The Pakistan Edible Oil Conference (PEOC) held last month emphasized on the growth of palm oil consumption in Pakistan. From the import of 2.7 million tons in 2015, Pakistan edible oil imports rose to 3.05 million tons in 2017 which was marked as the highest volume of edible oil imports to date.
The rise in consumption due to higher domestic buying power was one of the main reasons identified as the reason for the increase in imports. And with rising disposable income has come a shift in consumer tastes from the traditional stay-at-home meals to dining out, be it fine dining or the popular neighbourhood’s burger joint.
Many mark the launch of McDonalds 20 years ago as the harbinger of the fast food industry. This industry grew by 15 percent in the first 10 years and has continued to grow consistently in recent years with many international chains setting up shop all over the country.
Before the fast food industry came into vogue, palm oil was mainly used in making banaspati which was the cooking medium of choice in Pakistan. However, over the last couple of decades palm oil usage has expanded to various industries with fast food and snacks becoming amongst the biggest consumers of palm olefin.
As a result, the category of palm based packed products from Malaysia has increased by 128 percent over the last 5 years. Imports from this category, which includes cooking oil, shortening, palm kernel oil and margarine, have become an integral part of the confectionary, fast food and dairy industry in Pakistan. Commercial frying and dairy industry has increased cooking oil imports from Malaysia by almost 300 percent.
With the rise of the upwardly mobile lower and middle classes, the consumption of confectionary, frozen food, ice cream and chocolate will increase and as the palm oil market grows so will its import bill.
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