Beer market in Malaysia

Beer has become a staple drink in Malaysia, especially among the younger generation. The beer market in Malaysia has seen steady growth over the years, with a variety of local and imported brands competing for market share. In this article, we will explore the current state of the beer market in Malaysia, including its current trends and major players.

Market Overview

The beer market in Malaysia is a growing industry, with a total revenue of US$1.1 billion in 2020. The market is expected to grow annually by 6.8% (CAGR 2021-2025), reaching a total market volume of US$1.6 billion by 2025.

There are several factors driving the growth of the beer market in Malaysia. Firstly, the country's diverse population and multicultural food scene has helped to raise awareness of beer and attract beer enthusiasts to the market. Secondly, Malaysia's growing economy and increasing urbanization have led to a rise in disposable income, allowing consumers to spend more on leisure activities such as drinking beer. Lastly, Malaysia's growing tourism industry has attracted a diverse range of visitors who contribute to the demand for a variety of beer types and brands.

Market Segmentation

The Malaysian beer market is segmented into three primary categories: lager, ale/stout, and other beer types. Lager is the most popular beer type, accounting for approximately 85% of the market. Ale/stout makes up around 10%, while other beer types, such as wheat beer and fruit beer, account for the remaining 5%.

In terms of distribution channels, the on-trade (bars, pubs, and restaurants) is the dominant channel, accounting for approximately 70% of beer sales in Malaysia. Off-trade channels, such as supermarkets and convenience stores, account for the remaining 30%.

Major Players

There are several major players in the Malaysian beer market, both local and international. Here are some of the most significant players:

  1. Carlsberg Malaysia Carlsberg Malaysia is a subsidiary of the Danish brewing company Carlsberg Group. The company produces beer brands such as Carlsberg, Kronenbourg 1664, and Somersby Cider. Carlsberg is the market leader in Malaysia with a market share of approximately 40%.

  2. Heineken Malaysia Heineken Malaysia is a subsidiary of Heineken International. The company produces beer brands such as Heineken, Tiger Beer, Guinness, and Anchor. Heineken Malaysia has a market share of approximately 25%.

  3. Guinness Anchor Berhad (GAB) GAB is a Malaysian brewing company that produces beer brands such as Guinness, Anchor, and Tiger Radler. The company has a strong presence in the Malaysian beer market, with its products available in many bars, pubs, and supermarkets.

  4. Asia Pacific Breweries (APB) APB is a subsidiary of Heineken International and produces Tiger Beer, Singapore's most popular beer brand. The company also produces other beer brands such as Heineken, Anchor, and Baron's Strong Brew, which are available in Malaysia.

Trends and Opportunities

The beer market in Malaysia is constantly evolving, with new trends and opportunities emerging regularly. Here are some of the latest trends and opportunities in the market:

  1. Craft Beer Craft beer has been gaining popularity in Malaysia in recent years, as more consumers seek out unique and flavorful beer options. The growing interest in craft beer has created opportunities for local breweries to enter the market and compete with larger, established brands.

  2. Low Alcohol and Non-Alcoholic Beer Low alcohol and non-alcoholic beer are becoming increasingly popular in Malaysia, as more consumers prioritize health and wellness. These products offer an alternative to traditional beer and appeal to those who want to enjoy the taste of beer without the effects of alcohol.

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