FMCG market in Malaysia - statistics & facts
Whether it is to buy rice, bread, or milk, around one-fifth of Malaysian households’ consumption expenditure is spent on the fast-moving consumer goods (FMCG) segment like food and beverages, making it one of the most important sectors in the industry. Nevertheless, the FMCG industry in Malaysia is facing the impact of increasing inflation rates in the country. As a result, most FMCG segments experienced a slow year-on-year growth.
The beauty and personal care segment in Malaysia was still expected to grow amidst rising prices, with stable year-to-year revenue growth. Both well-known international personal care brands like Colgate and local brands like Safi had high consumer reach among Malaysian households. This segment was forecasted to weather the ongoing inflation as the inflation rate is expected to moderate in 2025.
On the other hand, other FMCG segments, like tobacco, saw a steady decrease in revenue for the past few years. This segment will likely suffer the impact of inflation further this year.
On the other hand, Malaysian consumers were less inclined to shop online for food and beverage products. Although there are more options for online grocery shopping in the country, including through super-app like Grab or online websites, more than 77 percent of consumers would rather purchase fresh produce in a physical store. And large supermarket chains still dominate the market share of FMCG sales channels in Malaysia.
With strong consumer demands especially in the essential segments, the FMCG market in Malaysia will remain resilient despite current challenges. Moreover, the current trend in e-commerce will give consumers more options and the convenience in purchasing different FMCG products.
Higher prices, bigger challenges for Malaysian FMCG industry
Despite the higher prices, less than half of Malaysian consumers were willing to spend less on their current lifestyle. This could mean they would still spend on everyday essentials like food and non-alcoholic beverages, and consumer demand would be a lifeline during the current inflation.The beauty and personal care segment in Malaysia was still expected to grow amidst rising prices, with stable year-to-year revenue growth. Both well-known international personal care brands like Colgate and local brands like Safi had high consumer reach among Malaysian households. This segment was forecasted to weather the ongoing inflation as the inflation rate is expected to moderate in 2025.
On the other hand, other FMCG segments, like tobacco, saw a steady decrease in revenue for the past few years. This segment will likely suffer the impact of inflation further this year.
Increase in online purchase, but physical store remains popular
The popularity of e-commerce marketplaces like Shopee and Lazada among Malaysian consumers is evident in the beauty and personal care segment. More than 25 percent of respondents surveyed in 2023, said they preferred to buy products like skincare or body care through online purchase channels.On the other hand, Malaysian consumers were less inclined to shop online for food and beverage products. Although there are more options for online grocery shopping in the country, including through super-app like Grab or online websites, more than 77 percent of consumers would rather purchase fresh produce in a physical store. And large supermarket chains still dominate the market share of FMCG sales channels in Malaysia.
With strong consumer demands especially in the essential segments, the FMCG market in Malaysia will remain resilient despite current challenges. Moreover, the current trend in e-commerce will give consumers more options and the convenience in purchasing different FMCG products.
