Malaysia hot coffee segment to grow 4.5% in 2027

In 2022, on-premise consumption contributed 25% to the category's value share.

Malaysia’s hot coffee category is expected to grow at a compound annual growth rate of 4.5% between 2022 to 2027, a report by data and analytics company GlobalData revealed.

The segment is fueled by innovative products and attuned to consumer preferences across both on-trade, (cafes, restaurants, etc) and off-trade (supermarket, online stores, etc.) channels in meeting evolving consumer preferences, affirming its adaptability to changing dynamics.

In 2022, on-trade transactions played a crucial role, contributing 25% to the category's value share and 10% by volume. GlobalData said this underscores the resilience of the sector and its ability to accommodate changing consumer behaviours. 

“This growth is attributed to consumers reverting to pre-COVID-19 pandemic lifestyles. GlobalData anticipates positive trends in average transaction value, transaction count, and outlet expansion from 2022 to 2027,” Aayush Sharma, Consumer Analyst at GlobalData, said.

Reflecting similar growth trajectories between takeaway and dine-in experiences, with takeaway sales demonstrating a slightly stronger upward trend, GlobalData forecasts notable growth in both segments within Coffee and Tea Shops from 2022 to 2027, indicative of evolving consumer preferences.

“The Malaysian hot coffee category continues to thrive, driven by a combination of diverse options, superior quality, and an evolving understanding of consumer preferences. With promising growth forecasts, the market is set to witness further innovation and expansion in the coming years,” Sharma said.