Plant-based ice creams to gain traction as Malaysia ice cream market set to multiply at 4.7% CAGR through 2026, forecasts GlobalData

Driven by concerns about health, environmental and animal welfare, Malaysian consumers are preferring vegan ice creams lately. Ice cream manufacturers are also adopting sustainable packaging and establishing recycling systems to attract these rising eco-conscious consumers. So, the Malaysian ice cream market is anticipated to grow from MYR915.2m ($220.9m) in 2021 to MYR1,151.6m ($281.3m) in 2026, at a compound annual growth rate (CAGR) of 4.7% during 2021-2026, forecasts GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Malaysia Ice Cream Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021-2026’, reveals that the market growth will be primarily driven by the impulse ice cream single- serve category, which is set to register the fastest value CAGR of 4.8% over 2021-2026. The category will be followed by take-home and bulk ice cream, which will record a CAGR of 4.7% each over the forecast period.

Vishakha Rastogi, Consumer Analyst at GlobalData, says: “Vegan ice creams have made a strong impact in the Malaysian ice cream market in 2021. Rising consumer awareness about the benefits of plant-based products, including its positive impact on the environment and global food supply chain drove the sales of the segment. Further, sustainable packaging trends are poised to become the mainstay, as more ice cream companies strive to establish circular economies that boost recycling of post-consumer packaging waste.”

‘Hypermarkets & supermarkets’ was the leading distribution channel in the Malaysian ice cream market in 2021, followed by ‘food & drinks’ specialists and convenience stores.

The per capita expenditure (PCE) on ice cream in Malaysia increased from $2.7 in 2016 to $3.3 in 2021, which was higher than the regional level ($2.7), and lower than the global level ($5.2). The PCE on ice creams will surge to $4 in 2026.

​Unilever, Froneri International Ltd., and F& N Pte Ltd. were the top three companies in the Malaysian ice cream market in value terms in 2020, and King`s and Cornetto were the leading brands.

Rastogi concludes: “As the COVID-19 restrictions on public outdoor movements and gatherings are eased, both ‘on-premise’ and ‘on-the-go’ consumption of ice creams will surge in 2022. Therefore, manufacturers are expected to launch products with natural ingredients, and sustainable packaging to appease conscious consumers.”

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