Oils and Fats in Pakistan1

O I L S A N D F A T S I N P A K I ST A N
OILS AND FATS IN PAKISTAN

Euromonitor International
October 2015
EuromonitorInternational
Passport
Passport
LIST OF CONTENTS AND TABLES

Headlines.........................................................................................................................................................................
Trends..............................................................................................................................................................................
Competitive Landscape...................................................................................................................................................
Prospects.........................................................................................................................................................................
Category Data..................................................................................................................................................................
Table 1 Sales of Oils and Fats by Category: Volume 2010-2015........................................................................3
Table 2 Sales of Oils and Fats by Category: Value 2010-2015........................................................................... 3
Table 3 Sales of Oils and Fats by Category: % Volume Growth 2010-2015.........................................................3
Table 4 Sales of Oils and Fats by Category: % Value Growth 2010-2015............................................................4
Table 5 NBO Company Shares of Oils and Fats: % Value 2011-2015.................................................................4
Table 6 LBN Brand Shares of Oils and Fats: % Value 2012-2015...................................................................... 5
Table 7 Distribution of Oils and Fats by Format: % Value 2010-2015..................................................................5
Table 8 Forecast Sales of Oils and Fats by Category: Volume 2015-2020...........................................................6
Table 9 Forecast Sales of Oils and Fats by Category: Value 2015-2020..............................................................6
Table 10 Forecast Sales of Oils and Fats by Category: % Volume Growth 2015-2020...........................................7
Table 11 Forecast Sales of Oils and Fats by Category: % Value Growth 2015-2020..............................................7
OILS AND FATS IN PAKISTAN

