In 2024, Pakistan ranked 20th out of 22 Asia Pacific countries in average gross income, with a productivity level significantly below the regional average. Per capita disposable income increased by 4.6% in real terms, driven by a lower unemployment rate and a 2.6% rise in the minimum wage. The government’s Uraan Pakistan plan aims to boost GDP growth and reduce income inequality, although challenges such as gender disparities and the concentration of wealth persist.

Baby food is expected to register both healthy current value and volume growth in Pakistan in 2025. The segment is supported by a high birth rate, with milk formula and in particular, growing-up milk formula accounting for most value sales. With increasing number of mothers working outside the home, this is a key factor in driving growth in baby food, as parents look for convenience.

Cheese is expected to register positive current value and volume growth in 2025 in Pakistan. Spreadable cheese continues to account for most value and volume sales in 2025, but processed cheese is expected to register higher volume growth. The demand for processed cheese in Pakistan is experiencing strong growth, driven by the increasing consumption of fast food and the rising popularity of Western-style meals at home. As urban lifestyles become more fast-paced, consumers are seeking quick and c

Other dairy is expected to register healthy current value and volume growth in Pakistan in 2025. Coffee whiteners or what are generally tea whiteners in Pakistan, continue to account for most value sales and are available in both liquid and powder forms. Tea whiteners are popular, due to their affordability, long shelf life, and convenience. However, in 2025, condensed milk gains the most value share, though from a very low base. Its use in recipes like kheer (a rice pudding made with milk), hal

Yoghurt and sour products is expected to register healthy current value and volume growth in Pakistan in 2025. Plain yoghurt continues to account for the majority of value and volume sales, though flavoured yoghurt is expected to register the highest growth in 2025. Flavours such as mango, strawberry and mixed berries are increasingly popular, especially among teenagers. There is also increasing offerings of dessert-type yoghurts, with flavours such as chocolate, vanilla custard, and caramel.

Consumers, especially in urban areas, are increasingly moving away from loose milk toward packaged options like UHT and pasteurised milk. Consumers are prioritising hygiene, consistency, and trust in their food purchases. Brands like Olper’s, NurPur, Prema, and Dayfresh have capitalised on this shift by offering UHT and pasteurised milk options that offer longer shelf life, standardised quality, and certified safety. These products are also more convenient to store and transport, which fits well

Butter and spreads is expected to register modest current value and volume growth in 2025 in Pakistan. Cooking fats continues to account for most value and volume sales, with sales being minimal for margarine and spreads and butter. That being said, butter is expected to register the highest value growth in 2025 and margarine is expected to register the highest volume growth. Overall, packaging and pricing innovation have become a vital strategy. To make offerings more affordable, companies have

The outlook is expected to be positive for dairy products and alternatives in Pakistan in 2025, with both healthy current value and volume growth in 2025. The economy is improving, with inflation easing, which is seeing consumer purchasing power becoming more stable. As such, there is expected to be increasing demand across the board, supported by continuing population growth.

Chocolate confectionery remains a relatively small category within Pakistan’s overall snacks market. However, the category is poised for strong performance in 2025, with healthy growth anticipated in both volume and current value terms. This positive outlook is being driven by a combination of factors, including ongoing population expansion and signs of economic stabilisation, which is expected to improve consumer confidence.

Despite a high level of saturation, sugar confectionery in Pakistan is expected to maintain robust growth in retail volume terms in 2025, extending the positive trend observed over the past few years. Products such as boiled sweets, toffees, lollipops and gummies are widely available across kiryana stores (small local grocers), supermarkets, and online platforms, ensuring high accessibility. However, with most retailers offering similar products, growth increasingly depends on promotional activi

Retail sales of gum in Pakistan are expected to see healthy growth in both volume and current value terms in 2025. The country’s population grew by nearly 2% in 2024, expanding the overall consumer base. At the same time, urban centres like Karachi, Lahore, and Islamabad have experienced a notable influx of migrants from rural areas, leading to greater population concentration. This has significantly boosted gum sales by increasing access to modern trade channels such as supermarkets, convenienc

The savoury snacks market in Pakistan is poised for healthy growth in both volume and current value terms in 2025, distinguishing itself as the most dynamic category within the broader snacks industry. This growth is being driven by a combination of factors, including a stabilising economy, rising disposable incomes, population expansion, and a growing snacking culture across the country.

