Domestic coffee market valued at RM4.4bil, says deputy minister
MALAYSIA'S domestic coffee market is valued at US$1.05bil (RM4.4bil) with over 6,400 cafes operating nationwide, says Datuk Chan Fong Hin.
The Deputy Plantation and Commodities Minister said he has observed that the coffee and cafe culture were among the fastest growing segments in Asean.
Chan said this in his keynote address at the opening of the Malaysian International Food and Beverage Trade Fair (MIFB) held at the Kuala Lumpur Convention Centre on Wednesday (July 30).
"This also marks my third consecutive year attending the event. I am delighted to see it continue evolving into a prestigious regional platform for food and beverage innovation and trade," he added.
Chan explained that the MIFB 2025 theme of 'Future-Ready F&B: Serving the Evolution of Trends' captured the industry's transformation, adapting to consumer preferences, embracing digitalisation and innovating sustainably.
"It mirrors the mission of our plantation and commodity sectors," said Chan, adding that his ministry oversees the development of Malaysia's main commodities of palm oil, rubber, timber, cocoa, pepper, kenaf and tobacco, many of which were integral to the F&B industry.
"In 2024, the palm oil industry contributed a remarkable RM114bil in export earnings. Accounting for 2.97% of Malaysia's GDP, the oil palm sector employs close to one million workers and smallholders, making it the second largest employer after the government."
Visitors visiting the booth during the Malaysian International Food and Beverage Trade Fair (MIFB) at Kuala Lumpur Convention Centre on July 30.-AZMAN GHANI/The Star
Chan said while demand is booming, the global coffee supply chain was facing increasing volatility.
"Brazil's 2024 Arabica harvest, for example, has been cut by around 12% due to El Nino-driven droughts.
"Simultaneously, the Red Sea crisis has forced shipping routes to detour by over 5,000km, adding US$0.12 to US$0.15 per pound of coffee landed at Port Klang.
"These combined pressures have pushed the International Coffee Organisation's composite price indicator up by a staggering 94.6% in just one year."
Also present at the opening event were Constellar group chief executive officer Chua Wee Phong and Malaysia Specialty Coffee Association president and chief executive officer of Coffex Coffee Kelvin Ngow.
Chan said these external pressures highlighted why Malaysia should expand domestic coffee cultivation for local consumption.
"Strengthening our own production is the way to ensure the cafe economy continues to thrive while positioning Malaysia as a credible origin in the global coffee trade.
Visitors visiting the booth during the Malaysian International Food and Beverage Trade Fair (MIFB) at Kuala Lumpur Convention Centre on July 30.-AZMAN GHANI/The Star
Chan also enthused the exciting debut of the Malaysia Cafe Expo (MCE) that was launched this year under the MIFB umbrella, together with the Malaysia Food Tech Expo (MyFoodTech).
"The debut of MCE is especially significant because it represents how MIFB continues to expand its reach, covering the F&B value chain, and reflecting the aspirations of the Malaysian government to build a food sector that is innovative, market-driven, and inclusive," he said.
Held for three days from July 30 to Aug 1, MIFB 2025 features over 500 companies and 12,000 trade visitors, with impactful showcases such as the Knowledge Hub, MyFoodTech, and the debut Wine, Spirits & Beer Showcase.
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