Other Dairy in Pakistan

PROSPECTS

Tightening government policies put pressure on manufacturers

Pakistan’s dairy sector was under the protection of a zero-rating regime with allowable tax refunds until 2016, when the government discontinued this, whilst also imposing 25% regulatory duty on skimmed milk powder, with 20% customs duty already in place. The change in tax policy meant that the industry could no longer claim refunds on value-added tax paid on raw materials used for other dairy products such as coffee whiteners.

Rising awareness of other cuisines propels the growth of cream

The use of cream as a cooking ingredient in traditional and other cuisines is expected to promote the growth of packaged cream in the country. The trend of consuming packaged cream in desserts, pasta and other dishes has been on the rise, especially due to the rising popularity of cooking shows amongst higher-income urban women.

Coffee whiteners leads other dairy

Rapid urbanisation, rising awareness and increasing disposable incomes are expected to move consumers towards packaged coffee whiteners and cream. The shift to coffee whiteners is more widespread, with this product becoming increasingly popular in rural areas due to increased marketing and promotions by brands.

COMPETITIVE LANDSCAPE

Coffee whiteners is led by Nestlé’s Everyday

Everyday maintained its lead and saw growth in coffee whiteners in 2018, despite the strong competition. However, many smaller brands, such as Qudrat by Haleeb Foods and Chaika by Shakarganj Food Products, saw significant growth towards the end of the review period.

Tarang loses share

Coffee whiteners in Pakistan went through a major restructuring over the review period, as the leading brand from Engro Foods, Tarang, lost significant share, especially in 2017 and 2018. Dominated by Tarang for almost a decade, tea whiteners saw increased competition after two big brands, Dostea from Fauji Foods and Cup Shup from Dalda Foods, entered the market and Nestlé Pakistan also aggressively marketed Everyday.

Nestlé’s MilkPak leads cream

Packaged cream in Pakistan is dominated by three major brands: MilkPak, Haleeb and Olper’s Cream. Whilst the former two have been in the market for decades, Olper’s Cream is relatively new.

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