Milk market in Malaysia

Earlier Report Observations

The Malaysian milk market expanded significantly from 2018 to 2022, with volume peaking at 191.2 thousand tons and value reaching $724 million, before contracting in 2023. Early in the period, the continuation of the school milk program under the Ministry of Education helped sustain consumption. The COVID-19 pandemic in 2020 boosted demand for fresh milk, supporting market value growth even as physical volume dipped slightly.

Implementation of the National Agrofood Policy 2.0 from 2021 aimed at strengthening the dairy value chain, coinciding with a surge in market volume to 141.5 thousand tons that year. In 2022, record domestic consumption was driven by improved labor market conditions and higher minimum wages, while product innovations such as date milk, A2 protein organic milk, and lactose-free milk from players like Farm Fresh Berhad catered to evolving consumer preferences. New nutrition labeling regulations effective July 2022 also reshaped product presentation.

After the 2022 peak, the market adjusted in 2023 with volume falling to 161.6 thousand tons and value to $538 million. This correction followed a period of rapid expansion influenced by the aforementioned drivers.

Production milk in Malaysia

In kind, 2018-2021, t

Top producers of milk, 2018-2021

World map of production of milk, 2018-2021

Malaysia's milk production volume has declined for the second year in a row. In 2021, the country produced 44,589 tonnes of milk, marking a 6.1% decrease compared to the previous year. Looking at the period from 2018 to 2021, production fell by 3.5%, which translates to an average annual decline of 1.2%. The highest production level was recorded in 2019 at 48,093 tonnes, with the largest year-on-year increase of 4.1% also occurring that year.

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

In value, 2018-2021, K $ US

Milk production in Malaysia has decreased for the second consecutive year. In 2021, the output was valued at 73,162 thousand US dollars, showing a modest 3.1% drop from 2020. Over the 2018-2021 period, production declined by 3.2%, with a compound annual growth rate of -1.1%. The peak value was reached in 2019 at 80,856 thousand US dollars, which saw the largest increase of 7.0%. The most significant decline occurred in 2020, with a 6.6% decrease.

Annual dynamics of production in Malaysia in value, 2018-2021, K $ US

Exports milk from Malaysia

Exports in kind, K t

Malaysia's milk exports have fallen for the second year running. In 2021, exports totaled 132.4 thousand tonnes, representing a substantial 14.2% decrease from the previous year. From 2018 to 2021, exports dropped by 11.1%, with a compound annual decline of 3.8%. The highest export volume was recorded in 2019 at 155.1 thousand tonnes, which also experienced the largest increase of 4.1% that year.

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

Between 2018 and 2021, Malaysia's milk exports in kind were widely distributed across various markets. Indonesia accounted for 11.5% of exports, Mexico for 8.2%, and the Philippines for 6.8%. Together, these three countries made up only 26.5% of total export flows, indicating a broad spread.

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

Malaysia's milk exports in value terms have declined for the second consecutive year. In 2021, exports amounted to 217.3 million US dollars, equivalent to an 11.4% loss compared to 2020. Over the 2018-2021 period, exports decreased by 10.8%, with a compound annual decline of 3.7%. The maximum value was recorded in 2019 at 260.7 million US dollars, which saw the largest increase of 7.0%.

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

An analysis of Malaysia's milk exports in value terms from 2018 to 2021 reveals a broad distribution across many markets. Indonesia contributed 7.1% of exports, Singapore 7.0%, and Sudan 6.4%. Combined, these three countries accounted for just 20.4% of total flows, with the remaining 79.6% going to other partners.

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

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

Imports milk to Malaysia

Imports in kind, K t

In 2021, Malaysia's milk imports reached 229.3 thousand tonnes, which is 3.7% higher than in 2020. The lowest import volume was recorded in 2020 at 221.1 thousand tonnes, while the peak was in 2019 at 234.8 thousand tonnes. The largest decline occurred in 2020, with a 5.8% decrease.

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

From 2018 to 2021, New Zealand, Australia, and the United States consistently led Malaysia's milk imports in kind. New Zealand accounted for 38.0% of imports, Australia for 17.6%, and the United States for 14.8%. Together, these three countries made up 70.4% 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

Malaysia's milk imports have increased for the third year in a row. In 2021, imports stood at 661.5 million US dollars, marking an 11.4% rise year-over-year. Between 2018 and 2021, imports grew by 26.7%, equating to an average annual increase of 8.2%.

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

In the 2018-2021 period, the top sources for Malaysia's milk imports in value terms were New Zealand, the United States, and Australia. New Zealand accounted for 48.0% of imports, the United States for 14.4%, and Australia for 9.7%. Collectively, these three countries represented 72.2% 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