Malaysia canned food market is projected to witness a compounded annual growth rate of 8.45% to grow to US$282.163 million by 2026, from US$159.916 million in 2019. The foods which are first processed and then preserved by sealing in an airtight container to extend the shelf life of the product are called canned foods. According to Eatright.Org, canned foods can play an important role in an overall healthy diet. Compared with people who eat less canned fruits and vegetables, people who eat more canned food tend to have higher fruit and vegetable intake and higher nutrient intake. In addition, the fruits and vegetables used for canning are picked with maximum freshness, ensuring the best flavor and the highest quality nutrients. Canned food can be as nutritious as fresh and frozen food because canned food can retain many nutrients.
This increasing awareness regarding the health benefits of consuming canned foods such as canned fruits and vegetables or canned meat is expected to propel Malaysia’s canned food market growth. Additionally, the country’s increasing disposable income is also expected to be a major growth factor. According to World Bank, Malaysia is likely to transition to a high-income economy between 2024 and 2028, a reflection of the country’s economic transformation development trajectory over past decades. Malaysia‘s GNI per capita is at US$11,200 according to the latest estimates, only US$1,335 short of the current threshold level that defines a high-income economy. Thus, with the growth in the country’s disposable income, the demand for high-quality and nutritious foods with a prolonged shelf life is expected to grow exponentially during the forecast period.
The rise in disposable income is expected to drive the Malaysian Canned food market growth.
The Malaysian canned food market is expected to experience substantial growth in the years ahead, backed by factors such as the increase in disposable income. A rise in disposable income facilitates an increase in the amount of money spent on goods and services, which are beyond what a person needs to survive. Canned foods have high nutritious value and require less preparation time. Fruits and vegetables used for canning are picked at peak freshness, ensuring the best flavor and nutrient quality, and can be just as nutritious as fresh and frozen foods because canning preserves many nutrients. The number of minerals, fat-soluble vitamins, protein, fat, and carbohydrate remain relatively unchanged by the process of canning and offer great fresh food alternatives with prolonged shelf life.
The increase in the country’s disposable income is expected to fuel the demand for such canned foods. According to the Department of Statistics Malaysia, in 2019, the mean income in Malaysia was RM7,901 while Malaysia’s median income was recorded at RM5,873. In terms of growth, median income in Malaysia grew by 3.9 percent per year in 2019 as compared to 6.6 percent in 2016. Moreover, mean income rose at 4.2 percent in 2019, with its household spending projected to grow by a real rate of 9.2% year on year in 2021, a significant improvement from the 1.6% year-on-year contraction forecast in 2020, on the back of better employment figures, supporting household disposable incomes, along with ongoing government stimulus measures, according to Fitch Solutions, one of the three nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission. This rise in disposable income coupled with the increasing awareness regarding the benefits of canned foods is projected to boost Malaysia’s canned food market during the forecast period.
COVID-19 pandemic had a positive impact on the Malaysian canned food market. Consumers in the country had been stockpiling food suppliers due to the increasing concerns of the COVID-19 restrictions. The long-term outlook in the country has been that while lockdowns would inevitably be lifted, different types of COVID-19 restrictions, such as social distancing practices would be in place for an extended amount of time. These developments had a significant impact on the consumer’s purchasing preferences and habits, with consumers have been saving their sum and capital for essential items and products, such as canned food and other related food items. In March 2020, the Government of Malaysia announced its decision to implement stricter COVID-19 restrictions and measures, which had a positive impact on the country’s canned food market growth. The governments’ order had stated that all businesses would be needed to close temporarily and only retailers that had been selling essential items would be allowed to function. This announcement led to near panic in the country with thousands of people entering stores to stock up and purchase essential supplies.
|Market size value in 2019||US$159.916 million|
|Market size value in 2026||US$282.163 million|
|Growth Rate||CAGR of 8.45% from 2019 to 2026|
|Forecast Unit (Value)||USD Million|
|Segments covered||Type, Distribution Channel, And Province|
|Companies covered||Rex Canning Corporation Pvt Ltd, Del Monte Asia Pte Ltd, Hormel Foods Corporation, Protigam Food Industries Sdn. Bhd., Makmur Food Industries Sdn. Bhd., NFM Malaysia, Tropical Canning, Meetco (M) Sdn Bhd|
|Customization scope||Free report customization with purchase|
Rex Canning Corporation Pvt Ltd
Del Monte Asia Pte Ltd
Hormel Foods Corporation
Protigam Food Industries Sdn. Bhd.
Makmur Food Industries Sdn. Bhd.
Meetco (M) Sdn Bhd
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