Spirits - Malaysia

The Spirits market in Malaysia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances.

Customer preferences: In Malaysia, there has been a growing preference for premium and craft spirits among consumers. This shift in preferences can be attributed to several factors, including increasing disposable income, changing lifestyles, and a desire for unique and high-quality products. Consumers are now more willing to explore and experiment with different types of spirits, such as whiskey, gin, and vodka, leading to a surge in demand for these products.

Trends in the market: One of the key trends in the Spirits market in Malaysia is the rise of locally produced spirits. Malaysian distilleries have been gaining recognition for their craftsmanship and innovative approach to spirit production. This trend is driven by the growing interest in supporting local businesses and the desire for unique, locally made products. As a result, local spirits brands have been able to carve out a niche for themselves in the market, offering consumers a distinct and authentic experience. Another trend that has been observed in the market is the increasing popularity of cocktail culture. Malaysian consumers are increasingly embracing the art of mixology and are experimenting with different spirits and flavors to create unique and personalized cocktails. This trend has led to a surge in demand for premium spirits that are suitable for crafting high-quality cocktails. As a result, bars and restaurants are expanding their spirits offerings to cater to this growing demand.

Local special circumstances: One of the key factors that have contributed to the growth of the Spirits market in Malaysia is the country's diverse cultural heritage. Malaysia is home to a multicultural society, with a rich mix of Malay, Chinese, and Indian influences. This diversity has resulted in a wide variety of spirits being consumed in the country, ranging from traditional rice-based spirits to imported whiskey and vodka. This multicultural aspect of Malaysia's spirits market has created a unique and vibrant landscape, with consumers seeking out both traditional and international spirits.

Underlying macroeconomic factors: The growth of the Spirits market in Malaysia can also be attributed to favorable macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending power. This has allowed consumers to indulge in premium and high-quality spirits, driving the demand for these products. Additionally, Malaysia's tourism industry has been booming, with an increasing number of international tourists visiting the country. This has further contributed to the growth of the Spirits market, as tourists often seek out local spirits and beverages as part of their cultural experience. In conclusion, the Spirits market in Malaysia is experiencing growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The preference for premium and craft spirits, the rise of locally produced spirits, the popularity of cocktail culture, Malaysia's diverse cultural heritage, and favorable macroeconomic conditions have all contributed to the development of the market. As the market continues to evolve, it is expected that the demand for spirits in Malaysia will continue to grow.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.