MarketLine Industry Profile

Food & Grocery Retail in Pakistan

February 2020

Reference Code: 0114-2058

Publication Date: February 2020

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 Food & Grocery Retail in Pakistan

Industry Profiles

1. Executive Summary

1.1. Market value

The Pakistani food & grocery retail market grew by 7.3% in 2018 to reach a value of $59,316.3 million.

1.2. Market value forecast

In 2023, the Pakistani food & grocery retail market is forecast to have a value of $79,654.4 million, an increase of
34.3% since 2018.

1.3. Category segmentation

Food is the largest segment of the food & grocery retail market in Pakistan, accounting for 79.4% of the market's total
value.

1.4. Geography segmentation

Pakistan accounts for 1.3% of the Asia-Pacific food & grocery retail market value.

1.5. Market rivalry

Competition between players is fierce due to the limited level of product differentiation and consumers' negligible
switching costs, combined with a challenging and volatile market environment.

1.6. Competitive Landscape

Imtiaz Super Market and Utility Stores are the leaders in this market, which is seeing increasing activity in its online
channel.

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TABLE OF CONTENTS
1. Executive Summary2

1.1. Market value ................................................................................................................................ 2

1.2. Market value forecast .................................................................................................................. 2

1.3. Category segmentation ............................................................................................................... 2

1.4. Geography segmentation ............................................................................................................ 2

1.5. Market rivalry ............................................................................................................................... 2

1.6. Competitive Landscape ............................................................................................................... 2

2. Market Overview7

2.1. Market definition .......................................................................................................................... 7

2.2. Market analysis ............................................................................................................................ 7

3. Market Data9

3.1. Market value ................................................................................................................................ 9

4. Market Segmentation10

4.1. Category segmentation ............................................................................................................. 10

4.2. Geography segmentation .......................................................................................................... 11

4.3. Market distribution ..................................................................................................................... 12

5. Market Outlook13

5.1. Market value forecast ................................................................................................................ 13

6. Five Forces Analysis14

6.1. Summary ................................................................................................................................... 14

6.2. Buyer power............................................................................................................................... 15

6.3. Supplier power ........................................................................................................................... 16

6.4. New entrants.............................................................................................................................. 18

6.5. Threat of substitutes .................................................................................................................. 19

6.6. Degree of rivalry ........................................................................................................................ 20

7. Competitive Landscape21

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7.1. Who were the leading players in 2018? .................................................................................... 21

7.2. Which are the strongest store formats in this market? .............................................................. 21

8. Macroeconomic Indicators23

8.1. Country data .............................................................................................................................. 23

Appendix 25

Methodology............................................................................................................................................. 25

8.2. Industry associations ................................................................................................................. 26

8.3. Related MarketLine research .................................................................................................... 26

About MarketLine ..................................................................................................................................... 27

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LIST OF TABLES
Table 1: Pakistan food & grocery retail market value: $ million, 2014–18 9

Table 2: Pakistan food & grocery retail market category segmentation: $ million, 2018 10

Table 3: Pakistan food & grocery retail market geography segmentation: $ million, 2018 11

Table 4: Pakistan food & grocery retail market distribution: % share, by value, 2018 12

Table 5: Pakistan food & grocery retail market value forecast: $ million, 2018–23 13

Table 6: Pakistan size of population (million), 2014–18 23

Table 7: Pakistan gdp (constant 2005 prices, $ billion), 2014–18 23

Table 8: Pakistan gdp (current prices, $ billion), 2014–18 23

Table 9: Pakistan inflation, 2014–18 23

Table 10: Pakistan consumer price index (absolute), 2014–18 23

Table 11: Pakistan exchange rate, 2014–18 24

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LIST OF FIGURES
Figure 1: Pakistan food & grocery retail market value: $ million, 2014–18 9

Figure 2: Pakistan food & grocery retail market category segmentation: % share, by value, 2018 10

Figure 3: Pakistan food & grocery retail market geography segmentation: % share, by value, 2018 11