HEADLINES
Oils and fats current value sales increase by 13% to reach PKR140 billion in 2015
Increasing health consciousness drives sales of healthier oils and fats
Olive oil leads growth in 2015, with current value sales rising by 15%
Average current unit prices within oils and fats increase by 10% in 2015
Dalda Foods continues to lead sales in 2015, recording a value share of 24%
Oils and fats has a projected forecast period constant 2015 price value CAGR of 2%
TRENDS
Pakistani food is usually prepared with a generous quantity of oils and fats, which are high in fat
content and less healthy. However, due to rising awareness and increasing health consciousness,
there has been a trend towards increasing usage of healthier oils and fats. This is evident from the
fact that companies have started to market their products with claims of added healthy nutrients.
Oils and fats current value sales increased by 13% in 2015 to reach PKR140 billion. This growth rate
was slower than that observed during the review period, primarily due to increasing prices and
rising consumer health consciousness. Price increases resulted in consumers reducing
consumption or switching to low priced products. Increasing awareness of healthy products
encouraged consumers to cut down on consumption of oils and fats as they perceive it to be less
healthy.
Olive oil led growth in 2015, with current value sales rising by 15%, although sales within the area
remain limited. Most traditional dishes do not require olive oil as an ingredient. However, due to the
westernisation trend, more consumers are trying out Western dishes that often require olive oil as a
main ingredient. This awareness has also been fuelled by cooking shows on TV, which teach
viewers about new dishes and encourage them to try out new ingredients.
Average current unit prices within oils and fats increased by 9% in 2015, mainly due to inflation.
Rising raw material prices resulted in higher production costs. Moreover, the energy crisis put an
extra burden on manufacturers, with increased manufacturing costs leading to higher prices of oils
and fats.
Unpackaged oils and fats accounts for a major portion of oils and fats sales in the country.
Unpackaged sales are very high in rural areas as unpackaged products are much cheaper than
branded products. However, with increasing awareness and product penetration, many consumers
are shifting from these unpackaged products to packaged ones.
Oils and fats continue to be bought mainly from traditional retailers. Traditional grocery retailers like
independent small grocers are located in each neighbourhood and offer convenience to
consumers. However, due to increasing urbanisation, the share of modern retailers continues to
grow as the number of supermarkets and hypermarkets continues to increase.
COMPETITIVE LANDSCAPE
Dalda Foods continued to lead sales in 2015, recording a value share of 24%, followed by Wazir
Ali Industries (14%) and Habib Oil Mills (15%). These companies offer high quality
Passport
products and have wide distribution networks which allow them to fulfil the needs of consumers.
Moreover, high marketing investment ensures that they continue to reaffirm their presence in the
market.
There was no significant increase or decrease in company value shares in 2015.
Manufacturers continue to focus on strengthening their distribution networks and making their
products available in all outlets.
Domestic companies continue to completely dominate oils and fats due to the fact they have been
present in the market for a long time and consumers place great trust in their products. In addition,
such companies have strong product portfolios, continue to fulfil the needs of their customers, have
established strong distribution networks and continue to market their products heavily.
Dalda Foods recently launched Dalda Sunflower Oil with lo-absorb technology. The product claims to
have a low fat content which is ideal for those looking to consume healthy oil.
Dalda recently launched its Dalda Sunflower Oil with lo-absorb technology with an extensive
promotional campaign. The tagline used was Eat lighter, live brighter, with the campaign featuring
TV, radio and printed media advertising.
Premium brands rely on their strong brand image and high quality products and also offer innovative
packaging in order to provide convenience to consumers. Economy brands rely on their low price
points to drive sales. These brands have strong distribution networks in rural areas, which account
for the majority of their sales.
Direct marketing is a form of advertising/promotion that reaches its target audience without the use
of traditional channels, such as TV and news papers. The promotion is done by mail, fliers
promotional letters and street advertising.
Issues: 1) invasion of privacy 2) irritation 3) deception/fraud
Digital marketing 1) no clear definition of clear 2) decision makers did not grow up with Internet 3)
lack of websites catering to youth 4) lack of clear goals 4) having the proper content strategy (who
is target and is content appealing) 5) not enough bloggers
Mobile marketing: 1) literacy 2) planning 3) telecom companies hesitate about subscribers base
Telemarketing 1)ineffective/untrained call centre employees 2) proper systems are not in place 3)
lack of proper planning regarding who to call 4) cold calling is intrusive
Issues in selling:
5 emerging themes: connected knowledge economy, globalizing converging and consolidating
industries, fragmenting and frictionless markets, demanding customers, adaptive organization.
Factors affecting sales: economic factors, pricing, products attributes, competitors analysis,
advertising, seasonality.
Push: Hit competition with better trade offer, Higher retail penetration, Greater share of shelf
