Candies, biscuits, jellies, snacks, kids love them. Manufacturers seem to love them too. The confectionary and snack industry in Pakistan has grown massively over the years not only in terms of new players but also products.
Investors too seem to have a sweet tooth. As per the recent FDI inflows, the countrys food sector was one of the main sectors beside oil and gas and power sector for sizeable contributions to the total inflows.
An evidence of this lies in the recent media reports about Modelez International declaring Pakistan as one of the top five growth markets of the world. The name might not ring any bells, but its products like Cadbury, Tang and Cadbury Éclairs are iconic brands. The firm is a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages.
Not only that, the countrys consumers may be besieged by flailing economy, security issues and rising inflation, but their appetite fast moving consumer goods has remained relentless. This does not make it hard to decipher that a 180 million population bulge and an emerging middle class has been the epicenter of food and consumer goods companies.
Also, favourable demographics like young population and rising rural propensity have been contributing factors towards driving demand in the food and fast moving consumer goods sector.
However, the real test of the thriving sector begins now. It would be a treat to see how the food and consumer sector combats the concurrent challenges. As the government has rationalized prices, increased taxes and reduced subsidies, rising cost of livings, especially in the rural, and overall slowdown in consumer demand have been the key reasons for restricted earnings growth in most of the consumer good companies in their latest financial performance.
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