Understanding East Malaysia FMCG Volume Growth
More Trips, Broader Category Repertoire
East Malaysians still shop less frequently than their Peninsular counterparts, but the gap is closing as Peninsular Malaysians continue to reduce their trip frequency. If this trend continues, there will be more opportunities to engage East Malaysian shoppers in the future.
The increase in trips stems from shoppers purchasing across more categories, rather than simply buying in greater volume. This could be due to limited cash flow in East Malaysia, which may lead shoppers to delay purchases of new categories until they have replenished their cash on hand—thus making additional shopping trips when possible.
The key growth drivers in East Malaysia are Packaged Groceries and Toiletries, especially within Staples, Skin Care, and Impulse segments. Notably, Beverages and Household categories also recorded growth. Beverages even outpaced their previous year’s performance, thanks to gains in Drinking Water and Tea, alongside a recovery in Alcohol, Isotonic Drinks, and RTD Tea. Dairy, however, saw no increase in value this year, largely due to a decline in Non-Fresh Dairy (especially powdered formats), mirroring trends in Peninsular Malaysia.
As opportunities become increasingly saturated in Peninsular Malaysia, East Malaysia represents a promising market for expansion—particularly if shoppers are actively engaging with relevant brands or categories within your portfolio.