It embodies a rich tapestry of cultural diversity, reflecting influences from indigenous Malay, Chinese and Indian traditions
by AUFA MARDHIAH & VEISHNAWI NEHRU
THE global snack food market is expected to grow substantially at a compounded annual growth rate (CAGR) of 6.13% in the next five years to US$733.5 billion (RM3.46 trillion) in 2028.
“Volume is expected to amount to 81.01 billion kg by 2028,” highlighted the report, with the average revenue projected to reach US$91.54 per capita from US$70.21 per capita in 2023.
Singapore’s Food & Hotel Asia similarly reported that the sector will be thriving with a CAGR of 6.34% up to 2028, driven by busy lifestyle and evolving tastes, indicating further expansion to meet demand.
In Malaysia, the snack and confectionery industry embodies a rich tapestry of cultural diversity, reflecting influences from indigenous Malay, Chinese and Indian traditions.
The mosaic is evident in the array of snacks and sweets available, each characterised by distinct flavours and ingredients.
Some popular traditional snacks include kuih (Malay cakes), murukku (crispy Indian snacks), kerepek (Malaysian chips) and kaya toast (toasted bread with coconut jam and butter). Confectionery favourites include dodol (sticky sweet toffee-like treat), kuih kapit (crispy coconut milk biscuits) and various types of kuih lapis (layered cakes).
Global Snacking Trend
In the midst of ongoing economic uncertainty worldwide, consumers are showing an unwavering preference for snacks, according to Mondelēz International Fifth Annual Snacking Report, released on March 14, 2024.
This year’s findings delved deeper into the evolving landscape of snacking, revealing several key insights.
Apart from that, the global confectionery company also introduced a complementary report, titled “State of Snacking: Future Trends”, which highlighted longer-term macro trends shaping the future of snacking.
The trends include shifts in demographics, fluid lifestyles, environmental impact concerns, health and wellbeing priorities, and the resurgence of the experience economy.
The latest State of Snacking report underscored a continued growth in snacking behaviours, with a significant emphasis on mindful snacking.
The chocolate category, in particular, is closely associated with joy, reflecting consumers’ desire for indulgence and satisfaction.
Consumers are engaging in snacking activities in various ways including “Consistently” despite economic uncertainties.
Two-thirds (66%) of consumers have maintained their spending on snacks, underscoring the resilience of the snacking market.
They are also snacking “Mindfully”, where a significant majority of consumers (85%) regularly appreciate the taste, flavour and texture of snacks, with 78% expressing a preference for mindful consumption.
For the “Adventurous” snackers, social media platforms are increasingly becoming avenues for discovering new snacks, with 62% of consumers utilising these platforms for exploration.
Meanwhile, more than two-thirds of global consumers snack “Purposefully” by prioritising brands that resonate with their values, signalling a growing demand for snacks that offer sustainability benefits and align with ethical considerations.
The survey also indicated an increasing consumer preference for snacks that not only provide satisfaction but also resonate with their personal and environmental values.
Consumers view snacks as a means to achieve various perceived benefits, including enhancing energy levels (75%), uplifting mood (74%) and supporting fitness goals (70%). Furthermore, a majority 63% of surveyed consumers actively seek snacks that contribute to reducing their environmental footprint.
Apart from that, the report also revealed that snacking continues to be a prevalent eating habit, with 88% of consumers reporting daily indulgence in snacks.
Furthermore, six in 10 individuals expressed a preference for multiple small meals throughout the day over a few large ones.
The trend towards mindful snacking was also evident, as 67% of consumers seek portion-controlled snacks and 72% would opt for a smaller portion of an indulgent snack rather than a larger portion of a low-fat/sugar alternative.
This sentiment extends universally, with 72% of respondents expressing a fear of a world devoid of chocolate, transcending generational and regional boundaries.
Social media emerges as a pivotal platform for snack discovery, with over half of surveyed consumers expressing interest in an “instant buy” option for snacks found online.
