Hot Drinks in Pakistan

COVID-19 impact on hot drinks

Retail volume sales of hot drinks in Pakistan remained largely unaffected by COVID-19 in 2020, with good growth continuing in the year. Consumed in the winter months primarily, coffee and other hot drinks were cushioned from the lockdown impact of the pandemic as it peaked in the summer months.

COVID-19 country impact

The initial impact of COVID-19 in Pakistan began at the start of 2020 as Pakistan International Airlines (PIA), cancelled all flights between Pakistan and China for most of January. By March government-enforced restrictions began as Pakistan’s borders were closed and flights were grounded.

Company response

Tapal Tea is a strong leader in hot drinks, due to its strength in tea. The company’s Tapal brand has a strong nationwide consumer base and offers a wide range of products that caters to a variety of consumer needs.

Retailing shift

Traditional grocery retailers, especially independent small grocers, continued to dominate the distribution of hot drinks in 2020. These outlets remain hugely popular, due to their convenient local locations and range tailored towards price-sensitive consumers.

Foodservice vs retail split

Foodservice volume sales of hot drinks plummeted in 2020, as foodservice outlets remained closed during the strict lockdown. Foodservice footfall generally remained at low levels following the lockdown, due to strict social distancing measures and consumer caution linked to the virus.

What next for hot drinks?

Hot drinks is expected to benefit from many trends in the forecast period, including economic growth, rising disposable income levels and an expanding mid-income group. Along with urbanisation and strong expansion for modern grocery retailers, this will result in more consumers becoming able to afford packaged hot drinks on a regular basis and will also enable them to access a widening range of brands, products and pack sizes.

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