Yoghurt and Sour Milk Products in Pakistan

PROSPECTS

Potential for growth in packaged yoghurt

Rapid urbanisation, together with economic improvements in the country, has led to a surge in sales of packaged food. However, packaged yoghurt still accounts for only a fraction of the total yoghurt market, leaving strong potential for growth as consumer preferences develop in favour of packaged products.

Consistent marketing of packaged plain yoghurt keeps demand high

Plain yoghurt is used in Pakistan as a staple, with some households consuming it as a condiment, whilst others eat it with bread as part of a meal. Hence, brands strive to capture sales with consistent marketing aimed at switching consumers from unpackaged yoghurt.

Lack of a traditional taste and texture hamper the growth of sour milk products

Unpackaged sour milk products have a very traditional texture and taste that the average Pakistani consumer enjoys, especially the milk and yoghurt-based beverage lassi; packaged brands of lassi have failed to replicate this. Moreover, unpackaged lassi is topped with a thick layer of pure cream, which adds to the texture and taste of the beverage.

COMPETITIVE LANDSCAPE

Adam’s remains the only significant brand in sour milk products

Yoghurt and sour milk products is comprised of standard and economy brands, both of which compete based on convenience and variety. The competitive landscape comprises a handful of leading domestic manufacturers and various other retailer-imported international brands.

Nestlé Pakistan dominates yoghurt with various brand variations

Nestlé Pakistan led yoghurt and sour milk products in value terms in 2018. The company was one of the first entrants in packaged yoghurt with its Nestlé Yoghurt and Raita brands.

Independent small grocers remains the leading distribution channel

Yoghurt and sour milk products are mainly purchased in small pack sizes on frequent shopping trips, and not usually as part of monthly grocery shopping trips, due to their short shelf life. For this reason, the main retail channel in 2018 was independent small grocers.

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