Market Structure and Dynamics

Frozen foods

A growing population, coupled with an increase in urban lifestyles has been the primary driver behind the rising demand for frozen food products. Additionally a budding retail phenomenon is finding its way in the urban markets. This factor has been complemented with the rise of malls, super markets, hyper marts, drug marts e.g. Metro, Al Fatah and Hyperstar, instead of the traditional kiryana and general stores. Local organizations such as Dawn Foods, season foods, K&N’s, Sabroso & Sufi have made significant impact in the market with their frozen food products.

Value addition in major food crops

Pakistan is one of the largest producers of industrial crops such as rice and wheat. Such crops can be used in the production of a variety of different products such as cereals, macaroni, spaghetti, pasta etc. Good food processing techniques such as extrusion are being utilized in several developed countries, and are now finding its way to Pakistan as well. Currently, the extrusion technology is being utilized in Pakistan in the processing of food products like cereals, pasta, snacks etc.

Edible oils and fats

The total availability of edible oil from all sources in Pakistan is estimated at approximately 3 million tons. 23% of oil seeds are produced domestically while the remaining is mostly imported which provides a huge opportunity for an increase in domestic production. These oil seeds are used extensively in the vegetable ghee and cooking oil industry of Pakistan which is one of the largest manufacturing industries in Pakistan. There are approximately 160 small and medium sized vegetable ghee and cooking oil units spread all across Pakistan.

Beverages

The beverage processing industry’s main products include dehydrated products, fruit products, including fruit juices/drinks, canned fruits and carbonated beverages. The industry has been categorized into two sectors broadly: (1) Juices, squashes and syrups and (2) Aerated beverages. Both the sectors have recorded an impressive growth with major players such as Pepsi, Coca Cola, Nestle, Mitchells, Shezan, Maza etc. Their production units are mostly located in the Punjab specifically Lahore, Sargodha and Bahawalpur.

Fruits, dairy, vegetable and intermediate value adding products

Pakistan is the 4th largest milk producing country in the world which provides tremendous opportunities for value added products in the dairy sector. In the fruits and vegetable sectors, there are more than 25 processing plants. Most of the these are citrus based owing to its abundant acreage. Following citrus are mangoes which are abundant in Southern Punjab and Sindh. The major processing plants are located in Peshawar, Lahore and Karachi. Value added products include jams, jellies, marmalades, squashes, canned fruits etc.

Agri food processing (Primary process foods)

This sector includes all the agricultural food produce (primary). This sector alone accounts for 21% of Pakistan’s GDP and includes the primary processing of fruits, vegetables, flour, sugar, pulses and grains. More than 22 varieties of vegetables are produced in Pakistan and there are approximately 1,400 flour mills. The country is ranked 5th in the world cane acreage and 9th in sugar cane production. Pulses are the most important source of vegetable protein in Pakistan and are cultivated on 5% of the total cropped area.