Malaysia Food Spread Market - Strategic Insights and Forecasts (2026-2031)

Malaysia Food Spread Market is projected to register a strong CAGR during the forecast period (2026-2031).

The consumption pattern in Malaysia has been influenced hugely by the health-conscious trend, which promotes the demand for nutritious and functional spreads. Especially the low-sugar, natural, organic, and plant-based choices are growing in demand among consumers influenced by global wellness trends, social media, and government campaigns that promote healthy eating. This also includes spreads that are incorporated with vitamins, minerals, probiotics, or functional elements like high-fiber nut butters or fat-free substitutes, catering to consumer concerns about obesity, diabetes, and general nutrition. Furthermore, vegan and vegetarian diets have become increasingly prominent among young people, thereby raising the popularity of products such as almond, peanut, and cashew spreads over those based on traditional butter.

The rise in consumer consciousness of immunity and well-being is leading to an increase in the popularity of product formulations that balance taste and are also healthy, like zero-added-sugar jams or honey-infused spreads. For instance, Mega Confectionery's PACKER Fruit Jams are made with real fruits and no added sugar, with the fruit content around 60%, and the sweetness is solely from the fruits themselves.

The rapid growth in population, along with urbanization, has significantly changed consumer habits, creating demand for convenient, ready-to-eat food products. People with busy lives and long working hours, as well as the high number of dual-income households, have turned spreads into a must-have for quick breakfasts, snacks, and on-the-go meals, such as bread with a spread, pancakes with a spread, or waffles with a spread.

The shift towards at-home dining and brunch has also contributed to the retail consumption of such versatile products as peanut butter and chocolate spreads, as consumers’ choices in the country. According to the World Bank, the urban population in the country is witnessing a constant growth and accounts for 77 percent of the total population in 2024. Meanwhile, as per the UN Population Prospect data, the country’s population increased from 35.558 million in 2024 to 35.978 million in 2025.

Additionally, the regional market players' new product launches, coupled with the introduction of new formulations, flavors and textures, are also bolstering the overall market. For instance, in July 2025, Nutella announced the launch of its limited-edition Selamat Pagi Nutella jars, which feature a sunrise landscape of Malaysia and partnered with local cafes to make fusion dishes such as baked roti canai with Nutella spread.

Market Dynamics

Drivers

• Rapid Rise in Mobile and Internet

The Department of Statistics Malaysia stated that urban areas have a higher level of internet access than rural areas, but that rural regions showed substantial growth since previous years. Access to the internet and ICT devices by households has been increasing in both urban and rural areas due to the continued growth of digital infrastructure and increased connectivity. The use of ICT tools in business establishments has increased across all economic sectors. Many businesses are now regularly using computers and accessing the internet, indicating that digital technologies are becoming integral to their operations. The expansion of the ICT tool usage by establishments supports the broader initiatives and the focus by the government on increasing digital inclusion and access throughout the states. Additionally, mobile phone usage by individuals recorded an increase to 99.5 per cent as compared to the year before (99.4%). This increase was driven by a rise in mobile phone usage in both urban (0.2 percentage points; 99.8%) and rural areas (0.3 percentage points; 98.9%).

In the food trade market, nearly all consumers can access digital content via the internet and mobile technologies. As a result, most consumers are researching food products online and interacting with the various food brands. This trend is encouraging food companies to adopt digital channels to enhance brand visibility and engage with consumers.

Ultimately, because of widespread internet and mobile penetration throughout Malaysia, digital technologies will be a major contributor to modernising the food trade ecosystem, enabling all aspects of the food trade, from developing consumer connections to providing digital solutions for supply chain processes.

According to the Department of Statistics Malaysia report published in 2025, mobile phone usage among individuals in urban and rural areas of Malaysia with urban adoption at 99.8% and rural adoption at 98.9% in 2024. This near-universal mobile penetration underpins the rapid rise in mobile internet traffic and grocery ordering across e-commerce platforms, the first growth driver for the Malaysian food spread market. High mobile access allows consumers to easily browse, compare, and purchase food spreads online, expanding the reach of brands beyond physical stores. Widespread connectivity also facilitates digital marketing, targeted promotions, and direct engagement with consumers, accelerating the adoption of new products and shaping demand patterns across the market.

Key Developments

• April 2026: Ferrero^[1] introduced Nutella Peanut, the brand’s first new spread flavor in over sixty years, combining roasted peanuts with hazelnut cocoa, strengthening premium sweet-spread innovation trends influencing Malaysian retail shelves.

• October 2025: DKSH^[2] Malaysia launched locally manufactured Eva Peanut Butter and Buttercup Luxury Spread Tub, expanding affordable halal-certified food spread offerings for Malaysian households through nationwide hypermarket and supermarket distribution channels.

