Sector Trend Analysis – Foodservice Profile – Malaysia

Note: This report includes forecasting data that is based on baseline historical data.

Executive summary

In 2021, the retail value of Malaysian foodservice sales was US$7.4 billion. The Malaysian foodservice market has been hit hard by the pandemic, seeing steep declines in value in both 2020 and 2021. In total, as of 2021, the market had lost 33.9% of its value since 2019. Sales of foodservice in Malaysia are expected to make a strong recovery, growing at a compound annual growth rate (CAGR) of 10.5% from 2021 to 2026.

The Malaysian foodservice market was, until the pandemic, mostly made up of independent outlets. In 2016, independent outlets accounted for 66.8% of foodservice sales. However, chained outlets have been outperforming their independent counterparts during the pandemic and accounted for nearly half of retail sales in 2021.

During the pandemic, limited-service restaurants have faired better than other outlets, seeing relatively modest drops in sales. This category is expected to lead the recovery, seeing the fastest growth of any category of foodservice outlet from 2021 to 2026. Sales are expected to grow at a CAGR of 14.6% from 2021 to 2026. Full-service restaurants, meanwhile, are expected to see the slowest recovery. This category is expected to grow at a CAGR of 7.9% from 2021 to 2026.

During the pandemic, restrictions on dining indoors and consumer fears over hygiene have led to a pivot to take-out and delivery. Online ordering is becoming increasingly prominent. Online ordering accounted for just 1.6% of foodservice sales in 2016, however has since risen to 28.5%.

 

Consumer profile and trend

Malaysia had a population of 32.9 million in 2021, of which 51.5% was male and 48.5% was female. Malaysia had the fourteenth largest population in the Asia Pacific region. The median age was 30.6 years in 2021, below the median age for the Asia Pacific region of 32.8 years. The median age of Malaysia has increased from 28.5 in 2016 and is expected to reach 32.9 in 2026. By 2040, the median age in Malaysia is forecast to reach 38.9 by 2040, by which time it will have surpassed the Asia Pacific average. Population growth in Malaysia is forecast to be faster than the Asia Pacific region from 2022 to 2040. Malaysia enjoys a gross domestic product (GDP) per capita of US$11,345.8, above the average across the Asia Pacific region of US$7,840.3.

The Malaysian economy experienced a sharp decline in 2020 after a period of robust growth, followed by a strong recovery in 2021. The economic rebound is projected to accelerate in 2022, as coronavirus restrictions are eased demand for Malaysian exports rises. The economy experienced real growth of 3.4% in 2021, and real growth is expected to continue at a CAGR of 3.9% from 2022 to 2040. Foreign direct investment increased by 276% in 2021 compared with the previous year. Unemployment is forecast to fall to 3.6% in 2022, well below the regional average of 5.0%, and inflation is also forecast to be modest relative to both the rest of the globe and Asia Pacific region. Public debt as a percentage of GDP remains significantly below the regional average. The Malaysian economy is undergoing digital transformation and focussing on developing manufacturing of high-tech products, and other value-added industries.Footnote 1

Gross income growth in Malaysia from 2020-2040 is expected to be well above both the regional and global averages, with income more than doubling over the period. Those in the 30-34 age bracket had the highest average gross income in 2020, followed by those in the 35-39 age group, and then ages 40-44. Meanwhile, the youngest age brackets are expected to see the fastest income growth from 2020 to 2040. Luxury goods and services will be increasingly influenced by younger consumers, who are educated, focussed on financially smart consumption, and social media is heavily integrated into their lives.Footnote 2

Household savings in Malaysia are low compared to regional peers, and household debt is high. Malaysia's household debt to GDP is among the highest in the Asia Pacific at 87.5%. Considerable differences exist between the portions of Malaysia on the Malay Peninsula and those on the island of Borneo. Peninsular Malaysia is the main financial and economic hub of the country, while Borneo is more agricultural. Peninsular Malaysia is expected to lead growth in income, while Borneo sees slower growth.Footnote 3

The share of Malaysians living in poverty increased during the pandemic, and the share of households in the middle class declined from 25.7% in 2016 to 25.0% in 2021. Social class E, those making below 50% of national gross average income, remained the largest in 2021, with 9.6 million members, having grown from 8.8 million in 2016. Social class D, those making between 50% and 100% of average gross income, had 8.1 million members in 2021. Collectively, all higher social classes had 7.6 million members.

The Asia Pacific consumer foodservice market

The Asia Pacific consumer foodservice market was valued at US$1.2 trillion in 2021, up from US$1.1 trillion in 2016, and down from a pre-pandemic high of US$1.3 trillion in 2019. Total sales grew at a CAGR of 1.1% from 2016-2021, and 4.6% from 2016-2019. Sales fell by 20.2% in 2020 due to the pandemic and rebounded 16.5% in 2021. The market is expected to grow 8.5% in 2022, reaching US$1.3 trillion and slightly surpassing its 2019 high. From 2021-2026, the market is expected to grow at a CAGR of 8.0%.

The largest players in the market were China, Japan, and South Korea. Malaysia was the thirteenth largest market in the region, with foodservice sales of US$7.4 billion, down from US$8.9 billion in 2016. Unlike some other nations in the Asia Pacific region, Malaysia's consumer foodservice market registered further negative growth in 2021, rather than a recovery. Growth from 2021-2026 is forecast to occur at a CAGR of 10.5%, above the regional average. Of the top 5 foodservice markets in the Asia Pacific region, Indonesia is expected to see the fastest CAGR of 16.7% from 2021-2026, while India is expected to grow the second fastest at a CAGR of 12.1%.

Retail value sales of top five Asia Pacific consumer foodservice markets, in US$ millions, historic and forecast, fixed 2021 exchange rate
Country 2016 2021 CAGR* % 2016-2021 2022 2026 CAGR* % 2021-2026
Asia Pacific Total 1,140,442.5 1,205,743.0 1.1 1,335,099.5 1,771,355.1 8.0
China 647,076.3 781,255.7 3.8 848,086.3 1,101,570.3 7.1
Japan 201,811.6 155,612.5 −5.1 166,221.3 196,471.4 4.8
South Korea 74,035.6 74,246.2 0.1 84,169.7 118,553.7 9.8
India 42,729.4 44,289.4 0.7 54,658.3 78,520.6 12.1
Indonesia 33,402.9 22,860.0 −7.3 29,591.5 49,421.7 16.7
Malaysia (13th) 8,882.1 7,412.0 −3.6 8,418.0 12,207.8 10.5

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Malaysia's consumer foodservice market

Consumer foodservice in Malaysia was valued at US$7.4 billion in 2021. The Malaysian foodservice market has been hit hard by the coronavirus pandemic, registering a fall of 21.6% in 2020, reversing all its growth since 2016. The market suffered a further decline of 15.7% in 2021, leaving it 33.9% below its 2019 high. The market is expected to experience a rebound in 2022, growing 13.6% year over year, however remaining below it's value in 2020. Consumer foodservice is expected to recover to its 2019 high by 2025 and reach US$12.2 billion in 2026.