Figure 4: Pakistan food & grocery retail market distribution: % share, by value, 2018 12

Figure 5: Pakistan food & grocery retail market value forecast: $ million, 2018–23 13

Figure 6: Forces driving competition in the food & grocery retail market in Pakistan, 2018 14

Figure 7: Drivers of buyer power in the food & grocery retail market in Pakistan, 2018 15

Figure 8: Drivers of supplier power in the food & grocery retail market in Pakistan, 2018 16

Figure 9: Factors influencing the likelihood of new entrants in the food & grocery retail market in Pakistan,
2018 18

Figure 10: Factors influencing the threat of substitutes in the food & grocery retail market in Pakistan, 2018
19

Figure 11: Drivers of degree of rivalry in the food & grocery retail market in Pakistan, 2018 20

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2. Market Overview

2.1. Market definition

The food & grocery retail market includes the retail sales of all food products, both packaged and unpackaged, as well
as beverages (including retail sales of all alcoholic and non-alcoholic beverages), tobacco, and household products. All
on-trade sales of food and beverage are excluded. All currency conversions are calculated at constant average 2018
exchange rates.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific,
Middle East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.

2.2. Market analysis

The Pakistani food & retail market has experienced strong growth in recent years but has decelerated since 2015.
Growth within this market will continue to decelerate throughout the forecast but will remain strong up to 2023.
Pakistan has seen steady economic growth in recent years, which is improving prospects for the population. The
country’s GDP has continued to demonstrate strong growth which has accelerated since the global financial crisis in
2008. However, In 2018-19 the country reported slower economic growth – down 2.24 percentage points - then the
year before for the first time in a decade, this could contribute to slower growth seen in 2018.
The Pakistani food & grocery retail market had total revenues of $59.3bn in 2018, representing a compound annual
growth rate (CAGR) of 8.4% between 2014 and 2018. In comparison, the Indonesian and Chinese markets grew with
CAGRs of 7.7% and 9.5% respectively, over the same period, to reach respective values of $206.2bn and $2,481.6bn in
2018.
Consumer price index (CPI) increases have fuelled growth in this market in 2015-2016 CPI for urban and rural foods
increased by 15% according to figures presented the Pakistan Bureau of Statistics. Higher priced foods allow retailers
to generate larger turnovers from selling food & grocery products fuelling growth in the market. Growth is also
facilitated by rising incomes, increasing urbanization, and a growing young population demanding modern retail
outlets. It is largely the youth in the country that are driving the growth of modern retail.
The Food segment was the market's most lucrative in 2018, with total revenues of $47.1bn, equivalent to 79.4% of the
market's overall value. The Drinks segment contributed revenues of $5.9bn in 2018, equating to 10% of the market's
aggregate value.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 6.1% for the five-year period
2018 - 2023, which is expected to drive the market to a value of $79.7bn by the end of 2023. Comparatively, the
Indonesian and Chinese markets will grow with CAGRs of 6.5% and 8% respectively, over the same period, to reach
respective values of $282.2bn and $3,654.2bn in 2023.

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The prices of food and beverages for consumers is expected to continue growing over the forecast, this will help drive
market growth by increasing the value of products sold to consumers. However, purchasing power in Pakistan could
weaken with anticipated salary decreases in 2020 as a result of rising inflation and depreciation of the Pakistan’s
rupee. Pakistan’s average salary is expected to fall 3% in 2020 according to data from ESA International.

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3. Market Data

3.1. Market value

The Pakistani food & grocery retail market grew by 7.3% in 2018 to reach a value of $59,316.3 million.
The compound annual growth rate of the market in the period 2014–18 was 8.4%.

