Fuelled by innovative products and attuned to consumer preferences across both off-trade and on-trade channels, the Malaysian hot coffee category is experiencing significant growth. The recent insights into Malaysia’s hot drinks market underscore a compound annual growth rate of 4.5% between 2022-2027 in the hot coffee category. This growth reflects the market’s flexibility in meeting evolving consumer preferences, affirming its adaptability to changing dynamics, according to GlobalData, a leading data and analytics company.
In 2022, on-trade transactions played a crucial role, contributing 25% to the category’s value share and 10% by volume. This underscores the resilience of the sector and its ability to accommodate changing consumer behaviors.
Aayush Sharma, Consumer Analyst at GlobalData, comments: “This growth is attributed to consumers reverting to pre-COVID-19 pandemic lifestyles. GlobalData anticipates positive trends in average transaction value, transaction count, and outlet expansion from 2022 to 2027.”
Reflecting similar growth trajectories between takeaway and dine-in experiences, with takeaway sales demonstrating a slightly stronger upward trend, GlobalData forecasts notable growth in both segments within Coffee and Tea Shops from 2022 to 2027, indicative of evolving consumer preferences.
GlobalData’s Q1 2023 Consumer Survey* emphasizes that 51% of Malaysian consumers prioritize information about ingredient sources, actively avoiding artificial flavors.
This preference is evident in the market through innovative product launches, as highlighted by GlobalData’s proprietary “Product Launch Analysis” tool. A recent standout in the market is the innovative launch of ChekHup’s Coffee with Tea in the Cham Tarik variant, marking a noteworthy addition driven by inventive concepts.
This product features 100% imported Brazilian coffee beans and Kenya black tea, with a notable absence of artificial coffee flavoring. Aligned with the Novel & Experimental trend, this offering caters to consumers seeking unique flavors and healthier choices.
Sharma concludes: “The Malaysian hot coffee category continues to thrive, driven by a combination of diverse options, superior quality, and an evolving understanding of consumer preferences. With promising growth forecasts, the market is set to witness further innovation and expansion in the coming years.”
*GlobalData Q1 2023 Consumer Survey – Malaysia, with 510 respondents, published in May 2023
