Carbonates in Pakistan

2020 IMPACT

On-trade sales plummet due to lockdown but consumers drink more carbonates at home

Carbonates saw on-trade sales hit hard by the closure of foodservice outlets in 2020 during the lockdown. Not only will foodservice closures impact sales but also the closure of canteens in educational establishments such as colleges and universities and consumers’ lack of access to recreational and leisure sites.

Bulk packs in demand for sharing while impulse sales are hit by economic uncertainty as well as lockdown

When buying carbonates in the off-trade, there was a marked shift towards larger family pack sizes and multi-packs in 2020. This was due to consumers purchasing in bulk for sharing at home.

E-commerce sees strong growth from low base as consumers stay home

Distribution has a major influence on the rankings in cola carbonates. As consumer awareness of the taste and quality distinctions between different brands remains low, loyalty is volatile.

RECOVERY AND OPPORTUNITIES

E-commerce likely to move further into mainstream in forecast period

From 2021, there is expected to be a return to on-trade volume growth as consumers start to resume normal life. E-commerce is expected to continue to gain share in terms of distribution channels in the forecast period.

Leading players look to premiumisation in forecast period

With creative advertising, high media spend and continuous consumer engagement, cola carbonates players, led by Coca-Cola Beverages and PepsiCo, are expected to retain the leadership of the category over the forecast period. While sports and music and celebrity endorsements will remain key avenues to consumers, brand owners are set to increase their focus on low calorie and diet versions to cater to the growing health-conscious consumer base.

PET bottles maintain strongest appeal but glass returnable bottles still key in on-trade

PET bottles will remain the dominant pack type in the forecast period, benefiting from having the widest distribution presence. Consumers will also continue to be attracted to this pack type due to its convenience, being resealable and non-breakable while also offering a wide range of pack sizes from small impulse packs for on-the-go consumption to bulk packs for family consumption.