Pull: Build brand equity, Achieve greater share of mind
Trade offers: incentives given to the reatailers, to buy your product- Increase retail penetration,
Plus-unit t/o: When 1-2 free SKUs are given to the reatilers- only after tied units are sold. PackValue: earns as-he-sells right from the first pack.
SALES ISSUES IN PAK
Lack of trained professional, lack of motivation, practicing ethics honor, giving adequate
recognition, knowledgeable customers, unstable market, changing retail landscape, competitor
activity.
Nation branding:
Kotler-country of origin effect
Anholt: strategic visio of the country . it ensures that this vision is supported b acts of
cmmunicationn bw country and wrld
Nation brand index: people, governance, exports, tourism, culture and heritage, investment and
immigration. This index gives an overall sense of the strength of international opinion on a country
Objectives: to emphasize a products country of origin, to promote a country tourism, to prmote
people or culture, to manipulate ones own country image against enemies (political marketing), to
promote a region.
Branding Pakistan:
Pakistan condition weak after 911. Political and economic and social cndiion have become severe
bec of that war. Reason: misterst and skepticism in the eyes of public, there is flaud and
incomplete communication that revolves around the society, financing objectives are not clear.
Three parts of society need to work together to reinvent pakistans image, Govt (try to integrate
ethnicities like Sindhi into Pakistanis and givin a common identity, improve infra, edu, environment
and judiciary), media (needs to grow up, need to instill a sense of pride, train local media in
Passport
positive image creation) and civil society (should play the role of central figure and take initiatives
to help Pakistan recover from negative perception).
Lays:
Recently there has been an increase in religious awareness towards halal certification of products.
The halal certification process is a step by step procedure where an organization needs to apply
for halal certification of its products, information is evaluated, inspection are organized then the
certification authority approves the product.
Lays entered the market in 2006 and achieved very high growth rates. In 2009 however it faced a
serious issue. There was a a heavy controversy that lays contains pig fat e631. The news spread
like wildfire through texts blogs and TV. Consumers and retailers decided to boycott the product.
People also lost faith in Pepsi and the gravity of the situation was such that It could have forced
Pepsi Pakistan to shut down completely. Two major issues: 1) religious 2) political
Covered by media. Reality (vegetable ingredients). Two objectives 1) clarify that product in halal
through communication 2) retain customers. Steps: 1) got halal certification 2) celebrity
endorsement (Junaid jamshed) 3) crisis management team aim was to communicate 4) law firm to
legally handle things. Hence main issue was it did not address e631 initially, no halal certification
body in Pakistan and Pakistanis believe in rumors fast so create loyalty.
Traits for an emotional branding: People in the organization should be learned; distinctive style
&philososphy of the brand; a emotional hook, like pampers
PROSPECTS
Due to ongoing westernisation, consumers are expected to become more health conscious and will
look to cut down on consumption of high fat food and consume healthier diets. This will lead them
to look for products with nutritional benefits. Companies will look to exploit this by providing added
nutrients in their products.
Oils and fats projected forecast period constant 2015 price value CAGR of 2% is lower than the
review period CAGR. Growth is expected to slow down as prices continue to rise. High prices will
lead consumers to look for alternative cheaper products a development which will negatively
impact growth.
Average unit prices within oils and fats are expected to increase during the forecast period. The
ongoing energy crisis will impact production costs of manufacturers. Moreover, rising raw material
prices will also impact costs. Companies will be under added pressure and will try to maintain their
margins by increasing prices.
Traditional retailers will continue to be the dominant sales channel for oils and fats due to their
presence in all neighbourhoods in the country. However, due to urbanisation and the increasing
number of supermarkets and hypermarkets, the sales share of modern retailers in oils and fats will
increase.
Companies are expected to focus on the health aspects of their products by offering them with added
nutrients. In addition, companies will look to capitalise on rising consumer health consciousness
and continue to invest heavily in mass marketing in order to differentiate their products and gain a
competitive advantage. With new product launches, marketing will play a huge role in driving sales
within oils and fats.
New product launches such as Dalda Sunflower Oil are expected to perform well over the forecast
period, with the latter product expected to prove popular amongst consumers due to its low fat
content. Increasing health awareness among consumers has fuelled demand for such products
and more companies are expected to follow Daldas lead and launch their own versions of products
with healthy nutritional value.
Passport
Passport
CATEGORY DATA
Table 1
Sales of Oils and Fats by Category: Volume 2010-2015
'000 tonnes
2010
2011
2012
2013
2014
2015
1.0
1.0
1.0
1.0
1.0
1.0
66.3
67.6
68.8
69.9
70.9
71.8
Olive Oil
1.9
2.0
2.2
2.4
2.6
2.8
Spreadable Oils and Fats
1.6
1.6
1.7
1.7
1.8
1.9
89.1
97.7
102.0
105.4
110.6
115.1
180.4
186.8
192.5
Butter
Cooking Fats
Margarine
Vegetable and Seed Oil