• July 2025: Universiti^[3] Teknologi Malaysia commercialized Hi-REd Roselle Spread, a functional food spread using locally sourced roselle, targeting health-conscious Malaysian consumers seeking lower-sugar alternatives within breakfast and snack categories nationwide.

Market Segmentation

By Ingredients: Fruits and Vegetables

Based on ingredients, the Malaysian food spread market is divided into dairy-based, fruits and vegetables, nuts and seeds, and specialty. Health consciousness is growing in Malaysia, fuelled by the changes in lifestyle and growing concern over obesity, which has impacted the eating habits of people. Similarly, the country’s sustainable culture has further driven consumer preference for natural and clean-label food products with no artificial flavour additives. To match such a market, the frequency of fruit and vegetable-driven food products, including food spreads, is expected to gain traction in the country.

Similarly, Malaysia, due to rapid population growth, has also witnessed a significant rise in its consumption pattern. With a young population that mainly relies on easy-to-prepare food products, especially for breakfast, the demand for food among this age group is anticipated to show considerable growth. According to the World Bank, the population aged 0 to 14 years accounts for 21.3% of the total strength, while young adult comprises of 16.3%.

Moreover, improved consumption scale, the well-established presence of local market players such as Phee Brothers Food Product, which offers a wide variety of fruit jams, including raspberry, black currant, orange, and mixed fruit, has also positively impacted the overall segment growth in the Malaysian market. The halal certification has established standards that market players must meet, and such standards further outline the usage of natural ingredients in food spread products in the country.

The varied demographic presence, followed by constant economic growth, has improved the overall consumer landscape for food ingredients. Overseas companies, namely Zespri International Limited, which provides Kiwi fruit, are also investing in the Malaysian market, providing new growth prospects. Additionally, the establishment of abundant tropical vegetable stores is supporting local innovation of savoury vegetable mixes, which has transformed the overall market landscape.

By Food Spread: Butter and Cheese

Based on product type, the Malaysian food spread market is divided into jam, honey, jellies, butter and cheese spread, and chocolate spread. The growing shift towards natural ingredients, driven by self-awareness regarding processed alternatives, positively impacted the demand for dairy products in Malaysia. With a rising emphasis on authentic flavours, preference for high-quality food products, followed by ongoing efforts to exercise versatility by food brands, has further propelled the overall demand for food spread products such as butter & cheese spread.

Likewise, the various international conglomerates, namely Unilever PLC and Hormel Foods Corporation, have established their market presence through product offerings such as “Lady’s Choice Peanut Butter” and “Skippy”. The companies have emphasised meeting consumer demand through their halal-certified portfolio, and with the constant change in consumption patterns, the market is anticipated to grow.

Similarly, as an import-oriented country, Malaysia is highly dependent on countries such as India, Australia, the United States, and the European region for milk and cheese products. According to the U.S. Dairy Export Council, the US export of cheddar cheese to Malaysia is expected to reach 468 MT in 2026. As per the European Commission, from January to August 2025, the European butter export to Malaysia reached 1,674 tons. This ongoing trade of butter & cheese with major regions, followed by growing consumer preference for varied ready-to-eat cuisine, has established new growth prospects for butter and cheese spread usage in Malaysia.

Furthermore, the ongoing collaboration and strategic launches of butter products in the Malaysian market are also projected to drive market expansion. For instance, in October 2025, DKSH Holding Limited launched its halal-certified “Eva Peanut Butter” and “Buttercup Luxury Spread”, which fulfil the affordability and accessibility requirements of Malaysian households.

List of Companies

• Mega Confectionery Sdn. Bhd.

• Yeo Hiap Seng Limited

• Dollee

• Flora Food Group Sdn. Bhd.

• Ferrero International SpA

• Nestlé S.A.

• Hormel Foods Corporation

• Amazin’ Graze Pte. Ltd.

• Nuts Enough Sdn. Bhd.

• Jobbie Sdn. Bhd.

• Unilever PLC

• The Kraft Heinz Company

• Phee Brothers Food Product Sdn. Bhd.

• G-Tachfood Industries Sdn. Bhd.

• Good Choice Manufacturing Sdn. Bhd.

• CaveNut Sdn. Bhd.

Unilever PLC is a major fastmoving consumer goods player with a longstanding presence in Malaysia’s food and beverages sector. The company manufactures, markets, and distributes widely recognised brands that serve everyday consumer needs across food, personal care, and home care categories. In the Malaysian food market, Unilever’s portfolio includes culinary and spreadrelated products under wellestablished labels such as Knorr and Lady’s Choice, which are used in both household kitchens and foodservice settings. Its broad distribution network spans traditional retail, modern trade, and growing online channels, enabling extensive market reach. Unilever Malaysia also emphasises sustainability and innovation in product development and aligns its strategies to evolving consumer preferences in the country’s dynamic food landscape.

Malaysia Food Spread Market Scope: