Malaysia’s baby food market continues to expand despite a declining birth rate, as rising household incomes, hectic urban lifestyles, and rising female workforce participation spur demand. As a result, the Malaysian baby food sector is forecast to reach MYR3.1 billion ($707.5 million) by 2028, expanding at a compound annual growth rate (CAGR) of 3% over the period 2022–28, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report, ‘Malaysia Baby Food – Market Assessment and Forecasts to 2028’, reveals that the baby milk category led the market in value and volume terms in 2022. Baby finger food is projected to record the fastest CAGR over the forecast period, followed by baby wet meals & others.
Naveed Khan, Consumer Analyst at GlobalData, comments: “The Malaysian baby food market is expanding in line with increasing urbanization, rising household incomes, and changing lifestyles. Moreover, breastfeeding occasions and frequency are declining as more women enter the workforce and are left with less time to spend with their wards. This trend will grow more pronounced in the immediate future as more Malaysians return to their workplaces. These factors are spurring demand for convenient and time-saving baby milk, cereals, wet meals, and finger snacks. Accordingly, the per capita expenditure on baby food in Malaysia increased from $334.3 in 2017 to $443.7 in 2022. This exceeded both the Asia-Pacific average of $164.2 and the global average of $168.7.”
Khan adds: “Malaysian consumers have access to an increasing choice of baby food products, brands, and labels in retail stores. The demand is on the rise for halal-certified baby food that contains natural ingredients and is fortified with beneficial nutrients such as vitamins, minerals, antioxidants, probiotics, and prebiotics that support the development of infants’ physical and mental health.”
Hypermarkets & supermarkets was the leading distribution channel in 2022 in the Malaysian baby food market, followed by convenience stores and drugstores & pharmacies. Danone, Nestlé, and FrieslandCampina were the top three leading companies in the Malaysian baby food sector in 2022.
Khan concludes: “Despite high inflation, consumers are opting for high-end baby food products, as they want to ensure the best for their wards. This is corroborated by GlobalData’s Q1 2023 consumer survey, wherein 32% of Malaysian respondents connote high-quality products/ingredients with “good value for money” when buying baby care and childcare products*. Additionally, 37% of Malaysian respondents in GlobalData’s Q4 2022 consumer survey stated that their spending on baby milk was quite high or very high, and 34% of respondents said the same for baby food**. As a result, Malaysia’s PCE on baby food is expected to rise further to $566 by 2027.”
* GlobalData Q1 2023 Consumer Survey – Malaysia, with 510 respondents, published May 2023
** GlobalData Q4 2022 Consumer Survey – Malaysia, with 318 respondents, published November 2022
