In 2025, retail value sales of baby food in Malaysia experienced a marginal increase of 1%, reaching MYR2.8 billion, indicative of a largely saturated market facing substantial headwinds. Demographic and economic factors significantly influenced consumer demand, resulting in minimal growth. The declining birth rate, compounded by high living costs and inflation, led to a decrease in the number of children per family, directly affecting the demand for baby food. Furthermore, the prevalence of dua

In 2025, retail value sales of other dairy in Malaysia rose by 3% in current terms, totalling MYR1.5 billion. The growth of some of these products can be attributed to their perceived essential nature, as items such as condensed milk and cream are integral components of local dishes and beverages. Malaysian cuisine frequently incorporates them into various curries and desserts, as well as popular beverages such as coffee and tea. Furthermore, a shortage in raw coconut supply in 2024 and 2025, co

In 2025, retail value sales of drinking milk products in Malaysia experienced 4% growth in current terms, amounting to MYR2.8 billion. This increase was primarily driven by a growing awareness of the health benefits associated with consuming drinking milk products, particularly cow's milk, which is rich in calcium and protein and is believed to promote mental wellbeing. As a result, local consumers are more inclined to encourage their children to drink cow's milk daily, a habit that was further

In 2025, yoghurt and sour milk products in Malaysia experienced moderate growth, with retail value sales increasing by 4% to reach MYR877 million in current terms. Solely represented by yoghurt in the local market, the category's strong health positioning and expanding availability across both physical and online distribution channels continued to drive its performance. Urban households, in particular, showed a growing inclination towards incorporating yoghurt into their diets as a convenient an

In 2025, retail value sales of cheese in Malaysia declined by 2% in current terms to reach MYR185 million, reflecting a shift in consumer habits and economic pressures. The decrease in value sales was primarily attributed to the growing number of Malaysians adopting busy lifestyles and dining out more frequently, which subsequently reduced demand for cheese typically used in home-cooked meals and baking. Furthermore, the retail unit price of cheese continued to rise due to a lack of promotions a

In 2025, retail value sales of butter and spreads in Malaysia declined by 4% to total MYR361 million. This downturn was largely due to consumers' increasingly hectic work lives, which left them with limited time to prepare meals at home, consequently reducing their need for butter and spreads. As a result, many of them only baked at home during festive seasons, purchasing these products as needed without maintaining a steady stock. In addition, rising prices and inflation eroded the appeal of bu

In 2025, dairy products and alternatives in Malaysia demonstrated mixed trends, with retail value sales continuing to grow while retail volume sales, which held a marginally higher share than the foodservice channel, recording a slight decline. The growth in value sales can be attributed to the essential nature of key dairy categories such as butter and spreads, cheese, and drinking milk products, which are consumed daily across all demographic segments. These products benefit from wide availabi

In 2025, plant-based dairy in Malaysia recorded a 4% decline in retail value sales, falling to MYR341 million. The primary driver behind this downturn was a change in consumer priorities, triggered by inflationary impacts on household budgets, thereby resulting in more discerning spending habits. Many local consumers became cautious with their expenditure, frequently choosing essential items over premium or niche products such as plant-based dairy. Soy drinks, in particular, encountered strong c

In 2024, Malaysia was ranked seventh in the Asia Pacific region for average gross income. The country experienced a 3.1% real increase in per capita disposable income, attributed to economic growth and enhanced labour productivity. Over the 2024-2029 period, per capita disposable income is projected to grow by 22.7%, bolstered by governmental programmes and vocational training.

Malaysia’s Economic Freedom ranking declined from 2019 to 2024, influenced by heightened regulatory scrutiny. Challenges were also seen in investment freedom and labour market regulations, though business confidence improved slightly in 2024. Despite advances in trade and digital readiness, complex regulations and skills shortages may hinder long-term growth and foreign investment.

In 2024, tobacco in Malaysia was heavily influenced by the unstable local economic outlook, which saw consumers prioritising affordability in the face of increased cost-of-living and rising inflationary pressures. This economic environment led to a significant trend of trading down, with many consumers shifting from mid-price to economy cigarettes. The volume sales of premium products, such as cigars and cigarillos, contracted as these items became less attractive due to their higher price point

Retail volume sales of cigarettes in Malaysia rose by 1% in 2024, reaching 7.3 billion sticks, restoring levels to those seen in 2022 after a marginal contraction in 2023. This modest growth was driven by several factors; despite the continued dominance of illicit cigarettes, stricter compliance control and vigorous enforcement actions by the Royal Malaysia Police and Royal Malaysian Customs Department placed pressure on the black market. The gradual erosion of illicit sales, due to increased re