The market for sweet biscuits, snack bars, and fruit snacks in Pakistan is set to sustain healthy growth in both volume and current value terms in 2025. The category has become increasingly competitive, with rising marketing expenditure. Major players such as EBM, Continental Biscuits, and Mondelez are investing heavily in TV advertising to strengthen brand recall and boost sales. At the same time, the growing influence of social media and e-commerce platforms has driven up spending on targeted

The snacks industry in Pakistan is poised for healthy growth in both volume and current value terms in 2025, supported by continued urbanisation and rising disposable incomes, which are driving demand for convenient, on-the-go snack options. With a growing middle class, consumers are becoming more willing to spend money on indulgent and premium products, particularly in categories such as chocolate confectionery, ice cream, and savoury snacks. Additionally, Pakistan’s young and growing populatio

Ice cream in Pakistan is expected to experience healthy growth in both volume and current value terms in 2025. This will be driven by greater economic stability and rising disposable incomes, which are increasing demand for affordable yet high-quality products. Additionally, ongoing population growth will further support higher volume sales. Local brands such as Hico, Yummy, and Igloo are well-positioned to benefit from increased consumer spending and capture a larger share, driven by improvemen

Alcoholic drinks in Pakistan registered further strong total volume growth in 2024. Meanwhile, total current value sales continued to see fast double-digit growth in a highly inflationary climate. Alcoholic drinks performed strongly in both the off- and on-trade channels. Pakistan is an Islamic country, and there are many religious and cultural restrictions on alcohol sales and consumption, with beer and spirits the only significant categories. The performances of beer and spirits are driven by

Spirits in Pakistan posted strong total volume sales growth in 2024, marginally faster than in 2023. The largest category, whiskies, posted the highest total volume growth in terms of core categories. Whiskies benefited as consumers appeared more inclined towards premium alcoholic drinks. This trend is well observed in Pakistan, where the growing taste for whisky mirrors the larger global picture in terms of spirits consumption. Whiskies are often consumed as sophisticated aspirational products

Beer in Pakistan witnessed strong total volume sales growth in 2024, albeit from a relatively low base. Non alcoholic beer registered the highest increase, albeit from a much lower base than standard lager. Nonetheless, with a strong health trend among young adults, a shift in the drinking patterns has been noticed. Instead of standard options, these consumers are seeking non alcoholic alternatives.

The tobacco industry in Pakistan continued to be a significant contributor to the national economy in 2024, though it faces a complex landscape shaped by evolving regulations, changing consumer behaviour, and international pressures. The sector is a major employer, generates substantial revenue from taxes, and is crucial for agricultural livelihoods, especially for tobacco farmers in various regions. However, growing concerns over public health, environmental sustainability, and global anti-smok

In 2024, cigarette consumption in Pakistan continued its downward trajectory, driven by the growing availability of cheap imported products and alternative tobacco options. Although the rate of decline was lower than in 2023, the persistent decrease remained a significant concern for cigarette manufacturers. The government implemented higher taxes on tobacco products, which substantially raised the retail price of cigarettes. This measure was intended both to discourage smoking and to generate a

In Pakistan, the cigar market caters to a niche segment primarily composed of affluent consumers residing in urban centres such as Karachi, Lahore, and Islamabad. These individuals often view cigars as symbols of status and luxury, aligning with their lifestyle and social aspirations. The availability of cigars is predominantly concentrated in high-end retail outlets and specialty tobacconists within these metropolitan areas, reflecting the targeted demographic's preferences. This urban-centric

Philip Morris International (PMI) and British American Tobacco (BAT) have strategically expanded their portfolios in Pakistan to include smokeless tobacco, e-vapour products, and heated tobacco, responding to evolving consumer preferences and global shifts toward alternative nicotine delivery systems. BAT has focused on the smokeless tobacco category through its tobacco free oral nicotine pouch, Velo. The product has experienced healthy volume growth, particularly among young adults attracted to

The strong performance of beauty and personal care in Pakistan in 2024 in value terms reflected inflationary pressures, premiumisation in select categories, and a recovery in discretionary spending. While volume growth remained moderate in the year, consumers increasingly prioritised value-for-money, leading to greater demand for large packaging sizes, multi-benefit products, and herbal/halal-positioned items.

In 2024, a notable trend in Pakistan’s men's grooming category was the continued rise of beard grooming products and expanded male personal care routines. Beard oils, beard balms, grooming kits, and dedicated beard washes gained strong traction among urban and semi-urban consumers, reflecting evolving perceptions of male grooming as an essential part of self-care rather than a luxury. The increased visibility of local and international influencers, actors, and athletes promoting well-groomed bea