Hopes have been high in Malaysia, as the market finally reopened after two years of pandemic restrictions. But the fact is, there will always be new challenges dropping by to say “hi”! We expected huge growth when shoppers returned to their regular pre-pandemic FMCG shopping behaviours – but the data indicates that this has not been the case. In fact, we registered a -2% decline in value for total in-home groceries in 2022, looking at the Peninsular Malaysia market alone.
Now we need to consider what’s going to happen in 2023. We know for certain that the market will be more challenging this year, and as a result we expect a further decline in value, for two simple reasons:
1) The normalisation of shopping behaviour, as consumers become more cautious in their spending, coupled with lower demand in-home.
2) Shoppers prioritising out-of-home occasions and non-grocery spending.