Additionally, 74% consider the novelty of flavour and texture combinations important when selecting snacks, with 56% discovering new options through social media, particularly prevalent among younger generations.
Moreover, there is a growing inclination towards snacking with purpose, with 63% of consumers seeking snacks that minimise environmental impact through measures such as carbon offsets, prioritising local ingredients and optimising supply chains for sustainability.
This commitment to sustainability is reflected in a significant increase, with 74% of respondents reporting regular recycling of snack packaging, up three percentage points from the previous year.
Notably, millennials are particularly inclined towards snacks with less plastic packaging, with 71% prioritising such options.
On the same note, Mondelēz International survey on 2023 Malaysian snacking behaviour, derived from Mondelēz International’s Fourth Annual State of Snacking report (2022 Global Consumer Trend Study), unveiled that a significant portion of Malaysians are making conscious efforts to snack more mindfully, with 54% controlling portion sizes and 51% engaging their senses for a more fulfilling snacking experience.
The “roti man” known by Malaysians who peddles the best snacks on a motorcycle
However, the survey also revealed a gap in environmental awareness, as only 36% of respondents recycle snack packaging instead of disposing of it in regular trash cans.
Additionally, a majority of respondents feel indifferent towards packaging that is recyclable or has less environmental impact.
Mondelēz International emphasised the importance of mindful snacking, encouraging consumers to make intentional and attentive choices while enjoying snacks to enhance their overall well-being.
The concept of “mindful snacking” which was highlighted by Mondelēz International Regional Nutrition Strategy and Communications Lead for South-East Asia Lim Chain Yin promotes eating with intention and attention.
According to Lim, mindful snacking is not about sacrificing taste or enjoyment but rather about making informed decisions and savouring each moment
It encouraged consumers to be aware of their snacking choices, focus on the present moment and derive greater satisfaction from their snacking experiences.
According to Lim, mindful snacking is not about sacrificing taste or enjoyment but rather about making informed decisions and savouring each moment.
The survey also discovered a prevalent snacking behaviour among Malaysians termed as “multitask snacking”, where individuals engage in snacking while simultaneously performing other activities.
The primary moments for snacking were found to be while watching TV or browsing the Internet (75%) and while studying or working (44%).
Furthermore, snacking serves as a means of comfort for a majority of Malaysians, with 63% of respondents indicating that they snack to alleviate stress or unwind, while 61% snack to fulfil cravings.
The report also highlighted the attitudes of Malaysians towards sustainable snacking practices.
While packaging serves as a vital tool for informing consumers, there is a growing recognition of its impact on environmental sustainability.
The survey revealed that Malaysians are
not recycling snack packaging at high rates and are hesitant to incur the costs associated with environmental sustainability efforts.
Only 31% of respondents are willing to pay a small carbon tax on snacks to offset their environmental impact, contrasting sharply with the global trend where 61% of consumers are willing to make such a commitment.
However, there is some positive news as nearly half of the respondents (41%) express willingness to pay extra for snacks produced by companies adhering to ethical and sustainable practices.
Despite Malaysians’ varying levels of readiness towards sustainability practices, Mondelēz International stated its commitment to improving the environmental impact of snack production.
As of 2022, 96% of their packaging is recycle-ready and efforts are underway to develop infrastructure for collecting, sorting and recycling plastic waste in Malaysia.
Snack and confectionery businesses still sustain the effort to create products that represent regional and local distinctiveness, says Eshaby (Pic courtesy of Eshaby)
Dynamics of Malaysia’s Snacks and Confectionery Industry
Universiti Utara Malaysia School of Tourism, Hospitality and Event Management senior lecturer Dr Eshaby Mustafa said as a multiracial country, Malaysia’s intermingling of various ethnic groups enriched its culinary heritage.
“Malaysian snacks and confectionery companies, therefore, found that the amalgamation of flavours and varieties of heritage food has influenced them to create flavours of snacks and confectionery appealing to Malaysians.
