2023 Malaysian

Beverage Report

2023.09
 [Index]

I. Market Overview 1

II. Market Potential and Trend 5

1. Growth Drivers and Trends 5

2. Forecasted Beverage Market 9

III. Key Beverage Products in Malaysian Market 10

1. Local Brands 11

2. Imported Brands 15

3. Korean Brands 18

IV. Market Access and Entry 24

1. Distribution Channel 24

2. Legislation and Regulations 39

3. Labelling Requirements 41

4. Halal Certification 45

V. Strategies for Expansion of Korean Beverage 48

1. SWOT Analysis 48

2. Export Expansion Plan 53

 Summary

I. Market Overview

• The beverage industry in Malaysia is a growing market.

➢ Malaysian beverage market size was valued at 9,481 billion MYR(2.64 billion litres)

in Q4 2022.

• The market is segmented into five main categories: packaged water, milk,

carbonated drinks, juice, and hot drinks (coffee and tea).

➢ Coffee and tea market size was 3382.8 million MYR in 2022, in which the sales

performance grew by 5.58% YoY compared with 2021.

➢ Packaged water market size was 930.2 million MYR in 2022, in which the sales

performance grew by 12.14% YoY compared with 2021.

➢ Milk market size was 2249.9 million MYR in 2022, in which the sales performance

grew by 5.34% YoY compared with 2021.

➢ Carbonates market size was 2037.7 million MYR in 2022, in which the sales

performance grew by 13.27% YoY compared with 2021.

➢ Juice market size is 880.4 million MYR in 2022, in which the sales performance

grew by 10.15% YoY compared with 2021.

II. Market Potential and Key Beverage Products

• The beverage industry in Malaysia is a growing market.

➢ The key drivers of growth in the Malaysian beverage market are increasing wealth

and disposable income of consumers, rich cultural diversity, growing health

consciousness among consumers changes in methods of shopping

• From 2023 to 2026, the size of the Malaysian beverage market is anticipated to

increase at a CAGR of 4.42%, reaching 11,961.50 million MYR.

 ➢ Still packaged water is expected to have the highest CAGR of 6.70%, followed by

milk and carbonated drinks.

➢ Coffee and tea are expected to reach sales of MYR 4,099 million by the year 2026.

➢ Drinking water and juice are expected to reach sales of MYR 2,404.5 million by

2026, driven by the consumer demand for organic and healthy beverages.

• To stand out in the competitive Malaysian beverage market, brands create unique

identities for their products by tailoring them to local taste buds.

➢ Beverage products in Malaysian market are not limited to local products.

➢ Local products have shorter shelf-life, cheaper in price and has more size variations

compared to imported products

III. Market Access and Entry

• Retail channels in Malaysia are expected to see strong growth in 2023.

➢ The three main offline channels for beverages in Malaysia are hypermarkets,

supermarkets, and convenience stores.

➢ Online retailing is also a growing distribution channel for beverages in Malaysia.

• The Food Act 1983 and the Food Regulations 1985 are the two main pieces of

legislation that regulate food in Malaysia.

➢ Labels for beverages sold in Malaysia must be in Bahasa Malaysia or English and

must include information regarding the product's designation, ingredients, allergens,

and nutritional content.

➢ Certain types of claims are allowed on food labels, such as nutrient content claims,

nutrient comparative claims, and nutrient function claims.

• Malaysia is the global market leader in Halal.

➢ Halal products are those that meet Islamic dietary requirements and are safe for

consumption.

➢ Halal certification is not mandatory in Malaysia, but it is important for businesses

that want to reach the Muslim market in Malysia and other countries.

➢ The Malaysian Department of Islamic Development (JAKIM) is the agency

responsible for Halal certification in Malaysia.

➢ Foreign certifying bodies can also be accredited by JAKIM to certify Halal products.

IV. Strategies to Expand Korean Beverage Export to Malaysia

• The beverage industry in Malaysia is facing some challenges such as small

population, low price items from China and Thailand, but there are also a number

of opportunities for growth.

➢ Korean companies can increase their beverage exports to Malaysia by obtaining a

Halal certification, focusing on product differentiation by offering unique flavours,

and targeting health-conscious Malaysians.

➢ The Increasing Trend of Korean Beverage Consumption Around Malaysian

Convenience Stores

➢ The popularity of Hallyu (Korean Wave) continues, leading to increased awareness

and consumption of Korean products among the MZ generation.

I. Market Overview
A beverage is a liquid intended for human consumption. Beverage can be divided into

acholic and non- alcoholic. This report focuses on non- alcoholic beverages. Non-alcoholic

beverages are comprised of water, milk, carbonated drinks, juice, and hot drinks. Hot drinks

are further divided into coffee and tea.

➢ As one of the most important industries that satisfy daily human necessities,

beverage industry has witnessed a surge in market share. As a result, more and more

players, particularly in the Malaysian beverage business, want to engage with this

lucrative area. As a matter of fact, the Malaysian beverage market size was valued

at 9,481 billion MYR(2.64 billion litres) in Q4 2022.

The Malaysian beverage market is a competitive market, with a number of multinational

and local players. The major players in the market include Coca-Cola, Pepsi, Nestlé, and

F&N. These players are investing heavily in research and development, marketing, and

distribution to gain a competitive edge in the market.

The future of the Malaysian beverage market looks promising, with strong growth

prospects in the coming years. The market is expected to be driven by a number of factors,

including rising incomes, increasing urbanization, and growing demand for healthy and

innovative beverages.

Acknowledging the prospects, this article provides a brief overview of the Malaysian

beverage industry such as information regarding the market trends, features, and

competitive level.

1
 <Table I-1> Beverage characteristics by type.
Type Characteristics
• Packaged • World’s most consumed beverage
water • Different forms in the market such as spring, purified, and
mineral water
• Essential for staying hydrated, which is important for overall
health and well-being
• Milk • Milk is an excellent source of calcium and other essential
nutrients.
• Sources of milk and milk products include cows, sheep,
camels, goats, and many others.
• Three major types of milk beverages are normal milk,
flavoured milk, and powder milk.
• Carbonated • Carbonated beverages are drinks that contain dissolved CO2
drinks • Improves digestion and helps constipation
• Excessive intake of carbonated drinks could cause tooth decay
or discoloration
• Linked to obesity, type II diabetes, weight gain, fatty liver
disease and increased risk of heart disease
• Juice • Made from the extraction or pressing of the natural liquid
contained in fruit and vegetables
• Provides nutrients such as carotenoids, polyphenols, and vitamin
c that offer health benefits
• Consuming too much juice leads to high levels of fructose
intake, which is linked to high blood sugar, weight gain, and an
increased risk of type ii diabetes.
Coffee • Has a stimulating effect on humans due to its caffeine content
• Moderate intake could enhance weight loss, cognitive function,
and alertness.
• Excessive consumption can cause insomnia, anxiety, agitation,
stomach upset, nausea or vomiting, and increased heart rate
Tea • Stimulating effect due to its caffeine content but lower than that
of coffee
• Infusions and decoctions of the leaves, bark, and roots of other
plants are commonly known as herbal or medicinal teas
• Contains antioxidants, which help cleanse the body of toxins
and boost the immune system
• Excess consumption could lead to reduced mineral absorption,
increased anxiety, nausea and disrupts sleep cycle
*Source: www.javatpoint.com; hsph.harvard.edu; www.sciencedirect.com

2
There is an increased awareness of the importance of drinking clean water because it is vital

for human wellbeing. Malaysians also are becoming more aware of the importance of drinking

clean water, and they are increasingly turning to bottled water as a safe and convenient option.

Milk is an important source of calcium and protein for Malaysians but only half of the country’s

demand are met by local production. Malaysians commonly consumed in the morning and

before bed. Besides consumption as beverage, milk is also used in many Malaysian dishes,

such as teh tarik (tea), laksa (spicy noodle soup), and roti canai (flatbread).

Malaysians most commonly consume carbonated drinks during meals or as a snack. Despite

being associated with several health issues, carbonated drinks are consumed by people of all

ages in Malaysia, especially during festive seasons. Also, the demand for healthier carbonated

drinks is increasing. Malaysian consumers are becoming more health-conscious, and they are

progressively looking for carbonated drinks that are lower in sugar and calories. This has led

to the introduction of a number of new carbonated drinks such as Coke Zero and Sprite Zero.