Table 1: Pakistan food & grocery retail market value: $ million, 2014–18

Year $ million PKR million € million % Growth

2014 42,977.6 5,226,870.5 36,463.5
2015 47,279.1 5,750,013.0 40,113.0 10.0%
2016 51,194.7 6,226,213.9 43,435.1 8.3%
2017 55,255.5 6,720,082.7 46,880.4 7.9%
2018 59,316.3 7,213,951.4 50,325.7 7.3%

CAGR: 2014–18 8.4%

SOURCE: MARKETLINE MARKETLINE

Figure 1: Pakistan food & grocery retail market value: $ million, 2014–18

SOURCE: MARKETLINE MARKETLINE

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4. Market Segmentation

4.1. Category segmentation

Food is the largest segment of the food & grocery retail market in Pakistan, accounting for 79.4% of the market's total
value.
The Drinks segment accounts for a further 10% of the market.

Table 2: Pakistan food & grocery retail market category segmentation: $ million, 2018

Category 2018 %
Food 47,100.5 79.4%
Drinks 5,907.9 10.0%
Tobacco 5,167.2 8.7%
Household Products 1,140.7 1.9%

Total 59,316.3 100%

SOURCE: MARKETLINE MARKETLINE

Figure 2: Pakistan food & grocery retail market category segmentation: % share, by value, 2018

SOURCE: MARKETLINE MARKETLINE

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4.2. Geography segmentation

Pakistan accounts for 1.3% of the Asia-Pacific food & grocery retail market value.
China accounts for a further 54.1% of the Asia-Pacific market.

Table 3: Pakistan food & grocery retail market geography segmentation: $ million, 2018

Geography 2018 %
China 2,481,576.8 54.1
India 507,108.4 11.1
Japan 482,979.0 10.5
Indonesia 206,177.9 4.5
Pakistan 59,316.3 1.3
Rest Of Asia-pacific 850,958.4 18.5

Total 4,588,116.8 100%

SOURCE: MARKETLINE MARKETLINE

Figure 3: Pakistan food & grocery retail market geography segmentation: % share, by value, 2018

SOURCE: MARKETLINE MARKETLINE

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4.3. Market distribution

Convenience Stores and Gas Stations form the leading distribution channel in the Pakistani food & grocery retail
market, accounting for a 53.8% share of the total market's value.
Hypermarkets, Supermarkets and Hard Discounters accounts for a further 12.1% of the market.

Table 4: Pakistan food & grocery retail market distribution: % share, by value, 2018

Channel % Share
Convenience Stores and Gas Stations 53.8%
Hypermarkets, Supermarkets and Hard Discounters 12.1%
Value, Discount and General Merchandise Retail 12.1%
Cash and Carry and Warehouse Clubs 0.3%
Other 21.7%

Total 100%

SOURCE: MARKETLINE MARKETLINE

Figure 4: Pakistan food & grocery retail market distribution: % share, by value, 2018

SOURCE: MARKETLINE MARKETLINE

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5. Market Outlook

5.1. Market value forecast

In 2023, the Pakistani food & grocery retail market is forecast to have a value of $79,654.4 million, an increase of
34.3% since 2018.
The compound annual growth rate of the market in the period 2018–23 is predicted to be 6.1%.

Table 5: Pakistan food & grocery retail market value forecast: $ million, 2018–23

Year $ million PKR million € million % Growth

2018 59,316.3 7,213,951.4 50,325.7 7.3%
2019 63,377.1 7,707,820.2 53,771.0 6.8%
2020 67,437.9 8,201,688.9 57,216.3 6.4%
2021 71,498.7 8,695,557.7 60,661.6 6.0%
2022 75,559.5 9,189,426.4 64,107.0 5.7%
2023 79,654.4 9,687,442.3 67,581.2 5.4%

CAGR: 2018–23 6.1%

SOURCE: MARKETLINE MARKETLINE

Figure 5: Pakistan food & grocery retail market value forecast: $ million, 2018–23

SOURCE: MARKETLINE MARKETLINE

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6. Five Forces Analysis

The food & grocery retail market will be analyzed taking supermarkets, hypermarkets and specialist retailers as
players. The key buyers will be taken as end-consumers, and food & grocery product manufacturers, farmers,
agricultural co-operatives as the key suppliers.

