Food & Beverages

Malaysian consumers’ eating habits have shifted from preparing homemade food to dining out. Household expenditure on groceries dropped from 20.3% in 2010 to 18% in 2016, while spending on eating out increased from 10.7% to 12.8% during the same period. In Malaysia, fine dining restaurants is not excluded from this trend. More than half of fine dining restaurant are located in Kuala Lumpur and of all fine dining restaurant western & fusion fine dining restaurant comprise more than half. Overall, business are influenced by higher incomes, population density, and tourist hotspots.

In Malaysia, the food & beverage industry has grown at a CAGR of 6.5%. Traditional casual and fast casual restaurants hold nearly equal market shares at 48% and 45%, while upscale casual restaurants comprise 7%. Most are franchises, with average meals for two costing RM 55 to RM 120. Overall, Health-consciousness and Halal requirements influence dining choices, as younger consumers favor quick, quality meals. Suprisingly, despite rising living costs, dining out remains popular.

Dining out is increasingly popular among Malaysians, particularly in urban areas, due to busy lifestyles filled with work, study, and business activities. The key factors influencing the choice to dine out include food prices, salary, household income, and individual characteristics. Convenience plays a key role, as people seek to save time, enjoy healthy options, and experience social interactions. Overall, the growth of casual dining industry offers diverse dining choices, highlighting the uniqueness of Malaysian cuisine and boosting tourism by attracting visitors seeking traditional and cultural food experiences.