an overview of the malaysian juice and soft drink markets
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AN OVERVIEW OF THE MALAYSIAN JUICE AND SOFT DRINK MARKETS
ROSLINA ALIECONOMIC AND TECHNOLOGY
MANAGEMENT RESEARCH CENTERMARDI
Introduction Scenario Industry/ Market TrendsConsumption Market Shares Projections / Prospects/ Technology Issues and Challenges Conclusion
PRESENTATION OUTLINES
Juices◦Naturally contained in fruits and vegetables◦prepared by mechanically squeezing or macerating
fresh fruits or vegetables◦Contain 100% juice
Nectars◦Made from fruits or vegetables◦Contain 25-99% juice◦Added sugar/sweetener
INTRODUCTION
INTRODUCTION Soft Drink◦Does not include milk and milk shake, vegetable juice,
fruit juice, tea, coffee, chicory, cocoa and their related products
◦ shall not contain any added alcohol.
Fruit/ Vegetable Juice◦Juice:
100% juice content
◦Nectars: 25 – 99% juice content
◦Juice Drinks: Up to 24% juice content
◦Fruit-Flavored Drinks: 0% juice content
CLASSIFICATION OF JUICES
Soft Drinks◦Carbonates◦Fruit/vegetable juice◦Bottled water ◦Functional drinks◦Concentrates◦Ready-to-drink (RTD) tea◦Ready-to-drink (RTD) coffee◦Asian specialty drinks
CLASSIFICATION OF SOFT DRINKS
Fruit/vegetable juice drinks were the most preferred products contributing 58.7% to the sales value in 2007, followed by nectars (35%), and 100% juice (6.3%).
Malaysia Milk Sdn Bhd (i.e. Marigold brand) is the market leader of both retail volume and retail value shares.
SCENARIO: Juice Sector
As of 2007,carbonated drinks contributed around 29.9% of sales values, followed by asian specialty drinks (23.7%), functional drinks (20.1%), fruit and vegetable juice (12.2%), concentrates (6.6%), RTD tea (5.7%), and RTD coffee (1.7%).
F&N coca-cola (M) Sdn Bhd (i.e. 100 Plus, F&N, Coca-cola, and Seasons) controlled 33.2% of the market in 2007 – the largest.
SCENARIO: Soft Drink Sector
2002 2003 2004 2005 2006 20070.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Figure1. Total Retail Sales of Fruit and Vegetable Juices by Subsector in Values, 2002-2007
RM
Mill
ion
TRENDS: Juice Sector
The total value of retail sales for fruit and vegetable juices showed increasing trends from RM263.5 million in 2002 to RM 352 million in 2007. All subsectors were gradually increasing in the same period.
Increasing health awareness, fast-paced lifestyle, and westernization of society helped to boost demand of these products, as purchasing power of consumers has increased.
TRENDS: Juice Sector
2002 2003 2004 2005 2006 2007
Carbonates 673.5 700.5 722.5 745.2 769.5 795.9
Asian specialty drinks 518.5 534.2 551.8 571.0 598.6 632.3
Functional drinks 293.5 356.7 412.0 454.9 494.6 534.8
Fruit/vegetable juices 263.5 275.7 287.3 299.0 311.5 325.0
Concentrates 134.5 140.6 147.5 155.6 165.6 177.0
RTD tea 121.5 125.2 130.3 136.2 143.7 152.4
RTD coffee 34.8 36.5 38.3 40.4 43.1 46.4
TOTAL 2,039.8 2,169.4 2,289.7 2,402.3 2,526.6 2,663.8
TRENDS: Soft Drink SectorTable1. Retail Sales of Soft Drinks by Sector, 2002-2007
(RM Million)
TRENDS: Soft Drink Sector Off-trade sales in values are gradually
increasing from RM2,039.8 mill. to RM2,663.8 in 2002 and 2007, respectively.
Marginally stronger total values in 2007 due to deeper geographical and demographical penetration of such products.
