Malaysia Organic Food Industry | Opportunities & Forecast to 2022 |
Market Entry - Organic Food Market in Malaysia: Analysis of Growth, Trends and Progress (2017 - 2022)

PUBLISHED

DEC 2017

Market Entry - Organic Food Market in Malaysia: Analysis of Growth, Trends and Progress (2017 - 2022)

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About the Market

The market for organic food has grown by leaps and bounds, driven by the US and Europe and is expected to find a largely blue ocean market in the Asian and South American nations. Global sales of organic food grew by almost 200% in the last decade. Despite their higher price, growth in this market can be seen due to rising health concerns among consumers, awareness of health benefits of organic food, increasing income levels, improved standard of living, and government initiatives aimed at encouraging widespread adoption of organic products. With 170 countries reporting organic farming activities, more farmers are cultivating organically with certified organic lands. The developed nations of North America lead the market, with supermarkets being the main distribution channel; followed by the developed regions of Europe, led by Germany & France, with specialists and supermarkets as the major source of distribution. At present, organic farmers are growing organic fruits & vegetables, grains, legumes, nuts and seeds, dairy products & eggs, livestock feed and meat & poultry. The millennials, being the current dominant drivers of market direction, are interested in food that is both fresh and healthy. Companies with market caps of more than USD five billion, like White Wave Foods and General Mills, have acquired multiple organic food producers over the years, giving them a fair portion of market share.

About the Geography

Malaysia is a southeast Asian country with a democratic constitutional monarchy government. It is the fifth largest recipient of FDI in Asia with most of the investment in the manufacturing, finance, mining and distribution sectors. Malaysia has 16 bilateral trade agreements, is a part of ASEAN and WTO, and is currently negotiating a Malaysia-European Free Trade Agreement.

Malaysia is located close to major Asia-Pacific markets and companies investing in Malaysia find it a cost-effective gateway to Asian markets. It has a well-developed financial sector, English-speaking majority, educated workforce, and follows high standards of business and legal practices. The government has a provided many incentives to encourage FDI like liberalizing expatriate employment regime and MSC program, which was launched in 2003 to extend tax exemption from 10-15 years for new technology companies and from 5-10 years for priority companies. It has not been able to generate more foreign investments due to bureaucracy, shortage of skilled workers, and the governments’ policies favoring indigenous Malaysians.

A strong financial sector, developed infrastructure, significant resources, competitive costs, and liberal and transparent investment policies make Malaysia an ideal destination for foreign investment.

 

Component Name

Unit

GDP (USD billion)

296

GDP Annual Growth Rate

4

GDP Per Capita

10877

Unemployment Rate

3.5

Wages

530.898

Inflation Rate

1.5

Consumer Price Index (CPI)

116

Interest Rate

3

Loans to Private Sector (USD billion)

381.399

Balance of Trade (USD billion)

2.022

Business Confidence

106

Manufacturing PMI (Index Points)

48.6 Index Points

Ease of Doing Business

18

Competitiveness Rank

25

Corruption Rank

54

Consumer Confidence

78.5

Consumer Spending (USD billion)

34.16

Bank Lending Rate (Consumers)

4.46

Corporate Tax Rate

25

Sales Tax Rate

6

 

The Market Entry Series

Exploring global markets is now recognized as the shortest way to ensure high time to efficiency conversion, when trying to expand revenues past domestic markets, for firms both large and small. Our market entry series, priced suitably low contains the essentials of all the parameters (Refer: Table of Contents) you must be apprised of before you can have a well informed contemplation of a business opportunity in your choice of industry, in your choice of geography.

 

 

 

1. Introduction

                1.1 Scope of the Report

                1.2 Regional Analysis

                                1.2.1 PESTLE Analysis

                                1.2.2 Analysis of Ease of Doing Business

2. Market Dynamics

                2.1 Drivers

                2.2 Restraints

                2.3 Opportunities

3. Market Demand Analysis

                3.1 Socio-Economic Segmentation

                3.2 Demographic Strengths & Weaknesses

                3.3 Spending Patterns

                3.4 Target Market Identification

4. Market Size of Organic Food Market by Type (USD millions)

                4.1 Grains & cereals

                4.2 Oilseeds & pulses

                4.3 Fruits & vegetables

                4.4 Dairy product

                4.5 Meat & meat product

                4.6 Processed food

                4.7 Beverages

                4.8 Others

5. Market Entry

                5.1 Market Entry: The Strategy

                                5.1.1 Types of Entry Modes, by Market Entry Objectives

                                5.1.2 Competition Analysis

                                                5.1.2.1 Market Share

                                                5.1.2.2 Strategies Adopted, Recent Events 

                                5.1.3 Pricing Strategy

                                5.1.4 Supply Chain Analysis

                                                5.1.4.1 Trade (Import-Export Analysis)

                                                5.1.4.2 Distribution Network & Retail Analysis

                5.2 Market Entry: The Administration

                                5.2.1 How to Register a Company (Flowchart)

                                5.2.2 Registration Processes 

                                                5.2.2.1 Ministries Involved

                                                5.2.2.2 Criteria and Conditions

                                5.2.3 List of Forms & Documents

                                5.2.4 Product Control Guidelines specified by the Government

6. Sources

7. Disclaimer

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