“For example, unique and authentic flavours of snacks representing assimilation of taste influences not only Malay, Indian and Chinese, but also Arab, Indonesian, Thai, Portuguese, Chinese and Indian,” she told The Malaysian Reserve (TMR).
She gave the example of snacks and confectioneries with flavours such as fiery-hot spicy and sour flavours, tanginess, fragrance and sourness and fiery-hot fresh bird’s eye chilies, the use of kaffir lime leaves, torch ginger and mint leaves, or snacks that burst with green confetti of wild pepper leaves, basil, and daun kesum (Vietnamese coriander), as well flavours infused with coconut milk, are common snacks and confectioneries flavours found in the Malaysian market.
Eshaby added that by examining current approaches, snack and confectionery businesses develop products reflecting globalisation and transnational migration.
“Taste and flavours with the vibrant flavours and authentic tastes of Korean cuisine, for example, proved to be a hit among Malaysians.
“Food products such as Samyang instant noodles, Pepero biscuits, as well snacks with kimchi flavours flooded the Malaysia snacks and confectionery aisle in supermarkets,” she said.
She also noted that at the same time, the snack and confectionery businesses still sustain the effort to create products that represent regional and local distinctiveness, which depicts heritage recognition in several products and serves as an example of a cultural way of life of Malaysians.
Eshaby also commented that strategies such as optimisation of shelf space in retail outlets and selling bite-sized and single-serve snacks and confectioneries are some of the efforts for snack and confectionery businesses to remain relevant to the consumers.
“However, these businesses have to differentiate themselves due to the evolving trends of consumer demands.
“For example, consumers are increasingly looking for convenient and portable snacks to consume while they are on the go, hence the bite-size snacks are in ready-to-go packaging to appeal to this,” she said.
Furthermore, she emphasised that there is also a growing consumer market who are health conscious and so the confectionery market has responded to this challenge by introducing healthier options, such as low-sugar, organic and gluten-free products.
Healthier snack options such as a variety of nuts, seeds, and dried fruits are often marketed as healthier alternatives to traditional confectionery products.
Snack and confectionery businesses also introduce cheaper eco-friendly packaging and sourcing ingredients from sustainable sources. In addition, there is also a growing demand and willingness to pay more for high-quality products that offer a unique and indulgent experience.
As a result, a large variety of high-end, artisanal confections have been introduced, including gourmet sweets, hand-crafted chocolates and fair-trade, organic goods.
Eshaby said Malaysian enterprises in the snacks and confectionery industry employ various methods to foster strong connections with their local communities, thereby building brand loyalty and encouraging repeat business.
“Some of the strategies include hosting or sponsoring community events such as food festivals, charity events, or cultural celebrations allowing companies to directly engage with their local community.
“They create engaging content, run contests, share user-generated content and respond promptly to customer inquiries and feedback,” she said, adding that social media platforms such as Facebook, Instagram and Twitter provide opportunities for brands to humanise their image.
Social media influencers also often represent the brand as ambassadors to promote their products while some companies also offer loyalty cards, mobile apps, or membership programmes that reward customers for their continued patronage.
“These strategies often lead the snack and confectionery businesses to remain relevant in today’s market,” Eshaby added.
Commenting further, she noted the significant impact of the current boycotting campaign on businesses.
“However, we can also see some companies use their marketing channel to communicate their stance on the Israel-Palestine issue and highlight their products as locally sourced or free from associations with the boycotted brands.
“Companies also crafted messages that resonate with consumers’ emotions and values, that also emphasise themes of solidarity, or supporting Palestinian causes in their messages,” she said.
She added that promotions or discounts on locally produced snacks and confectionery items were also offered, which could incentivise consumers to switch from boycotted international brands to local alternatives.
She also explained that collaborating with local influencers, organisations, or retailers that support the boycott movement could amplify the company’s message and reach a wider audience.
Partnerships and collaborations like this can lend credibility to the brand and reinforce its commitment to meet consumer demand.
