The food production industry in Malaysia is well-developed but its baby food production industry is still developing. The growth in baby food market in Malaysia has risen sharply over the past few years and has been comparatively steady in volume terms, despite minor fluctuations. The Malaysian birth rate is decreasing slowly and by the year 2020, the birth-rate will further decline. Malaysia’s baby food market is dominated by the multinational brands such as Danone, Nestle and Dutch Lady.
The baby food market in Malaysia is expected to grow rapidly and is desirable due to the swift urbanization, decreased rate of unemployment and increase in working women in almost all the developing sectors. Parents are not willing to compromise in quality of the baby foods and are more eager to spend on quality products. With the number of infants is decreasing, the number of toddlers aged between one and three will be increasing. With the increase in the disposable incomes, parents are likely to get attracted to the available convenient baby foods. Baby food market was least affected by the economic recession because the parents were reliable only on few particular baby food brands.
In order to reduce the expense of baby foods, parents are encouraged the benefits of breastfeeding as it are the best milk for their baby. The government and non-governmental organizations organized many held events to encourage breastfeeding.
According to the market research report “Baby Food in Malaysia“, the major factors considered in Malaysia while purchasing baby foods are trusted brand that provides good overall nutrition with safe ingredients/processing along with organic/all natural foods contents. Their friends, well-wishers, family or baby health experts and online resources such as social media recommend majority of the Malaysian consumers, parenting websites, parenting magazines about tips on which baby food to purchase. The sales of baby food have increased annually in terms of both volume and value except in 2012. The total volume sold in 2016 was 12% higher than in 2010 and value in 2016 was 96.5% higher than in 2010, equivalent to an increase of 71% at constant 2010 prices. Malaysia’s strong economic performance has made commercial baby food accessible to an increasing number of parents. The rising number of births has further stimulated sales. The market is dominated by baby milks, which account for 90% of retail sales. Cereals represented 6.4%, Wet meals accounted for just 1.2% of market value. Other baby food, now consisting of rusks and snacks, took 2.6% of market value.
The baby food market anticipates a productive growth in the coming years with increase in birth rates. Most of the baby foods are packed in attractive pouches, which are flexible and easy to handle. Today’s busy parental lifestyles demand for more conveniently packed baby food, which are easy to transport. The packets are provided with plastic spouts that help in self-feeding and independence among babies. The future developments in the organic baby foods may benefit in the baby food market growth.
The baby foods are categorized as infant formula, baby foods, and others. Majority of the infant formula consist of infant milk formula and stage-wise milk formulas. Baby foods are prepared, and dried foods packed with nutrition. The other category of baby foods are drinks, biscuits, rusks or dried bread, snacks, cereals, fruit & vegetables, foods and other solids. The baby food is easily accessible to the Malaysians’ due to country’s strong economic performance.
The competitors in Malaysia other than Danone, Nestle and Dutch Lady are Mead Johnson, Abbott, FrieslandCampina, Heinz, Bellamy, Topfer, HiPP, Perrigo, Arla, Holle, Fonterra, Westland Dairy, Pinnacle, Meiji, Yili, Biostime, Yashili, Feihe, Brightdairy, Beingmate, Wonderson, Synutra, Wissun, Hain Celestial, Plum Organics, DGC, and Ausnutria Dairy Corporation (Hyproca). There is a rapid growth in baby foods market annually in terms of both volume and value. The rise in birth rate has increased the baby food market and the baby milk formulas, cereals, wet meals, and others dominate the consumption market. It is estimated that in the coming years, the baby food market will grow but with rise in prices.
Key Topics Covered in the Report:
Malaysia Baby Food Market Research Report
Malaysia Baby Food Market Size
Malaysia Baby Food Industry
Malaysia Baby Food Retail Market
Online Baby Food Sales Malaysia
Malaysia Baby Food Production Output
Malaysia Baby Food Import Volume
Malaysia Baby Food Export Volume
Malaysia Baby Food Market Future Outlook
Malaysia Baby Food Market Competition
Baby Cereal Market Malaysia
Infant Formula Market Malaysia
Malaysia Dry Baby Food Market Research
Malaysia Baby Food Market Regulations
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Ankur Gupta, Head Marketing & Communications