Hot Drinks in Pakistan
Euromonitor International's Hot Drinks in Pakistan market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Get immediate access to strategic market analysis when you buy reports online
Tables: 58 | Publication date: Mar 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Tea continues to dominate hot drinks market in Pakistan
The hot drinks market recorded growth in both volume and current value terms in 2007. Tea remained dominant and continues to lead the overall market in both the on-trade and off-trade. The growth rate of tea in both value and volume terms is always influenced by sales in rural areas. Multinational and local companies have to focus on rural areas more and study the market carefully to maintain their share. Pakistan, officially a country of teetotallers with an Islamic ban on alcohol, has become one of the highest per capita consumers of tea in South Asia, as reported in The Financial Times recently.
Government encourages the importation and production of tea
The government is trying to take measures and reduce import duties and other taxes to encourage importers and manufacturers. It is expected that these steps will lead to an increase in imports from a wider range of countries. These steps were also taken to discourage smugglers from smuggling tea which has been a major problem for both the Pakistani government and tea blending companies.
Demand for coffee influenced by Western lifestyles
Mainly consumers in urban areas drink coffee because they are adopting Western lifestyles, especially younger Pakistanis who are heavily influenced by the Western media and are more concerned about what they eat or drink. They tend to follow Western eating and drinking habits. Thus, there has been an increase in demand for instant coffee over the review period.
Health-conscious consumers shift towards green tea
Increasing health awareness has also led to an increase in demand for green tea and fruit/herbal tea. Green tea is consumed mostly in urban areas and some rural areas due to the increasing health awareness. Fruit/herbal teas, on the other hand, also have curative properties and there has been continued growth in this category as well.
Smuggling of tea continues to affect legitimate tea production
Smuggled tea accounts for a considerable amount of the total tea available in. Kenya, Pakistan's biggest tea supplier, accounts for around 50% of its legal tea imports, with African countries as a whole supplying over 80% of legitimate imported tea. Tea is smuggled into the country via the border areas of the North West Frontier Province (NWFP) and Baluchistan. Smuggled black teas are sold for between PKR100-200 per kg as compared to teas available in the marketplace which retail for between PKR210-300 per kg. This has affected legitimate sales to a large extent but the government has taken preventative measures to stop the smuggling of illegal imports into the country.
Flow of copycat brands increasing
Copycat brands have also penetrated the market which is another worry for the leading companies. A brand named Peerl Dust is present in the marketplace competing against the Pearl Dust brand from Unilever. Pearl Dust has established itself in rural areas of Pakistan, mainly in the Sindh province. There is another brand present named SUPERWE from Chaman Tea (Pvt) Ltd which is another copycat brand of Unilever’s highly popular brand SUPREME. The manufacturers of Peerl Dust and SUPERWE aim to target rural areas to fool less educated consumers and gain profits. This practice poses a major threat to tea manufacturing companies; copycat brands are targeted only at rural areas and the suburbs where people are mostly uneducated.
Table of contents
HOT DRINKS IN PAKISTAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Tea continues to dominate hot drinks market in Pakistan
Government encourages the importation and production of tea
Demand for coffee influenced by Western lifestyles
Health-conscious consumers shift towards green tea
Smuggling of tea continues to affect legitimate tea production
Flow of copycat brands increasing
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2002-2007
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2002-2007
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2002-2007
Table 4 Retail Sales of Hot Drinks by Sector: Value 2002-2007
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2002-2007
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2002-2007
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2002-2007
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2002-2007
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2002-2007
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2002-2007
Table 11 Hot Drinks Company Shares by Value 2003-2007
Table 12 Hot Drinks Brand Shares by Value 2004-2007
Table 13 Sales of Hot Drinks by Distribution Format: % Analysis 2002/2007
Table 14 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2007
Table 15 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2007-2012
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2007-2012
Table 17 Forecast Retail Sales of Hot Drinks by Sector: Volume 2007-2012
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Value 2007-2012
Table 19 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2007-2012
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2007-2012
Table 21 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2007-2012
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2007-2012
Table 23 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2007-2012
Table 24 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2007-2012
DEFINITIONS
Sources
Summary 1 Research Sources
COFFEE
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 25 Sales of Coffee by Type: Volume 2002-2007
Table 26 Sales of Coffee by Type: Value 2002-2007
Table 27 Sales of Coffee by Type: % Volume Growth 2002-2007
Table 28 Sales of Coffee by Type: % Value Growth 2002-2007
Table 29 Coffee Company Shares 2003-2007
Table 30 Coffee Brand Shares 2004-2007
Table 31 Foodservice Sales of Coffee by Distribution Format 2002/2007
Table 32 Forecast Sales of Coffee by Type: Volume 2007-2012
Table 33 Forecast Sales of Coffee by Type: Value 2007-2012
Table 34 Forecast Sales of Coffee by Type: % Volume Growth 2007-2012
Table 35 Forecast Sales of Coffee by Type: % Value Growth 2007-2012
TEA
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 36 Sales of Tea by Subsector: Volume 2002-2007
Table 37 Sales of Tea by Subsector: Value 2002-2007
Table 38 Sales of Tea by Subsector: % Volume Growth 2002-2007
Table 39 Sales of Tea by Subsector: % Value Growth 2002-2007
Table 40 Tea Company Shares 2003-2007
Table 41 Tea Brand Shares 2004-2007
Table 42 Forecast Sales of Tea by Subsector: Volume 2007-2012
Table 43 Forecast Sales of Tea by Subsector: Value 2007-2012
Table 44 Forecast Sales of Tea by Subsector: % Volume Growth 2007-2012
Table 45 Forecast Sales of Tea by Subsector: % Value Growth 2007-2012
OTHER HOT DRINKS
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 46 Sales of Other Hot Drinks by Subsector: Volume 2002-2007
Table 47 Sales of Other Hot Drinks by Subsector: Value 2002-2007
Table 48 Sales of Other Hot Drinks by Subsector: % Volume Growth 2002-2007
Table 49 Sales of Other Hot Drinks by Subsector: % Value Growth 2002-2007
Table 50 Other Hot Drinks Company Shares 2003-2007
Table 51 Other Hot Drinks Brand Shares 2004-2007
Table 52 Forecast Sales of Other Hot Drinks by Subsector: Volume 2007-2012
Table 53 Forecast Sales of Other Hot Drinks by Subsector: Value 2007-2012
Table 54 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2007-2012
Table 55 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2007-2012
QARSHI INDUSTRIES (PVT) LTD
Strategic Direction
Key Facts
Summary 2 Qarshi Industries (Pvt) Ltd: Key Facts
Company Background
Production
Competitive Positioning
TAPAL TEA (PVT) LTD
Strategic Direction
Key Facts
Summary 3 Tapal Tea (Pvt) Ltd: Key Facts
Company Background
Production
Competitive Positioning