Juice is popular in Malaysia because it is seen as a healthy and refreshing drink. It is a good

source of vitamins, minerals, and antioxidants.

Coffee and tea drinking has been a part of Malaysian culture for centuries, but the trend in

Malaysia has been evolving in recent years. In the past, Malaysians typically drank coffee or

tea at kopitiams, which are traditional coffee shops that serve simple, no-frills coffee. However,

in recent years, there has been a growing trend towards specialty coffee/ tea shops that offer

more unique and artisanal coffee drinks. The growing popularity of social media has exposed

Malaysians to different hot drinks cultures from around the world. Ready-to-drink and instant

coffee and tea products have gained improved sales in recent times.

According to a report by the Malaysian Ministry of International Trade and Industry, the

beverage industry in Malaysia was valued at RM 24.2 billion in 2019 (including alcoholic

3
drinks). However, the Malaysian market size of beverage reduced in 2020 and 2021 mostly due

the Covid-19 pandemic. Subsequently, the reopening of the markets in 2022 increased the sales

performance of beverage industry in Malaysia.

<Table I-2> Market size by beverage types. [Unit: MYR million, %]

YoY
Index 2018 2019 2020 2021 2022
(21/22)
Coffee and tea 2,921.8 3,052.9 3,196.2 3,204 3,382.8 5.58
Packaged water 900.1 973 902 829.5 930.2 12.14
Milk 1,751.5 1,880.1 2,029.6 2,135.8 2,249.9 5.34
Carbonates 2,334.1 2,305.6 1,985.2 1,799 2,037.7 13.27
Juice 834.4 864 861.3 799.3 880.4 10.15
Total 8,741.9 9,075.6 8,974.3 8,767.6 9,481 8.14
*Source: Juice in Malaysia, Drinking Milk products in Malaysia, Hot Drinks in Malaysia,
Bottled Water in Malaysia, Carbonates in Malaysia (Euromonitor, 2023.06.)

Coffee, and tea are the most popular beverage product in Malaysia, accounting for a significant

share of the market. However, the trend towards healthier lifestyles has led to an increasing

demand for natural and low-sugar drinks such as fruit juices and packaged water. Milk sales in

Malaysia showed steady increase from 2018 to 2022, with year over year growth (21/22) of

5.34%. Despite reduction in sales of carbonated drinks from 2018 to 2021, it recorded the

highest growth in 2022 (13.27%) compared with other types of beverages. Overall, the

beverage market is expected to sustain its uptrend in the coming years, driven by the changing

consumer preferences, increased disposable income of consumers, and increasing health

awareness.1

1
Global Data (https://www.globaldata.com/store/report/malaysia-beverages-consumption-
market-analysis/)
4
II. Market Potential and Trend
1. Growth Drivers and Trends

The key factors affecting the beverage market in Malaysia are:

➢ Increasingly wealthy population with diverse cultural influences

The economy of Malaysia has developed significantly over the last decades and the

country is now considered upper-middle income. This economic development has

inevitably had some impacts on demand for food and beverage products. Malaysia

is a country which combines various cultures and these affect the market for

beverage products.

One of the most important cultural influences is religion; while the country is multi-

confessional, the official religion is Islam, and this is followed by approximately

60% of the population. Therefore, Halal certification is an important aspect in

Malaysian food and beverage industry. Another noteworthy point is the higher

tendency for Indians to vegan (19%) diets compared to the other races. Besides that,

Chinese consumers prefer a less dairy (20%) intake approach.

Diets such as less salt (46%), less sugar (45%), low oil (35%) and low fat (36%) are

among the most common preferences exercised by the Malaysian consumer, with

baby boomers (those aged 57 and above) showing the highest tendencies towards

these diet/ lifestyles. This indicates that they place more importance on their health

which may be attributed to their age.

5
 <Table II-1> Diet preference among different races and generations in Malaysia.

Note: Gen Z = 0-16 years old, Millennials = 17-37 years old, Gen X = 38-57
years old, Baby Boomers = 58-71 years old
*Source: https://www.oppotus.com/revealing-malaysias-food-trends/

The diverse nature of Malaysia also affects the range of festivals and holidays.

Notable ones include:

• Ramadan and Eid (Hari Raya Aidil Fitri in Malaysian). As a majority Muslim

country, this is arguably the most important festival. It is celebrated by a two-day

holiday. Eid comes after the month of dawn to dusk fasting that is Ramadan. During

Ramadan, Muslim Malays are not allowed to eat or drink during the day. However,

non-Muslims are allowed to eat and some eateries stay open.

• Chinese New Year. A key festival for the Chinese population and a two-day

nationwide holiday exists for this period.

• Deepavali is an important festival for the Indian population.

• Finally, Wesak is an important festival for the Buddhist population, and Christmas

for the Christian population.

6
➢ Increased health concerns

With increased consumption of readily available food and less active lifestyles,

there has been an increase in weight related issues in Malaysia in recent years.

Almost 1/5th of the population is currently obese, and this is expected to increase

to almost 1/3 by 2030.

<Figure II-1> Projected trend of obesity in Malaysia.

*Source: codeblue.galencentre.org/2023/03/03/report-41-of-malaysias-adults-will-
be-obese-by-2035/

This has led to and increased focus on diet, with over half of consumers saying they

actively monitor what they eat/ drink. In this context, increased attention is being

paid by consumers to food label. Diets such as less salt (46%), less sugar (45%),

low oil (35%) and low fat (36%) are among the most common preferences exercised

by the Malaysian consumer.

7
 <Figure II-2> Malaysians preference towards different diets.

*Source: https://www.oppotus.com/revealing-malaysias-food-trends/

The shift of consumer behaviour has boosted the demand in organic, functional and

healthy beverages, such as low calorie, sugar-free, and herbal beverage products.

The government also took some initiatives, such as introducing a sugar tax.

Another noteworthy point is the higher tendency for Indians to eat less meat (26%)

and vegan (19%) diets compared to the other races. Besides that, Chinese

consumers prefer a less dairy (20%) intake approach.

➢ Changes in consumer spending and methods of shopping

With the increases in wealth, consumers – particularly the middle and upper class–

have increased disposable income in recent years and had a positive outlook

regarding future spending. The methods of shopping have evolved along with the

8
 consumer spending, with modern supermarkets and hypermarkets growing in

popularity at the expense of more traditional outlets (though the latter still account

for a bit over 50% of food distribution at national level). Higher end grocery stores

have also increased in popularity among some consumers. Despite the fact in person

purchases are generally preferred, e-commerce is gaining some traction. Loyalty

programmes have become popular among Malaysians, largely for the perceived

assurance they provide. Fast food service is growing in popularity among middle

income consumers.

2. Forecasted Beverage Market

Euromonitor stated that the market for beverages in Malaysia is projected to reach 11,961.50

million MYR in 2026, growing at a CAGR of 4.42% between 2023 and 2026. Euromonitor

also forecasted highest compound annual growth rate (CAGR) of 6.70% for still packaged

water from the year 2023 to 2026. It was followed by milk and carbonated drinks with CAGR

of 4.67% and 4.43% respectively. The sales performance of coffee and tea are expected to reach

MYR 4,099 million by the year 2026. The consumer demand in organic and healthy beverages

are expected to increase the sales of drinking water and juice up to a total of MYR 2,404.5

million by 2026.

9
 <Figure II-3> Forecasted market size of Malaysian beverage industry.
14,000
Sales performance (MYR million)
12,000

10,000

8,000

6,000

4,000

2,000

0
2023 2024 2025 2026
Coffee and tea Still packaged water Milk Carbonates Juice
*Source: Juice in Malaysia, Drinking Milk products in Malaysia, Hot Drinks in Malaysia,
Bottled Water in Malaysia, Carbonates in Malaysia (Euromonitor, 2023.06.)

III. Key Beverage Products in Malaysian Market

There is abundance of beverage products in the Malaysian market. Hence, to fortify the niche,

brands tend to have unique identity for their products. The products are usually assimilated

towards the local taste buds to gain more loyal customers. some of the key differences between

imported and local beverages in Malaysia:

Ingredients: Imported beverages often contain ingredients that are not locally available, such

as certain fruits or herbs. Local beverages, on the other hand, are typically made with

ingredients that are grown or produced in Malaysia.