6.1. Summary
Figure 6: Forces driving competition in the food & grocery retail market in Pakistan, 2018

SOURCE: MARKETLINE MARKETLINE

Competition between players is fierce due to the limited level of product differentiation and consumers' negligible
switching costs, combined with a challenging and volatile market environment.
Since the vast majority of retail sales in the food & grocery market come from food sales, analysis will focus largely on
this segment of the market.
A lack of switching costs and the limitations in product differentiation lead to buyer mobility, which forces larger
retailers to maintain attractive pricing schemes. There is a rising pressure laid on players to adapt to fast changing
consumer needs and the market leaders should be able to position the desirable product at a price suitable for
customers and manufacturers. Whilst specialist, luxury or organic retailers do not feel the same price sensitivity, they
are not able to secure a large volume of customers, and may have no choice but to commit to long term supplier
contracts in order to secure a steady supply, quality, or specifically prepared products.
Potential new entrants may struggle to compete with the aggressive marketing and pricing policies of the existing
players. Nonetheless, relatively low entry and exit costs, the emergence of thriving health and ethical niches which are
sheltered from direct competition from current players, and strong historical growth, offer attractive prospects.
Food service (takeaways, vendors and restaurants) can be seen as a substitute to food retail products, however for
the vast majority of people it currently exists as an occasional accompaniment rather than a wholesale alternative.
Subsistence farming is a more direct substitute, sometimes replacing standard retail behavior outright, yet it is no
longer a common practice in many parts of the world.

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6.2. Buyer power

Figure 7: Drivers of buyer power in the food & grocery retail market in Pakistan, 2018

SOURCE: MARKETLINE MARKETLINE

In Pakistan, the food & grocery retail market is vastly different from that of other countries, particularly Western
markets. Obesity is a significant issue in many Western countries, with governments and institutions introducing
healthy eating initiatives in an attempt to tackle the issue. However, in Pakistan the health issue surrounding food
consumption has tended to be malnutrition.
According to the United Nations Children's Fund (UNICEF), almost half of all children in Pakistan are chronically
malnourished. As such, while many Western markets have seen a culture of convenience develop, with frozen and
tinned food becoming the products of choice, this is not the case for much of the population in Pakistan. The
emphasis here has been on growing your own produce and shopping in open-air markets.
Generally, the fact that the buyers in this market are end-consumers tends to significantly weaken buyer power.
However, the fact that much food retail is carried out at independent retail outlets, the loss of one customer is likely
to have a more significant impact than it would for a large company. As such, buyer power is higher in the food retail
market in Pakistan.
What’s more, rapid urbanization, rising incomes and growing awareness of health and safety, are leading to changes
in consumption patterns in the country.
Overall, buyer power is assessed as moderate.

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6.3. Supplier power

Figure 8: Drivers of supplier power in the food & grocery retail market in Pakistan, 2018