The fall in the value of Malaysia's foodservice market has been primarily driven by ongoing coronavirus restrictions, such as a ban on dining, and shifting the market in favor of drive through and take away. Some restrictions were eased in October of 2021. The reactions of consumers were mixed, with restaurants witnessing the release of some pent-up demand from some consumers, while others remained cautious about dining out.Footnote 4

In 2016, the Malaysian foodservice market was dominated by independent outlets which enjoyed US$5.9 billion in sales and controlled 66.8% of the market, while their chained counterparts had US$2.9 billion in sales and 33.2% of the market. However, independent operators were hit disproportionately by the pandemic, and by 2021 the market was almost evenly split. Independent foodservice saw US$3.8 billion in sales, and accounted for 51.7% of sales, while chained outlets saw US$3.6 billion in sales and accounted for 48.3% of the market. Chained outlets saw their sales grow at a CAGR of 4.0% from 2016-2021, while independent outlets saw grow at a CAGR of −8.4% from 2016-2021.

All categories of consumer foodservice recorded negative growth in both 2020 and 2021. Limited-service restaurants were only category to enjoy positive growth over from 2016-2021. Despite having been the second smallest category for consumer foodservice in 2016, they were the largest category by 2021 with US$2.2 billion in sales. Full-service restaurants were the second largest category in 2021 with US$2.0 billion in sales, having fallen from being the largest category before the pandemic. Street stalls and kiosks were the third largest category in 2021, with US$ 1.8 billion in sales, followed by cafés and bars at US$1.3 billion, and self-service cafeterias at US$0.2 billion.

Despite not having lost as much ground as other categories during the pandemic, limited-service restaurants are expected to lead the post-pandemic rebound. Limited-service restaurants are expected to see sales growth of 20.7% from 2021-2022, the fastest of any category, and grow at a CAGR of 14.6% from 2021-2026, also the fastest of any category. By 2026, limited-service restaurants are expected to be valued at US$4.4 billion. The next fastest growing category is expected to be cafés and bars, which are expected to see growth of 12.1% from 2021-2022 and grow at a CAGR of 9.4% from 2021-2026.

Retail value sales of Malaysia's consumer foodservice by category, in US$ millions, historic and forecast, fixed 2021 exchange rate
Category 2016 2021 CAGR* % 2016-2021 2022 2026 CAGR* % 2021-2026
Total Foodservice by Type 8,882.1 7,411.9 −3.6 8,418.0 12,207.8 10.5
Chained Foodservice 2,946.0 3,581.1 4.0 4,241.4 6,670.0 13.2
Independent Foodservice 5,936.1 3,830.8 −8.4 4,176.6 5,537.8 7.6
Cafés/Bars 2,104.5 1,254.1 −9.8 1,405.9 1,962.5 9.4
Full-Service Restaurants 3,125.3 1,962.7 −8.9 2,149.4 2,869.6 7.9
Limited-Service Restaurants 1,623.1 2,203.7 6.3 2,660.5 4,351.0 14.6
Self-Service Cafeterias 183.5 173.3 −1.1 190.0 253.3 7.9
Street Stalls/Kiosks 1,845.7 1,818.1 −0.3 2,012.2 2,771.4 8.8

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Retail value sales of Malaysia's consumer foodservice by category, growth %, historic and forecast, fixed 2021 exchange rate
Category Annual growth % 2020-2021 Total growth % 2016-2021 Annual growth % 2021-2022 Total growth % 2021-2026
Total Foodservice by Type −15.7 −16.6 13.6 64.7
Chained Foodservice −5.8 21.6 18.4 86.3
Independent Foodservice −23.2 −35.5 9.0 44.6
Cafés/Bars −27.4 −40.4 12.1 56.5
Full-Service Restaurants −25.3 −37.2 9.5 46.2
Limited-Service Restaurants −2.6 35.8 20.7 97.4
Self-Service Cafeterias −13.8 −5.6 9.6 46.2
Street Stalls/Kiosks −7.8 −1.5 10.7 52.4
Source: Euromonitor International, 2021

Foodservice: chain franchises versus independent operators

Prior to the pandemic, independent operators led in all categories except limited-service restaurants. In 2019, independent 80.9% of cafés and bars accounted for 80.9% of sales for the category, while independent self service cafeterias held an 80.7% share, and independent street stalls and kiosks held 94.8% of the market. Full-service restaurants were more split but still led by independent outlets, with independent outlets accounting for 62.2% of sales in 2019, down slightly from 66.1% in 2016. Limited-service restaurants were dominated by chained outlets, which controlled 88.1% of the market in 2019.

Independent outlets lost ground in all categories over the course of the pandemic, as their chained competitors often benefitted from greater resources and capital. Moreover, consumers who switched to ordering through delivery often pivoted choose to order from chained outlets due to the strength of the chained outlets' brands. The market shares of chained outlets rose across all categories, as they saw more modest declines in retail sales. From 2019-2021, the market share of independent cafés/bars fell from 80.9% to 70.4%, independent full-service restaurants fell from 62.2% to 49.5%, independent limited-service restaurants fell from 11.7% to 6.7%, independent self-service cafeterias fell from 80.7% to 75.9%. Independent street stalls and kiosks faired better, with their share only falling from 94.8% to 93.4%.

The market shares of independent outlets are expected to continue their decline following the pandemic, with chained outlets responsible for most Malaysia's foodservice sales for the first time in 2022. By 2026, it is forecast that chained outlets will account for 54.6% of the market. Over this period, independent self-service cafeterias are expected to see their market share remain stable, however all other categories will see further drops in the markets share of independent operators. In terms of actual sales, chained street stalls are expected to see the fastest growth from 2021-2026, with sales growing at a CAGR of 19.3%. Their total sales, however, will remain relatively small, reaching US$0.3 billion in 2026. The second fastest growth is forecast to be enjoyed by chained limited-service restaurants, which are expected to see sales growth occur at a CAGR of 14.7% and reach US$4.1 billion by 2026. Chained cafés and bars are forecast to see the third fastest growth, and are forecast to see growth occur at a CAGR of 13.9% and reach US$0.7 billion in 2026.

Retail value sales of Malaysia's consumer foodservice: chain versus independent operators, market share %, historic and forecast
Category Chain vs independent 2016 2021 CAGR* % 2016-2021 2022 2026 CAGR* % 2021-2026
Total Cafés/Bars 2,104.5 1,254.1 −9.8 1,405.9 1,962.5 9.4
Cafés/Bars Chained Foodservice 340.8 371.5 1.7 449.3 712.0 13.9
Independent Foodservice 1,763.7 882.6 −12.9 956.6 1,250.5 7.2
Total Full-Service Restaurants 3,125.3 1,962.7 −8.9 2,149.4 2,869.6 7.9
Full-Service Restaurants Chained Foodservice 1,060.8 991.4 −1.3 1,104.7 1,521.7 8.9
Independent Foodservice 2,064.4 971.3 −14.0 1,044.7 1,347.9 6.8
Total Limited-Service Restaurants 1,623.1 2,203.7 6.3 2,660.5 4,351.0 14.6
Limited-Service Restaurants Chained Foodservice 1,460.5 2,056.7 7.1 2,491.3 4,086.2 14.7
Independent Foodservice 162.6 147.0 −2.0 169.2 264.8 12.5
Total Self-Service Cafeterias 183.5 173.3 −1.1 190.0 253.3 7.9
Self-Service Cafeterias Chained Foodservice 19.0 41.8 17.1 46.0 61.0 7.9
Independent Foodservice 164.5 131.5 −4.4 144.0 192.3 7.9
Total Street Stalls/Kiosks 1,845.7 1,818.1 −0.3 2,012.2 2,771.4 8.8
Street Stalls/Kiosks Chained Foodservice 64.9 119.7 13.0 150.1 289.1 19.3
Independent Foodservice 1,780.9 1,698.4 −0.9 1,862.1 2,482.3 7.9

