Malaysia Retail Market (2023-2029) | Forecast, Share, Size, Revenue, Trends, Growth, Value, Companies, Industry, COVID-19 IMPACT & Analysis

Topics Covered in the Malaysia Retail Market Report

The Malaysia Retail market report thoroughly covers the market by product, by distribution channel and competitive landscape. The report provides an unbiased and detailed analysis of the on-going market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.

Malaysia Retail Market Synopsis

The Malaysia Retail industry is characterized by a diverse and dynamic landscape. The country boasted a wide range of retail formats, from traditional markets and small mom-and-pop stores to modern shopping malls and e-commerce platforms. Major urban centers like Kuala Lumpur and Penang were home to an array of international and local brands, offering a variety of products and services. The retail sector had been adapting to changing consumer preferences and technological advancements, with the growth of online shopping and digital payment methods. Additionally, Malaysia's multicultural population influenced the retail market, with a mix of cultural and lifestyle offerings. Further, sustainability and ethical consumerism have gained prominence, driving demand for eco-friendly and socially responsible products. Thirdly, the rise of "retailtainment" has transformed physical retail spaces, with shopping malls offering more experiential and entertainment-focused activities to attract visitors. Moreover, the "buy local" trend has gained traction, with consumers showing greater support for Malaysian-made and locally sourced products. Lastly, the integration of technology, such as contactless payments and augmented reality (AR) shopping experiences, has continued to reshape the retail landscape, enhancing the overall shopping journey.

According to 6Wresearch, Malaysia Retail Market Size is expected to reach USD 84.70 billion and grow at a CAGR of 5.99% to reach USD 112.98 billion during 2023-2029.  The growth of the Malaysia retail market is underpinned by several key drivers. Firstly, sustained economic development and a growing middle class have increased disposable incomes, fostering greater consumer spending on retail goods and services. Secondly, urbanization and population growth in major cities like Kuala Lumpur have fueled demand for modern retail formats such as shopping malls and convenience stores. Thirdly, the expansion of e-commerce and digital payment options has expanded access to retail products and facilitated online shopping, particularly during the COVID-19 pandemic. Fourthly, tourism plays a significant role, as Malaysia is a popular destination for international travelers, driving demand for retail products, especially in the hospitality and duty-free sectors. Lastly, government initiatives and policies aimed at promoting the retail sector, such as the Malaysia Retail Industry Blueprint, have contributed to its growth and competitiveness. These growth drivers collectively underpin the resilience and potential of the Malaysia retail market.

Malaysia Retail Market Highlights

Report Name	Malaysia Retail Market
Base Year	2022
Historical Period	2019-2022
Forecast Period	2023-2029
Growth Rate (CAGR)	5.99%
Report Coverage	Revenues & Volume, Market Trends, Drivers & Challenges, Market Forecast, Market Share
Segment Coverage	By Product, By Distribution Channel
Customization Scope	100% customized reports available along with reliable data. Moreover, you can alter the segments, countries, and regions according to your needs. For further details, you can contact our research expert at sales@6wresearch.com
Pricing and Purchase Options	Avail customization purchase option to know the exact pricing of your research needs

COVID-19 Impact on Malaysia Retail Market

The COVID-19 pandemic had a profound impact on Malaysia retail market revenues. Initially, lockdowns and movement restrictions led to reduced foot traffic in physical stores, causing a temporary downturn in sales for many retailers. However, the pandemic also accelerated the adoption of e-commerce and digital shopping platforms as consumers sought safer and more convenient ways to make purchases. Retailers swiftly adapted by enhancing their online presence and contactless payment options. The crisis also highlighted the importance of hygiene and safety measures in retail spaces, leading to increased investments in health and safety protocols. Additionally, there was a shift in consumer preferences, with increased demand for essential goods and home-related products, while non-essential sectors like fashion and luxury faced challenges. As the country navigated through different phases of the pandemic, the Malaysia retail market showed resilience, and the integration of online and offline retail channels became more pronounced, shaping the future of the industry.

