Beverage industry
Group members
Iram Anwar L1F19BSBC0033
Nimra Zulfiqar L1F19BSBC0003
Isha Yasin L1F19BSBC0032
Table of contents
• Introduction
• Overview
• History
• Current status
• Scope
• Economic importance
• Factors affecting beverage industry
• Problems
• Solutions
Introduction
• Beverage is referred to any drink usually other than water which maybe
carbonated or soft drink.
• It is derived from a latin word “bibere” which means “to drink”.
• Baverage industries in Pakistan:
• Coca Cola
• Pepsi
• Gourmet
• Nestle
Overview on Pakistan Beverage Industry
• According to statistics, 170 units are presently running everywhere in the country.
• Pakistan soft drink industry has set to experience volume sales growth of 30.5% till 2010.
• A leading carbonated drink brand has its annual sales up to 175-180 million crates
• Beverages Industry. Pepsi and Coca Cola share most of the shares of the market i.e. more
than 90% of the entire local market of Pakistan.
• Out of the 100% market shares, 60% shares claimed by Pepsi. On the other hand, 30-35%
shares claimed by Coca Cola. The market shares of both the competitors are increasing
day by day.
History
• In 1953, first time Coca Cola Company was introduced in Pakistan.
• There are almost 10 beverages plants of a Coca Cola Company in Pakistan.
• Pakistan has 35 plants of carbonated drinks all over the country.
• There are more than 17000 people and 15000 jobs in the Coca Cola Company and
they also have thousands of wholesalers and distributors.
Cont…
• In 1979, the company introduced the franchise of Pepsi Cola International with
the name of Pepsi Beverage Company Limited of Pakistan.
• Within five years of getting a franchise, Pepsi Beverages Pakistan Ltd. has
managed to repeat the success of previous work in the beverage market by
becoming a market leader across the Sindh, most specifically in the region of
Karachi and later in Hyderabad.
STATUS, IMPORTANCE AND SCOPE OF
BEVERAGE INDUSTRY
Presented by: Esha Yasin (0032)
OVERVIEW OF THE SECTOR
STATUS OF BEVERAGE INDUSTRY
• According to the Statista Research Department statistics, from 10 years from 2009 to
2018, global beverage market volume witnessed a constant increase of more than 300
million liters in sales (from 696.1 to 994.1).
STATUS (Cont.)
• Non-alcoholic segment: USD 1.60 trillion by 2025 (according to Intrado
GlobalNewswire, 2020)
• Alcoholic segment: USD 647.7 billion in 2023 (according to Grand view research,
2017)
• In 2020, Businesswire published a research report that the beverage market will
see growth by approximately 6 billion USD during the forecast period 2020-2024,
processing over 3% of CAGR (Compound annual growth rate).
ECONOMIC IMPORTANCE
• Unique role in expanding economy.
• Employs seven million of people worldwide
• In developing countries, the production of coffee is the major support
of economy.
SCOPE
• The beverage industry , excluding alcoholic beverages , is worth about $16
billion. Tea and coffee are the most popular beverages , followed by soft drinks
(carbonated drinks and juices) health drinks , milk-based drinks, flavoured drinks,
and energy drinks.
• The alcohol beverages market is estimated to be worth about $35 billion, with
whiskey , beer and wine as the most popular drinks
FACTORS
Economic Growth
Population Growth
Globalisation/Regionalisation
Research & Developments
Technological Development
Food safety and regulation
- Consumer Demands and trends
Problems that beverages industry are
facing and their solution
Presented by: Iram Anwar
Problems of the beverage industry during the
current socio economic situation
• Primarily, this industry faces three issues.
1. security concern
security concern which is hampering business all over the
country.
In Karachi, for instance the sales volumes have considerably
decreased due to security issues. The last two years for the
Coca Cola Company have been quite testing.
If the situation does not improve, the foreseeable future
business will further go down in these areas.
2. Taxation structure
The taxation structure on the beverage industry has also been a cause for
great concern.
When compared with other countries in the region such as India. Sri
Lanka. Nepal and Bangladesh:
Pakistan has the highest taxation rates on beverages. This in a way is
discriminatory as other industries in Pakistan are not taxed at the same
ratio.
For the last eight years. the beverage industry has time and again raised
this issue with the government Reduction in taxes will give organizations
more room to invest.
Hence, with increased investment and resultant increased production
volumes the government stands to earn more in taxes.
3. Spurious and fake products
The most vital issue is the presence of spurious and
fake products in the market which make up almost 8
percent of the total market share.
These inferior quality drinks are causing serious health
concerns and also bring a loss of almost 650 million
rupees annually to the government in tax revenue
.The beverage industry has raised voice against these
concerns several times and expects the government to
bring a law into place and levy punishments on
spurious product producers.
