• Malaysia ranks 16 globally in terms of market size, with a value of US$964.5 mn in 2023, being the fourth largest consumer market in Asia Pacific. Looking ahead, the market is expected to grow at a constant CAGR of 3.8% through the forecast period, similar to the Asia Pacific average.

• Organic products in Malaysia represent roughly 1.6% of global demand and just 7.2% of the market in the Asia Pacific region, recording a per capita expenditure of US$28.8 in 2023. 

• The Organic Packaged Food and Beverages category in Malaysia registered a value growth of 3.8% in 2023 in current USD prices to record a market size of US$964.5 million. 
• Organic Packaged Food registered a historic CAGR in current USD prices from 2019 to 2023 of 5.5%, led by a CAGR of 5.9% in Organic Staple Foods.
• Organic Packaged Beverages registered a historic CAGR in current USD prices of 14.2%, with a value increase of US$1.4 million throughout the historic period.

• Health and wellness remained a key trend across most categories, as a growing number of local consumers, especially the middle class, chose to make more conscious food choices. The pandemic was a key motivator behind this shift, owing to the strong link between obesity and poor COVID-19 outcomes. Hence, products free from artificial additives and preservatives and containing added vitamins and minerals, as well as those with lower sugar, salt, or fat, are on the rise.
• According to Euromonitor International's Voice of the Consumer: Lifestyles Survey 2024, 44% of consumers in Malaysia actively monitor what they eat to manage their weight, while 56% look for products that contain healthy ingredients in their food and beverages.

• Within Organic Staple Foods, categories such as Organic Rice and Organic Tofu and Derivatives have experienced strong market growth. For the forecast period from 2023 to 2028, Organic Rice is expected to keep leading the Organic Staple Foods landscape to reach US$1,010.4 million in 2028, driven by a constant CAGR of 3.0%. Organic Tofu and Derivatives is expected to reach a US$56.0 million market size in 2028, following a constant CAGR of 11.3%.
• Another category expecting high growth is Organic Processed Fruit and Vegetables, with a solid 17.8% constant CAGR from 2023 to 2028, reaching US$3.9 million in 2028.

• Health awareness has surged in Malaysia, as the governmen's "war on sugar" and "war on salt" campaigns have gained traction, with public health authorities warning that Malaysians consume nearly 60% more salt than the World Health Organization recommendations. This has led to a growing demand for products that are perceived as healthier, such as those with reduced sugar, low salt, and controlled portion sizes. Brands are responding by downsizing packaging, reformulating ingredients, and highlighting health claims such as "baked, not fried" or "40% less oil".
• Malaysia is intensifying its fight against rising obesity and diabetes by increasing the sugar tax on sweetened beverages from January 2025, raising the rate to RM (Malaysian Ringgits) 0.90 per liter. The move builds on a 2019 tax that led to a 9.25% drop in sugary drink consumption, with the government aiming to reduce sugar intake, promote healthier product reformulation, and fund public health initiatives. The revised tax will now apply to a wider range of sweetened drinks, including ready-to-drink tea and juice products with added sugar.

Economy: 

• Malaysia's economy is projected to grow in 2025, with real GDP growth expected to reach 4.2% after a 5.1% growth in 2024. This growth has been driven by strong domestic demand and foreign investment despite the country facing weakened household consumption and exports.
• Growth is expected to remain stable, with real GDP growth expected to average 4.1% from 2025 to 2028.
• Inflation closed at 1.8% in 2024, with the rate expected to average 2.0% during the forecast period.

 Population demographics: 

• Malaysia's population reached 34.1 million in 2024 and is projected to grow by 1.1% to 34.4 million in 2025. The median age in Malaysia is slightly younger than the average for Asia Pacific, with 20.4% of the population being aged 0-14 years old in 2024.
• The median age in Malaysia was recorded at 32.6 years in 2024, an increase of 2.0 years from 2020.

Income & expenditure: 

• The savings ratio in Malaysia stood at -5.7% of disposable income in 2024, the lowest for Asia Pacific and 5th lowest in the world, which is mainly due to an increase in living expenses, with most Malaysians struggling to cover their costs.
• Consumer expenditure per capita increased by 6.0% in 2024 in current USD terms. In constant USD, it is projected to grow at an average annual rate of 3.7% through 2028.

[1] Health and Wellness Definition: Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products The above definition and more can be referenced from the definitions table at the end of the report.

Top 5 Cities By Population

Top 5 Grocery Retailers By Sales

Top 5 Export Commodities To Malaysia

Note : Total organics is the sum of all exports to a country within a year.

Authorized Government Agency(s):

Agriculture and Agro-based Industry Ministry

Agency(s) Contact Information:

Wisma Tani
No.28 Persiaran Perdana
Presint 4
Pusat Pentadbiran Kerajaan Persekutuan
62624 Putrajaya Malaysia,

Telephone: 603-88701000
Fax: 603-88886020
Email: pro@moa.gov.my
Website

Name(s) of Regulation and/or Standard:

Malaysian Standard MS 1529:2001 The Production, Processing, Labelling and Marketing of Plant Based Organically Produced Foods

Date of Implementation: 2012

Regulation and/or Standard Scope:

Production and handling, including packaging, storage, transportation and sales of organic agricultural products. Food products must comply with labeling requirements in the Malaysian Standards MS 1529:2001 in order to label with the word organic, biological, ecological, and biodynamic.

Imported products must comply with the regulations.

Certification:

The Department of Agriculture has developed a certification scheme (website; in English) to certify farms that are operated according to the criteria and guidelines stipulated within the Malaysian Organic Scheme Standard (SOM).

USDA’s GAIN Report Malaysia Exporter Guide (2024)
USDA’s GAIN Report Malaysia Halal Country Report (2021)
USDA’s GAIN Report Malaysia Food and Agricultural Import Regulations and Standards - Narrative (2016)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2022)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2022)
USDA’s GAIN Report Retail Foods (2022)
USDA’s GAIN Report Food Processing Ingredients (2022)
USDA’s GAIN Report Food Service - Hotel Restaurant Institutional (2023)