World Cup fever can inject up to RM2.1bil into F&B sector, says economist

KUALA LUMPUR: Football fever during the World Cup could inject between RM1.2 billion and RM2.1 billion into Malaysia’s food and beverage industry as fans flock to mamak outlets, cafes and restaurants to catch live matches, according to an economist.

Barjoyai Bardai of Malaysia University of Science and Technology (MUST) said the World Cup acts as a high-frequency economic stimulus that temporarily shifts consumer spending patterns and boosts business activity across several sectors.

“The World Cup does generate meaningful, but temporary, economic activity in Malaysia. It stimulates consumption rather than investment, with benefits concentrated in specific sectors, especially the F&B, retail, and media sectors,” he told Bernama.

Describing the tournament as a series of “mini-consumption festivals” around match days, Barjoyai said businesses that can attract crowds and create a communal viewing experience stand to benefit the most.

He said Malaysia’s F&B industry, valued at about RM10 billion to RM12 billion monthly, could record an average revenue uplift of around 12% under a base-case scenario, generating an additional RM1.2 billion to RM1.4 billion during the tournament period.

Under a high-engagement scenario characterised by strong viewership and effective marketing initiatives, the average uplift could rise to 18%, translating into an additional RM1.8 billion to RM2.1 billion in revenue.

The gains are expected to be concentrated in the late-night economy between 9pm and 3am, driven primarily by higher customer traffic rather than price increases.

“About 40% of the additional spending stems from late-night dining, followed by group gatherings at 30%, food delivery demand at 20% and event-based promotions at 10%,” Barjoyai said.

The 23rd edition of the World Cup, being held from June 11 to July 19, features an expanded field of 48 teams, up from 32 previously.