Cottage industry or cottage-evolved industry is an important economy sector in Malaysia. Cottage industry key characteristics include minimal manufacturing specifications and standards, low technology application and less developed commercial system and market.

However, the cottage industry is also an industry with vast potential. Through improvements in manufacturing, packaging and marketing, the industry appears to have both a ready market in the locals who are accustomed to the products and an attractive overseas market looking for products with a sense of exoticness.