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Overview of Malaysian FMCG market in 2025
In 2025, the Malaysian FMCG market is projected to experience a 5% growth in value, driven by increased purchasing volume. This growth is expected across both Peninsular Malaysia and East Malaysia, with the latter presenting unique opportunities for targeted expansion. Key factors influencing this growth include the normalization of shopping behavior, increased disposable income due to minimum wage adjustments, and a shift towards sustainable practices.
Key Trends and Developments
Peninsular Malaysia
The in-home FMCG market is expected to continue growing at a 5% rate, largely driven by a 4% increase in purchasing volume.
East Malaysia
While contributing 14% of Malaysia's total FMCG value, East Malaysia presents a different set of shopper behaviors, including more frequent trips and broader category engagement.
Shopper Behavior
Shoppers are becoming more cautious in their spending, with a shift towards prioritizing out-of-home occasions and non-grocery spending.
Minimum Wage Increase
The increase in the minimum wage to RM1,700 per month, effective February 1, 2025, is expected to boost consumer spending.
Rising Debt
High household debt levels may constrain consumer spending, as households allocate more disposable income towards debt financing.
Sustainable Practices
There's a growing demand for products with ethical, environmental, and health considerations.
Digital Transformation
Industry 4.0 technologies are playing a role in transforming the FMCG industry.
Market Challenges
High household debt levels may constrain consumer spending, as households allocate more disposable income towards debt financing.