Boston, MA -- (SBWIRE) -- 01/27/2014 -- Political instability and persistent militant activity will continue to hamper foreign direct investment (FDI) in Pakistan's food and drink industries, detracting all but the largest companies that can withstand such high risks. Nevertheless, we continue to view Pakistan as an important potential longer-term market, provided other factors allow for the rise of consumerism and the expansion of modern retail formats.

Headline Industry Forecasts (local currency):

- 2013 per capita food consumption growth = +9.72% year-on-year (y-o-y); compound annual growth rate (CAGR) to 2017 = +9.90%.
- 2013 soft drinks sales growth = +10.60% y-o-y; CAGR to 2017 = +11.88%.
- 2013 alcoholic drinks sales growth = +12.15% y-o-y; CAGR to 2017 = +11.11%.
- 2013 mass grocery retail sales growth = +12.76% y-o-y; CAGR to 2017 = +13.68%.

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Key Company Trends

Pakistan's Onion Exporters Expecting Bumper Exports: In October 2013, The Lahore Times reported that Pakistani onion growers are expected to receive massive orders from Indian importers, given the acute shortages of the vegetable in India following the storms that devastated many crops there. Some 200,000 metric tonnes of onion are expected to be exported, both to India and to other destinations, including Bangladesh, the United Arab Emirates (UAE) and Malaysia, given that those countries usually rely on imports of onions from India.

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