1.

The processed food and beverages industry is considered to be one of the

largest industrial sectors in Pakistan. It accounts for approx 27% of total
production and 16% of total employment in the manufacturing sector. The
total value of production is well over Rs. 46 billion.
2. Due to an increase in consumerism from burgeoning middle class, food and
beverages industry in Pakistan have a great market potential. It has always
been a safe haven for investors. However, it must be noted that due to
prevailing country situation in terms of increased terrorism and extremism,
FDI in this sector has reduced substantially.
3. The beverage industry in Pakistan has a lot of potential and room for growth
and development. It is one of the few sectors that have shown measurable
growth and the incremental augmentation in consumption. Moreover it is
more likely to continue in future as well and will certainly benefit in the long
run.
4. There exist a lot of opportunities for new entrants and local players to exploit
the untapped facets of the market, for instance the energy drink market or
juices, by strategically positioning their products and by resorting to
innovative and effective marketing strategies. For example, coffee business
remains largely unexploited as well, which is dominated by one brand only.
Therefore, new entrants can penetrate any of these sub-segments of food
and beverage industry which have acute nascent demand or few competitors.
5. Pakistan exports considerable quantities of fruit juices, mainly to
Afghanistan, India and Middle East countries.
6. With fierce price competition in the international market, Pakistani exporters
find it hard to compete due to constant rise in prices of sugar and packaging
material. Moreover, the rise in fuel cost (because of switching over from gas)
has also added to the woes of the exporters in this industry. However, some
major units have managed to export their products in foreign market at
competitive prices.
7. Pakistan is one of the few countries of the world, where a variety of fruits are
grown in cool temperate climate such as apples, pears, plums, cherries, and
those grown in the warm temperate climate are apricots, figs, grapes,
pomegranates, melons and the rest in the tropical and sub-tropical climate
like bananas, mangoes, dates, guava and citrus fruits, which are available
throughout the year. While the fruits grown in temperate climate are
produced in Baluchistan and NWFP, tropical and subtropical fruits are mostly
grown in Punjab and Sindh. Hence for the fruit juice industry the raw
material is available in ample supply throughout the year.