the-go convenience and new product launches. On-trade sales remained low, as consumers favoured fresh brews. Nestlé led the competitive landscape thanks to its product and retail strategies, while Etika Beverages showed growth via broad distribution. Small local grocers led overall distribution, but faced increasing competition from the dynamic vending and retail e-commerce channels, whi

Carbonates in Malaysia saw a marginal decline in off-trade volume sales in 2025 due to rising prices, health trends, and a higher sugar tax. Reduced sugar carbonates and other non-cola carbonates drove growth, with new launches like F&N Sparkling. Sales are expected to rebound to growth in the forecast period, driven by reduced sugar variants and increasing health consciousness. Growth in tourism and marketing initiatives will also support sales. Sustainability efforts, such as waste management

RTD tea in Malaysia experienced moderate off-trade volume growth in 2025, propelled by health trends, increased tourism, and reduced sugar launches. Reduced sugar still RTD tea dominated, reflecting consumer health concerns regarding diabetes and obesity. Fraser & Neave led with diverse brands and digital marketing, while Ace Canning and Pokka Ace achieved dynamic growth through affordability. Small local grocers remained the main distribution channel, with forecourt retailers popular among on-t

Asian speciality drinks experienced a slight off-trade volume decline in Malaysia in 2025 due to the rising sugar tax, health concerns, and limited new product innovation. However, on-trade sales saw strong growth, driven by affordability, diverse offerings in foodservice, and tourism. Yeo Hiap Seng led with local sourcing and festive promotions, while Ace Canning showed dynamic growth via affordable multipacks. Small local grocers remained the main distribution channel, although forecourt retai

Bottled water in Malaysia saw moderate off-trade volume growth in 2025, driven by the hot climate and increasing health awareness. Flavoured bottled water saw the fastest growth, as a substitute for more sugary soft drinks. With a presence across categories, Spritzer Bhd maintained its lead. Bottled water is expected to continue growing in the forecast period, driven by convenience, rising tourism, and water supply disruptions. Manufacturers will focus on competitive pricing and sustainability.

Malaysia experienced sluggish off-trade volume growth for juice in 2025, due to price sensitivity, health trends, and competition from freshly blended juices in foodservice. Coconut and other plant waters drove growth, capitalising on health concerns and the desire for refreshment. Malaysia Milk maintained its lead in 2025, while Kara Marketing achieved strong growth. Hypermarkets and convenience stores remained key distribution channels. Juice is expected to see low growth in the forecast perio

Energy drinks in Malaysia experienced accelerated off-trade volume growth in 2025, boosted by affordable new products like Eastroc, and consumer demand for products to aid concentration. Regular energy drinks dominated sales, with Red Bull leading both regular energy drinks and the niche reduced sugar segment. Yee Lee Marketing (Red Bull) remained dominant through strong distribution and engagement in 2025, while Power Root challenged for shelf space. Small local grocers led distribution, althou

Sports drinks in Malaysia saw a decline in off-trade volume sales in 2025, due to rising prices and some consumers switching to affordable alternatives like bottled water. However, reduced sugar sports drinks saw low growth, driven by health-conscious consumers. A rebound to growth is expected from 2027, driven by stabilising prices and growing health awareness. Sustainability will become more of a priority, with Fraser & Neave Holdings Bhd likely to lead the way. Etika Beverages Sdn Bhd could p

In Malaysia, baked goods continues to see demand supported by the role of products such as bread and pastries as a staple source of carbohydrates in the local diet. The competitive landscape has seen some movement, as some brands have exited the market, while others have moved to fill the resulting gaps on store shelves.

Breakfast cereals is suffering from weakened consumer purchasing power and the ready availability of alternative options that are considered both more cost-effective and healthier. The discontinuation of a number of Kellogg’s lines has also adversely affected sales. However, hot cereals has managed to maintain a positive performance as it aligns with consumer demand for affordability and nutritional value.