Flavour: Imported beverages often have flavours that are not commonly found in Malaysian

cuisine. Local beverages, on the other hand, are typically flavoured with traditional Malaysian

ingredients.

Price: Imported beverages are typically more expensive than local beverages. This is due to

the cost of importing the ingredients and the fact that imported brands often have a higher brand

value.

10
The following lists highlights some of the best-selling beverages ranging from local to imported

products.

1. Local Manufacturer

➢ Accounts up to 3.2% of dairy

products in Malaysia in 2022
➢ Approximately 9.8% brand
share in 2022 on drinking milk
products
➢ Ranked 4th in brand reputation
of milk products in Malaysia

Brand name: Farm Fresh Established year: 2009

Company name: Farm Fresh Berhad Country of origin: Malaysia
Website: https://www.farmfresh.com.my/ Product: Dairy products
Selected product range

Yarra UHT
Chocolate Milk Kurma Milk Yogurt Drinks
Strawberry Milk
1000g (RM 7.15)
700g (RM 8.90) 700g (RM 5.80) 1000g (RM 7.15)
568g (RM 5.80)
200g (RM 2.80) 200g (RM 2.40) 200g (RM 1.35)
200g (RM 2.40)
*Source: https://www.farmfresh.com.my/

11
 ➢ Accounts for 10.1% of Malaysian
hot drinks market
➢ Have own research centre to conduct
R&D to improve quality of products
➢ Commits to producing wellness
beverage that suits Malaysian
lifestyle

Brand name Power root Established year 1999

Company Power Root (Malaysia) Sdn.
Country of origin Malaysia
name Bhd.
Energy drink, hot
Website www.powerroot.com Product drinks, and functional
beverage
Selected product range

Frenche Roast Ali Café & Ali Tea

240 mL Ready-to-Drink 240 mL Ali Café can coffee
(RM 2.25) (RM 1.50 – RM 2.90)
Instant coffee mix Instant coffee/ tea mix
(RM 14.90/ 25 sachet) (RM 9.95 – RM 16.59/pack)

Per’l Oligo
Kacip Fatimah instant mix 240 mL can
(RM 18.00/ 20 sachet) (RM 2.65)
Kacip Fatimah & collagen/ yuzu drink Instant chocolate mix
(RM 3.30) (RM12.86/ 15 sachets)
*Source: www.powerroot.com

12
 ➢ Retail market share up to 6.5%
and 15.1% in juice and plant-
based milk respectively
➢ Facilitates health trend by
introducing less sugar and no
sugar variations of their
products
Established 1942 (Malaysian
Brand name: Yeo’s
year: subsidiary)
Company Yeo Hiap Seng (Malaysia) Sdn Country of
Singapore and China
name: Bhd origin:
Website: www.yeos.com.my Product: Soy milk, juice, and tea
Selected product range

Soybean, brown
Iced lemon tea &
sugar soymilk & Coconut juice Chrysanthemum Tea
jasmine green tea
black soy milk
250mL (RM 1.00) 250mL (RM 1.00)
250mL (RM 1.15)
300mL (RM 1.40) 300mL (RM 2.96) 300mL (RM 1.39)
300mL (RM 1.40)
350mL (RM 1.70) 500mL (RM 5.90) 350mL (RM 1.60)
380mL (RM 1.80)
1000mL (RM 3.10) 1000mL (RM 2.69)
1000mL (RM 3.50)
1500mL (RM 5.20) 1500mL (RM 4.85)

Grass jelly & bird’s

Winter melon Lychee Sugar cane
nest
250mL (RM 1.00) 250mL (RM 1.00)
300mL (RM 1.39) 300mL (RM 1.39) 250mL (RM 1.00)
300mL
350mL (RM 1.60) 350mL (RM 1.60) 300mL (RM 1.39)
(RM 1.90- RM2.20)
1000mL (RM 2.69) 1000mL (RM 2.69) 1000mL (Rm 2.70)
1500mL (RM 4.85) 1500mL (RM 4.85)
* Source: www.yeos.com.my

13
 ➢ Number 1 ranked company in soft
drinks in Malaysia and 2nd in dairy
products
➢ In 2022, market share of soft drinks
was 26.8%
➢ Has 3 dairy plants, 3 beverage plants,
2 bottled water plants, and 1
packaged food plant
1961 (Malaysian
Brand name: Fraser & Neave Established year:
Subsidiary)
Company Fraser & Neave Holdings
Country of origin: Singapore
name: BHD
Juice, carbonated
Website: https://www.fn.com.my/ Product: drinks, energy drinks,
bottled water, and tea
Selected product range

Fun flavours carbonated

100PLUS Oyoshi tea EST Cola
drinks
380mL 325mL
325mL (RM 1.70) 325mL (RM 1.70)
(RM 1.90) (RM 1.75)
500mL (RM2.10) 500mL (RM2.10)
1000mL 1200mL
1500mL (RM 2.70) 1500mL (RM 2.90)
(RM 3.50) (RM 2.50)

Magnolia UHT Ranger energy Borneo bottled

Fruit tree
milk drink water
300mL (RM 1.90) 500mL
325mL (RM 2.00) 200mL (RM 1.55) 250mL (RM 0.95)
1000mL (RM 5.80) 1000mL (RM 6.90) (RM 2.70) 1500mL
(RM 1.80)
*Source: https://www.fn.com.my/

14
 2. Imported Brands

➢ Specialises in craft
brewed premium soft
drinks
➢ In March 2018, the
company entered into a
partnership with
PepsiCo to ease global
distribution
Established
Brand name: Bundaberg 1960
year:
Bundaberg Brewed Drinks Pty Country of
Company name: Australia
Ltd origin:
Website: http://bundaberg.com/ Product: Soft drinks
Selected product range

Ginger beer Lemonade

375mL x 4 (RM 21.99) 375mL x 4 (RM 28.60)

Tropical mango Root beer

375mL x 4 (RM 26.90) 375mL x 4 (RM 28.60)
*Source: http://bundaberg.com/

15
 ➢ Source of water comes from
Cachat Spring in the French Alps
➢ The water is naturally filters
through layers of protected
underground rock for over 15
years
➢ Contains naturally occurring
electrolytes and minerals
Brand name: Evian Established year: 1859
Company
Danone Group Country of origin: France
name:
https://www.danone.com/bran
Website: Product: Bottled water
ds/waters/evian.html
Selected product range

Evian mineral water

Evian mineral water 500mL Evian mineral water 330mL
1500mL
RM 9.15 RM 4.90 RM 3.95
*Source: https://www.danone.com/brands/waters/evian.html

16
 ➢ No added preservatives and sugar
➢ Sweetness purely comes from natural
honey

Brand name: QminC Established year: 2020

Company Tera Food and Beverage
Country of origin: Thailand
name: Company Limited
Website: https://qmincthailand.com/ Product: Functional drinks
Selected product range

Ginger with honey Manuka honey collagen

150mL (RM 4.90) 150mL (RM 4.90)

Curcumin with lemon Finger root with honey

150mL (RM 4.90) 150mL (RM 4.90)
*Source: https://qmincthailand.com/

17
 3. Korean Brands

➢ Leading the global aloe beverage

market with 76% total market share
➢ Exports to 180 different countries

Brand name: OKF Established year: 1990

54 (OKF Building),
Hakdong-ro 21-gil,
Company name: OKF Corporation Headquarters:
Gangnam-gu,
Seoul
Website: http://okf.kr/ Product: Soft drinks
Selected product range

OKF farmers aloe OKF rice milk OKF watermelon OKF sparkling
(sugar free) (sugar free) sparkling water series
500mL (RM 5.20)
500mL (RM 7.20) 500mL (RM 7.00) 350mL (RM 4.55)
1500mL (RM 10.60)

OKF aloe vera OKF Milky be OKF Vitamin C

OKF Yogurt Drink
sparkling series happy Lemon
500mL (RM 6.20) 500mL (RM 5.00) 500mL (RM 5.80) 500mL (RM 5.30)
*Source: http://okf.kr/

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 ➢ Sales growth of 10.48% in the year 2022
➢ 2022 revenue was KRW 1.27 trillion

Brand
Binggrae Established year: 1967
name:
11-12F, B Building, 19,
Seosomun-ro 11-gil, Jung-gu
Company
Binggrae Co., Ltd. Headquarters: (Jeong-dong 34-5,
name:
Baejaejeong-dong Building),
Seoul
Website: https://www.bing.co.kr/en/ Product: Milk products
Selected product range