Key Players in the Malaysia Retail Market

The Malaysia retail market features a diverse array of key players, ranging from multinational retail giants to local and regional brands. International retailers such as AEON, Tesco, and IKEA operate a significant number of hypermarkets and supermarkets across the country, offering a wide range of products from groceries to home furnishings. Domestic retail players like Mydin and Parkson have a substantial presence, particularly in the department store and hypermarket segments. In recent years, e-commerce platforms like Lazada, Shopee, and local player Zalora have gained prominence, providing online shoppers with a vast selection of products. Malaysia's shopping mall landscape is also shaped by companies like Sunway Group and Pavilion Group, which manage and develop large-scale retail complexes that blend shopping with entertainment and dining experiences. Further, some of the players grasp sizeable Malaysia Retail market share. Additionally, various local and international fashion and specialty brands contribute to the vibrancy of the retail sector, catering to diverse consumer preferences. These key players collectively shape and drive the Malaysia retail market, offering a wide array of options to consumers in this dynamic industry.

Market by Product

According to Ravi Bhandari, Research Head, 6Wresearch, currently, the food and beverages is observing the maximum growth. One of the key driver has been the nation's vibrant food culture, characterized by diverse culinary traditions, which has led to a thriving restaurant and café scene. The popularity of street food and hawker stalls has also contributed to the sector's expansion. Additionally, the rise of food delivery services and digital platforms like GrabFood and Foodpanda has further boosted F&B sales, especially during the COVID-19 pandemic when dine-in options were restricted. In addition, Malaysia also grasps a significant market share of the Asia Pacific Retail market. Malaysia's growing middle-class population, changing consumer preferences, and a trend toward healthier eating have driven demand for a broader range of F&B offerings, including international fast-food chains, specialty coffee shops, and health-conscious eateries. The F&B sector's growth aligns with the nation's position as a culinary destination and reflects the dynamic and evolving tastes of Malaysian consumers.

Market by Distribution Channel

The Supermarkets and hypermarkets have played a pivotal role in the growth and development of the Malaysia retail market. These large-format stores have seen consistent growth due to several key factors. Firstly, the convenience and variety they offer have made them a preferred choice for consumers seeking a one-stop shopping experience. Secondly, the expansion of urban areas and increasing population density have driven the demand for accessible and well-stocked retail spaces. Thirdly, the COVID-19 pandemic underscored the importance of supermarkets and hypermarkets as essential businesses, leading to a surge in demand for groceries and daily necessities. Fourthly, the entrance of international supermarket chains like Tesco and AEON, along with local players like Mydin and Giant, has intensified competition and expanded the options available to consumers.

Key Attractiveness of the Report

• COVID-19 Impact on the Market.
• 10 Years Market Numbers.
• Historical Data Starting from 2019 to 2022.
• Base Year: 2022.
• Forecast Data until 2029.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• Malaysia Retail Market Outlook
• Market Size of Malaysia Retail Market, 2022
• Forecast of Malaysia Retail Market, 2029
• Historical Data and Forecast of Malaysia Retail Revenues & Volume for the Period 2019 - 2029
• Malaysia Retail Market Trend Evolution
• Malaysia Retail Market Drivers and Challenges
• Malaysia Retail Price Trends
• Malaysia Retail Porter's Five Forces
• Malaysia Retail Industry Life Cycle
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Product for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Food and Beverages for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Personal and Household Care for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Apparel for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Footwear and Accessories for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Furniture for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Toys for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Electronic and Household Appliances for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Food and Beverages Retail Market Revenues & Volume By Other Products for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Distribution Channel for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Supermarkets/Hypermarkets for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Convenience Stores for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Department Stores for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Specialty Stores for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Online for the Period 2019 - 2029
• Historical Data and Forecast of Malaysia Retail Market Revenues & Volume By Other Distribution Channels for the Period 2019 - 2029
• Malaysia Retail Import Export Trade Statistics
• Market Opportunity Assessment By Product
• Market Opportunity Assessment By Distribution Channel
• Malaysia Retail Top Companies Market Share
• Malaysia Retail Competitive Benchmarking By Technical and Operational Parameters
• Malaysia Retail Company Profiles
• Malaysia Retail Key Strategic Recommendations

Markets Covered

The Malaysia Retail market report provides a detailed analysis of the following market segments:

By Product

• Food and Beverages
• Personal and Household Care
• Apparel
• Footwear and Accessories
• Furniture
• Toys
• Electronic and Household Appliances
• Other Products

By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Department Stores
• Specialty Stores
• Online
• Other Distribution Channels

Frequently Asked Questions About the Market Study (FAQs):