|
|
 |
|
Viewing report
|
|
|
|
Pakistan Food and Drink Report Q3 2011
Business Monitor International, June 2011, Pages: 74
Pakistan Food and Drink Report provides industry professionals and strategists, corporate analysts, food and drink associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Pakistan's food and drink industry.
We are holding to a mixed near-term consumer outlook for Pakistan. On the one hand, increasing remittance inflows augur well for higher consumer spending in the country for 2011. On the other hand, skyrocketing food prices are putting a tighter strain on household budgets. While nobody can deny the raw potential of the Pakistani consumer sector, a tense political environment and woeful business environment will continue to inhibit the consumer sector from reaching its potential over the coming decade.
Headline Industry Data
- 2011 Food Consumption Growth = +6.9%, forecast to 2015 = +61.6%
- 2011 Alcoholic Drinks Sales Growth = +7.0%, forecast to 2015 = +33.6%
- 2011 Soft Drinks Sales Growth = +6.2%, forecast to 2015 = +24.7%
- 2011 Mass Grocery Retail Sales Growth = +13.7%, forecast to 2015 = +76.2%
Key Company Trends
Possible Acquisitions in the Dairy Sector – In late May 2010, it was reported that one of the Middle East's largest dairy firms, Almarai, was lining up an acquisitional entry into Pakistan, with reports linking it to Haleeb Foods. Any deal would likely be overseen by Almarai and PepsiCo's International Dairy and Juice Limited (IDJ) joint venture. Although Pakistan remains distinctly unappealing from a regulatory point of view, it still carries significant long-term promise. With a lack of organised competition (generally good for price margins), Pakistan can potentially offer suitable companies rapid returns on their investment. Almarai is reportedly looking to invest as much as US$500mn in Pakistan.
Tea Sector Set for Growth – In June 2010, Tata Global Beverages, the drinks subsidiary of the diversified Indian conglomerate, announced its intention to increase its share of the packaged tea market in Pakistan to 10% from 7%. Tata is relatively new to the market and its small footprint gives it considerable room for growth, particularly as Kenyan imports currently dominate the sector – giving Tata a valuable competitive differentiation. However, the undeveloped distribution infrastructure and a fragmented retail industry complicate supply chain management and make brand building and product penetration a challenge.
Risks To Outlook
Security The Omnipresent Risk – Unless Pakistan's security and core infrastructure situation dramatically improves, it is difficult to envisage a big pick up in international interest over the near term. While they recognise the country's potential, companies will likely invest their capital to less risky economies. The emergence of a dynamic Pakistani private sector will require the business environment to improve dramatically. Only then can there be better foundations for economic development – and subsequently better credit facilities – enabling more firms to emerge and existing companies to take on more risk. To this end, it cannot be denied that Pakistan still has enormous untapped potential.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