Banana milk Coffee milk Melon milk

200mL (RM3.66) 200mL (RM3.99) 200mL (RM3.99)

Vanilla milk Lychee& peach milk Strawberry Milk

200mL (RM3.99) 200mL (RM3.99) 200mL (RM3.99)
*Source: https://www.bing.co.kr/en/

19
 ➢ Overseas exports to 70 countries
➢ KRW 2.51 trillion sales as of December 2021

Brand name: Lotte Chilsung Established year: 1950

3th/4th/5th/9th Fl., Lotte Castle
Company Lotte Chilsung
Headquarters: Gold, 269 Olympic-ro, Songpa-
name: Beverage Co., Ltd.
gu, Seoul
Carbonated drinks, juice, hot
Website: lottechilsung.co.kr Production:
drinks,
Selected product range

Lotte Milkis series Chilsung cider Milk soda

250mL (RM3.25)
250mL 500mL (RM 4.55)
500mL (RM 4.10)
(RM 3.30) 1500mL (RM 13.00)
1500mL (RM 12.00)

Lotte Cantata range Aloe vera juice Sugar free aloe vera juice
275mL 1500mL 1500mL
(RM 10.90) (RM 10.39) (RM 10.39)
*Source: https://company.lottechilsung.co.kr/eng/main/index.do

20
 ➢ Utilizes various distribution channels such
as café, bakery, hotels, restaurants,
convenience stores, and
hypermarkets/supermarkets

Brand name: TEAZEN Established year: 2001

5F 366, Hangang-daero,
Company name: TEAZEN Co., Ltd. Headquarters:
Yongsan-gu, Seoul
Website: http://teazen.co.kr/ Product: Functional beverages
Selected product range

TEAZEN germinated brown

TEAZEN Kombucha series TEAZEN corn silk tea
rice green tea
RM 25.90 RM 23.00 RM 23.00

TEAZEN buckwheat tea TEAZEN green tea latte TEAZEN chrysanthemum tea
RM 30.00 RM 20.00 RM 23.00
*Source: http://teazen.co.kr/

21
 - Continuous R&D in producing
products to improve health of
consumers
Brand name: Kwangdong Established year: 1963
Gasan Building, 85
Company Kwang Dong Pharmaceutical
Headquarters: Seochojungang-ro,
name: Co., Ltd.
Seocho-gu, Seoul
http://eng.ekdp.com/main/main. Health and functional
Website: Product:
asp beverages
Selected product range

Kwangdong Vita500 Kwangdong corn silk tea Kwandong oriental raisin tea
500mL (RM 8.95) 500mL (RM 9.50)
100mL (RM 4.00)
1500mL (RM 17.50) 1500mL (RM 17.50)
*Source: http://eng.ekdp.com/main/main.asp

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 ➢ Used to be part of Korea Yakult
Corporation
➢ Owns several patents such as A
beverage of Fermented Buckwheat and
Its Manufacturing Process” and “Tea
Beverage Using Alkaline Water and Its
Manufacturing Method” as well as “An
Alginic Acid Bead Beverage and Its
Manufacturing Method.”
Brand Established
Paldo 2012
name: year:
Company 577, Gangnam-Daero,
Paldo Food Headquarters:
name: Seocho-Gu, Seoul
Website: http://www.paldofood.com/ Product: Soft drinks
Selected product range

Paldo sweet cinnamon

Paldo rice punch Pororo drink series
punch
RM 3.80 RM 3.80 RM 5.80
*Source: http://www.paldofood.com/

23
IV. Market Access and Entry
1. Distribution Channel

Retail channels have already seen a strong showing in 2022 and value sales should continue to

see strong growth in 2023, seeing a full return to pre-pandemic level. In Malaysia, there are

three main offline channels involved in beverage industry; Hypermarkets, supermarkets, and

convenience stores. Other offline channels include, traditional groceries, restaurants, gas

stations, drink specialists, pharmacies, vending machines, and bars. Online channel, also

known as e-commerce has gained stronghold within Malaysian market during Covid-19, but is

projected to register slower growth compared to the dynamism of the pandemic years.

Supermarkets and hypermarkets: Supermarkets and hypermarkets are the largest distribution

channel for beverages in Malaysia. They offer a wide range of products from a variety of brands.

Convenience stores: Convenience stores are another important distribution channel for

beverages in Malaysia. They are located in convenient locations, and they offer a limited range

of products. E-commerce: Online retailing is a growing distribution channel for beverages in

Malaysia. They offer a wide range of products from a variety of brands.

For Korean exporters that are planning to enter the Malaysian market, hypermarkets,

supermarkets, convenience stores, and e-commerce are highly recommended. Thus, this report

summarizes some of the top companies in each of these distribution channels along with their

best-selling, private label or Korean beverages.

24
Hypermarkets

Company name: Lotus Established year: 1994

Market share: 29.5% Number of stores: 68
Main store address: Level 3, No. 3, Jalan 7A/62A, Bandar Menjalara, 52200 Kuala Lumpur,
Malaysia
Phone number: 03-6272 8507
Homepage address: https://corp.lotuss.com.my/
Store view

Beverage
display status

Highlighted
products

Lotus instant coffee Lotus mineral water Lotus cordial drinks

RM 12.90 RM 5.99 RM 10.89
*Source: Field survey
25
 Company name: Established year:
Econsave 1955
Number of stores:
Market share: 26%
93
Main store address: Lot G01, KL Festival City,
No. 67 Jalan Taman Ibu Kota, Setapak, 53300
Kuala Lumpur.
Phone number: 03-4148 1027
Homepage address: https://econsave.com.my/
Store view

Beverage
display
status

Highlighted
products
Econsave coffee
Econsave chocolate Econsave mineral water
premix (Tongkat Ali
malt drink (6L)
and Kacip Fatimah)
RM 13.90 RM 6.50 RM 12.50
*Source: Field survey

26
 Company name: Mydin Established year: 1957
Market share: 16.9% Number of stores: 61
Main store address: 58, Jalan Tun Perak, City Centre,
50050 Kuala Lumpur
Phone number: 03-2072 7378
Homepage address: www.mydin.com.my
Store view

Beverage
display
status

Highlighted
products

Horlicks malt drink

Nescafe premix coffee Sunquick (800mL)
(400g)
RM 11.99 RM 9.89 RM 13.40
*Source: Field survey

27
 Established
Company name: AEON Big
year: 2012
Number of
Market share:14.7%
stores: 21
Main store address: 3rd Floor, AEON Taman
Maluri Shopping Centre, Jalan Jejaka, Taman
Maluri, Cheras, 55100 Kuala Lumpur
Phone number: 1300-80-2366
Homepage address: https://aeonbig.com.my/
Store view

Beverage
display status

Highlighted
products
Big Value drinking Big Value premix Nestle Milo Malt
water (600mL) cereal drink drink (1kg)
RM 0.45 RM 10.20 RM 24.60
*Source: Field survey

28
Supermarkets

Company name: Jaya

Established year: 2007
Grocer
Market share: 15.3% Number of stores: 40
Main store address: 348, Jln Tun Razak, Kampung
Datuk Keramat, 50400 Kuala Lumpur
Phone number: 1-300-88-5427
Homepage address: https://klec.jayagrocer.com/
Store view

Beverage
display status

Highlighted
products
Caffe Bene pouch fruit Drinkable Konjac
Woongjin Tealight
juice Jelly
RM 6.90 RM 3.50 RM 6.50
*Source: Field survey

29
 Company name:
Established year: 2004
Village Grocer
Market share: 14.4% Number of stores: 29
Main store address: D-1-5, Sunway Nexis, No. 1,
Jalan PJU 5/1, Kota Damansara, 47810 Petaling Jaya,
Selangor
Phone number: 03-6143 1366
Homepage address: https://villagegrocer.com.my/
Store view

Beverage
display
status

Highlighted
products
Homesoy soya milk F&N Seasons drink
Spritzer mineral water 6L
250mL 250mL
RM 1.30 RM 1.10 RM 8.20
*Source: Field survey

30
 Company name: Giant
Established year: 1944
Supermarket
Market share: 3.0% Number of stores: 40
Main store address: Lot 13793 & 13796, Jalan
Changkat Permata, Taman Permata, 53300 Kuala
Lumpur
Phone number: 03-4106 7461
Homepage address: https://www.giant.com.my/
Store view