SOURCE: MARKETLINE MARKETLINE

Suppliers to this market are producers of base ingredients as well as manufacturers of food and grocery products.
The production of base ingredients stage is dominated by large players, although individual farmers with
smallholdings are present. Crop production is dependent on land. The more land there is, the more crops that can be
produced. This increases financial viability and consequently, production is dominated by global powerhouses. For
example, Adecoagro is one of the largest owners of productive farmland in South America, while the likes of Bunge
and Cargill have revenue exceeding $40bn. In the case of the latter, it exceeds $100bn. Small-scale farms are a feature
of this stage of the value chain. Individual or family-owned farms are commonplace and may in some cases be key
suppliers to supermarket chains or local, independent retailers. Such suppliers have much less power than large,
multinational agricultural companies.
Large retailers often maintain relationships with a wide range of suppliers, which ensures stability and helps to offset
the dangers of local sourcing problems or price fluctuations. Where possible, long term contractual obligations are
avoided and switching costs are kept to a minimum. With a firm hold on key distribution channels, the leading
retailers can dominate negotiations with certain suppliers. The leading players in this market often make up a larger
proportion of a supplier’s revenues and as such can negotiate lower prices with suppliers. Smaller retailers, such as
specialist, luxury or organic outlets may find such negotiations difficult. The limited number of suppliers in niche areas
and the centrality of product quality or preparation type restrict the available range of sourcing options. With
switching costs subsequently higher, the balance of power shifts somewhat from smaller retailers to specialist
suppliers.
Backward integration is possible, with some retailers growing their own produce and selling it on. This is particularly
true for small, independent retailers such as open-air market retailers. Backward integration is also possible by some
of the larger market players. For example, some retailers operate food production plants, which supply private-label
brands. In this case supplier power is reduced. On the other hand, forward integration by suppliers is possible if a
manufacturer/grower decides to establish retail operations.
Whilst the need to satisfy consumer demand for popular products bolsters manufacturers, many others face the
problem of a high degree of retailer mobility as they switch suppliers in accordance with pricing pressures. Supplier
power has been affected by the surge of many retailers offering private-label products, which may sideline certain

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suppliers. While at present private-label accounts for a small proportion of sales in Pakistan, there are signs that this is
on the increase as modern retail spreads across the country.
In respect of large suppliers, such as Unilever, Coca Cola, and Procter & Gamble, supplier power is increased. These
companies supply products with strong brands. Ultimately, end-consumer demand is critical in this market and the
leading market players will need to stock the brands that consumers want. However, for food retail a vast swathe of
products are commodities (such as fruit and vegetables) and homogenous, which diminishes supplier power.
Backwards integration by the largest retailers in this market is also evident in terms of integrating into storage and
warehouses in a drive to achieve improved efficiency. For example, Metro AG has its own distribution centers and
logistics in place in order to gain greater levels of efficiency across its supply chain.
Traders and their customers such as food companies or retailers that have backwards integrated have come under a
great deal of pressure in recent years to make sure that farmers get a fair price for what they produce and sell on.
Several movements and certification standards have been implemented, the most visible of which are Fairtrade and
Utz Certified. Companies that manufacture end products like packaged coffee, chocolate bars, and cereals exert
pressure on suppliers to conform to standards around issues like pay, child labor, environmental responsibility, and
freedom of expression. Some manufacturers will only buy from traders who can prove that their inputs come from
compliant sources as this then allows them to prominently display Fairtrade, Utz Certified etc. logos on their
packaging. This is crucial because of increased consumer awareness of such issues and the pull through from buyer
demands. Such issues have helped to improve supplier power to a certain extent in recent years.
Overall, supplier power is assessed as moderate.

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6.4. New entrants

Figure 9: Factors influencing the likelihood of new entrants in the food & grocery retail market in Pakistan, 2018

SOURCE: MARKETLINE MARKETLINE

The food & grocery retail market in Pakistan is fragmented. However, a rise in incomes, a growing participation of
females in the labor force, and a young population are driving consumerism in Pakistan, and with it are coming
changes in consumption patterns. Modern retail is expanding in the country, with hypermarkets and supermarkets set
to grow in the coming years.
Market entry to the traditional segment of the market would be relatively easy. In these circumstances, scale
economies are of little importance, with many selling products that they grow themselves. Furthermore, fixed costs
are unlikely to be high, particularly with regard to market stalls.
On the other hand, there has been a huge growth in modern retailing in Pakistan. As such, entry to the modern retail
segment of the market is problematic. Large-scale, established retailers, with operating businesses that benefit
significantly from economies of scale and the ability to employ aggressive pricing schemes, which cannot be matched
by smaller retailers, enjoy a significant advantage. Strong branding exercises and fast paced expansion deepens this
market control.
It is evident that modern trade in Pakistan is growing, which should theoretically mean that there is room for more
retail players to enter the market. Pakistan has seen steady economic growth in recent years, which is improving
prospects for the population. What’s more, the country is the sixth most populated nation globally and has a large
young population. It is largely the young in the country that are driving the growth of modern retail in the country.
Added to this is a growing middle class, which further aids growth. Such a situation offers an attractive prospect to
potential new entrants. Market growth has been good in recent years, which looks likely to continue in the coming
years.
Switching costs for end consumers are minimal in this market, with consumers often heavily influenced by price.
Overall, the likelihood of new entrants to this market is assessed as moderate at present.