Previous collaborative efforts include Pavilion Kuala Lumpur’s launch of its environmental, social, and governance (ESG) initiative by partnering with Spritzer, the Malaysian mineral water brand which uses 100% recycled plastic.
This strategy helped them to promote the core values of sustainability, community care and positive transformation to the public.
Eshaby added that the previous collaboration between Mcdonald’s and the famous Korean pop group, BTS a few years ago by launching its celebrity signature orders programme had also been spectacular and boosted its sales tremendously.
“Local snack and confectionery brands are also making an effort to promote such collaborations and co-branding becomes an invaluable strategy to leverage the strategic partnership and bolster success.
“This strategy also works well for companies to increase brand recognition and simultaneously allow the smaller companies to gain access to a larger audience while expanding its brand,” she said.
Additionally, the Ministry of Agriculture and Food Industries (MAFI) has also provided various programmes and initiatives such as offering grants, training programmes, market access initiatives and research and development (R&D) support to enhance product quality and innovation.
The Malaysian Investment Development Authority (MIDA) also offers assistance and incentives for companies looking to invest in Malaysia or expand their operations.
Notwithstanding, the Malaysian External Trade Development Corp (MATRADE) offers export promotion services and market development assistance to Malaysian companies, including those in the snacks and confectionery industry.
MATRADE provides market intelligence, trade advisory services, participation in trade missions and exhibitions and assistance in establishing business connections abroad.
Eshaby highlighted the presence of additional governmental bodies, associations, research centres, and universities providing networking opportunities, industry insights, policy advocacy, research expertise, technology transfer, innovation support and incentives. These resources aim to facilitate overseas expansion and market diversification for snack and confectionery businesses in Malaysia.
Zahariah says cultural authenticity is highlighted as a key factor, as Malaysian brands leverage local flavours to resonate with consumers (Pic courtesy of Zahariah)
Unique Selling Points of the Local Confectionery Industry
Universiti Teknologi Mara (UiTM) Business and Management faculty Department of Economics and Financial Studies senior lecturer Dr Zahariah Sahudin said Malaysian snacks and confectionery companies are renowned for their ability to seamlessly blend cultural heritage, traditional recipes and locally sourced ingredients into their products.
This creates a diverse range of flavours that resonates deeply with consumers.
“They honour old recipes, sourcing ingredients locally to support the economy and sustainability.
“Malaysian snacks reflect the nation’s diverse culture, blending Malay, Chinese, Indian and indigenous influences,” she told TMR.
Through a blend of tradition, innovation and community engagement, these companies craft snacks that serve as ambassadors of the Malaysian identity, celebrating the nation’s diverse cultural tapestry and inviting consumers on a flavourful journey through its rich culinary landscape.
“As stewards of tradition and custodians of taste, Malaysian snack companies play a vital role in preserving and promoting the essence of Malaysian culture, one delicious bite at a time,” Zahariah said.
Commenting further, she commented that Malaysian snack and confectionery businesses maintain competitiveness through various strategies.
They prioritise market research to understand consumer preferences, remain agile by swiftly adapting to market shifts, collaborate with experts for innovation and experiment with ingredients for unique flavours.
Additionally, they focus on health and sustainability and leverage digital platforms for accessibility.
Cultural storytelling also fosters emotional connections with consumers, ensuring continued relevance and competitiveness in the market.
Moreover, Zahariah emphasised that Malaysian brands in the snacks and confectionery sector set themselves apart from global competitors through a combination of quality, personalised service, competitive pricing, cultural authenticity, innovation and community engagement.
“Cultural authenticity is highlighted as a key factor, as Malaysian brands leverage local flavours to resonate with consumers.
“Innovation and adaptability are also key, as these brands constantly introduce new flavours and formats. Additionally, community engagement fosters brand loyalty,” she said.
Overall, Malaysian brands prioritise high-quality products and genuine connections with consumers, driving long-term success in the fiercely competitive market.