Beverage
display
status

Highlighted
products
GIANT flavoured
GIANT drinking water GIANT milk tea 3 in 1
yoghurt drink
1500mL premix
750mL
RM 2.90 RM 0.80 RM 7.55
*Source: Field survey

31
Convenience stores

Company name: 7-
Established year: 1984
Eleven
Market share: 17.3% Number of stores: 2,400
Main store address: Level 3A, Podium Block, Plaza Berjaya, No. 12,
Jalan Imbi, 55100 Kuala Lumpur, Malaysia.
Phone number: 03-2142 1136
Homepage address: https://www.7eleven.com.my/
Store view

Beverage display
status

Highlighted products

7E chocolate malt and 7E mocha and café

7E bird’s nest drink
coffee 3 in 1 premix latte
RM 5.90 RM 3.00 RM 8.90
*Source: Field survey

32
 Company name: KK Super Mart Established year: 2001
Market share: 4.7% Number of stores: 700
Main store address: T6-01-03, Tower 6, Maju Link, Jalan Lingkaran Tengah
2, Bandar Tasik Selatan, 57000 Kuala Lumpur.
Phone number: 03-90573308
Homepage address: https://kkgroup.my/
Store view

Beverage
display status

Highlighted
products

Dutch Lady Chocolate

Red bull 150mL Coca-cola 320mL
Flavoured Milk 200mL
RM 3.50 RM 1.50 RM2.10
*Source: Field survey

33
 Established
Company name: myNews.com
year: 1997
Number of
Market share: 2.9%
stores: 530+
Main store address: Lot No. 3, Jalan Teknologi
3/1, Taman Sains Selangor 1, Seksyen 3, PJU 5,
Kota Damansara, 47810 Petaling Jaya, Selangor,
Malaysia.
Phone number: 03-6158 6000
Homepage address: https://www.mynews.com.my/
Store view

Beverage
display
status

Highlighted
products
Ali Café
Wonderbrew kombucha
hotserved cup 100Plus 1500mL
250mL
30g
RM 2.60 RM 3.29 RM 10.00
*Source: Field survey

34
 Company name: Family
Established year: 2016
Mart
Market share: 2.1% Number of stores: 360
Main store address: Lot G-01, Ground Floor, Wisma
Lim Foo Yong, 86, Jalan Raja Chulan, 50200 Wilayah
Persekutuan, Federal Territory of Kuala Lumpur
Phone number: 03-2856 7738
Homepage address: https://www.familymart.com.my/
Store view

Beverage
display
status

Highlighted
products

Family Mart tea collection

Binggrae flavoured milk 200mL
600mL
RM 6.00 RM 5.90
*Source: Field survey

35
E-commerce

Retail via e-commerce is set to continue recording strong and steady growth over the forecast

period. E-commerce saw tremendous growth in the last few years of the review period, but

especially during the height of the pandemic. While the older generation are returning to their

old habits of shopping in physical outlets now that COVID-19 fears are subsiding, the silver

lining for e-commerce lies in the increasing reliance on online shopping among the younger

generation. These younger consumers have grown up shopping online and therefore will likely

continue to support e-commerce sales in the forecast period. Another factor that is likely to

drive growth is the accelerating shift towards cashless payments, with the majority of the

population now using cashless payments at least on a semi-frequent basis, thereby making e-

commerce more accessible.

Shopee and Lazada continued to dominate retail e-commerce in Malaysia in 2022 with their

easy-to-use features attracting a large volume of local and international sellers looking to list

their products on their platforms. Shopee and Lazada’s free shipping and discount vouchers

also continue to attract shoppers to purchase products from their marketplaces. Apart from this,

regular sales and promotions such as “9.9”, “10.10”, “11.11” deals, “payday” deals and

festivities deal, coupled with their strong marketing campaigns on social media are some of the

key factors that have helped keep Shopee and Lazada at the top of the rankings. Furthermore,

both applications provide reviews from past buyers which helps consumers to make purchase

decisions.

36
 Company name:
Established year: 2015
Shopee marketplace
Areas served: Indonesia,
Malaysia, Philippines,
Market share: 37.9% Singapore, Thailand, Vietnam,
Taiwan, Brazil, Chile,
Colombia, and Mexico
Malaysian headquarters: Level 25, South Point Tower,
Lingkaran Syed Putra, Mid Valley City, 59200 Kuala
Lumpur
Phone number: 03-2777 9222
Homepage address: https://shopee.com.my/
User interface

Marketing

Shopee Rahmah
Brand ambassador Shopping day campaign
sales
*Source: https://shopee.com.my/

37
 Company name: Lazada
Established year: 2012
marketplace
Areas served: Southeast Asia,
except Laos, Cambodia,
Market share: 17.5%
Brunei, Myanmar and East
Timor
Malaysian headquarters: Unit G-1, UOA Corporate Tower,
Avenue 10 Wilayah Persekutuan, 8, Jalan Kerinchi, Bangsar
South, 59200 Kuala Lumpur, Federal Territory of Kuala
Lumpur
Phone number: 03-2174 1717
Homepage address: https://www.lazada.com.my/
User interface

Marketing

Brand ambassador LazLive Mega sale campaign

*Source: https://www.lazada.com.my/

38
2. Legislation and Regulations

All food and beverage consignments are subject to random checking and sampling at the

28 entry points throughout Malaysia to ensure food items imported into the country are

safe and comply with the prescribed standards and regulations. The general steps which

must be followed for importing goods into Malaysia are set out in the following figure.

<Figure IV-2> Brief guide to Malaysian import procedures.

• Check product complies with requirements for imported

products under Food Act and Food Regulations
• Acquisition of import licence / additional importer
registration, if required
Before
• Importer / forwarding agent registered as Register as
import Food Safety Information System of Malaysia (FoSIM)

• Declaration of product import to Royal Malaysian

Customs Department through the Customs Information
System
• Notification of product import through FoSIM
• Inspection of food by Ministry of Health or other
agency (if necessary)
During
• Duties / taxes payable on imported goods must be
import paid by the importer upon arrival of the goods
• Payment of duty / tax can be made at counter or
through online payment

• Final approval by Royal Malaysian Customs

Department
• Food consignment released for entry
• Importation records must be kept in Malaysia for a
After period of seven years
approval • Note: if the import is not approved, the product will
not be granted entry

*Source: Panduan Ringkas Prosedur Import-en.pdf (customs.gov.my)

The two main pieces of legislation which regulated food in Malaysia are:

• The Food Act, 1983

• The Food Regulations of 1985

39
It should be noted that both pieces of legislation have been amended several times since

their original introductions (and may also be further updated going forward). Both of these

legislations are administered by the Food Safety and Quality Division (FSQD) of the

Ministry of Health (MOH). Ministry of Science, Technology and Innovation (MOSTI)

also has an important role as it develops and promotes food standards. An overview of the

content of the two pieces of legislation is provided below.

<Table IV-1> Summary of the two main food legislation in Malaysia.

The Food Act, 1983 The Food Regulations of 1985
The Food Act is divided into five parts:

1. Preliminary matters,
which essentially contains definitions
The Food Regulations acts as supporting
of basic concepts such as food, label,
piece for the Food Act. The regulations are
and etc.
divided into 11 parts:
2. Administration and enforcement of
➢ Parts 1 to 3, cover definitions, warranty
the act
and procedures for taking samples
3. Offences and Evidence, which
➢ Part 4 covers labelling requirements.
effectively includes provisions that
protect consumers against unsafe
➢ Part 5 covers food additives and
/adulterated food, false labelling and
nutrient supplements
misleading advertisement.
➢ Part 6 covers packaging for food
4. Importation, warranties and
defences, which provides certain
➢ Part 7 covers incidental contaminants
possibilities for food to be imported if
not fully compliant with certain
➢ Part 8 covers the aforementioned
requirements (e.g., labelling,
standards and labelling requirements
processing) at entry but the necessary
by product for over 350 product types
actions will be taken to make it
compliant. It also includes the
➢ The parts 9, 10 and 11 cover standards
requirement of a written statement
for water and miscellaneous provisions
confirming compliance with the Act for
any distributor or dealer of food.

5. Miscellaneous provisions
*Source:http://fsq.moh.gov.my/v6/xs/page.php?id=72;http://fsq.moh.gov.my/v6/xs/page.p
hp?id=323

40
3. Labelling Requirements

Labelling for imported food may be in Bahasa Malaysian or English. • All information on

the label should be clear. • Unless otherwise stated, all particulars on the label should be

written in a font no smaller than 10 point; and there should be equal prominence with other

information provided on the package. If the package is so small that this is not possible,

they must be of the largest practicable size and not smaller than 2 point. • All lettering must

appear in a colour that strongly contrasts with its background so that it is clear and legible.

• Labels should be legible and durably marked; either on the packaging material itself or

on a label which is permanently attached to the packaging material. A label may be placed

inside the package if (1) the package is made of transparent material and (2) the food in the

package is not ready for direct consumption (or if it is, there is separate interior wrapping

so that it is not in contact with the label). • Every word shall be either (1) all in capitals; (2)

all in lower case letters or (3) in lower case letters with an initial capital letter. An exception

exists for internationally accepted unit symbols of weights and measures.

<Table IV-2> Summary of labelling requirements

Item Descriptions
This means a specific name or non-generic
description that indicates the true nature of
the food to the consumer. Lettering must be
done in such a way that the height, visual
Appropriate designation of the food / emphasis, and position must stand out in
common name comparison with any other information
appearing on the label. In the case that food
contents are mixed or blended, these words
should be added to the designation of the
food.
Must be indicated, followed by the
corresponding content in the cases that
food contains:
• Beef, pork, their derivates of lard
CONTAINS statement (beef /pork /
• Alcohol
alcohol)
For alcohol, a non-serif, minimum 6 point
bold font must be used; and the statement
must appear directly after the designation
of the food.

41
 The appropriate designation of ingredients
shall be listed in descending order of
Ingredients
proportion by weight (except where the
food consists of just one ingredient)
A statement indicating a food may cause
hypersensitivity. This includes: a) cereal
containing gluten, including wheat, rye,
barley, and oat;
• nut and nut product, including peanut and
Hyposensitivity statements
soybean;
• fish and fish products;
• milk and milk products (including
lactose); and
• egg and egg products.
In the case the food contains these: a
statement as to the presence in the food of
such edible fat, edible oil or both, together
Presence of edible oil/fat statement
with the common name of the animal or
vegetable from which the fat or oil was
derived.
In the case a food contains these: a
statement as to the presence of such food
additives - "contains permitted (state type
of the relevant food additive)". For
Food additives statement
colouring or flavouring substances, it is
sufficient to state the common name or the
appropriate designation of that food
additive rather than the chemical name.
Minimum net weight or volume. In the
Weight/volume case a food is packed in liquid, the
minimum drained weight.
For imported foods, two names / addresses
are needed:
1. That of the manufacturer, packer or
owner of the rights of manufacture,
Name and address; origin
or their representative.
2. That of the importer in Malaysia.
The country of origin of the food should
also be stated.
One of the following dates must appear on
packaging in a bold non-serif, minimum
6-point font:
• EXPIRY DATE or EXP DATE
• USE BY
Date marking
• CONSUME BY or CONS BY
• BEST BEFORE or BEST BEF
It must be permanently marked or
embossed on the package. If the validity of
the date marking is dependent on storage,

42
 directions for storage must also be
included.
Compulsory for the following foods:
prepared cereal foods, bread, milk and
powdered milk, canned meat, canned fish,
canned vegetable, canned fruit, fruit juices,
salad dressing, mayonnaise, soft drinks,
soya bean milk, and soya bean drinks.
Information to provide as follows (per
100g or 100ml):
Nutritional labelling • Energy in Kcal or KJ*
• Protein (grams)
• Carbohydrates (grams)
• Fat (grams)
• (ready to drink beverages only) sugar
• (if claim made on amount or type of fatty
acid) amounts of saturated,
monounsaturated, polyunsaturated and
trans-fatty acids
Note: Energy should be calculated using the following conversion factors: Carbohydrates
4kcal/g (17 kJ); Protein 4kcal/g (17 kJ); Fat 9kcal/g (37 kJ); Alcohol (Ethanol) 7kcal/g (29
kJ); Organic acid 3kcal/g (13 kJ); Dietary fibre 2kcal/g (8.5kJ).
*Source: https://www.npra.gov.my

In addition to the labelling requirements set out above, it should be noted that there are

restrictions on what can be shown. Notably:

• Descriptive items appearing on / attached to any food package shall not include

statements

• Contradicting, qualifying or modifying the content of the label (either directly or

indirectly).

• Words to indicate grading, quality, superiority or any other words of similar

meaning shall not appear on the label of any package of food unless the

description conforms with those established by the relevant authorities

responsible for such grading, etc.

• No label which describes any food shall include the word "pure" (or any other

words of the same significance) unless the food is of the strength, purity or quality

prescribed by the relevant regulations.

43
Claims are allowable on labels in certain circumstances. An overview of claims is provided

in the following table.

<Table IV-3> Summary of the types of permitted claims

Item Description
Permissible claims are listed in Table I and Table II of
the Fifth A Schedule of the Food Regulations 1985. The
Nutrient content claim
conditions specified in the tables for the claim in
question will apply
These can only be used on foods based on various
conditions including those below:
• The food being compared to must be clearly identified.
• Statement of the amount of difference in the energy
value or nutrient content shall be provided. The amount
Nutrient comparative claims of difference related to the same quantity, expressed as
a percentage, fraction or an absolute amount, must be
displayed close to the claim.
• There should be a difference of at least 25% in the
energy value or nutrient content, or 10% for
micronutrients.
This is a nutrition claim that describes the physiological
role of the nutrient in the growth, development and
normal functions of the body. It cannot include any
statement implying that the nutrient would be a cure,
treatment for, or protection from a disease.
Nutrient function claim
Nutrient function claims can only be made if the food
contains at least an amount that would be considered
sufficient as a source of that nutrient; reference amounts
for this are set out in Table II of schedule 5A of the Food
Regulations 1985.
*Source: https://www.npra.gov.my

44
4. Halal Certification

Malaysia is the global market leader in Halal. According to State of the Global Islamic

Economy 2022 Report, Malaysia has retained its position in first place in the Global Islamic

Economy Index as a leader of the global Halal market for nine consecutive years.

Halalan Toyyiban – or Halal – is a combination of Islamic/Shariah law and standard

requirements. These requirements are met through the fulfilment of hygienic, sanitation

and safety requirements. It also ensures that Halal products are of high quality in nutritional

value. All these conditions are permissible for Muslim consumption and are acceptable to

non-Muslim consumers as well.

Halal products are products that do not contain any parts or products of animals that are

categorized as non-Halal to Muslims or products of animals which are not slaughtered

according to Islamic law. Halal products also do not contain any ingredients that are “Najs”

according to Islamic law. Examples of “Najs” includes liquor and other spirituous drinks,

dogs, swine, dead animals that were not ritually slaughtered, blood, excrements, and milk

of animals whose meat Muslims are not allowed to consume. Preparation, processing, or

manufacturing of Halal products should not be completed using equipment that is

contaminated with things that are “Najs” according to Shariah law and Fatwa. Halal

certified products should also be safe for use or consumption and not intoxicating or

harmful to health. Even during the preparation, processing, packaging, storage or

transportation, the food should be physically separated from any other food that does not

meet the Halal requirements.

A product does not need to be Halal or Halal certified to be imported to or sold in Malaysia.

However, Halal certification is of high importance, in terms of reaching out to the bulk of

the Malaysian market as this opens up 100% of the Malaysian market. In addition,

45
 neighbouring countries hold the Malaysian Halal certification in high regard. According to

Cornell University, South East Asia comprises around 240 million Muslims, representing

approximately 42% of the region’s entire population (as of January 2023).2

In Malaysia, the Malaysian Department of Islamic Development (JAKIM) is the agency

responsible for the Islamic affairs including Halal certification in Malaysia. It accredits

certain foreign certifying bodies for a period of two years; and these foreign bodies can

certify goods as Halal if they comply with JAKIM’s requirements. It is important to note

that products can only be labelled as Halal if either (1) they comply with the requirements

of JAKIM or (2) are certified as Halal by the foreign Halal certification body recognized

by JAKIM. A list of accredited bodies as of March 2023 can be found at the link below:

https://www.Halal.gov.my/v4/index.php?data=bW9kdWxlcy9jZXJ0aWZ5X2JvZHk7Ozs
7&utama=CB_LIST

2
Cornell University Library https://guides.library.cornell.edu/islamsoutheastasia
46
 <Figure IV-2> Procedure for International application for Halal certification

*Source: http://www.Halal.gov.my/v4/index.php?h=&lang=en

The guideline provided represent a summarized procedure of Halal certification application.

