Concentrates in Pakistan

2020 IMPACT

Low-income consumer base cut back on spending, resulting in slower growth

Off-trade volume growth slightly slowed in 2020 in comparison to that seen earlier in the review period. This was due to non-essential grocery purchases being cut back among the price-sensitive low-income group that makes up the core consumers for concentrates.

Tang benefits from broadening distribution of low-priced single-serve sachets

Clover Pakistan continued to dominate off-trade value sales in powder concentrates and lead sales in overall concentrates with the Tang brand in 2020. Tang benefits from strong marketing and a wide distribution network.

Rising at-home consumption during lockdown, with traditional appeal and flexible dilution ratio attracting many

While facing strong competition from growing sales of carbonates and juice, concentrates remains widely popular and benefit from a traditional appeal in Pakistan. Concentrates in particular remains popular among the low-income majority, as these drinks can be diluted to taste or in response to cost concerns.

RECOVERY AND OPPORTUNITIES

Forecast period growth linked to wider availability and affordability

Concentrates is expected to see ongoing off-trade current value and volume growth in the forecast period, benefiting from socioeconomic economic factors such as population growth and rising disposable income levels. An increasing move to packaged products and widening distribution, as the retail landscape continues to evolve and expand, will also boost consumption.

Laal sharbat to remain strong despite ongoing innovation in liquid concentrates

Within liquid concentrates, laal sharbat “red drink/syrup” products will continue to dominate sales in the forecast period, benefiting from their traditional appeal and distinctive flavour. Many new varieties of liquid concentrates emerged in the review period, including fruit squashes and flavoured syrups, while there is expected to be continued new product development in this area in the forecast period.

New consumption occasions promoted in hope of boosting year-round consumption

There is expected to be a growing focus on year-round marketing from the leading players in the forecast period, as they seek to break away from seasonal summer consumption and encourage year-round demand for concentrates. Leading brands such as Qarshi Industries’ Jam-E-Shirin, Hamdard Wakf Laboratories’ Rooh Afza, and Clover’s Tang will thus increasingly actively promote their products for multiple consumption occasions.

Concentrates Conversions

In both liquid concentrates and powder concentrates, conversion ratios are initially defined by the leading brands and followed by the rest. However, many of the low-income majority will dilute concentrates far more than the recommended conversion factor in order to save money.