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Retail value sales of Malaysia's consumer foodservice: chain versus independent operators, market growth %, historic and forecast
Category Chain vs independent Annual growth % 2020-2021 Total growth % 2016-2021 Annual growth % 2021-2022 Total growth % 2021-2026
Total Cafés/Bars −27.4 −40.4 12.1 56.5
Cafés/Bars Chained Foodservice −9.1 9.0 20.9 91.7
Independent Foodservice −33.0 −50.0 8.4 41.7
Total Full-Service Restaurants −25.3 −37.2 9.5 46.2
Full-Service Restaurants Chained Foodservice −14.9 −6.5 11.4 53.5
Independent Foodservice −33.5 −53.0 7.6 38.8
Total Limited-Service Restaurants −2.6 35.8 20.7 97.4
Limited-Service Restaurants Chained Foodservice −0.7 40.8 21.1 98.7
Independent Foodservice −23.4 −9.6 15.1 80.1
Total Self-Service Cafeterias −13.8 −5.6 9.6 46.2
Self-Service Cafeterias Chained Foodservice −4.3 120.0 10.0 45.9
Independent Foodservice −16.5 −20.1 9.5 46.2
Total Street Stalls/Kiosks −7.8 −1.5 10.7 52.4
Street Stalls/Kiosks Chained Foodservice 4.5 84.4 25.4 141.5
Independent Foodservice −8.6 −4.6 9.6 46.2
Source: Euromonitor International, 2021

Consumer foodservice by type

Full-service restaurants

The full-service restaurant category has been hit very hard by the pandemic. The full-service restaurant sector has been adversely affected by pandemic-era restrictions on dining, including a ban on dining by groups of more than two which was removed in September of 2021. This has hit full-service restaurants particularly hard, as large groups are an important part of this category's customer base. The absence of tourists has also diminished their customer base.

Consumers have also become more budget conscious among a pandemic-era economic downturn and the imposition of new sales taxes, making full-service restaurants an increasingly attractive option for many consumers. Full-service restaurants have been facing rising competition from cheaper limited-service restaurants, and meal kits as home cooking becomes more popular. Full-service restaurants have attempted to mitigate the fallout by offering home delivery, however the sector is expected to experience a sluggish recovery following the pandemic.Footnote 5

Full-service restaurants had total retail sales of US$2.0 billion in 2021, down from US$3.7 billion before the pandemic. Over the course of the pandemic, retail sales of full-service restaurants plunged by a total of 47.4%, and Euromonitor does not forecast that they will recover to their pre-pandemic size in the next 5 years. In 2026, they are predicted to have total retail sales of US$2.9 billion, 23.1% below their 2019 value.

In 2021, Asian full-service restaurants were the largest category, with total retail sales of US$1.3 billion, accounting for 64.8% of the market. Asian full-service restaurants are expected to see sales growth occur at a CAGR of 6.8% from 2021-2026, with sales reaching US$1.8 billion in 2026, significantly below their pre-pandemic high of US$2.7 billion. In 2026, Asian full-service restaurants are expected to account for 61.7% of the market. "Other" full-service restaurants were the second largest category and faired saw a relatively modest fall in sales over the pandemic, with this category forecast to surpass its 2019 high by 2024. Pizza full-service were the third largest category and saw a relatively modest fall in sales over the pandemic, with total retail sales in 2021 only being 16.1% below their 2019 high. This category is expected to enjoy the strongest growth from 2021-2026, surpassing tis 2019 peak by 2023.

Retail value sales of Malaysia's full-service restaurants by type, in US$ millions, historic and forecast, fixed 2021 exchange rate
Type 2016 2021 CAGR* % 2016-2021 2022 2026 CAGR* % 2021-2026
Full-Service Restaurants 3,125.3 1,962.7 −8.9 2,149.4 2,869.6 7.9
Asian Full-Service Restaurants 2,258.4 1,272.6 −10.8 1,373.6 1,770.7 6.8
European Full-Service Restaurants 86.2 33.9 −17.0 36.8 47.4 6.9
Latin American Full-Service Restaurants 30.6 9.5 −20.9 7.4 4.9 −12.4
Middle Eastern Full-Service Restaurants 18.2 7.8 −15.6 8.4 10.5 6.1
North American Full-Service Restaurants 145.6 87.6 −9.7 97.8 141.1 10.0
Pizza Full-Service Restaurants 108.8 157.2 7.6 181.9 278.0 12.1
Other Full-Service Restaurants 477.4 394.2 −3.8 443.6 616.9 9.4

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Retail value sales of Malaysia's full-service restaurants by type, growth %, historic and forecast, fixed 2021 exchange rate
Type Annual growth % 2020-2021 Total growth % 2016-2021 Annual growth % 2021-2022 Total growth % 2021-2026
Full-Service Restaurants −25.3 −37.2 9.5 46.2
Asian Full-Service Restaurants −29.7 −43.7 7.9 39.1
European Full-Service Restaurants −40.3 −60.7 8.6 39.8
Latin American Full-Service Restaurants −41.0 −69.0 −22.1 −48.4
Middle Eastern Full-Service Restaurants −42.6 −57.1 7.7 34.6
North American Full-Service Restaurants −20.4 −39.8 11.6 61.1
Pizza Full-Service Restaurants −2.8 44.5 15.7 76.8
Other Full-Service Restaurants −14.2 −17.4 12.5 56.5
Source: Euromonitor International, 2021

The Malaysian full-service restaurant scene was relatively fragmented in 2021, however has been undergoing consolidation during the pandemic. In 2021 Secret Recipe Cakes & Café (Secret Recipe Cakes & Café Sdn Bhd) was the largest player. Secret Recipe Cakes & Café has significantly increased its market share over the pandemic, rising from 6.9% of the market in 2019 to 10.5% in 2021. The second largest player, Pizza Hut (Yum! Brands Inc), has also seen its value share rise from 4.3% in 2019 to 7.3% in 2021.

Retail value sales of Malaysia's top full-service restaurant companies and brands, market share %, historic
Brand Company 2017 2018 2019 2020 2021 CAGR* % 2017-2021
Full-service restaurant brand total Full-service restaurant company total 100.0 100.0 100.0 100.0 100.0 0.0
Secret Recipe Cakes & Café Secret Recipe Cakes & Café Sdn Bhd 7.3 7.0 6.9 9.0 10.5 9.5
Pizza Hut Yum! Brands Inc 3.4 3.8 4.3 5.5 7.3 21.0
Sushi King Texchem Resources Bhd 2.1 2.2 2.4 2.9 3.6 14.4
Go Noodle House Go Trio3 Holdings Sdn Bhd 1.5 1.5 1.6 2.2 2.5 13.6
Nando's Nando's Group Holdings Ltd 1.4 1.4 1.3 1.7 2.1 10.7
Other Other 84.3 84.1 83.5 78.7 74.0 −1.7

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Limited-service restaurants

Although seeing sales contractions in both 2020 and 2021, limited-service restaurants have faired much better than other foodservice outlets in Malaysia. As customers have become more budget sensitive, this has caused some to turn to limited-service restaurants as an affordable option. Meanwhile, the increased demand for delivery has benefitted limited-service restaurants, as these outlets often offered delivery before the pandemic, and many consumers are more used to the idea ordering delivery from them.Footnote 6

The limited-service restaurant sector is currently undergoing a period of increasing competition and new product launches. Amid concern about the risks of dining in large groups, restaurants are increasingly offering single meals for consumers dining alone, while also offering combo meal options for families and large groups sent through delivery. Due to increased price-sensitivity among consumers, limited-service outlets are offering more competitive price promotions to stimulate demand.