Zahariah added that Malaysian snack and confectionery businesses prioritise community engagement to foster lasting brand loyalty and encourage repeat business.
She noted the importance of participating in local events and sponsorships, creating face-to-face interactions to build trust and familiarity with consumers.
Leveraging social media platforms, these companies maintain dynamic presences, sharing captivating content and engaging with followers to amplify community involvement.
Loyalty programmes further solidify ties by rewarding ongoing support, incentivising advocacy and encouraging continued patronage.
Moreover, she commented that during times of conflict involving Israel, Malaysian snack and confectionery companies may adjust their strategies to address consumer boycotts against international brands perceived to have ties to or support the occupiers.
(Source: How Are Malaysian Snacking in 2023, Mondelēz International)
“These companies could emphasise their Malaysian identity and values, positioning themselves as alternatives that support local communities and adhere to ethical business practices.
“Taking advantage of social media and digital channels, they can engage with consumers participating in boycott movements, sharing information about their products and values while addressing concerns,” she said.
She added that collaboration among local snack and confectionery brands is essential for expanding market reach and bolstering competitiveness against global rivals.
This includes joint marketing campaigns, co-branded events, strategic alliances, collaborative product development and cross-promotional campaigns.
These collaborative efforts allow brands to amplify their marketing impact, create immersive consumer experiences, extend distribution channels and develop innovative offerings.
By working together, local brands can maximise their promotional efforts, strengthen brand loyalty and achieve sustained growth in the dynamic snacks and confectionery industry.
Zahariah stressed that government programmes, industry partnerships and support mechanisms play a vital role in assisting local snacks and confectionery enterprises to access resources, training and opportunities to enhance their competitiveness and expand their global presence.
She said firstly, government grants and funding programmes are often available to provide financial assistance to small and medium enterprises (SMEs) in the food industry.
These grants can be utilised for various purposes such as product development, market research, export promotion and technology adoption, enabling local enterprises to invest in innovation and growth.
She explained that export assistance programmes offered by governments aid in navigating international markets and expanding global presence.
These programmes provide support in market research, export documentation, trade missions and participation in international trade fairs, facilitating access to new markets and customers worldwide.
Furthermore, she emphasised that training and capacity-building programmes provided by governments and industry organisations equip local snacks and confectionery enterprises with the skills and knowledge needed to succeed in the global marketplace, covering topics such as export readiness, market analysis, branding, marketing, supply chain management and food safety compliance.
“Overall, these government programmes, industry partnerships and support mechanisms empower local snacks and confectionery enterprises to thrive in the competitive food industry landscape, enabling them to compete effectively on the international stage and drive long-term success and growth,” Zahariah added.
(Source: MBG Catalogue, Feb 6, 2024)
Malaysia’s Snacks Manufacturers Performance Reflected Positively
In a recent Bursa Malaysia finding, the local snack manufacturers who are listed on the local bourse are mostly on a positive growth trajectory.
Apollo Food Holdings Bhd for its third quarter ended Jan 31, 2024 (3Q24) reported a net profit of RM47.83 million for its current year-to-date (YTD) against RM24.84 million in the preceding year corresponding period. This marked a 92.48% jump in profit for the company.
Oriental Food Industries Holdings Bhd also recorded more than half jump (80.12%) in its third quarter ended Dec 31, 2023 (3Q23), from RM29.04 million for its current YTD against RM16.12 in the preceding year corresponding period.
Meanwhile, Khee San Bhd in its second quarter ended Dec 31, 2024 (2Q24) also recorded a net profit of RM0.58 million for its current YTD against RM0.08 million in the preceding year corresponding period.
On the other hand, Hwa Tai Industries Bhd in its fourth quarter ended Dec 31, 2023 (4Q23), recorded a net loss of RM7.11 million for its current YTD against a net loss of RM5.84 million.
Overall, except for Hwa Tai, the performance of Malaysian snack manufacturers indicated a positive growth according to the companies’ recent financial performance.
