The beverage Industry has emerged as one of the most productive sectors in Pakistan over the years. In this regard, coffee consumption has witnessed sudden surge thanks to growing popularity of cafe culture especially in posh areas of cities like Islamabad, Lahore and Karachi. In fact, out of home coffee consumption has immensely contributed to the increased in-house consumption as well.
In advanced countries and bigger markets like United States and Austria, the per capita coffee consumption exceeds 5 kilograms and 10 kilograms respectively. In Pakistan, the per capita consumption is less than 0.8 kilogram. However, people are drinking more coffee than ever before and there is plenty of room for newcomers to capitalise on this trend and start their new business with a bang. Therefore, there is nothing wrong in saying that rise of cafe culture incorporates huge potential for anyone who is willing to invest in this thriving industry.
Coffee sales in Pakistan are expected to grow at exponential rate over next few years. Analytics and market experts argue that such a growth is impossible without the contribution of our young generation. Coffee cafes have done a marvelous job of attracting teenagers and young adults to their outlets as they also offer them a chance to socialise with each other on regular basis. This will also prompt them to consume more tea at home, practically helping coffee industry to achieve its sale targets.
It is also a fact that coffee is fast becoming the beverage of choice for the people of Pakistan. Again, cafes such as Coffee Planet have played their pivotal role in making coffee a household beverage especially in the urban areas of the country. Another encouraging trend that can further help this very industry to prosper is the stiff competition between local as well as international brands that are ready to leverage the great opportunity the increasing popularity of the coffee offers.
Some experts are of the opinion that consumers will particularly benefit from arrival of new players because they will have more options to choose from. It should also be an exciting competition because Pakistani brands will have an edge over famous international brands as they have better understanding of local market and its unique needs. However, we should not underestimate international companies as they are well equipped with global best practices. Many people strongly believe that there is also a chance for all of them to coexist profitably.
After conquering big cities, Coffee Planet and other cafes must also concentrate on tier 2 and tier 3 cities. For example, major part of population of cities like Gujrat and Jhelum can afford to visit such cafes and enjoy their favorite coffee brands. They should also take heart from the fact that other famous and elite brands from different industries like Chen One, Junaid Jamshed, Borjan and Service are operating profitably in these cities.
Last but not the least, certain growth is imminent for all the coffee vendors, especially for high profile cafes in the likes of Coffee Planet. Coffee consumption in Pakistan will increase in coming years which will ensure sustainable growth. On-trade consumption will enjoy massive growth thanks to growing trend of socialising with friends, relatives and colleagues at cafes. All these factors combine to portray a very positive future for this already extremely lucrative industry.
Source: www.bahriacommunity.com
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