Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Alcoholic drinks market returns to positive performance in 2007
After declining volume sales in 2006, the alcoholic drinks market in Malaysia
posted moderate volume growth in 2007. This was largely due to less increase
in excise and import duties on alcoholic drinks under the Malaysian
Government' s 2007 budget plan, compared to the previous years in the review
period. The changes to excise tax affected only spirits due to their higher
alcohol content compared with other products. For other alcoholic drinks such
as beer, wine and RTDs, there was no increase in excise tax in 2007.
In addition, the introduction of security ink has helped the industry by
hindering smuggling activities for alcoholic drinks. The security ink helps
the Customs Department in detecting whether the duty on alcoholic drinks has
been paid. This new technology, which was introduced in 2006, has been
implemented for beer and stout in Malaysia. In 2006 alone it actually helped
the Customs Department gain an additional RM125 million in revenue. While the
figures for 2007 have yet to be released, the security ink is expected to
continue having a positive impact on the industry.
Rising health trend leads to wine' s strong showing
Alcoholic drinks on the whole in Malaysia do not have a positive image for
religious reasons, and also the unhealthy aspects of alcoholic drinks'
consumption. In particular, as health consciousness among Malaysian consumers
increases along with consumers' affluence and education, the industry faced
more negative press over the review period. Alcoholic drinks with a more
positive health image have benefited from rising health awareness among
consumers, with wine the most obvious beneficiary. As a result, wine' s
performance was very strong over the review period, with faster volume growth
in 2007 due to its image of being the least unhealthy of alcoholic drinks. In
addition, active marketing and promotional activities regarding healthy
lifestyles by industry players, such as regular wine articles in local media,
and regular wine tasting sessions, have also fuelled demand.
Beer players still dominate alcoholic drinks market
The Malaysian alcoholic drinks industry is rather consolidated with several
key players. Over the review period the industry continued to be dominated by
beer, which is a duopoly led by foreign players Carlsberg Brewery Malaysia Bhd
and Guinness Anchor Bhd. While local players such as Luen Heng Agency Sdn Bhd
also have a notable presence, it is typically for non-beer products, and thus
they held only rather small value shares up to 2006. As Malaysia does not have
a strong drinking culture, most of the brands present and dominant are
international brands such as Carlsberg and Heineken, or regional brands such
as Tiger.
More positive outlook for the industry
The alcoholic drinks market in Malaysia is expected to continue performing
positively over the forecast period, and at a better pace than seen over the
review period. All products within the alcoholic drinks market, except
negligible cider/perry, are expected to see positive growth. The improved
performance will continue to be generated by more significant demand for well
known brands, which are expected to become increasingly significant in coming
years.
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