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6.5. Threat of substitutes

Figure 10: Factors influencing the threat of substitutes in the food & grocery retail market in Pakistan, 2018

SOURCE: MARKETLINE MARKETLINE

There are few direct substitutes to food & grocery retail. The dominant alternative to food retail is food service.
Strong marketing campaigns in the case of fast food companies, and cultural traditions with respect to sit-down
restaurants, mean both types may represent a relative alternative for many consumers. However, for the vast
majority of people, foodservice accompanies food retail rather than replaces it.
A more direct substitute to food retail is found in subsistence agriculture, in which individuals or families farm food to
provide for their own personal needs. The general trend across the globe has been that with the emergence of market
capitalism, machinery that enables growing on a large scale, and increased population density mean subsistence
agriculture is no longer common. However, in Pakistan, subsistence farming is still common, with it being estimated
that around 60% of total farmlands consist of subsistence farmers. However, modern retail in the country is expanding
and will lessen this threat in the future. At present this particular threat is moderate.
With regards to tobacco, traditional nicotine replacement therapies such as gum, patches and lozenges are
substitutes, providing nicotine to alleviate cravings. Electronic cigarettes (e-cigarettes) are also becoming a threat on a
global scale and although they are not approved and are even prohibited in some countries, such products are widely
sold and are seeing success.
The main substitute to household products is posed by homemade alternatives. End-users may prefer these on
grounds of price, or because they can control what ingredients are used in their preparation. However, any
substitutes for household products need to be prepared, which can be a time-consuming process requiring specific
knowledge, and may not provide the desired results, thus reducing the threat of substitutes. Furthermore, as the
manufacturers are now aware of the increasing demand for environmentally friendly and allergy-free alternatives,
they are incorporating these qualities into their products, which, combined with their greater convenience, reduces
the threat of substitutes.
Given the prevalence of subsistence agriculture in the country, the threat of substitutes is currently assessed as
moderate; however, as modern retail expands in the country, this threat will lessen in the coming years.

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6.6. Degree of rivalry

Figure 11: Drivers of degree of rivalry in the food & grocery retail market in Pakistan, 2018

SOURCE: MARKETLINE MARKETLINE

In Pakistan, competition within the traditional retail sector is likely to be less fierce. Such retailers are likely to be small
neighborhood stores and market stalls selling specialized produce. However, the growing modern retail sector poses a
rivalry threat to the traditional retailers as consumers seek out more efficient and cheaper ways to shop.
In this country, the leading players are currently undergoing aggressive expansion plans. Such expansion by the
leading players is intensifying the rivalry level. What’s more, the leading players in this market are adopting a multi-
format approach, with supermarkets, hypermarkets, specialty stores, and convenience stores being part of the leading
retailers’ portfolios. Such a situation increases competition in all sectors of the market.
Consumers face negligible switching costs, meaning retailers fight increased pressure to secure consumers' custom
and loyalty by attempting to cut prices. Larger retailers are pushed into competitive pricing policies due to the limited
level of differentiation across the basic product range. Rivalry is also increased by the close similarity of players,
although they may attempt to differentiate through products and price.
Some companies operate in other industries as well offering electronics, homeware, apparel, pharmaceuticals and
more. This can help to absorb the temporary impact of declining food sales, or high supply price; however, food retail
lies at the heart of the business for many. This basic dependency gives rise to aggressive competition.
In this thriving market, rivalry is assessed as moderate overall.

