Packaged milk saw phenomenal growth until 2012; however, it has since stalled. Growth over the review period remained modest due to changes in industry dynamics.
Consumers in Pakistan are increasingly looking for healthier beverages. Consequently, the consumption of unhealthy drinks is decreasing, paving the way for flavoured milk drinks to grow strongly over the forecast period.
Compared with several regional economies, the share of packaged milk in Pakistan is still very low. Leading manufacturers are promoting growth not only by educating consumers about the health and hygiene aspects of UHT milk, but also getting involved with the government to negotiate the introduction of a minimum pasteurisation law.
Engro Foods faced marketing challenges for both Olper’s and Omung during the review period. Olper’s was involved in the government test of 16 allegedly adulterated UHT milk brands mentioned above, and even though it was found fit for consumption, the brand’s image was damaged.
Pakola was one of the first entrants in flavoured milk drinks. Owing to massive consumer loyalty and the equity of the umbrella brand, the brand has maintained the leading position for several years.
Nestlé Pakistan has a strong lead in drinking milk products with a wide product range. The strong brand loyalty and legacy value of Nestlé Pakistan proved beneficial for MilkPak over the review period, with the brand maintaining its share and growth despite the changing dynamics that hit other brands.
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This industry report originates from Passport, our Packaged Food market research database.