Malaysia Food and Drink Report Q1 2013
Report description
The culture of consumerism is reasonably well entrenched in Malaysia given its relatively high consumption levels. As the lower and middle classes in Malaysia reap the benefits of the country’s rapid economic development, the trend of premiumisation is expected to gather pace over the coming years. We expect stronger growth prospects in the higher-value food categories such as confectionery and functional foods. The halal food sector is also expected to achieve particularly robust dynamism as more companies expand their product offerings beyond non-halal products to capture burgeoning domestic and export opportunities.
Headline Industry Data (local currency)
? 2013 food consumption = +2.9%; compound annual growth rate (CAGR) forecast to 2017 = +3.1%
? 2013 soft drinks value sales = +4.7%; CAGR forecast to 2017 = +5.1%
? 2013 alcoholic drinks value sales = +3.7%; CAGR forecast to 2017 = +4.9%
? 2013 mass grocery retail sales = +9.0%; CAGR forecast to 2017 = +8.1%
Key Industry Trends
Heineken Seals Control Of APB: In September 2012, brewing giant Heineken secured full control of Asia Pacific Breweries after the shareholders of Fraser and Neave voted in favour of the firm's SGD5.6bn (US$4.5bn) bid. Heineken has been forced to pay a hefty premium for the business, at 17X earnings before interest tax and amortisation. However, the firm's CEO has stressed that it was 'worth every dollar' owing to the firm's tremendous exposure to some of Asia's most promising beer markets, including Malaysia.
Malaysia Could Emerge As Key Growth Area For Tesco: Tesco's Asian expansion over its most recent financial year points to the firm's strategy and priorities. In the 12 months to the end of February 2012, the firm had a net gain of 415 stores in the region, of which 43 were hypermarkets, 352 were supermarkets or convenience stores and 20 were franchise stores. These figures do not include the disposal of its Japanese operations, which included 121 outlets. Of interest is the pattern of investment, with Tesco investing heavily in Thailand and South Korea but progressing relatively slowly in China despite its position as one of the region's most exciting consumer markets. With the firm facing headwinds in China and South Korea, we believe Malaysia and Thailand are likely to be the target for major investment in the short-to-medium term.
Risks To Outlook
Headwinds in the US and eurozone remain the key risks to our outlook on the Malaysian economy. Should developments in these regions turn out to be more severe than expected, we could see a continued deterioration in external demand, which could become a further drag on Malaysia’s economic growth. This scenario could dampen consumer sentiment, in turn weighing on domestic demand growth.
Table of contents
Chapter - BMI Industry View
Chapter - SWOT Analysis
Malaysia Food Industry SWOT
Malaysia Drinks Industry SWOT
Malaysia Mass Grocery Retail Industry SWOT
Chapter - Business Environment
BMI's Core Global Industry Views
Table: Core Views
Asia Pacific Food & Drink Risk/Reward Ratings
Table: Food & Drink Risk/Reward Sub-Factor Ratings, Q (score out of )
Table: Asia Pacific Food & Drink Risk/Reward Ratings, Q
Malaysia's Food & Drink Risk/Reward Ratings
Macroeconomic Outlook
Table: Economic Activity
Chapter - Industry Forecast Scenario
Consumer Outlook
Food
Food Consumption
Table: Food Consumption Indicators – Historical Data & Forecasts, ,
Confectionery
Table: Confectionery Value/Volume Sales – Historical Data & Forecasts, -
Drink
Hot Drinks
Table: Hot Drinks Value/Volume Sales – Historical Data & Forecasts, -
Alcoholic Drinks
Table: Alcoholic Drinks Value/Volume Sales – Historical Data & Forecasts, -
Soft Drinks
Table: Soft Drink Value/Volume Sales – Historical Data & Forecasts, -
Mass Grocery Retail
Table: MGR Sales By Format – Historical Data & Forecasts, -
Trade
Table: Trade Indicators – Historical Data & Forecasts, -
Chapter - Food
Key Industry Trends And Developments
Malaysia A Key Component Of Multinationals' Arsenal
Yum!'s Divestment To Prove Supportive Of International Ambitions
Building Upon Superiority In Halal Food
Market Overview
Food Production
Confectionery
Halal
Agriculture
Dairy
Chapter - Drink
Key Industry Trends And Developments
A Cloudy Revenue Outlook For YHS
BMI Confident About Dutch Lady Milk's FY Earnings Prospects
Malaysia Catching The Sights Of Regional Players
Diversification A Growing Trend Among Cognac Producers
Market Overview
Soft Drinks
Hot Drinks
Alcoholic Drinks
Chapter - Mass Grocery Retail
Key Industry Trends And Developments
Aeon Could Look To Discount Retailing, Fresh Foods
Malaysia: A Stepping Stone To Regional Ambitions
Dairy Farm To Reap Strong Rewards From Its Regional Diversity
Tesco Leapfrogs Carrefour In South East Asian Battle
Market Overview
Table: Structure Of MGR Market – Estimated Number Of Outlets, -
Table: Structure Of Malaysia's MGR Market – Sales By Format, - (US$bn)
Table: Structure Of Malaysia's MGR Market – Sales By Format, - (MYRbn)
Table: Average Sales Per Outlet By Format,
Table: Grocery Retail Sales By Type, & (%)
Chapter - Competitive Landscape
Key Players
Table; Key Players In Malaysia's Food & Drink Sector
Table: Key Players In Malaysia's MGR Sector
Chapter - Company Monitor
Food
Dutch Lady
Yeo Hiap Seng (Malaysia)
Drink
Permanis
F&N Berhad
Mass Grocery Retail
Dairy Farm
Tesco Malaysia
Carrefour
Aeon Malaysia
Chapter - Demographic Outlook
Table: Malaysia's Population By Age Group, - (')
Table: Malaysia's Population By Age Group, - (% of total)
Table: Malaysia's Key Population Ratios, -
Table: Malaysia's Rural And Urban Population, -
Chapter - Risk/Reward Ratings Methodology
Table: Rewards
Table: Risks
Weighting
Table: Weighting
Chapter - BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
Chapter - BMI Food & Drink Forecasting & Sourcing
How We Generate Our Industry Forecasts
Sourcing
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