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7. Competitive Landscape
Imtiaz Super Market and Utility Stores are the leaders in this market, which is seeing increasing activity in its online
channel.

7.1. Who were the leading players in 2018?

Imtiaz Super Market
Imtiaz Super Market has become the leading grocery retailer in Pakistan, having gone all-in on a discount business
model. Imtiaz has been adept at signing huge-value deals with suppliers to secure scale-economies and convert these
to savings for customers. In a market which has historically been driven by middle-class consumers responding
positively to the supermarket format, Imtiaz has expanded the appeal of that format.
Utility Stores
The state-owned retail giant Utility Stores have traditionally been the market leader in Pakistani grocery retail,
differentiated by its government-subsidized discount offering. However, the company has lost market share in recent
years to newer discounters like Imtiaz which operate more efficient stores and can undercut Utility Stores on price
whilst remaining profitable. This impact has been exacerbated by the reduction of the subsidies upon which its
business model depended.

7.2. Which are the strongest store formats in this market?

The dominance of small independent grocers in this market is still absolute, with supermarkets, hypermarkets and
convenience store chains making up a tiny proportion of outlets. However, increasing urbanization will build demand
for chains and big-name brands in the country’s largest cities, which are the key growth area for leading players. Due
to a very low baseline, growth in Pakistan’s economy at any rate will mean growth in its urban middle class.
In this environment of low energy but high long-term potential, the most likely beneficiaries will be discounters, as
already demonstrated by the success of Imtiaz Super Store. There is however a growing demand for convenience
stores, which are currently being dominated by oil companies like Shell and Pakistan State Oil, whose forecourt stores
located at filling stations are already catering to the increasing demand.

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8. Macroeconomic Indicators

8.1. Country data

Table 6: Pakistan size of population (million), 2014–18

Year Population (million) % Growth

2014 185.1 1.6%
2015 188.1 1.6%
2016 191.2 1.6%
2017 194.2 1.6%
2018 197.3 1.6%

SOURCE: MARKETLINE MARKETLINE

Table 7: Pakistan gdp (constant 2005 prices, $ billion), 2014–18

Year Constant 2005 Prices, $ billion % Growth

2014 153.1 4.1%

SOURCE: MARKETLINE MARKETLINE

Table 8: Pakistan gdp (current prices, $ billion), 2014–18

Year Current Prices, $ billion % Growth

2014 251.5 13.5%

SOURCE: MARKETLINE MARKETLINE

Table 9: Pakistan inflation, 2014–18

Year Inflation Rate (%)

2014 8.2%

SOURCE: MARKETLINE MARKETLINE

Table 10: Pakistan consumer price index (absolute), 2014–18

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 Food & Grocery Retail in Pakistan

Industry Profiles

Year Consumer Price Index (2005 = 100)

2014 251.9

SOURCE: MARKETLINE MARKETLINE

Table 11: Pakistan exchange rate, 2014–18

Year Exchange rate ($/PKR) Exchange rate (€/PKR)

2014 101.0320 133.1190
2015 102.7380 113.9886
2016 104.7320 115.9180
2017 104.8618 118.5720
2018 121.6184 143.3452

SOURCE: MARKETLINE MARKETLINE

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Appendix

Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of
each definition are carefully reviewed at the start of the research process to ensure they match the requirements of
both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data
to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which
can then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

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8.2. Industry associations

8.2.1. Global Food Marketing Institute

655 15th Street, NW, Washington DC, 20005, USA

Tel.: 1 202 452 8444
Fax: 1202 429 4519
www.fmi.org

8.2.2. CIES — The Food Business Forum

7, rue de Madrid 75008 Paris, FRA

Tel.: 33 1 4469 8484
Fax: 33 1 4469 9939
www.ciesnet.com

8.3. Related MarketLine research

8.3.1. Industry Profile

Food Retail in Western Europe

Food Retail in Europe
Food Retail in Asia-Pacific
Food Retail in the US

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