Malaysia Food and Drink Report Q3 2012 Published: May 2012
No. of Pages: 90
Price: US $ 1175
The Malaysian consumer is looking to be in better shape than its regional peers to shoulder the burden of a deteriorating external climate in the coming quarters. Softening price pressure and the government’s loosening monetary policy stance should instill some support to private consumption. That said, we expect a moderation in domestic demand growth in 2012 as the worsening global headwinds inevitably dampen consumer sentiment and lead to a tightening of the consumer purse strings. With a balance between existing growth prospects and a healthy risk profile, Malaysia will continue to feature on the investment radars of regional consumer goods investors such as Asahi and The Coca-Cola Company. Headline Industry Data .. 2012 food consumption = +2.3%; compound annual growth rate (CAGR) forecast to 2016 = +2.1% .. 2012 soft drinks value sales = +4.7%; CAGR forecast to 2016 = +4.1% .. 2012 alcoholic drinks value sales = +3.3%; CAGR forecast to 2016 = +4.0% .. 2012 mass grocery retail sales = +7.3%; CAGR forecast to 2016 = +6.7% Key Industry Trends Malaysia, A Stepping Stone To Regional Ambitions: Sheng Siong, which operates 25 supermarkets in Singapore, aims to set up at least 50 outlets in Malaysia through a joint venture over the longer term. Although Malaysia may not share a similar compelling long-term retail growth story as that of the other immature and high-growth mass grocery retail (MGR) markets such as Vietnam and Indonesia due to its relative maturity, its stronger retail growth prospects, thanks to a continued middle-class expansion, nonetheless make it an attractive proposition for Sheng Siong. Attracted by Malaysia’s retail dynamics, Japanese retailer AEON will invest JPY200bn (US$2.49bn) by 2013 to expand its business footprint in Asia, including in China, Malaysia and Vietnam. Malaysia In The Sights Of Regional Players: Japanese retailer Aeon is planning to use its Association of Southeast Asian Nations (ASEAN) head office in Kuala Lumpur for expanding its business in other ASEAN countries in the next 2-3 years. The company plans to launch new shopping malls and department stores in the country using MYR350 (US$114.8mn) capital expenditure. The group is planning expansion in Cambodia, Vietnam and Indonesia, according to Abdullah Mohammad Yusof, the chairman of AEON Malaysia. Japanese brewer Asahi has announced that it intends to extend its operations across Asia through a series of acquisitions. Asahi president Naoki Izumiya said that the company had already identified viable targets in Indonesia, Malaysia, the Philippines, Thailand and Vietnam. Asahi has targeted an increase in annual sales by JPY100bn (US$1.3bn) to JPY2-2.5trn (US$0.025-0.032trn) by 2015 with 20-30% attained from overseas revenue. Meanwhile, Malaysian milk company Danone Dumex (Malaysia) has launched two milk products in the region, one for children and one for pregnant mothers. 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.
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Food and Drink Report of Malaysia Table of Contents BMI Industry View 5 SWOT Analysis . 7 Malaysia Food Industry SWOT .. 7 Malaysia Drinks Industry SWOT ... 8 Malaysia Mass Grocery Retail Industry SWOT . 9 Business Environment .. 10 BMI’s Core Global Industry Views ... 10 Asia Pacific Risk/Reward Ratings . 21 Malaysia’s Food & Drink Risk/Reward Ratings ... 25 Macroeconomic Outlook ... 27 Industry Forecast Scenario ... 32 Consumer Outlook 32 Food.. 35 Food Consumption ... 35 Confectionery... 36 Trade 38 Drink . 40 Hot Drinks ... 40 Alcoholic Drinks .. 41 Soft Drinks ... 43 Mass Grocery Retail 45 Table: MGR Sales By Format, 2010-2016 ... 47 Food . 48 Key Industry Trends And Developments ... 48 Malaysia A Key Component Of Multinationals’ Arsenal . 48 Yum’s Divestment Should Prove Supportive Of International Ambitions . 49 Building Upon Superiority In Halal Food 49 Market Overview .. 50 Food Production .. 50 Confectionery... 51 Halal 51 Agriculture ... 52 Dairy 52 Drink 54 Key Industry Trends And Developments ... 54 Malaysia Catching The Sights Of Regional Players 54 Diversification A Growing Trend Among Cognac Producers .. 55 Sharpening Profitability Coming Into Greater Focus .. 56 Market Overview .. 56 Soft Drinks ... 56 Hot Drinks ... 57 Alcoholic Drinks .. 57 Mass Grocery Retail ... 58 Key Industry Trends And Developments ... 58 Malaysia: A Stepping Stone To Regional Ambitions 58 Dairy Farm To Reap Strong Rewards From Its Regional Diversity. 59 Tesco Leapfrogs Carrefour In South East Asian Battle ... 60 Market Overview .. 61
Competitive Landscape . 65 Key Players ... 65 Company Monitor ... 67 Food.. 67 Dutch Lady .. 67 Yeo Hiap Seng (Malaysia) ... 69 Drink . 72 Permanis .. 72 F&N Berhad 74 Mass Grocery Retail . 76 Dairy Farm .. 76 Tesco Malaysia 78 Carrefour . 80 AEON Malaysia ... 82 Risk/Reward Ratings Methodology .. 84 BMI Food & Drink Industry Glossary .. 86 Food & Drink .. 86 Mass Grocery Retail 86 BMI Food & Drink Forecasting And Sources ... 87 How We Generate Our Industry Forecasts .. 87 Sources 88Table: BMI's Core Views . 20
The Malaysian consumer is looking to be in better shape than its regional peers to shoulder the burden of a deteriorating external climate i...