About this Report

This Euromonitor market report provides market trend and market growth analysis of the Ice Cream industry in Pakistan. With this market report, youll be able to explore in detail the changing shape and potential of the industry. You will now be able to plan and build strategy on real industry data and projections. The Ice Cream in Pakistan market research report includes:

Analysis of key supply-side and demand trends Detailed segmentation of international and local products Historic volumes and values, company and brand market shares Five year forecasts of market trends and market growth Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

What is the market size of Ice Cream in Pakistan? What are the major brands in Pakistan? How are manufacturers moving consumers from seasonal to year-round consumption, especially in emerging markets? How is domestic freezer penetration influencing consumption in emerging markets? With economic recovery far from guaranteed, are consumers cutting back on impulse and indulgence food items like ice cream?

Why buy this report?

Gain competitive intelligence about market leaders Track key industry trends, opportunities and threats Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database. Each report is delivered with the following components: Report: PDF and Word Market statistics: Excel workbook

Sample Analysis TRENDS

Pakistanis tend to see ice cream as part of Western culture and ice cream is becoming more and more popular each year in line with the increasing popularity of Western indulgence products. The healthy growth registered in retail value sales in 2010 was largely the result of unit price growth as retail volume growth stagnated. Due to the

effects of the economic downturn, almost all essential food items saw significant unit price increases in Pakistan during 2010, which affected additional spending on expensive non-essential food items such as desserts as ice cream. Even though Pakistans middle class consumers, who are increasingly the primary target group of ice cream manufacturers, receive ever increasing incomes, these increases in income were under the rate of inflation during 2010. The number of upper class consumers in Pakistan remained more or less stable during 2010. However, despite the healthy demand for ice cream among these middle and upper class consumers, a problem exists in the supply of ice cream. Ice cream is one the most complicated dairy products to retail as it requires refrigerated transport and storage, and can therefore only be sold through retail outlets which have their own auxiliary power supply as random power cuts are occurring in Pakistan with greater frequency.

COMPETITIVE LANDSCAPE

Unilever Pakistan led ice cream in Pakistan in 2009 with its wide variety of products under its Walls brand leading to the company holding a value share of 37%. Engro Foods (Pvt) Ltd occupied second position in 2009 with a value share of 15%.

PROSPECTS

With the impending economic stabilisation in Pakistan expected to lead to increased consumer spending over the forecast period, ice cream is also set to see stabilisation in growth. Due to the high level of penetration currently enjoyed by local ice cream companies and the many new product launches expected during the forecast period, competition in ice cream is expected to increase, leading to unit prices falling by 1% CAGR in constant value. Thus a decline of 1% in constant value is expected over the forecast period. This fall in price will at least encourage Pakistani consumers to buy more ice cream, leading to volume growth of 1% CAGR over the forecast period, which will be an improvement on the low volume sales recorded in 2009 and 2010, which was largely due to the significant unit price rises recorded throughout the review period.

Trends

With the growing industry and overall economy each year, larger amounts of people are employed in professional careers. Increasing urbanisation dictates a faster pace of life, thus leaving less time for meal preparation at home, particularly when young families live separately from their parents. This impacts their increasing preference to dine outside which saves a lot of time as well as offering families the chance to relax and eat together.

Competitive Landscape

The foodservice channel remains underdeveloped in Pakistan.

Prospects

Foodservice will see ongoing growth as the economic slowdown will not change consumers convenience and time-saving trends significantly. Generally, the target customers for foodservice are comprised of the highest earners so their quality of life is far beyond the expenses of dining daily at foodservice outlets.

Trends

Despite the changing lifestyles of young consumers, they continued to live with their families and therefore tended to be looked after with regards to nutrition. However, with the economy boost and increasing urbanisation, they sometimes need to move to cities for educational or work purposes, thus making them more responsible for their own meals: impulse snacking is therefore driven by this trend. Traditionally, Pakistanis are used to seeing a great amount of snacks being sold on streets and are used to snacking on their way to work. However, this has changed somewhat and consumers with higher incomes prefer quality and hygienic food, thus packaged snacks are becoming more popular.

Competitive Landscape

The local biscuit companies dominate impulse and indulgence products with the main leaders being English Biscuit Manufacturers (Pvt) Ltd and Continental Biscuits Ltd holding 13% and 11% value share respectively. Both companies offer a great assortment of packaged sweet biscuits and their core success is distribution which is developed in rural areas as well.

Prospects

Impulse and indulgence products will display a healthy performance over the forecast period, with a CAGR of 6% in both retail constant value and volume terms, due to further changing snacking habits and hygiene conception. In order to return to the previous economic conditions, most companies are demanding on their employees, thus they need to work harder than ever which contributes to busier lifestyles. Moreover, despite the presence of biscuits impulse and indulgence products has not reached saturation levels.

Trends

The most influencing factor of the value growth of nutrition/staples was its unit price increase. Volume sales did not see such rapid growth although they continued to grow in the complicated economic conditions which was due to the markets lack of saturation. As Pakistanis are becoming more hygiene-concerned, they are slowly changing their habits from purchasing loose dairy and bread commodities to choosing packaged ones.

Competitive Landscape

There are plenty of small companies present in nutrition/staples and amongst the leaders was Dalda Foods (Pvt) Ltd with a value share of 19%. The company brings wide brands portfolio and good product distribution. The reason for such popularity of smaller

producers is the traditional consumers perception that artisanal food is the freshest as well as the cheapest. The latter reason was very important in recent years. Prospects

Further marginal growth is predicted for the forecast period for nutrition/staples as consumers will continue to purchase packaged essential products in order to obtain quality and shelf-stable food which is necessary for busy professional Pakistanis. Nevertheless, the middle class consumer group is definitely going to diminish as nutrition/staples will become more of a premium product for some of them, affordable only on special situations or for small children. The latter group is used to saving money and even with stable incomes but an unstable economic situation, they will be more cautious in spending than the higher class consumers.

Trends

The growth in retail value was very much because of a significant unit price growth and very little to do with consumers buying more expensive premium items. Overall, the trend for saving time continued to grow in Pakistan, and thus people appreciate meal solutions which allow them to engage with their professional careers and family lives more. This is also very much related to the increasing number of working women in Pakistan or at least their role so that even if they remain at home, they have a chance to make their housework easier by using ready meals.

Competitive Landscape

Domestic companies National Food Industries Co Ltd and Mitchell's Fruit Farms Ltd were the most prominent players holding 19% and 13% share of meal solutions respectively. Companies managed to retain their previous sales along with strong positions due to their wide product assortment which satisfy consumers demands. Moreover, National Food Industries Co Ltd has few very strong brand names in Pakistan as the company invests in advertising and marketing.

Prospects

A stable increase of CAGR 3% in retail volume terms is being forecasted as manufacturers will reduce unit prices which will increase the demand for meal solutions. Nevertheless, this promising growth will only occur in relation to retail value sales. However, as a permanent investment into forming consumers habits it will offer benefits in the long-term. Moreover, it is a very promising category with potential room for growth in Pakistan and is growing in line with changing dining habits and a liking for Western culture.