Coffee, husks, skins and substitutes market in Malaysia

Earlier Report Observations

Between 2018 and 2020, the Malaysian market for coffee, husks, skins and substitutes was shaped by shifting consumer habits and external shocks. A growing appreciation for premium coffee and the expansion of modern cafés drove market volume up to 100.8 thousand tons in 2019. However, the COVID-19 pandemic disrupted foodservice operations in 2020, reducing consumption and pulling the market size down to 97.4 thousand tons.

The market dynamics shifted again in 2021 and 2022. A global spike in coffee prices, triggered by lower harvests in Brazil, made imports more expensive and contributed to a contraction of the market to 90.1 thousand tons in 2021. The following year, post-pandemic recovery took hold. Demand was bolstered by the arrival of the Indonesian grab-and-go chain Kopi Kenangan, which expanded into Malaysia, helping to lift the total market volume to 95.7 thousand tons in 2022.

In 2023, the market volume fell sharply to 65.1 thousand tons. This decline occurred alongside a continued boom in the local café industry, which saw its value grow significantly, highlighting a divergence between the broader product market and the thriving specialty coffee segment.

Production coffee, husks, skins and substitutes in Malaysia

In kind, 2018-2021, t

Top producers of coffee, husks, skins and substitutes, 2018-2021

World map of production of coffee, husks, skins and substitutes, 2018-2021

Malaysia's production of coffee, husks, skins, and substitutes saw a decline after two years of growth. In 2021, output reached 4 151 tonnes, marking a slight decrease of 2.1% compared to the previous year. Over the period from 2018 to 2021, production rose by 23.2%, with an average annual growth rate of 7.2%. The highest production level was recorded in 2020 at 4 241 tonnes, which also saw the largest annual increase of 19.2%.

Annual dynamics of production in Malaysia in kind, 2018-2021, t

Exports coffee, husks, skins and substitutes from Malaysia

Exports in kind, K t

Malaysia's exports of coffee, husks, skins, and substitutes fell for the second year in a row. In 2021, exports amounted to 15.7 thousand tonnes, reflecting a modest decline of 6.4% year-over-year. From 2018 to 2021, exports grew by 24.9%, equivalent to an annualized rate of 7.7%. The peak export volume was in 2019 at 18.1 thousand tonnes, which also experienced the largest increase of 43.9%. The most significant drop occurred in 2020, with a decrease of 7.3%.

Annual dynamics of product's exports from Malaysia in kind, 2018-2021, K t

Between 2018 and 2021, China, Singapore, and Thailand were the top destinations for Malaysia's exports in kind. China accounted for 37.8% of exports, Singapore for 14.1%, and Thailand for 9.4%. Together, these three countries made up 61.3% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Malaysia in kind, 2018-2021

Exports in value, M $ US

After two years of growth, the value of Malaysia's coffee, husks, skins, and substitutes exports declined. In 2021, exports stood at 27.6 million US dollars, representing a substantial drop of 20.5% from the previous year. From 2018 to 2021, export value increased by 72.9%, with an average annual growth rate of 20.0%. The highest value was recorded in 2020 at 34.7 million US dollars, while the largest increase occurred in 2019, rising by 66.0%.

Annual dynamics of product's exports from Malaysia in value, 2018-2021, M $ US

From 2018 to 2021, China, Singapore, and Thailand remained the primary buyers of Malaysia's coffee, husks, skins, and substitutes in value terms. China contributed 36.2% of export value, Singapore 18.9%, and Thailand 9.5%. Collectively, these three markets accounted for 64.6% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Malaysia in value, 2018-2021

Imports coffee, husks, skins and substitutes to Malaysia

Imports in kind, K t

Malaysia's imports of coffee, husks, skins, and substitutes decreased for the second consecutive year. In 2021, imports totaled 101.7 thousand tonnes, showing a controlled reduction of 7.6% compared to the previous year. Over the 2018-2021 period, imports fell by 5.8%, with an annualized decline rate of 2.0%. The highest import volume was in 2019 at 115.3 thousand tonnes, which also saw the largest increase of 6.9%.

Annual dynamics of product's imports to Malaysia in kind, 2018-2021, K t

During 2018-2021, Vietnam, Indonesia, and Brazil were the leading sources for Malaysia's imports in kind. Vietnam supplied 40.6% of imports, Indonesia 33.1%, and Brazil 8.2%. Together, these three countries accounted for 81.8% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Malaysia in kind, 2018-2021

Imports in value, M $ US

The value of Malaysia's imports of coffee, husks, skins, and substitutes dropped for the second year in a row. In 2021, imports were valued at 248.4 million US dollars, down by 0.7% from the previous year. The peak import value was in 2019 at 273.9 million US dollars, which also experienced the largest increase of 9.7%. The most significant decline occurred in 2020, with a decrease of 8.7%.

Annual dynamics of product's imports to Malaysia in value, 2018-2021, M $ US

From 2018 to 2021, Vietnam, Indonesia, and Colombia emerged as the main markets for Malaysia's imports in value terms. Vietnam accounted for 29.8% of import value, Indonesia for 25.7%, and Colombia for 12.5%. Combined, these three countries represented 68.0% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Malaysia in value, 2018-2021