- Corn Oil -
- Palm Oil
- Rapeseed Oil
- Soy Oil -
- Sunflower Oil
89.1
97.7
102.0
105.4
110.6
- Other Vegetable and
115.1
Seed Oil
Oils and Fats
Source:
159.8
170.0
175.6
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2
Sales of Oils and Fats by Category: Value 2010-2015
PKR billion
2010
2011
2012
2013
2014
2015
0.6
0.6
0.7
0.8
0.9
1.0
22.2
25.1
28.9
32.7
36.8
41.1
Olive Oil
1.2
1.5
1.8
2.1
2.4
2.8
0.8
0.9
1.0
1.2
1.3
1.4
44.9
53.7
63.3
72.4
82.4
93.6
Butter
Cooking Fats
Margarine

- Corn Oil -
- Palm Oil
- Rapeseed Oil
Passport
- Soy Oil -
- Sunflower Oil
44.9
53.7
63.3
72.4
82.4
93.6
Seed Oil
Oils and Fats
Source:
69.8
81.9
95.7
109.2
123.8
139.9
Table 3
Sales of Oils and Fats by Category: % Volume Growth 2010-2015
% volume growth
2014/15
2010-15 CAGR
2010/15 Total
-1.0
-1.1
-5.2
1.3
1.6
8.4
Olive Oil
7.3
8.3
49.2
5.0
3.7
19.6
4.1
5.2
29.1
3.1
3.8
20.4
Butter
Cooking Fats
Margarine
- Corn Oil -
- Palm Oil
- Rapeseed Oil
- Soy Oil -
- Sunflower Oil
- Other Vegetable and Seed Oil
4.1
Oils and Fats

Source:
5.2
29.1
Table 4
Sales of Oils and Fats by Category: % Value Growth 2010-2015
% current value growth

2014/15
2010-15 CAGR
2010/15 Total
Butter
10.0
11.6
72.8
Cooking Fats
11.5
13.1
84.9
Margarine
Passport
Olive Oil
14.8
17.5
124.1
11.0
11.1
69.4
13.6
15.8
108.5
13.0
14.9
100.5
- Corn Oil -
- Palm Oil
- Rapeseed Oil
- Soy Oil -
- Sunflower Oil
13.6
15.8
108.5
Oils and Fats

Source:
Table 5
NBO Company Shares of Oils and Fats: % Value 2011-2015
% retail value rsp

Company
2011
2012
2013
2014
2015
Dalda Foods (Pvt) Ltd
23.3
23.8
24.2
23.9
23.9
Wazir Ali Industries Ltd
17.4
18.5
19.6
19.9
20.4
Habib Oil Mills (Pvt) Ltd
14.8
14.5
14.7
14.9
15.3
Zahoor Industries (Pvt)
6.9
7.2
7.0
6.9
6.7
6.2
5.9
5.6
5.4
5.3
Wali Oil Mills (Pvt) Ltd
5.1
4.9
4.9
4.9
4.8
Agro Industries (Pvt) Ltd
2.9
2.7
2.7
2.7
2.7
Nestl SA
2.8
2.6
2.5
2.4
2.3
Unilever Pakistan Ltd
2.4
2.3
2.3
2.3
2.2
Ahmed Vegetable Oil &
1.3
1.2
1.1
1.0
0.9
Noon Pakistan Ltd
0.8
0.8
0.9
0.9
0.8
Arla Foods Amba
0.2
0.1
0.1
0.1
0.1
Rafhan Bestfoods Ltd
SOS Corp Alimentaria SA
15.9
15.4
14.6
14.8
14.6
100.0
100.0
100.0
100.0
100.0
Ltd
Agro Processors &
Atmospheric Gases (Pvt)
Ltd
Ghee Mills Ltd
Others
Total
Source:
Passport
Table 6
LBN Brand Shares of Oils and Fats: % Value 2012-2015
% retail value rsp

Brand
Company
2012
2013
2014
2015
Dalda
Dalda Foods (Pvt) Ltd
23.8
24.2
23.9
23.9
Tullo
15.0
15.7
16.0
16.3
Habib's
9.4
9.7
10.1
10.7
Pakwan
Zahoor Industries (Pvt)
7.2
7.0
6.9
6.7
4.5
4.4
4.4
4.4
Ltd
Soya Supreme
Agro Processors &

