Food Technology – Beverages and Tobacco

The global beverage market is poised to elevate from $1.6 trillion in 2020 to $1.9 trillion by 2026, with a compounded annual growth rate (CAGR) of 2.5% (Source: MarketResearch.com, March 2022). This surge is underpinned by mounting per-capita consumption across significant developing regions, particularly in the Asia Pacific, projected to hold a predominant share in the global beverages market. This growth stems from increasing disposable incomes and evolving consumer preferences toward ready-to-drink (RTD) beverages. Notably, key market players are strategically investing in mergers, acquisitions, and new product launches to secure a competitive edge.

In Malaysia, output in the beverages market is projected to amount to US$3.02bn in 2023 with a CAGR of 2.76% (Source: Statista Market Insights, May 2023).

Beverage industry stakeholders are attentive to growing health worries linked to sugar content in RTD beverages and alcohol consumption, both of which could influence the market. As a result, potential investors might contemplate evaluating the viability of introducing fresh offerings within the non-alcoholic category. This could encompass health-conscious drinks, plant-based options, and zero-sugar/calorie beverages.

Please note that the Government has ceased approving projects related to tobacco since December 2005.

Additionally, the same decision applies to new projects involving alcoholic beverages since 2006.