Limited-service restaurants saw total sales of US$2.2 billion in 2021, down just 12.3% since their 2019 high of US$2.5 billion. Limited-service restaurants grew at a CAGR of 6.3% from 2016-2021 and are expected to see rapid growth at a CAGR of 14.6% from 2021-2026. In 2021, the largest sub-category was chicken limited-service restaurants, which saw US$0.9 billion in sales, accounting for 42.7% of the market. Burger limited-service restaurants were the second largest category in 2021, with US$0.8 billion in sales and accounting for 36.1% of the market. Together, these two sub-categories represent 78.8% of the limited-service restaurant market.

From 2021-2026, burger limited-service restaurants are expected to enjoy the fastest growth, growing at a CAGR of 15.7% and reaching sales of US$1.6 billion by 2026. Asian limited-service restaurants are expected to grow the second fastest, with sales rising from US$0.1 billion in 2016 to US$0.2 billion in 2026. Chicken limited-service restaurants are expected to enjoy the third fastest growth over the forecast period, growing at a CAGR of 15.1% and reaching sales of US$1.9 billion in 2026. In 2026, chicken limited-service restaurants are forecast to represent 43.6% of the market, while burger limited-service restaurants will represent 37.9%.

Retail value sales of Malaysia's limited-service restaurants by type, in US$ millions, historic and forecast, fixed 2021 exchange rate
Type 2016 2021 CAGR* % 2016-2021 2022 2026 CAGR* % 2021-2026
Limited-Service Restaurants by Type 1,623.1 2,203.7 6.3 2,660.5 4,351.0 14.6
Asian Limited-Service Restaurants 143.8 121.1 −3.4 144.3 247.9 15.4
Bakery Products Limited-Service Restaurants 125.9 106.1 −3.4 118.5 169.9 9.9
Burger Limited-Service Restaurants 491.4 796.5 10.1 972.5 1,649.4 15.7
Chicken Limited-Service Restaurants 665.3 941.6 7.2 1,158.9 1,898.6 15.1
Convenience Stores Limited-Service Restaurants 56.4 86.7 9.0 96.9 139.1 9.9
Fish Limited-Service Restaurants N/C N/C
Ice Cream Limited-Service Restaurants 44.7 36.0 −4.2 39.8 54.9 8.8
Latin American Limited-Service Restaurants N/C N/C
Middle Eastern Limited-Service Restaurants 13.9 8.4 −9.6 9.0 11.6 6.7
Pizza Limited-Service Restaurants 81.6 107.2 5.6 120.6 179.6 10.9
Other Limited-Service Restaurants N/C N/C

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

N/C: Not calculable

Retail value sales of Malaysia's limited-service restaurants by type, growth %, historic and forecast, fixed 2021 exchange rate
Type Annual growth % 2020-2021 Total growth % 2016-2021 Annual growth % 2021-2022 Total growth % 2021-2026
Limited-Service Restaurants by Type −2.6 35.8 20.7 97.4
Asian Limited-Service Restaurants −22.9 −15.8 19.2 104.7
Bakery Products Limited-Service Restaurants −23.1 −15.7 11.7 60.1
Burger Limited-Service Restaurants −1.5 62.1 22.1 107.1
Chicken Limited-Service Restaurants 2.8 41.5 23.1 101.6
Convenience Stores Limited-Service Restaurants −11.0 53.7 11.8 60.4
Fish Limited-Service Restaurants N/C N/C N/C N/C
Ice Cream Limited-Service Restaurants −15.7 −19.5 10.6 52.5
Latin American Limited-Service Restaurants N/C N/C N/C N/C
Middle Eastern Limited-Service Restaurants −27.0 −39.6 7.1 38.1
Pizza Limited-Service Restaurants 16.4 31.4 12.5 67.5
Other Limited-Service Restaurants N/C N/C N/C N/C

Source: Euromonitor International, 2021

N/C: Not calculable

The limited-service restaurant category is more consolidated than other sectors, and has been seeing some further consolidation over the pandemic. The largest player, KFC (Yum! Brands Inc) enjoyed a 36.0% market share in 2021, up from 29.8% in 2019. The second largest player, McDonald's (McDonald's Corp), had a 31.4% share in 2021, up from 28.8% in 2019. Collectively, these two players held 67.4% of the market in 2021, while the remaining market was controlled by smaller players.

Retail value sales of Malaysia's top limited-service restaurant companies and brands, market share %, historic
Brand Company 2017 2018 2019 2020 2021 CAGR* % 2017-2021
Limited-service restaurant brand total Limited-service restaurant company total 100.0 100.0 100.0 100.0 100.0 0.0
KFC Yum! Brands Inc 33.5 31.4 29.8 34.2 36.0 1.8
McDonald's McDonald's Corp 26.4 27.2 28.8 30.0 31.4 4.4
Domino's Pizza Domino's Pizza Inc 3.3 3.2 3.0 2.8 3.7 2.9
Marrybrown Marrybrown Fried Chicken Sdn Bhd 2.0 2.1 2.1 2.7 3.3 13.3
Texas Chicken Cajun Operating Co 1.1 1.4 1.9 1.9 2.1 17.5
Other Other 33.7 34.7 34.4 28.4 23.5 −4.2

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Street stalls / kiosks

Street stalls and kiosks saw total retail sales of US$1.8 billion in 2021, down 19.5% from their 2019 peak of US$2.3 billion in 2019. This category is dominated by independent outlets. Retails sales of street sales contracted by 7.8% in from 2020-2021 and are expected to rebound by 10.7% from 2021-2022. The sector is forecast to grow at a CAGR of 8.8% from 2021-2026, surpassing its 2019 high in 2024 and reaching a value of US$2.8 billion in 2026. Chained outlets are forecast to increase their market share over this time, but independent outlets will still dominate that market.

Street stalls and kiosks were suffered reduced or negligible footfall during the pandemic period, causing some to temporarily close while others pivoted to take-away and home delivery. Stalls and kiosks have been partnering with third party delivery apps, along with price promotions for food ordered through certain third-party platforms. Stall and kiosk outlets offering bubble tea saw rising sales, and players in this market have been launching new products, including new flavors of bubble tea. Bubble tea players are expected to try to expand more into suburban areas.Footnote 7

Retail value sales of Malaysia's street stalls/kiosk restaurants by type, in US$ millions, historic and forecast, fixed 2021 exchange rate
Type 2016 2021 CAGR* % 2016-2021 2022 2026 CAGR* % 2021-2026
Street Stalls/Kiosks 1,845.7 1,818.1 −0.3 2,012.2 2,771.4 8.8
Chained Street Stalls/Kiosks 64.9 119.7 13.0 150.1 289.1 19.3
Independent Street Stalls/Kiosks 1,780.9 1,698.4 −0.9 1,862.1 2,482.3 7.9

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Retail value sales of Malaysia's street stalls/kiosk restaurants by type, growth %, historic and forecast, fixed 2021 exchange rate
Type Annual growth % 2020-2021 Total growth % 2016-2021 Annual growth % 2021-2022 Total growth % 2021-2026
Street Stalls/Kiosks −7.8 −1.5 10.7 52.4
Chained Street Stalls/Kiosks 4.5 84.4 25.4 141.5
Independent Street Stalls/Kiosks −8.6 −4.6 9.6 46.2

Source: Euromonitor International, 2021

Retail sales of street stalls and kiosks were extremely fragmented in 2021, with the sector dominated by independent outlets. The largest player, Tealive (LOOB Holdings Sdn Bhd), had a value share of 4.1% in 2021. This share has increased significantly from 2.6% in 2019 and 1.2% in 2017. This 4.1% is notable given that only 6.6% of the entire street stall and kiosk market was controlled by chained outlets in 2021. Growth in the value share of chained outlets in general since 2017 has been mostly driven by this one brand. The next largest brand, Chatime (La Kaffa International Co Ltd) controlled just 0.4% of the market in 2021.

Retail value sales of Malaysia's top street stalls/kiosk restaurant companies and brands, market share %, historic
Brand Company 2017 2018 2019 2020 2021 CAGR* % 2017-2021
Street stalls/kiosks restaurant brand total Street stalls/kiosks restaurant company total 100.0 100.0 100.0 100.0 100.0 0.0
Tealive LOOB Holdings Sdn Bhd 1.2 1.6 2.6 3.4 4.1 36.0
Chatime La Kaffa International Co Ltd 0.1 0.2 0.3 0.4 0.4 41.4
Gong Cha Gong Cha (S) Pte Ltd 0.2 0.2 0.2 0.2 0.2 0.0
Llaollao Llaollao Chesco, Grupo 0.0 0.1 0.1 0.1 0.2 N/C
Nelson's Nelson's Franchise (M) Sdn Bhd 0.3 0.2 0.2 0.2 0.2 −9.6
Other Other 98.2 97.7 96.6 95.7 94.9 −0.6

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

N/C: Not calculable

Cafés / Bars

The cafés and bars category saw a steep decline in sales due to the pandemic, especially for bars. Large gatherings were an important source of revenue for bars, making bars vulnerable to pandemic-era restrictions. Many bars and coffee shops were positioned in busy areas to take advantage of large volumes of foot traffic, traffic that subsequently dried up. Moreover, this is a category of outlet that is popular among tourists, the absence of which has been keenly felt.

Cafés that faired relatively well during the pandemic did so by offering drive-through and delivery options, with chained outlets significantly outperforming their independent counterparts. Starting in 2022, the sector is expected to begin a recovery as tourists and groups start to return. The sector is expected to emphasize convenience and focus on catering to smaller sized groups.Footnote 8

Cafés and bars saw total foodservice retail sales of US$1.3 billion in 2021, 49.3% below their 2019 high. The category is expected to grow 12.1% from 2021-2022, and at a CAGR of 9.4% from 2021-2026, reaching US$2.0 billion in 2026 which is 20.6% below their pre-pandemic peak., The fall in sales was especially severe among bars and pubs, which lost 64.2% of their value, and saw sales plunge from US$1.0 billion in 2019 to US$0.4 billion in 2021. Bars and pubs are expected to recover slowly. In 2026, bars and pubs are expected to see sales of US$0.5 billion, 49.9% below their 2019 peak.

Cafés saw their sales plunge from US$1.1 billion in 2019 to US$0.6 billion in 2021, a fall of 46.6%. Sales are expected to grow 8.6% from 2021-2022 and continue at a CAGR of 7.2% over the 2021-2026 period. In 2026, sales of cafés are forecast to reach US$0.8 billion, a figure 24.4% below their 2019 peak. Specialist coffee and tea shops faired better, seeing sales of US$0.3 billion in 2021, a figure only 15.8% below their 2019 peak. Specialist coffee and tea shops are expected to see sales growth of 24.7% from 2021-2022, and growth occurring at a CAGR of 15.7% from 2021-2026. Sales are forecast to reach US$0.4 billion in 2022, exceeding their 2019 peak, and reach US$0.6 billion by 2026.

Retail value sales of Malaysia's cafés/bars restaurants by type, in US$ millions, historic and forecast, fixed 2021 exchange rate
Category 2016 2021 CAGR* % 2016-2021 2022 2026 CAGR* % 2021-2026
Cafés/Bars 2,104.5 1,254.1 −9.8 1,405.9 1,962.5 9.4
Bars/Pubs 874.3 357.6 −16.4 385.5 500.9 7.0
Cafés 1,004.3 594.3 −10.0 645.2 841.7 7.2
Juice/Smoothie Bars 7.7 12.2 9.6 13.3 17.8 7.8
Specialist Coffee and Tea Shops 218.1 290.1 5.9 361.8 602.1 15.7

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Retail value sales of Malaysia's cafés/bars restaurants by type, growth %, historic and forecast, fixed 2021 exchange rate
Category Annual growth % 2020-2021 Total growth % 2016-2021 Annual growth % 2021-2022 Total growth % 2021-2026
Cafés/Bars −27.4 −40.4 12.1 56.5
Bars/Pubs −39.6 −59.1 7.8 40.1
Cafés −27.7 −40.8 8.6 41.6
Juice/Smoothie Bars −7.6 58.4 9.0 45.9
Specialist Coffee and Tea Shops −3.2 33.0 24.7 107.5

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

The largest player in Malaysia's café and bar market was Starbucks (Starbucks Corp), which held a 9.9% market share in 202, up from 5.4% in 2019 and 4.1% in 2017. The second largest brand, McCafé (McDonald's Corp) had a market share of 3.6%, up from 1.9% in 2019. Other notable players include the relatively new Old Town White Coffee (JDE Peet's BV), which had a market share of 3.1% in 2021.

Retail value sales of Malaysia's top cafés/bars restaurant companies and brands, market share %, historic
Brand Company 2017 2018 2019 2020 2021 CAGR* % 2017-2021
Cafés/Bars restaurant brand total Cafés/Bars restaurant company total 100.0 100.0 100.0 100.0 100.0 0.0
Starbucks Starbucks Corp 4.1 4.2 5.4 7.2 9.9 24.7
McCafé McDonald's Corp 1.5 1.7 1.9 2.6 3.6 24.5
Old Town White Coffee JDE Peet's BV 2.7 3.1 N/C
Dunkin' Inspire Brands Inc 2.0 2.7 N/C
The Coffee Bean & Tea Leaf Jollibee Foods Corp 1.2 1.5 2.1 N/C
Other Other 94.4 94.1 91.5 84 78.6 −2.9

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

N/C: Not calculable

Self-service cafeterias

Self-service cafeterias have been adversely affected by declining foot traffic in shopping centres, and also by the trend towards working from home rather than from an office. Players in this sector have been forced to pivot to home delivery. Although prior to the pandemic this category was dominated by independent outlets, their chained counterparts have significantly increased their market share. In 2019, chained outlets accounted for 19.3% of the market, while by 2021 this had risen to 24.1%. Self-service cafeteria outlets are expecting relatively modest growth from 2021-2026. The category is expected to focus on attracting customers by expanding their menus and partnering with third party delivery services.Footnote 9

Malaysian self-service cafeterias saw total retail sales of US$173.3 million in 2021, down 28.8% from their 2019 peak of US$243.3 million. The category is expected to see annual growth of 9.6% from 2021-2022, and growth occurring at a CAGR of 7.9% over the 2021-2026 period. Sales are expected to eclipse their pre-pandemic peak in 2026. In 2026 the category is expected to see sales of US$253.3 million.

Retail value sales of Malaysia's self-service cafeteria restaurants by type, in US$ millions, historic and forecast, fixed 2021 exchange rate
Category 2016 2021 CAGR* % 2016-2021 2022 2026 CAGR* % 2021-2026
Self-Service Cafeterias 183.5 173.3 −1.1 190.0 253.3 7.9
Chained Self-Service Cafeterias 19.0 41.8 17.1 46.0 61.0 7.9
Independent Self-Service Cafeterias 164.5 131.5 −4.4 144.0 192.3 7.9

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Retail value sales of Malaysia's self-service cafeteria restaurants by type, growth %, historic and forecast, fixed 2021 exchange rate
Category Annual growth % 2020-2021 Total growth % 2016-2021 Annual growth % 2021-2022 Total growth % 2021-2026
Self-Service Cafeterias −13.8 −5.6 9.6 46.2
Chained Self-Service Cafeterias −4.3 120.0 10.0 45.9
Independent Self-Service Cafeterias −16.5 −20.1 9.5 46.2
Source: Euromonitor International, 2021

The Malaysian self-service cafeteria scene's largest player was Ikea Restaurant (Inter IKEA Systems BV), which held a 24.1% market share in 2021. This share has increased steadily since 2017, both before and during the pandemic. The remainder of the market was held by smaller players.

Retail value sales of Malaysia's top self-service cafeteria restaurant companies and brands, market share %, historic
Brand Company 2017 2018 2019 2020 2021 CAGR* % 2017-2021
Self-service cafeteria restaurant brand total Self-service cafeteria restaurant company total 100.0 100.0 100.0 100.0 100.0 0.0
Ikea Restaurant Inter IKEA Systems BV 12.7 14.6 19.3 21.7 24.1 17.4
Others Others 87.3 85.4 80.7 78.3 75.9 −3.1

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Malaysia's consumer foodservice outlets and transactions

From 2016 to 2021, the total number of foodservice outlets in Malaysia fell from 34,258 to 32,457, a 5.3% drop. The number of outlets reached a peak in 2019 at 37,940. The total number of outlets grew at a CAGR of 3.5% from 2016 to 2019, and then fell at a CAGR of 7.5% from 2019 to 2021. The total number of outlets is forecast to increase at a CAGR of 4.6% from 2021 to 2026, exceeding the 2019 peak by 2024 and reaching 40,547 outlets in 2026. The total number of transactions was 1.5 billion in 2021, down 25.5% from the 2019 peak of 2.0 billion. The total number of transactions is forecast to grow at a CAGR of 7.7% from 2021-2026, reaching 2.1 billion in 2026.

Street stalls had the largest number of outlets in 2021, with 12,427, a figure only slightly below the 2019 peak of 12,814. Street stalls are expected to add 3,028 outlets from 2021 to 2026, accounting for 37.4% of the increase in foodservice outlets over that period. Street stalls also account for almost the entirety of the net increase in total foodservice outlets from 2019-2026. Full-service restaurants had the second largest outlets with a total of 8,191 in 2021, down from 11,407 in 2019. The number of full-service restaurants is expected to recover slowly, reaching 9,428 in 2026.

Malaysia's consumer foodservice outlets and transactions[1] by category, historic and forecast
Category Outlets and transactions 2016 2021 CAGR* % 2016-2021 2022 2026 CAGR* % 2021-2026
Total Consumer Foodservice by Type Outlets 34,258 32,457 −1.1 34,677 40,547 4.6
000 transactions 1,607,478.1 1,464,839.4 −1.8 1,637,223.7 2,120,121.0 7.7
Cafés/Bars Outlets 5,856 4,512 −5.1 4,781 5,540 4.2
000 transactions 223,026.6 151,390.8 −7.5 167,765.1 211,724.6 6.9
Full-Service Restaurants Outlets 10,923 8,191 −5.6 8,542 9,428 2.9
000 transactions 320,779.1 202,667.4 −8.8 213,476.9 244,541.5 3.8
Limited-Service Restaurants Outlets 5,328 6,991 5.6 7,717 9,722 6.8
000 transactions 486,522.9 611,018.3 4.7 718,389.4 1,025,484.2 10.9
Self-Service Cafeterias Outlets 352 336 −0.9 353 402 3.7
000 transactions 34,787.6 33,865.0 −0.5 35,989.2 42,194.0 4.5
Street Stalls/Kiosks Outlets 11,799 12,427 1.0 13,284 15,455 4.5
000 transactions 542,361.9 465,898.0 −3.0 501,603.3 596,176.7 5.1

Source: Euromonitor International, 2021

1: Definition according to Euromonitor International - Transaction data corresponds to the number of meals/snacks purchased or number of receipts issued by the outlet. Outlets: The number of eating establishments.

*CAGR: Compound Annual Growth Rate

Malaysia's consumer foodservice outlets and transactions[1] by category, growth %, historic and forecast
Category Outlets and transactions Annual growth % 2020-2021 Total growth % 2016-2021 Annual growth % 2021-2022 Total growth % 2021-2026
Total Consumer Foodservice by Type Outlets −8.1 −5.3 6.8 24.9
000 transactions −12.0 −8.9 11.8 44.7
Cafés/Bars Outlets −16.3 −23.0 6.0 22.8
000 transactions −23.1 −32.1 10.8 39.9
Full-Service Restaurants Outlets −16.1 −25.0 4.3 15.1
000 transactions −26.1 −36.8 5.3 20.7
Limited-Service Restaurants Outlets −0.6 31.2 10.4 39.1
000 transactions −4.1 25.6 17.6 67.8
Self-Service Cafeterias Outlets −10.2 −4.5 5.1 19.6
000 transactions −11.9 −2.7 6.3 24.6
Street Stalls/Kiosks Outlets −2.6 5.3 6.9 24.4
000 transactions −9.9 −14.1 7.7 28.0

Source: Euromonitor International, 2021

1: Definition according to Euromonitor International - Transaction data corresponds to the number of meals/snacks purchased or number of receipts issued by the outlet. Outlets: The number of eating establishments.

*CAGR: Compound Annual Growth Rate

Malaysia's consumer foodservice sales per transactions and sales per outlet

From 2016-2021, Malaysia saw a fall in both sales per transaction and sales per outlet. Sales per outlet stood at US$228,363.7 while sales per transaction stood at US$5.1. Sales per transaction is forecast to grow at a CAGR of 2.6% from 2021 to 2026, reaching US$5.8 in 2026, while sales per outlet are forecast to grow at a CAGR of 5.7% and reach US$301,077.8 in 2026. Sales per transaction were greatest among full-service restaurants at US$9.7. Full-service restaurants are forecast to see the fastest growth in sales per transaction, with this figure forecast to reach US$11.7 in 2026. Full-service restaurants also saw sales per outlet of US$239,616.7, the lowest category other than street stalls and kiosks.