Rice, pasta and noodles is seeing sales supported by the eligibility of such products for government aid in purchasing essential food items. This has proven particularly important in driving sales through supermarkets and hypermarkets. Meanwhile, product innovation is also playing a significant role in driving growth, particularly in instant noodle pouches, the most dynamic category.

Processed fruit and vegetables is seeing demand undermined by the ready availability of fresh produce in Malaysia. Fresh fruit and vegetables are seen as more natural and healthier than processed alternatives, as well as being affordably priced. Cooking trends, particularly the rise of air fryers, has created opportunities for some products, such as frozen processed potatoes, but even here, volumes have remained stagnant.

Staple foods sales in Malaysia are seeing growth supported by government aid programmes that cut the cost of purchasing essential items such as processed seafood, poultry, rice, and instant noodles for local consumers. Affordability remains a key concern for Malaysian consumers. However, rising health consciousness and the growing demand for convenience in the midst of busy lifestyles are also exerting an influence on consumer behaviour, as well as on manufacturers’ innovation strategies.

Processed meat, seafood and alternatives to meat is seeing growth supported by new product development targeting the rising consumer demand for convenience. However, the affordability of fresh meat and seafood encourages many consumers to cook meals from scratch with these products rather than processed options.

In 2025, coffee in Malaysia saw a rise in retail value sales but a decline in retail volumes, due to rising coffee bean prices driven by global shortages and climate change. Companies are adopting strategies to mitigate rising coffee bean prices, including local sourcing and technology. Fresh coffee was the most dynamic in 2025, driven by the continued home-brewing habit and new launches. Moving forward, both retail volume and value growth are anticipated, driven by fresh ground coffee pods. How

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 s

In 2025, tea in Malaysia experienced solid retail value growth, driven by consumers' perception of tea as a healthy beverage. Green tea saw the most dynamic performance, with double-digit growth, due to its health benefits. Boh Plantations maintained its leading position, while Odani Kokufun achieved significant growth in green tea. Hypermarkets dominated sales, but convenience stores saw dynamic growth due to outlet expansion. Tea is expected to continue to witness moderate growth, driven by it

In 2025, other hot drinks in Malaysia saw a modest retail value increase but a decline in retail volumes, due to price hikes and health concerns. However, foodservice volumes rose significantly as consumers opted for occasional treats. Retail value and volume sales are expected to grow moving forward, driven by Nestlé's rebound, new product launches, and the expansion of convenience stores. Health awareness is anticipated to boost sales of other plant-based hot drinks, with manufacturers likely

In sauces, dips and condiments, rising prices underpinned value growth in 2025, with consumers drawn to innovative products that deliver health and convenience benefits. Sauces that provide versatile meal solutions or deliver indulgent flavours have enticed consumers. Although product diversity will continue to expand, price sensitivity is expected to shape demand patterns in the years ahead, with the challenging economy prompting many consumers to adopt more frugal lifestyles.

The rising price of sweet spreads in Malaysia, caused mainly by higher input costs, provided a boost to retail value sales in 2025. Nut and seed based spreads provided a strong impetus to sales, reflecting the broader shift in consumer preferences towards healthier, more functional foods, as well as the willingness of brands to adapt to changing market dynamics through product innovation and effective marketing strategies. In the upcoming period, price sensitivity will likely result in trading d

Consumers in Malaysia were more mindful of price when buying edible oils in 2025, with a key preference for affordable lines that support everyday cooking needs. Health perceptions also shaped purchasing behaviour in edible oils drawing consumers toward sunflower oils and olive oils. This trend will shape developments over the forecast period with health-forward innovations expected to bring more premium lines to the market.

Cooking ingredients and meals experienced solid value growth in 2025, driven by rising prices and a steady flow of new products offering quick, nutritious, and affordable options. Volume sales weakened slightly in the face of ongoing price sensitivity and higher retail prices, although demand was boosted by government aid enabling over 5.4 million low-income households to buy essential cooking products.