CONSUMPTION: 100% JUICES
2003 2004 2005 2006 20070.0
10.0
20.0
30.0
40.0
50.0
60.0
%
Figure 2. Top 5 Leading Flavors for 100% Juices: Per-centage Volume Breakdown, 2002-2007
2003 2004 2005 2006 20070.05.0
10.015.020.025.030.035.040.045.050.0
%
CONSUMPTION: NECTARSFigure 3. Leading Flavors for Nectars: Percentage
Volume Breakdown, 2002-2007
2003 2004 2005 2006 20070.0
5.0
10.0
15.0
20.0
25.0
30.0
CONSUMPTION: Juices DrinkFigure 4. Leading Flavors for Juice Drink: Percentage
Volume Breakdown, 2002-2007
%
CONSUMPTION: Soft Drinks
Functional drinks; 12.8%
Asian spe-cialty
drinks, 6.4%
Bottled water; 6.3%RTD cof-fee; 5.9%
Concen-trates; 5.6%
RTD tea; 4.6%
Fruit/veg-etable
juice; 4.3%Carbonates; 3.4%
Figure 5. Percentage Value Growth (Retail sales), 2002-2007
MARKET SHARES: JuicesTable 2. Top 10 Brand Shares of Fruit/Vegetable Juice by Retail
Sales Value, 2007
Brand Company % Shares Marigold Malaysia Milk Sdn Bhd 28.8
Pokka Pokka Ace (M) Sdn Bhd 12.9
Sunkist F&N Dairies (M) Sdn Bhd 10.9
Drinho Ace Canning Corp Sdn Bhd 9.0
Yeo's Yeo Hiap Seng (M) Sdn Bhd 4.6
Delite Amoy Canning (Beverages) Sdn Bhd 3.7
Seasons F&N Coca-Cola (M) Sdn Bhd 3.2
Fruit Tree F&N Dairies (M) Sdn Bhd 2.6
Vegood Clouet & Co (KL) Sdn Bhd 2.2
Ribena Glaxo Smith Kline Sdn Bhd 1.9
Brand Company %Share
100 Plus F&N Coca-cola (M) Sdn Bhd 12.9
F&N F&N Coca-cola (M) Sdn Bhd 10.3
Yeo's Yeo Hiap Seng 9.9
Coca-Cola F&N Coca-cola (M) Sdn Bhd 6.8
Drinho Ace canning Corp Sdn Bhd 5.4
Marigold Malaysia Milk Sdn Bhd 4.3
Seasons F&N Coca-cola (M) Sdn Bhd 3.2
Pokka Pokka Ace (M) Sdn Bhd 2.8
Sunquick Barkath Co-Ro Manufacturing Sdn Bhd 2.3
Ribena Glaxo Smith Kline 2.1
MARKET SHARES: Soft DrinksTable 3. Top 10 Brand Shares of Soft Drinks by Off-trade
Value, 2007
PROJECTION: JUICE SECTOR
2010 2011 20120
50
100
150
200
250
RM
‘ 00
0
Figure 6. Projection of Retail Sales for Fruit/Vegetable Juice by Subsector, 2010-2012 (RM Million)
Carbon
ates
Asian s
pecial
ty drin
ks
Functi
onal
drinks
Fruit/V
egetab
le jui
ce
Conce
ntrates
Bottled w
ater
RTD tea
RTD coffe
e0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1000.0
2010
2011
2012
RM
‘000
Figure 7. Projection of Retail Sales for Soft Drinks by Subsector, 2010-2012 (RM Million)
PROJECTION: SOFT DRINK SECTOR
TRADE: JUICES SECTOR
2004 2005 2006 2007 2008 2009 0.05.0
10.015.020.025.030.035.040.045.050.0
USD
Mill
.
Figure 7. Total Value of Imports and Exports for Fruit/Vegetable Juices (USD Million), 2004-2009
Fruit/vegetable juices (i.e 100% juice, nectars and juice drinks) are expected to grow steadily from RM346.2 mill. in 2010 to RM363.9 mill. in 2012.
The constant growth value is due to increasing health consciousness, particularly middle and high income consumers.
New healthy products development include sugar-free/reduced, fat-free/reduced, preservative-free, artificial coloring-free are expected to help drive the growth of fruit/vegetable juices over the forecast period.
PROSPECTS: JUICE SECTOR
Soft drink sector are expected to increase from RM 3,152.3 mill. to RM 3,411.2 mill. in 2010 and 2012, respectively.
Carbonated drink subsector (25.9%) are expected to contribute the largest proportion in the soft drink sector in 2012, followed by asian specialty drink (23%), functional drinks (19.5%),fruit and vegetables juice (10.8%), concentrates (6.7%), Bottled water (6.6%), RTD tea (5.5%), and RTD coffee (1.9%).
PROSPECTS: SOFT DRINK SECTOR
Technology of hurdle effect for processing fruit/vegetable cordials
Technology of pasteurization for processing high quality fruit/vegetable juices
Technology for processing high acidic fruits/vegetables canning juices/drinks
Technology of processing fruits/vegetables/herbs juices and drinks
TECHNOLOGY ADVANCEMENTS
Increasing trends of health and wellness◦sugar-free◦fat-free ◦vitamins and minerals added◦non-carbonated drink◦No artificial coloring◦Diseases resistant
Supply of raw materials◦The most preferred flavors are orange and
apple which highly rely on exports.
ISSUES AND CHALLENGES
THANK YOU
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