Malaysia's baby food market has continued 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 MYR 3.1 billion ($707.5 million) by 2028, expanding at a compound annual growth rate (CAGR) of three percent over the period 2022 to 2028, according to GlobalData, a leading data and analytics company.
Naveed Khan, Consumer Analyst at GlobalData, said the Malaysian baby food market was expanding with increasing urbanisation, rising household incomes, and changing lifestyles.
"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," said Khan.
Khan continued that these factors propelled the demand for convenient and time-saving baby milk, cereals, wet meals, and finger snacks.
GlobalData's market research showed that Malaysian consumers have access to an increasing choice of baby food products, brands, and labels in retail stores. The demand was 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 and supermarkets were the leading distribution channels 2022 in the Malaysian baby food market, followed by convenience stores, drugstores, and pharmacies.
"Despite high inflation, consumers are opting for high-end baby food products, as they want to ensure the best for their children. This is corroborated by GlobalData's first quarter 2023 consumer survey, wherein 32 percent of Malaysian respondents connote high-quality products/ingredients with 'good value for money' when buying baby care and childcare products."
Khan added that 37 percent of Malaysian respondents in GlobalData's fourth quarter 2022 consumer survey stated that their spending on baby milk was relatively high or very high, and 34 percent said the same for baby food. As a result, Malaysia's PCE on baby food is expected to rise further to $566 by 2027.