There might be variation to this procedure depending on the specification of the beverage

products. Therefore, it is best to access the following website for more information:

Department of Islamic Development in Malaysia (JAKIM)

47
V. Strategies to Expand Korean Beverage
1. SWOT Analysis

Beverage industry is very competitive with a plethora of competitors in the market. The right

SWOT analysis would help making good strategic decisions.

Strengths Weaknesses
• Advanced product manufacturing • Products with limited Halal
technology certification
• Diverse range of beverage products • A small number of Korean food
• Sustained popularity of Hallyu import buyers
• Expansion of Korean convenience • High price compared to foreign
store outlets in Malaysia products
• Low brand awareness
Opportunities Threats
• High preference for Korean products • Low-cost products from neighbour
• Increasing wealth and awareness of countries
health • The Malaysian government to boost
• High dependency on food imports domestic production
• Cultural differences

Strengths:

➢ Korean companies have a strong track record in beverage manufacturing technology.

They are known for their innovative products, high quality standards, and efficient

production processes. Some of the strengths of Korean companies in terms of beverage

manufacturing technology include:

▪ Strong R&D capabilities: Korean companies invest heavily in research

and development, which has led to the development of innovative

beverage products and production processes. For example, Korean

companies have developed new technologies for producing functional

beverages, such as those with added vitamins or probiotics.

48
 ▪ High quality standards: Korean companies have very high-quality

standards for their beverage products. This is due to a combination of

factors, including strict government regulations, a strong focus on

quality control, and a culture of perfectionism.

▪ Efficient production processes: Korean companies have very efficient

production processes, which allows them to produce high-quality

beverages at a competitive cost. This is due to a combination of factors,

including the use of state-of-the-art equipment, a well-trained workforce,

and a focus on continuous improvement.

➢ Korean companies provide wide variety of beverage products. The diversity of Korean

beverages reflects the country's rich culture and history. Many of the traditional

beverages have been enjoyed for centuries, and they are still popular today. With

continuous innovation, Korean beverage companies are constantly coming up with new

and creative products. This helps to keep the dynamism of the industry, and it also helps

to attract new customers.

➢ Hallyu, also known as the Korean Wave, is a cultural phenomenon in which the global

popularity of South Korean popular culture has dramatically risen since the 1990s. This

includes Korean dramas, movies, music, and food. Hallyu has helped to boost Korean

beverage sales in a number of ways. First, it has raised awareness of Korean culture and

products around the world. This has led to increased demand for Korean beverages, as

people are more interested in trying Korean food and drinks. Second, Hallyu has created

a positive image of Korea in the minds of consumers. Korean dramas and movies often

portray Korea as a modern, stylish, and trendy country. This positive image has made

consumers more likely to try Korean beverages. Third, Hallyu has helped to create a

strong brand image for Korean beverages. Korean beverage companies have partnered

49
 with Korean celebrities and used Hallyu themes in their marketing campaigns. This has

helped to create a positive association between Korean beverages and Korean culture.

➢ South Korean convenience stores are actively making forays into Malaysia. The

expansion of Korean convenience stores in Malaysia is a positive development for the

Korean beverage industry. It is helping to boost sales of Korean beverages and

introduce them to a wider range of consumers. For example, the Korean convenience

store chain CU offers a wide variety of Korean beverages, including soju, makgeolli,

beer, soft drinks, and tea. CU also offers competitive prices on Korean beverages, and

it often promotes Korean beverages through in-store displays, discounts, and sampling.

As a result, CU has helped to boost sales of Korean beverages in Malaysia. In 2021,

emart24 launched a campaign to promote Korean beverages in Malaysia. The campaign

featured Korean celebrities and included in-store displays, discounts, and sampling. As

a result of the campaign, sales of Korean beverages at emart24 outlets increased by

20%. emart24 also offers a loyalty program that rewards customers for their purchases.

This program has helped to increase customer loyalty and repeat purchases of Korean

beverages.

Weaknesses:

➢ Halal certification is not compulsory yet essential for products; certification system is

specific and therefore may create challenges for importers. The availability of halal-

certified Korean beverages is limited. This is because the certification process can be

expensive and time-consuming, and many Korean beverage companies are not

interested in pursuing halal certification. The lack of halal-certified Korean beverages

can be a challenge to approach Muslims who makes up 60% of the country’s population.

➢ The small number of Korean food import buyers in Malaysia is a weakness for Korean

beverages in the Malaysian market. This is because it means that there are fewer

50
 channels for Korean beverages to reach consumers. Additionally, the small number of

buyers may be less familiar with Korean beverages, which could make it more difficult

to market and sell them. It can be difficult to find distributors and retailers who are

willing to stock Korean beverages.

➢ Korean beverages may be more expensive than local beverages, which could make

them less competitive. Korean beverages may not be as well-known as local beverages,

which could make it more difficult to market them.

➢ Despite these challenges, there are a number of things that Korean beverage companies

can do to succeed in the Malaysian market. These include:

o Partnering with local distributors and retailers who have experience in the food

and beverage industry.

o Offering competitive pricing that is comparable to local beverages.

o Investing in marketing and advertising to raise awareness of Korean beverages

among Malaysian consumers.

o Developing innovative products that appeal to Malaysian tastes.

Opportunities:

➢ Korean products are generally perceived as being high-quality and stylish. This is

due in part to the popularity of Korean culture (K-pop, K-dramas, etc.), which has

helped to create a positive impact on Korean brands. This positive brand image can

give Korean beverages a competitive edge in the Malaysian market.

➢ As Malaysians become wealthier, they have more disposable income to spend on

non-essential items, such as imported beverages. This creates a larger market for

Korean beverages, which are perceived as being premium and high-quality.

Malaysian are more likely to be concerned about their health and well-being. This

is leading to an increased demand for healthier beverages, such as those that are low

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 in sugar or caffeine. Korean beverages, such as green tea and herbal tea, are seen as

being healthier alternatives to sugary soft drinks and coffee. Korean companies

have a strong track record of innovation in the functional beverage space, and they

are well-positioned to capitalize on this trend.

➢ The high dependency of Malaysia on food imports has created a significant

opportunity for Korean beverage companies to export their products to the country.

With over 80% of its food needs met by imports, Malaysia is a large and growing

market for beverages. Korean companies can capitalize on this opportunity by

offering high-quality, innovative beverages that meet the needs of Malaysian

consumers.

Threats:

➢ Countries like Thailand and China can produce many of the required beverage and

raw materials such as fruits and vegetables and have lower costs as a result of their

geographic location. This can make it difficult for Korean beverages to compete on

price, especially in the lower-end of the market.

➢ The Malaysian government has indicated it intends to boost domestic production of

certain beverage such as milk and fruit juice. The Malaysian government may

provide subsidies to domestic beverage producers, making their products more

competitive. This could put Korean beverage companies at a disadvantage.

➢ Cultural differences can play a significant role in the marketing and sale of Korean

beverages. Malaysian consumers may have different preferences for when it comes

to buying beverage products.

o Flavor preferences: Malaysian consumers may have different flavor

preferences than Korean consumers. For example, Malaysian consumers

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 may prefer sweeter beverages, while Korean consumers may prefer more

savory beverages.

o Packaging preferences: Malaysian consumers may have different packaging

preferences than Korean consumers. For example, Malaysian consumers

may prefer more traditional packaging, while Korean consumers may prefer

more modern packaging.

o Selling channels: The most popular selling channels for beverages in Korea

may not be the same as the most popular selling channels in Malaysia. For

example, Korean consumers may prefer to buy beverages from convenience

stores, while Malaysian consumers may prefer to buy beverages from

supermarkets.

