Ready-to-Drink (RTD) Coffee & Tea - Pakistan

The Ready-to-Drink (RTD) Coffee & Tea market in Pakistan has been experiencing significant growth in recent years.

Customer preferences: Customers in Pakistan have shown a growing preference for convenience and on-the-go products, which has contributed to the increased demand for RTD Coffee & Tea. The busy lifestyles of consumers, particularly in urban areas, have led to a shift towards ready-to-drink beverages that can be consumed quickly and easily. Additionally, the younger population in Pakistan, who are more open to trying new and innovative products, have embraced RTD Coffee & Tea as a trendy and fashionable beverage option.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Pakistan is the introduction of new flavors and varieties. Manufacturers are constantly innovating and launching new products to cater to the evolving tastes and preferences of consumers. This includes unique and exotic flavors, as well as healthier options such as low-sugar or organic variants. The introduction of these new flavors and varieties has helped to attract a wider consumer base and drive the growth of the market. Another trend in the market is the increasing availability and accessibility of RTD Coffee & Tea products. Manufacturers have expanded their distribution networks, making these beverages more easily accessible to consumers across the country. This includes not only traditional retail channels, but also online platforms and delivery services. The growing popularity of e-commerce in Pakistan has further contributed to the accessibility of RTD Coffee & Tea, allowing consumers to purchase their favorite beverages with just a few clicks.

Local special circumstances: Pakistan has a strong tea-drinking culture, with tea being the most commonly consumed hot beverage in the country. However, there has been a shift in recent years, with an increasing number of consumers opting for coffee as well. This shift in preference has created a favorable environment for the growth of the RTD Coffee & Tea market in Pakistan. Additionally, the growing café culture in urban areas has also played a role in popularizing RTD Coffee & Tea, as consumers look to recreate the café experience at home or on-the-go.

Underlying macroeconomic factors: The growing middle class in Pakistan, coupled with increasing disposable incomes, has contributed to the growth of the RTD Coffee & Tea market. As consumers have more purchasing power, they are willing to spend on premium and convenient products, including RTD beverages. Furthermore, the urbanization and modernization of the country have led to changing lifestyles and consumption patterns, with consumers seeking out products that fit their fast-paced lives. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Pakistan is experiencing growth due to customer preferences for convenience, the introduction of new flavors and varieties, increased availability and accessibility, the shift in preference from tea to coffee, and underlying macroeconomic factors such as the growing middle class and urbanization.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.