Increase in Organic Beverages to Boost Beverage Market in Malaysia: Ken Research
Beverages consist of alcoholic and non-alcoholic beverages. The alcoholic beverages
segment includes caffeinated alcoholic beverages, fruity alcoholic beverages, beer, flavoured
alcoholic beverages, spirits, wines such as still wines and sparkling wines and gluten-free
alcoholic beverages. Non-alcoholic beverages consist of less than 0.5% alcoholic content by
volume. These beverages include soft drinks, juices, carbonated soft drinks, juice concentrate,
functional drinks, ready-to-drink tea and coffee, flavoured water, nectars, still drinks,
squash/syrups bottled water, energy or sports drinks, and non-alcoholic beer and wine. Other
non-alcoholic beverages are dairy, soy drinks and milk alternatives are condensed milk,
drinking yogurt, evaporated milk, flavoured milk, soymilk, white milk. Hot drinks are
variants in hot coffee, hot tea and hot chocolate beverages.
The increasing consumption of healthy drinks is one of the primary growth factors of non-
alcoholic drink market. Majority of the Malaysian consumers are increasingly demanding for
drinks made from natural and organic ingredients due to the awareness in health benefits and
hazardous effects of ingredients. Malaysians are steadily adopting health and wellness food
trends and demanding for low and zero calories, low and zero sugar, and other kinds of soft
drinks. Also, the soft drink manufacturers are developing low-fat and low-sugar soft drinks to
cater to the health-conscious consumers. There is also a demanding for super-premium soft-
drinks, in addition to the premium soft drinks. Millennials are aware about the increasing
health consciousness and are encouraging the vendors to offer authentic and sophisticated
beverages. Specialty drinks or super-premium soft drinks are formulated using simple
ingredients, lesser calories, and natural sweeteners such as stevia. The non-alcoholic drinks
market is fragmented with the presence of several international and domestic players. It was
observed that there is a stiff competition between the non-alcoholic drink manufacturers in
terms of product differentiation, price, quality, distribution, and marketing.