The highest sales per outlet were enjoyed by self-service cafeterias, with sales per outlet of US$515,773.8. Limited-service restaurants had the second highest sales per outlet at US$315,219.6, as well as the lowest sales per transaction at US$3.6. Limited-service restaurants are forecast to enjoy the fastest growth in sales per outlet, with this figure forecast to grow at a CAGR of 7.3% from 2021 to 2026. In 2026, sales per transaction are forecast to reach a value of US$447,541.7.

Malaysia's consumer foodservice sales per transactions (US$) and sales per outlet (US$) by category, historic and forecast, fixed 2021 exchange rate
Category Sales per transaction and outlet 2016 2021 CAGR* % 2016-2021 2022 2026 CAGR* % 2021-2026
Total Consumer Foodservice by Type Sales per transactions 5.5 5.1 −1.7 5.1 5.8 2.6
Sales per outlet 259,270.8 228,363.7 −2.5 242,754.6 301,077.8 5.7
Cafés/Bars Sales per transactions 9.4 8.3 −2.6 8.4 9.3 2.3
Sales per outlet 359,375.0 277,947.7 −5.0 294,059.8 354,241.9 5.0
Full-Service Restaurants Sales per transactions 9.7 9.7 −0.1 10.1 11.7 3.9
Sales per outlet 286,121.0 239,616.7 −3.5 251,627.3 304,370.0 4.9
Limited-Service Restaurants Sales per transactions 3.3 3.6 1.6 3.7 4.2 3.3
Sales per outlet 304,635.9 315,219.6 0.7 344,758.3 447,541.7 7.3
Self-Service Cafeterias Sales per transactions 5.3 5.1 −0.6 5.3 6.0 3.2
Sales per outlet 521,306.8 515,773.8 −0.2 538,243.6 630,099.5 4.1
Street Stalls/Kiosks Sales per transactions 3.4 3.9 2.8 4.0 4.6 3.6
Sales per outlet 156,428.5 146,302.4 −1.3 151,475.5 179,320.6 4.2

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Malaysia's consumer foodservice sales per transactions (US$) and sales per outlet (US$) by category, growth %, historic and forecast, fixed 2021 exchange rate
Category Sales per transaction and outlet Annual growth % 2020-2021 Total growth % 2016-2021 Annual growth % 2021-2022 Total growth % 2021-2026
Total Consumer Foodservice by Type Sales per transactions −4.2 −8.4 1.6 13.8
Sales per outlet −8.2 −11.9 6.3 31.8
Cafés/Bars Sales per transactions −5.5 −12.2 1.2 11.9
Sales per outlet −13.2 −22.7 5.8 27.4
Full-Service Restaurants Sales per transactions 1.1 −0.6 4.0 21.2
Sales per outlet −10.9 −16.3 5.0 27.0
Limited-Service Restaurants Sales per transactions 1.6 8.1 2.7 17.6
Sales per outlet −2.1 3.5 9.4 42.0
Self-Service Cafeterias Sales per transactions −2.2 −3.0 3.2 17.3
Sales per outlet −4.1 −1.1 4.4 22.2
Street Stalls/Kiosks Sales per transactions 2.3 14.7 2.8 19.1
Sales per outlet −5.4 −6.5 3.5 22.6
Source: Euromonitor International, 2021

Eat-in, home delivery vs takeaway foodservice channels

Over the last 5 years, home delivery has experienced explosive growth in Malaysia, while eat-in sales have collapsed. In 2016, eat-in saw sales of US$6.3 billion, making up 70.9% of the market. Sales of eat-in grew at a CAGR of 6.4% from 2016-2021, reaching a peak of US$7.5 billion in 2019. From 2019-2021, sales of eat in fell at a CAGR of 39.1%, falling to US$2.8 billion and 37.8% of the market. Over the same period, sales of home delivery went from US$0.2 billion to US$1.5 billion. Home delivery sales were already growing explosively before the pandemic, with sales rising at a CAGR of 50.6% from 2016-2019, and a CAGR of 54.8% from 2019-2021. Takeaway sales grew at a CAGR of 7.8% from 2016-2019 and saw growth slow substantially during the pandemic to a CAGR of 0.8%. Takeaway's share of the market increased from during the pandemic from 25.9% in 2019 to 39.8% in 2021, mostly due to the fall in eat-in sales. Drive-through also saw significant gains.

Eat-in is expected to see the fastest growth from 2021-2026, as the category begins to recover. Eat-in sales are expected to grow at a CAGR of 11.8% from 2021-2026, reaching US$4.9 billion in 2026. In 2026, sales will still be 35.1% below their 2019 peak, and market share will have only recovered to 45.2%. Meanwhile, home delivery is forecast to see growth almost as rapid, at a CAGR of 9.8%, with total home-delivery sales reaching US$2.4 billion in 2026. Takeaway and drive-through are expected to see more sluggish growth.

Limited-service restaurants saw the greatest home-delivery sales in 2021, with US$0.7 billion, or 48.6% of all home delivery sales in 2021. Street stalls and kiosks are forecast to see the fastest growth rate in home delivery sales from 2021-2026, however sales are expected to remain small. Limited service restaurants are expected to see the second fastest home-delivery growth rate, with growth expected to occur at a CAGR of 13.4%. Limited-service home delivery sales are forecast to reach US$1.4 billion in 2026, or 57.0% of the market.

Retail value sales of Malaysia's consumer foodservice by channel: eat-in, home delivery vs takeaway, in US$ millions, historic and forecast, year-over-year exchange rates
Category Channel 2016 2021 CAGR* % 2016-2021 2022 2026 CAGR* % 2021-2026
Total Consumer Foodservice by Type 8,851.7 7,412.0 −3.5 8,246.1 10,849.5 7.9
Consumer Foodservice by Type Drive-Through 80.9 175.5 16.8 180.7 194.6 2.1
Eat-in 6,273.7 2,802.7 −14.9 3,306.5 4,901.5 11.8
Home Delivery 181.5 1,487.4 52.3 1,693.5 2,373.0 9.8
Takeaway 2,315.6 2,946.4 4.9 3,065.4 3,380.4 2.8
Cafés/Bars Total 2,097.3 1,254.1 −9.8 1,377.2 1,744.1 6.8
Cafés/Bars Drive-Through 21.0 38.9 13.1 39.9 41.9 1.5
Eat-in 1,789.0 485.4 −23.0 579.8 852.9 11.9
Home Delivery   203.2   227.2 312.2 9.0
Takeaway 287.3 526.7 12.9 530.2 537.2 0.4
Full-Service Restaurants Total 3,114.6 1,962.7 −8.8 2,105.5 2,550.3 5.4
Full-Service Restaurants Drive-Through            
Eat-in 2,877.2 1,244.4 −15.4 1,341.2 1,680.6 6.2
Home Delivery 112.1 551.5 37.5 589.5 688.6 4.5
Takeaway 125.2 166.8 5.9 174.8 181.1 1.7
Limited-Service Restaurants Total 1,617.6 2,203.7 6.4 2,606.2 3,866.9 11.9
Limited-Service Restaurants Drive-Through 59.9 136.6 17.9 140.7 152.7 2.3
Eat-in 960.2 533.3 −11.1 753.2 1,367.0 20.7
Home Delivery 69.3 722.8 59.8 865.2 1,353.4 13.4
Takeaway 528.1 811.0 9.0 847.0 993.8 4.1
Self-Service Cafeterias Total 182.9 173.3 −1.1 186.2 225.2 5.4
Self-Service Cafeterias Drive-Through            
Eat-in 128.6 119.7 −1.4 130.7 161.6 6.2
Home Delivery   2.6   2.6 3.6 6.7
Takeaway 54.3 51.0 −1.2 52.9 60.0 3.3
Street Stalls/Kiosks Total 1,839.4 1,818.1 −0.2 1,971.1 2,463.0 6.3
Street Stalls/Kiosks Drive-Through            
Eat-in 518.7 420.0 −4.1 501.6 839.4 14.9
Home Delivery   7.3   8.9 15.3 16.0
Takeaway 1,320.7 1,390.9 1.0 1,460.6 1,608.3 2.9

