Hot drinks registered health value growth in 2023, as well as moderate volume growth, which was supported by continuing population growth. That being said, Pakistan’s economy continued to struggle and the government secured a further USD3 billion bailout from the IMF in July 2023, avoiding an impending default.
Tea continued to dominate in terms of value and volume sales, though coffee registered higher volume and constant value growth. The setting up of international coffee chains such as Tim Hortons and Costa Coffee is driving this increased interest in coffee.
There was no significant change in the overall competitive landscape of hot drinks in 2023 in terms of retail value shares or rankings, with the top three players all having a double-digit value share. Local player Tapal Tea (Pvt) Ltd, the leader of tea, continued to lead hot drinks overall.
Small local grocers continued to dominate, though supermarkets and hypermarkets have gained volume share over the review period. Hypermarkets and supermarkets are slowly becoming the preferred option for many urban consumers in Pakistan, thanks to the convenience trend.
Though retail channels registered volume growth in 2023, the picture was bleak for foodservice, with a double-digit decline in volume sales. With inflation soaring, consumers cut back on their spend through foodservice channels.
The outlook is positive over the forecast period, as the economy recovers. Several factors should support the recovery, including an IMF loan, easing of supply bottlenecks and hopefully a more stable political climate, once elections take place in February 2024.
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Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Pakistan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
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