Despite a declining birth rate, Malaysia’s baby food market is expected to remain on its upward trajectory as rising household incomes, hectic urban lifestyles, and rising female workforce participation spur demand.
According to GlobalData, the Malaysian baby food sector is forecast to reach RM 3.1 billion (US$680 million) by 2028, with a CAGR of 3% from 2022 to 2028.
GlobalData’s latest report ‘Malaysia Baby Food – Market Assessment and Forecasts to 2028’ highlighted that the Baby Milk category led the market in value and volume terms in 2022. Meanwhile, Baby Finger Food is projected to record the fastest CAGR over the forecast period, followed by Baby Wet Meals & Others. The per capita expenditure on baby food in Malaysia has grown rapidly from US$334.3 in 2017 to US$443.7 in 2022. This has indeed exceeded both the Asia-Pacific average of US$164.2 and the global average of US$168.7. In fact, GlobalData has predicted that per capita expenditure for baby food in Malaysia will rise further to US$566 by 2027.
In addition, demand is rising 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.
In terms of distribution channel, hypermarkets & supermarkets are the leading distribution channel in 2022 in the Malaysian baby food market, followed by convenience stores and drugstores & pharmacies.
The top 3 players in this market include Danone, Nestle, and FrieslandCampina in 2022.