In 2024, retail volume sales of cigars and cigarillos in Malaysia fell by 7% to 6.2 million units, marking a second consecutive year of contraction. While brands such as Swisher Sweets and Phillies gained some share following the exit of Hav-a-Tampa and Panter in 2023, cigars and cigarillos remained a relatively niche product in the market. The unstable local economy in 2024 limited the category's ability to expand its consumer base beyond existing enthusiasts, with the majority continuing to pr

In 2024, retail value sales of e-vapour products in Malaysia rose by 19% to total MYR1.9 billion. This surge was primarily driven by the continued traction of closed system single use, which returned to the local market in 2021. Young adult consumers, in particular, favour closed system products for their convenience, portability, and consistent performance. The popularity of the format has led to a notable cannibalisation of open vaping systems, which are considered less practical due to the ne

A coalition government has led to political stability and economic freedom is high in a regional context. However, the state’s suppression of critics has dented freedoms. Economic development is robust, supported by low inflation and falling interest rates, but tariffs could harm exports in the short term. Consumer spending is rising, benefiting from urbanisation, but health issues are growing. A second 5G network will boost the mobile sector, but cybersecurity remains a key concern for firms.

Sales of video games in Malaysia experienced further growth in 2024, driven by mobile games and government support for esports. Greater smartphone penetration and affordability contributed to the rise in mobile gaming expenditure, particularly among younger consumers. Localised game development and the emergence of cloud gaming also played a role in shaping the category. E-commerce continued to dominate distribution, driven by the rising preference for digital content.

In 2024, value sales of traditional toys and games in Malaysia notably increased, driven by the popularity of dolls and collectibles among children and adults alike. This was further boosted by celebrity and influencer endorsements. There is also growing demand for educational toys and games to enhance children's skill sets. While the competitive landscape remains fragmented, concentration is increasing, while traditional toys and games stores continues to dominate distribution.

Toys and games in Malaysia recorded further value growth in 2024, largely due to the rising popularity of products targeting kidults, licensed intellectual property, and educational toys. Development is also being influenced by strategic partnerships and the accessibility of cloud gaming. However, challenges such as inflation and a decrease in fertility rates persist, and the industry is further complicated by the coexistence of e-commerce and traditional retail.

In 2024, total soft drinks packaging volumes in Malaysia rose by 0.4% to 4.0 billion units. This was a slowdown in growth from the previous couple of years, due to stabilisation after post-pandemic recovery, and economic pressures. However, growth continued, due to revitalised consumer spending and out-of-home consumption, stimulating demand for on-the-go beverage formats, particularly in PET bottles and metal beverage cans. Heightened health awareness also encouraged the consumption of bottled

In 2024, Malaysia's hot drinks packaging volumes declined, with a decrease in total packaging retail volumes of 3% to 544 million units. The decline was partly driven by the shift in consumer preference towards ready-to-drink (RTD) tea and coffee products within soft drinks, which negatively impacted hot drinks packaging volumes. Additionally, some consumers limited purchases amidst cost-of-living pressures, or looked for more affordable options. Meanwhile, heightened environmental awareness, an

Sales of sugar confectionery in Malaysia continue to evolve, driven by a blend of nostalgia, innovation, and increasing health awareness. For instance, Malaysian consumers are increasingly being drawn to products that offer unique sensory experiences, such as chewy, sour, or texturally rich. This is evident in the popularity of items like Peppinez sour-filled candies and Sochew Bars, which combine sticky textures with bold flavours. These products not only appeal to children but also resonate wi

In 2025, the Malaysian chocolate confectionery market is undergoing a shift towards premiumisation, driven by both consumer preferences and economic pressures. Malaysians are increasingly drawn to smaller, more indulgent chocolate formats that offer a sense of luxury without the guilt of overconsumption. For example, Snickers’ fun size bars and similar miniaturised offerings have become popular, allowing consumers to enjoy chocolate in controlled portions. This trend aligns with growing health c

In 2025, chewing gum continues to serve a unique role in the daily routines of Malaysians, particularly among drivers and working adults. In a car-reliant culture, chewing gum is valued for its ability to freshen breath and maintain alertness during long commutes. These functional benefits have helped chewing gum retain a loyal consumer base, even as other snacks categories have diversified. Brands like Doublemint and Extra remain staples in convenience stores and forecourt retailers, where impu

In 2025, sweet biscuits, snack bars, and fruit snacks continues to be a staple in Malaysian households, with evolving roles in daily consumption. Traditionally seen as indulgent treats, these products are now increasingly positioned as convenient, portion-controlled snacks that align with health-conscious lifestyles. Brands are responding by offering smaller pack sizes and highlighting functional benefits such as baked, not fried, wholemeal, or digestive-friendly. This shift is particularly evid