Ltd
Pride
3.6
3.8
4.0
4.1
Seasons
2.8
2.8
2.7
2.7
Eva
Agro Industries (Pvt) Ltd
2.7
2.7
2.7
2.7
Haleeb
2.9
2.8
2.7
2.6
MilkPak
Nestl SA
2.6
2.5
2.4
2.3
Sundrop
2.1
2.1
2.1
2.1
SoyBean Super
2.3
2.2
2.1
2.0
Bertolli
1.3
1.3
1.3
1.3
Blue Band
1.0
1.0
1.0
0.9
Malta
Agro Processors &
1.4
1.1
1.0
0.9
1.2
1.1
1.0
0.9

Ltd
Shahbaz Banaspati
Ahmed Vegetable Oil &

Ghee Mills Ltd
NurPur
Noon Pakistan Ltd
0.8
0.9
0.9
0.8
Lurpak
Arla Foods Amba
0.1
0.1
0.1
0.1
Rafhan
Rafhan Bestfoods Ltd
Sasso
SOS Corp Alimentaria SA
15.4
14.6
14.8
14.6
100.0
100.0
100.0
100.0
Others
Total
Source:
Table 7
Passport
Distribution of Oils and Fats by Format: % Value 2010-2015
% retail value rsp

2010
2011
2012
2013
2014
2015
100.0
100.0
100.0
100.0
100.0
100.0
- Grocery Retailers
92.0
91.5
91.4
89.0
88.8
88.7
-- Modern Grocery
5.6
5.6
5.6
5.5
5.5
5.5
--- Convenience Stores
--- Discounters
--- Forecourt Retailers
--- Hypermarkets
0.0
0.0
0.0
0.5
0.5
0.5
--- Supermarkets
5.6
5.6
5.6
5.0
5.0
5.0
86.4
85.9
85.7
83.5
83.3
83.2
46.0
46.0
45.8
45.3
45.0
45.0
40.4
39.9
39.9
38.3
38.3
38.2
Store-Based Retailing
Retailers
-- Traditional Grocery
Retailers
--- Food/drink/tobacco
specialists
--- Independent Small
Grocers
--- Other Grocery
Retailers
- Non-Grocery Specialists
8.0
8.5
-- Health and Beauty
8.6
11.0
11.3
11.3
4.0
4.2
4.3
4.3
4.3
4.2
4.0
4.3
4.4
6.7
7.0
7.1
0.0
0.0
100.0
100.0
100.0
100.0
Specialist Retailers
-- Other Foods NonGrocery Specialists
- Mixed Retailers
Non-Store Retailing
- Vending -
- Homeshopping
- Internet Retailing -
0.0
0.0
- Direct Selling
Total
Source:
100.0
100.0
Table 8
Passport
Forecast Sales of Oils and Fats by Category: Volume 2015-2020
'000 tonnes
2015
2016
2017
2018
2019
2020
1.0
1.0
0.9
0.9
0.9
0.9
71.8
72.3
72.6
73.0
73.6
74.2
Olive Oil
2.8
3.0
3.2
3.4
3.6
3.8
1.9
2.0
2.1
2.1
2.2
2.3
115.1
119.1
122.8
126.6
130.6
134.9
206.1
210.9
216.2
Butter
Cooking Fats
Margarine

- Corn Oil -
- Palm Oil
- Rapeseed Oil
- Soy Oil -
- Sunflower Oil
115.1
119.1
122.8
126.6
130.6
134.9
Seed Oil
Oils and Fats
Source:
192.5
197.3
201.6
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 9
Forecast Sales of Oils and Fats by Category: Value 2015-2020
PKR billion
2015
2016
2017
2018
2019
2020
1.0
1.0
1.0
1.1
1.1
1.1
41.1
42.2
43.1
44.0
44.7
45.3
Olive Oil
2.8
3.0
3.2
3.4
3.5
3.7
1.4
1.5
1.6
1.6
1.7
1.7
93.6
96.6
99.5
101.8
103.6
104.9
151.8
154.6
156.7
Butter
Cooking Fats
Margarine

