- The dairy products industry in Malaysia is a rapidly growing market, with the market size estimated to be worth RM17 billion in 2023.
- The local dairy industry is expected to grow at a compound annual growth rate (CAGR) of more than 8.1% during the forecast period (2023-2027).
- The annual growth rate (CAGR) of 10 per cent is estimated for the chilled RTD milk, 8.0 per cent for ambient RTD milk, and 7.0 per cent for the yoghurt industry (2020-2025).
- The top cities in the Malaysia dairy sector are Kuala Lumpur, Penang, Johor Bahru and Kuching.
- Kuala Lumpur emerged as the largest dairy market in Malaysia, followed by Penang, Johor Bahru and Kuching.
- Key distribution channels in Malaysia dairy market are hypermarkets & supermarkets, convenience stores, food & drinks specialists, cash & carries & warehouse clubs and E- retailers. Hypermarkets & Supermarkets are the largest distribution channel in the Malaysia dairy sector.
- One of Malaysia’s largest agribusiness firms will invest RM4.5 Billion in a Large Scale Dairy Farming Project with Qatar dairy powerhouse Baladna.
- Milk alternatives remains the most dynamic category in 2021 with a growing number of consumers embracing plant-based drinks as a healthier alternative to dairy, with many people being lactose intolerant.
- Another way in which producers of drinking milk products are likely to look to win share is though expanding their product portfolios and expanding into new areas – Dutch Lady Milk Industries Berhad and Etika Holdings are likely to continuously launch new variants in flavored milk drinks to stimulate demand, especially among children who are often attracted to the novelty of new flavors.
- Consumers in Malaysia are also becoming increasingly knowledgeable about how to eat healthily and what foods can support a balanced diet. This is expected to be beneficial to sales of processed cheese over the forecast period. High calcium and protein content cheese is widely recognized for its benefits in supporting bone and joint health, especially among growing children.
- Annual growth rate for industry (CAGR 2022 – 2027) : 6.41%
- Expected revenue of Dairy products & Egg segment in 2023 : US$55.82 billion
- Expected volume growth in 2023 : 5.6%
- Expected average volume per person in 2023 : 30.9kg
DAIRY MARKET TOP PLAYERS
- Nestle Food company
- Friesland Campina Food company
- Fonterra Dairying company
- Danone Food company
- Lactalis Corporation