Wine

The Wine market in Malaysia has been experiencing steady growth in recent years, driven by changing consumer preferences and a growing middle class.

Customer preferences: Malaysian consumers have traditionally favored beer and spirits over wine, but there has been a shift in preferences towards wine in recent years. This can be attributed to a number of factors, including increasing exposure to Western culture and lifestyles, as well as a growing interest in wine as a symbol of sophistication and status. Additionally, health-conscious consumers are increasingly choosing wine over other alcoholic beverages due to its perceived health benefits.

Trends in the market: One of the key trends in the Malaysian wine market is the growing popularity of imported wines. Malaysian consumers are becoming more adventurous in their wine choices and are willing to explore wines from different countries and regions. This trend is driven by a desire for variety and a growing appreciation for the unique flavors and characteristics of wines from different parts of the world. Another trend in the market is the increasing demand for premium and high-quality wines. As the middle class in Malaysia continues to grow, there is a growing segment of consumers who are willing to spend more on premium wines. This trend is also fueled by a desire for exclusivity and the status associated with consuming high-end wines.

Local special circumstances: One of the unique challenges in the Malaysian wine market is the country's predominantly Muslim population. Islam is the official religion of Malaysia, and the consumption of alcohol is strictly regulated for Muslims. This has led to a smaller target market for wine producers, as the majority of Malaysians do not consume alcoholic beverages. However, there is a significant non-Muslim population in Malaysia, as well as a growing expatriate community, which provides a market for wine producers.

Underlying macroeconomic factors: The growth of the wine market in Malaysia is also influenced by macroeconomic factors such as income levels and economic stability. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. This has made wine more affordable and accessible to a larger segment of the population. In conclusion, the Wine market in Malaysia is developing due to changing consumer preferences, including a growing interest in wine as a symbol of sophistication and status, as well as a desire for variety and high-quality wines. The market is also influenced by local special circumstances, such as the predominantly Muslim population, and underlying macroeconomic factors, including income levels and economic stability.

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.