PAKISTAN – Tea processors still dominating the hot drinks industry

MILAN – According to a recent report, soft drink value sales in Pakistan are forecast to increase by 45.3%, between 2009 and 2013, to US$263 million as a slight rise in disposable incomes allow consumers to allocate a greater proportion of their incomes to consumption.

Pakistanis are among the highest per capita tea consumers in the world and unsurprisingly the country boasts a stellar tea industry, headed by domestic processor Tapal Tea. The lethargy of the coffee sector means tea processors are likely to completely dominate the hot drinks industry for some time yet (the report estimates that coffee sales in 2008 were a mere US$4.2million).

Tea value sales are expected to rise by 45.7% through to 2013 and reach US$797 million. Intriguingly, says the report, the size of the tea industry comfortably outstrips that of soft drinks, which is a rarity in most emerging markets. Processors like Tapal will be hoping the government makes good on its efforts to curb illegal tea imports into the country.