Updated Oct 9, 2022 16:03

Roasted Coffee Substitutes Market in Pakistan

Market Overview
In , the Pakistani roasted coffee substitutes market decreased by -% to $ for the first time since 2015, thus ending a five-year rising trend. Overall, consumption, however, continues to indicate a resilient expansion. Roasted coffee substitutes consumption peaked at $ in , and then shrank in the following year.

In value terms, roasted coffee substitutes production reduced to $ in estimated in export price. In general, production, however, enjoyed resilient growth. The most prominent rate of growth was recorded in 2017 when the production volume increased by % against the previous year. Roasted coffee substitutes production peaked at $ in , and then reduced in the following year.


Consumption
In , roasted coffee substitutes consumption in Pakistan was estimated at tons, remaining relatively unchanged against the year before. In general, consumption posted modest growth. Over the period under review, consumption reached the peak volume at tons in ; however, from to , consumption remained at a lower figure.

The value of the roasted coffee substitutes market in Pakistan rose to $ in , surging by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption enjoyed a prominent increase. Over the period under review, the market hit record highs at $ in ; however, from to , consumption remained at a lower figure.


Market Forecast
Driven by increasing demand for roasted coffee substitutes in Pakistan, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of roasted coffee substitutes in Pakistan were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for roasted coffee substitutes. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (less than percentage point) over the period under review.


Trade Balance
Pakistan remains a net exporter of roasted coffee substitutes; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.