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Retail value sales of Malaysia's consumer foodservice by channel: eat-in, home delivery vs takeaway, growth %, historic and forecast, year-over-year exchange rates
Category Channel Annual growth % 2020-2021 Total growth % 2016-2021 Annual growth % 2021-2022 Total growth % 2021-2026
Total Consumer Foodservice by Type −14.2 −16.3 11.3 46.4
Consumer Foodservice by Type Drive-Through 7.7 116.9 3.0 10.9
Eat-in −37.1 −55.3 18.0 74.9
Home Delivery 34.2 719.5 13.9 59.5
Takeaway 1.2 27.2 4.0 14.7
Cafés/Bars Total −26.1 −40.2 9.8 39.1
Cafés/Bars Drive-Through 14.7 85.2 2.6 7.7
Eat-in −52.3 −72.9 19.4 75.7
Home Delivery 39.2   11.8 53.6
Takeaway 5.6 83.3 0.7 2.0
Full-Service Restaurants Total −24.0 −37.0 7.3 29.9
Full-Service Restaurants Drive-Through        
Eat-in −40.6 −56.7 7.8 35.1
Home Delivery 63.0 392.0 6.9 24.9
Takeaway 11.3 33.2 4.8 8.6
Limited-Service Restaurants Total −0.9 36.2 18.3 75.5
Limited-Service Restaurants Drive-Through 5.9 128.0 3.0 11.8
Eat-in −24.8 −44.5 41.2 156.3
Home Delivery 17.3 943.0 19.7 87.2
Takeaway 5.4 53.6 4.4 22.5
Self-Service Cafeterias Total −12.3 −5.2 7.4 29.9
Self-Service Cafeterias Drive-Through        
Eat-in −12.0 −6.9 9.2 35.0
Home Delivery 8.3   0.0 38.5
Takeaway −14.0 −6.1 3.7 17.6
Street Stalls/Kiosks Total −6.2 −1.2 8.4 35.5
Street Stalls/Kiosks Drive-Through        
Eat-in −16.1 −19.0 19.4 99.9
Home Delivery 35.2   21.9 109.6
Takeaway −2.9 5.3 5.0 15.6

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Offline vs online ordering of consumer foodservice in Malaysia

Online has been becoming increasingly important to the Malaysian foodservice scene. In 2016, online ordering accounted for 1.6% of the market, which by 2019 had risen to 2.8%. In 2020, online ordering rose to 13.0% of the market, and reached 28.5% in 2021. Online ordering is expected to continue gaining market share at a slower rate, reaching 38.3% by 2026. Online ordering was most important for limited-service restaurants, which by 2021 saw 63.5% of orders placed online. It is forecast that 76.3% of all limited-service restaurants will be online.

Malaysia's consumer foodservice: offline versus online ordering, market share %, historic and forecast
Category Offline vs online 2016 2021 CAGR* % 2016-2021 2022 2026 CAGR* % 2021-2026
Consumer Foodservice by Type Offline 98.4 71.5 −6.2 69.1 61.7 −2.9
Online 1.6 28.5 77.9 30.9 38.3 6.1
Cafés/Bars Offline 99.5 83.8 −3.4 83.5 77.5 −1.6
Online 0.5 16.2 100.5 16.5 22.5 6.8
Full-Service Restaurants Offline 98.3 74.8 −5.3 73.8 69.3 −1.5
Online 1.7 25.2 71.5 26.2 30.7 4.0
Limited-Service Restaurants Offline 94.9 36.5 −17.4 32.7 23.7 −8.3
Online 5.1 63.5 65.6 67.3 76.3 3.7
Self-Service Cafeterias Offline 100.0 96.1 −0.8 95.9 92.9 −0.7
Online 3.9 4.1 7.1 12.7
Street Stalls/Kiosks Offline 100.0 99.6 −0.1 99.5 99.3 −0.1
Online 0.4 0.5 0.7 11.8

Source: Euromonitor International, 2021

*CAGR: Compound Annual Growth Rate

Malaysia's consumer foodservice: offline versus online ordering, growth %, historic and forecast
Category Offline vs online Annual growth % 2020-2021 Total growth % 2016-2021 Annual growth % 2021-2022 Total growth % 2021-2026
Consumer Foodservice by Type Offline −17.8 −27.3 −3.4 −13.7
Online 119.2 1,681.3 8.4 34.4
Cafés/Bars Offline −7.4 −15.8 −0.4 −7.5
Online 70.5 3,140.0 1.9 38.9
Full-Service Restaurants Offline −16.9 −23.9 −1.3 −7.4
Online 152.0 1,382.4 4.0 21.8
Limited-Service Restaurants Offline −46.9 −61.5 −10.4 −35.1
Online 102.9 1,145.1 6.0 20.2
Self-Service Cafeterias Offline −1.2 −3.9 −0.2 −3.3
Online 44.4 5.1 82.1
Street Stalls/Kiosks Offline −0.1 −0.4 −0.1 −0.3
Online 33.3 25.0 75.0
Source: Euromonitor International, 2021

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International agri-food market intelligence
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More on Canada's agriculture and agri-food sectors:

Canada's agriculture sectors
Information on the agriculture industry by sector. Data on international markets. Initiatives to support awareness of the industry in Canada. How the department engages with the industry.

For additional information on Food & Hotel (FHC) China, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and agri-food Canada
ben.berry@agr.gc.ca

Resources

  • Euromonitor International. PEST Analysis: Malaysia, April 2022
  • Euromonitor International. Economy, Finance and Trade: Malaysia, February 2022
  • Euromonitor International. Income and Expenditure: Malaysia, September 2021
  • Euromonitor International. Consumer Foodservice in Malaysia, March 2022
  • Euromonitor International. Full-Service Restaurants in Malaysia, March 2022
  • Euromonitor International. Limited-Service Restaurants in Malaysia, March 2022
  • Euromonitor International. Street Stalls/Kiosks in Malaysia, March 2022
  • Euromonitor International. Cafés/Bars in Malaysia, March 2022
  • Euromonitor International. Self-Service Cafeterias in Malaysia, March 2022

Sector Trend Analysis – Foodservice Profile – Malaysia
Global Analysis Report

Prepared by: Brendan Dwyer, Student (Co-op)

© His Majesty the King in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2023).

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