Convenient food options to drive Malaysia’s soups sector through 2025, says GlobalData

The Malaysia’s soups market is projected to grow at a compound annual growth rate (CAGR) of 1.0% from MYR61.1m (US$14.6m) in 2020 to MYR64.3m (US$15.2m) in 2025, driven by the growing demand of convenient food options among busy consumers, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Malaysia Soups Market Assessment and Forecasts to 2025’, reveals that the market is majorly driven by the growth in the frozen soup category, which is forecast to register the fastest value CAGR of 1.4% during 2020-2025. The category is followed by ambient soup, which is expected to record a CAGR of 1.2% during the same period.

Anjali Singh, Consumer Analyst at GlobalData, says: “The soups market in Malaysia benefitted from the COVID-19 pandemic in 2020 as consumers opted for shelf-stable convenient soup products. Awareness about health is on the rise among Malaysian consumers due to which they are shifting from merely convenient products to products that are healthy as well. As a result, manufacturers are focusing on products that contain natural formations and are free from artificial ingredients, preservatives, and GMO to appeal to these consumers.”

The volume share of Malaysia in the global soups market is expected to remain constant at 0.1% through 2025. However, the country’s share at the Asia-Pacific level is expected to decrease from 1.0% in 2020 to 0.9% in 2025.

Hypermarkets & supermarkets continued to dominate the Malaysian soups market and accounted for the majority share of 86.5% in 2020, followed by convenience stores and e-retailers with shares of 10.4% and 1.6%, respectively.  Hypermarkets & supermarkets also held the majority share across all categories in the country in 2020.

Campbell Soup Company, The Kraft Heinz Co and Ajinomoto Group were the top three companies in the Malaysian soups market by value in 2020 while Campbell’s and Heinz were the leading brands.

Ms. Singh concludes: “Healthy eating will continue to remain a trend in Malaysia as consumers are paying attention to what they consume and seeking nutritional, natural, and healthy soup products. Innovation with tastes and flavours to entice consumers will support the growth of the soups market. In line with this, manufacturers are launching spicy flavored soup products to tap into local taste preferences.”

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