Ready-to-Drink (RTD) Coffee - Malaysia

The Ready-to-Drink (RTD) Coffee market in Malaysia has seen significant growth in recent years, driven by changing consumer preferences and a growing café culture in the country.

Customer preferences: Malaysian consumers are increasingly seeking convenience and on-the-go options, which has fueled the demand for RTD coffee products. Busy lifestyles and a desire for quick and easy solutions have led consumers to choose ready-to-drink options over traditional brewed coffee. Additionally, the younger generation in Malaysia has shown a particular affinity for RTD coffee, as they value convenience and are more open to trying new and innovative products.

Trends in the market: One of the key trends in the RTD coffee market in Malaysia is the increasing popularity of flavored and specialty coffee beverages. Consumers are now looking for unique and indulgent flavors, such as caramel, mocha, and vanilla, which provide a more enjoyable and satisfying drinking experience. This trend has led to the introduction of a wide range of flavored RTD coffee products in the market. Another trend in the market is the growing demand for healthier and more natural options. Malaysian consumers are becoming more health-conscious and are seeking products that are low in sugar, calories, and artificial additives. As a result, companies are launching healthier variants of RTD coffee, such as those made with plant-based milk alternatives and natural sweeteners.

Local special circumstances: Malaysia's vibrant café culture has played a significant role in the growth of the RTD coffee market. The country is known for its bustling coffee shop scene, with a wide variety of specialty coffee shops and chains. This has created a strong coffee culture and increased awareness and appreciation for coffee among consumers. As a result, there is a natural inclination towards RTD coffee products that offer a similar café-like experience in a convenient format.

Underlying macroeconomic factors: The growing middle class and increasing disposable incomes in Malaysia have also contributed to the growth of the RTD coffee market. As consumers have more purchasing power, they are willing to spend on premium and convenient products. This has created opportunities for both local and international RTD coffee brands to enter the market and cater to the evolving consumer preferences. In conclusion, the Ready-to-Drink (RTD) Coffee market in Malaysia is experiencing significant growth due to changing customer preferences, including a desire for convenience and on-the-go options. The market is also influenced by local special circumstances, such as the country's vibrant café culture. Additionally, underlying macroeconomic factors, such as a growing middle class and increasing disposable incomes, are driving the growth of the market. As a result, the RTD coffee market in Malaysia is expected to continue to expand in the coming years.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.