19 May 2020
Posted in Consumer
Malaysian seasonings, dressings & sauces sector to reach US$588m in 2024, says GlobalData
The Malaysian seasonings, dressings & sauces sector is expected to grow from RM1,958.6m (US$468.6m) in 2019 to RM2,478.9m (US$588m) by 2024, at a compound annual growth rate (CAGR) of 4.8%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Malaysia Seasonings, Dressings & Sauces – Market Assessment and Forecasts to 2024’ reveals that dressings represented the largest category in terms of value sales in 2019 while wet cooking sauces category is forecast to register the fastest CAGR of 4.9%, during 2019–2024. Herbs, spices & seasonings was the leading category volume with sales of 42.7 million kg in 2019.
Bobby Verghese, Consumer Analyst at GlobalData, says: “Low food-price inflation motivated Malaysian consumers to trade up to high-end seasonings, dressings & sauces products during the year, thereby creating opportunities for the manufacturers to introduce premium products with exotic and novel ingredients and flavors.”
The Malaysian seasonings, dressings & sauces sector accounted for a value share of 0.4% and 0.9%, respectively, in the global and Asia-Pacific markets in 2019, and this share is expected to reduce in the year 2024.
Nestle SA, Lee Kum Kee and Mars Incorporated are the leading companies in the Malaysian seasonings, dressings & sauces sector. Through its brand Maggi, Nestle SA led the Malaysian seasonings, dressings & sauces sector in both value and volume terms in 2019.
Among the distribution channels, Hypermarkets and supermarkets dominated the sector, with a value share of 82% in 2019.
Bobby concludes: “Among the top four Malaysian cities, Kuala Lumpur emerged as the largest market for seasonings, dressings & sauces in volume terms in 2018. The SDS market in Kuala Lumpur also recorded the fastest CAGR of 2.4% over 2013-2018.”