2. Measures to Expand Korean Beverage Export to Malaysia

Korean companies can increase their beverage exports to Malaysia by obtaining a Halal

certification. Despite having a heterogenous population, Malaysia resides approximately 61%

Muslims in the country. Acquiring Halal certification allows exporters to tap into a larger

market share locally. Over the past few years, Halal food items have become popular amongst

both Muslim and non-Muslim consumers as they have evolved from being an identification of

religious observation to assurance of food safety, hygiene and reliability. Besides that,

leveraging the nation’s Halal hub accreditation can also open pathways to distribute the

products to neighbouring countries of Malaysia. This is because, Malaysia is the second largest

Halal-certified food and beverages importer among Organisation of Islamic Cooperation (OIC)

countries behind Saudi Arabia. The global Halal food market size is expected to grow to

$2,228.63 billion in 2026 at a CAGR of 14.6%. Thus, it will be benefitting for Korean exporters

to obtain Malaysian Halal certification which is acknowledge in many other Muslim dominant

countries.

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While obtaining Halal certification is an important step for Korean companies to increase their

beverage exports to Malaysia, there are other strategies that can be employed as well. For

instance, Korean companies can focus on product differentiation by offering unique flavours

that can appeal to the Malaysian tastebuds or flavours that are trending.

1. Traditional Malaysian flavours: Use flavours that are inspired by traditional Malaysian

cuisine, such as durian, pandan, or Sarawak’s famous gula apong. These flavours are

unique and appealing to Malaysian consumers, and they can help your beverage stand

out from the competition.

Three Tea uses gula apong instead of sugar

Tealive launched limited edition
to give unique taste for their canned tea
Pandan Lava series
beverages

MALCO’s Musang King durian flavoured Coca-Cola Malaysia launched Fanta

Coffee Coco Pandan flavoured Fanta
*Source: https://www.minimeinsights.com/category/drinks/

2. Seasonal flavours: Create limited-edition flavours that are only available during certain

times of the year. This is a great way to generate excitement around your brand, and it

can also help you to boost sales. Malaysia is a country with a rich and diverse culture,

and this is reflected in the many festivals and celebrations that take place throughout

the year. These festivals offer businesses a unique opportunity to improve sales by

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 tapping into the festive spirit and connecting with consumers on a more personal level.

For example, during the holy month of Ramadan, Muslims fast from sunrise to sunset.

As a result, there is a greater demand for sweet taste to break the fast. Some popular

Ramadan flavours include dates, and gula melaka (palm sugar), and banana which has

high content of potassium. On the other hand, during Chinese New Year, citrus

flavoured beverages are more consumed. Citrus fruits like oranges, tangerines, and

pomelos are also associated with good luck and prosperity during Chinese New Year.

The biggest Hindu festivals are Deepavali and Thaipusam. During these festivals,

Hindus consume a significant amount of milk, as they believe that these products play

a significant role in promoting health and well-being.

McDonald’s Malaysia offers three Kurma Daboba Malaysia launches Pip Pop
McCafe beverages during Ramadan period Pearl for Chinese New Year
https://www.minimeinsights.com/category/drinks/

3. International flavours. To appeal to a wider audience, consider using flavours that are

popular in other countries. Some of the internationally-flavoured beverages that are

popular in Malaysia are matcha, yuzu, chai or horchata.

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 Energy drink manufacturer BOH introduced Green Jetpack’s matcha and chai latte
Power Root Berhad launched, Tea Latte made with are two of the six flavours of
Per'l Yuzu, which combines Japanese Matcha powder latte that are sold in Malaysia
the best nutritional elements and infused with Stevia
from Korea, Yuzu fruit and Leaf extract
the traditional Malay herb,
kacip fatimah
*Source: Shopee (https://shopee.com.my/)

Malaysians are becoming increasingly health-conscious, and this is reflected in the growing

demand for healthy beverages. According to the Euromonitor report, 57% of Malaysian look

for healthy ingredients in food and beverages.

*Source: Consumer Values and Behaviour in Malaysia (Euromonitor, 2023.07.)

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In order to improve sales of beverages towards Malaysians that have health awareness,

businesses need to focus on developing products that are both healthy and delicious. This

presents an opportunity for beverage companies to improve sales by targeting health-conscious

Malaysians. Focusing on natural ingredients is a viable strategy that can be used. Health-

conscious consumers are increasingly looking for beverages that are made with natural

ingredients. Using ingredients that are unprocessed and free of artificial flavours, colours, and

sweeteners can be a good way to attract the health-conscious consumers. This could also

include beverage that are low in calories, fat, or sugar, or being a good source of vitamins or

minerals. More importantly, the health benefits of the beverages need to be highlighted.

Consumers want to know that they are making healthy choices. Therefore, consumers could

easily understand the nutrition information on your beverages. Ensure the labelling is clear and

concise, while it emphasizes the key health benefits of the product.

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 Ghost energy drink promotes zero sugar Nestlé Malaysia’s Milo gives emphasis on the
and no artificial colouring in their vitamin and minerals content in their adverts.
beverage line.

Arizona Sweet Tea indicates absence of Borneo traditional Coconut Nectar labelling
preservatives, artificial colouring, or highlights that the ingredients are organic and
flavours on the beverage label. rich in minerals.
*Source: Shopee (https://shopee.com.my/)

The Korean Wave, also known as Hallyu, is very big in Malaysia. It has been growing in

popularity in recent years, and there is a strong interest in Korean culture among Malaysians.

This has led to a growing demand for Korean products, including Korean beverages. There are

a number of ways to use the Korean Wave to improve beverage sales in Malaysia. Therefore,

partnering with K-pop or K-drama stars is a surefire way to get large potential consumers. K-

pop and K-drama stars have a huge following in Malaysia, and they can help to promote the

beverage products in a way that is both authentic and engaging. Several beverage producer and

distribution channels have implemented this strategy to engage Malaysian who are Korean

wave enthusiast.

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 In August 2022, MILO unveiled its range of In 2021, 7-Eleven Malaysia released a
MILO variants in an all-new look featuring limited-edition Pepsi featuring four members
the Korean icon Park Seo-Jun. of the popular K-pop group, BLACKPINK.
https://www.minimeinsights.com/category/drinks/; https://www.thesundaily.my/media-
marketing/limited-edition-pepsi-x-blackpink-exclusively-at-7-eleven-malaysia-
GG6109118#google_vignette

Overall, by adopting these strategies, Korean companies can expand their market share and

increase their exports of beverages to Malaysia.

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References

CodeBlue (codeblue.galencentre.org/2023/03/03/report-41-of-malaysias-adults-will-
1
be-obese-by-2035/)
2 Cornell University Library (https://guides.library.cornell.edu/islamsoutheastasia)
3 Euromonitor (https://www.euromonitor.com)
Food safety and quality Ministry of Health Malaysia
4 (http://fsq.moh.gov.my/v6/xs/page.php?id=72;http://fsq.moh.gov.my/v6/xs/page.php?
id=323)
Global Data (https://www.globaldata.com/store/report/malaysia-beverages-
5
consumption-market-analysis/)
6 Halal Malaysia Official Portal (http://www.Halal.gov.my/v4/index.php?h=&lang=en)
7 Harvard T.H. Chan School of Public Health (hsph.harvard.edu)
8 http://bundaberg.com/
9 http://eng.ekdp.com/main/main.asp
10 http://okf.kr/
11 http://teazen.co.kr/
12 http://www.paldofood.com/
13 https://company.lottechilsung.co.kr/eng/main/index.do
14 https://qmincthailand.com/
15 https://www.bing.co.kr/en/
16 https://www.danone.com/brands/waters/evian.html
17 https://www.farmfresh.com.my/
18 https://www.fn.com.my/
19 Javatpoint (www.javatpoint.com)
20 Lazada (https://www.lazada.com.my/)
21 Minime insights (https://www.minimeinsights.com/category/drinks/)
National Pharmaceutical Regulatory Agency Ministry of Health Malaysia
22
(https://www.npra.gov.my)
23 Oppotus Research (https://www.oppotus.com/revealing-malaysias-food-trends/)
Royal Malaysian Customs Department [Panduan Ringkas Prosedur Import-en.pdf
24
(customs.gov.my)]
25 Science Direct (www.sciencedirect.com)
26 Shopee (https://shopee.com.my/)
The Sun Daily (https://www.thesundaily.my/media-marketing/limited-edition-pepsi-
27
x-blackpink-exclusively-at-7-eleven-malaysia-GG6109118#google_vignette)
28 www.powerroot.com
29 www.yeos.com.my

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