- Corn Oil - Palm Oil
- Rapeseed Oil
- Soy Oil - Sunflower Oil
Seed Oil
Oils and Fats
93.6
96.6
139.9
99.5
101.8
144.2
103.6
148.4
104.9
11
Source:
Passport
Euromonitor International from trade associations, trade press, company research, trade interviews, trade
sources
Table 10
Forecast Sales of Oils and Fats by Category: % Volume Growth 2015-2020
% volume growth
2015/16
2015-20 CAGR
2015/20 Total
-1.2
-0.7
-3.5
0.7
0.7
3.4
Olive Oil
7.3
6.6
37.7
4.7
4.6
25.0
3.5
3.2
17.2
2.5
2.3
12.3
Butter
Cooking Fats
Margarine
- Corn Oil -
- Palm Oil
- Rapeseed Oil
- Soy Oil -
- Sunflower Oil
3.5
Oils and Fats

Source:
3.2
17.2
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 11
Forecast Sales of Oils and Fats by Category: % Value Growth 2015-2020
% constant value growth

2015/2016
2015-20 CAGR
2015/20 TOTAL
Butter
1.9
2.2
11.7
Cooking Fats
2.7
2.0
10.4
Olive Oil
7.0
5.6
31.1
4.3
4.0
21.9
3.2
2.3
12.0
Margarine
- Corn Oil -
- Palm Oil
- Rapeseed Oil
- Soy Oil -
- Sunflower Oil

Oils and Fats
Source:
Passport
3.2
2.3
12.0
3.1
2.3
Euromonitor International from trade associations, trade press, company research, trade interviews, trade
sources
12.0
13

Oils and Fats in Pakistan1

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Oils and Fats in Pakistan1

Загружено:

Авторское право:

Доступные форматы

O I L S A N D F A T S I N P A K I ST A N

OILS AND FATS IN PAKISTAN

LIST OF CONTENTS AND TABLES

OILS AND FATS IN PAKISTAN

Sales of Oils and Fats by Category: Volume 2010-2015

Spreadable Oils and Fats

Vegetable and Seed Oil

- Other Vegetable and

store checks, trade interviews, trade sources

Sales of Oils and Fats by Category: Value 2010-2015

Spreadable Oils and Fats

Vegetable and Seed Oil

- Other Vegetable and

store checks, trade interviews, trade sources

Sales of Oils and Fats by Category: % Volume Growth 2010-2015

Spreadable Oils and Fats

Vegetable and Seed Oil

- Other Vegetable and Seed Oil

Oils and Fats

store checks, trade interviews, trade sources

Sales of Oils and Fats by Category: % Value Growth 2010-2015

% current value growth

Spreadable Oils and Fats

Vegetable and Seed Oil

- Other Vegetable and Seed Oil

Oils and Fats

store checks, trade interviews, trade sources

NBO Company Shares of Oils and Fats: % Value 2011-2015

% retail value rsp

Dalda Foods (Pvt) Ltd

Wazir Ali Industries Ltd

Habib Oil Mills (Pvt) Ltd

Zahoor Industries (Pvt)

Wali Oil Mills (Pvt) Ltd

Agro Industries (Pvt) Ltd

Unilever Pakistan Ltd

Ahmed Vegetable Oil &

Noon Pakistan Ltd

Arla Foods Amba

Rafhan Bestfoods Ltd

SOS Corp Alimentaria SA

Ghee Mills Ltd

store checks, trade interviews, trade sources

LBN Brand Shares of Oils and Fats: % Value 2012-2015

% retail value rsp

Dalda Foods (Pvt) Ltd

Wazir Ali Industries Ltd

Habib Oil Mills (Pvt) Ltd

Zahoor Industries (Pvt)

Agro Processors &

Wazir Ali Industries Ltd

Wali Oil Mills (Pvt) Ltd

Agro Industries (Pvt) Ltd

Habib Oil Mills (Pvt) Ltd

Wali Oil Mills (Pvt) Ltd

Habib Oil Mills (Pvt) Ltd

Unilever Pakistan Ltd

Unilever Pakistan Ltd

Agro Processors &

Atmospheric Gases (Pvt)

Ahmed Vegetable Oil &

Noon Pakistan Ltd

Arla Foods Amba

Rafhan Bestfoods Ltd