The revenue of the bread and bakery products market in Pakistan remained stable in 2010 compared to previous years and was realized as $26.1 billion. In 2017, the bread and bakery products market reached 29.6 billion dollars from 27.4 billion dollars. In 2018, it increased to 32.6 billion dollars with a much faster increase. It has been stable around these levels during the last two years. The growth rate of bread and bakery products slowed down and remained at a low level between the years 2018 and 2020. It is expected that the bread and bakery market will continue to grow in the coming period.
Pakistan is located in South Asia, surrounded by India in the east, the Indian Ocean in the south, Iran in the southwest, Afghanistan in the west and north. The continental climate is dominant in the interior and high parts of Pakistan, which has a semi-tropical climate in the south. The capital of Pakistan is Islamabad. Its prominent cities are Karachi, Faisalabad, Hyderabad, Gujranwala, Lahore, and Peshawar.
Pakistan ranks fifth among the world's most populous countries. According to official calculations, the population of Pakistan has reached 219 million according to the figures formed as a result of the Worldometer elaboration of the United Nations data. The workable labor force in Pakistan constitutes 28% of the population. 50% of the population works in agriculture, 18% in the manufacturing sector and 17% are engaged in trade. The unemployment rate is around 9% in urban areas and 6% in rural areas. The agriculture sector has a big share in the economic development of Pakistan. The agriculture sector constitutes approximately 21% of the gross domestic product in the country. The main agricultural products are; cotton, wheat, rice, sugar cane, and corn.
WHEAT: MOST IMPORTANT SOURCE OF THE COUNTRY
Wheat is perhaps one of the most important nutrients in Pakistan today and one of the primary energy sources for most of the population. Wheat plays a central role in the country's food safety and nutrition policies. Pakistan is the largest country in which flour is used as a staple food for almost the entire population. Pakistan wheat flour mills grind half of the 14 to 15 million tons of wheat harvested every year in Pakistan. Pakistan wheat flour milling industry is among the largest industries in Pakistan. Many of the flour mills are in the Punjab province, which accounts for 66.78 percent of the total flour milling industry in Pakistan. Although the capacity utilization rate is only 38 percent, new flour mills continue to be constructed and therefore profit margins are quite low. The milling practices across Pakistan depend on the type and quality of wheat flour demanded in the local market. In the province of Punjab, flour factories produce between 12 and 18 percent bran for chapatis made in tandoor and sheet metal. Extraction is higher in the urban area; For the flat bread or Nan, between 55 and 60 percent of wheat is converted into flour. The rest is divided between fine flour (Haida) demanded by industrialists and semolina (Suji) used in sugar products. The flour milling industry in Pakistan is far behind the desired level in the area stated below.
BREAD CONSUMPTION EXCEEDS 10 MILLION TONS
The revenue of the bread and bakery products market in Pakistan remained stable in 2010 compared to previous years and was realized as $26.1 billion. This figure reflects the total revenue of manufacturers and importers (excluding logistics costs, retail marketing costs and margins of retailers to be included in the final consumer price). The market value increased by an annual average of +1.5% from 2007 to 2010; the trend remained relatively stable. The current situation fluctuated between $25 and $28 billion until 2016. The most significant growth rate occurred between the years 2017 and 2018. In 2017, the bread and bakery products market reached 29.6 billion dollars from 27.4 billion dollars. In 2018, it increased to 32.6 billion dollars with a much faster increase. It has been stable around these levels during the last two years. The growth rate of bread and bakery products slowed down and remained at a low level between the years 2018 and 2020. It is expected that the bread and bakery market will continue to grow in the coming period.
Revenue of the bread and bakery products market in Pakistan has increased significantly in 2018 when compared to the previous year, reaching $32.6 billion. This figure reflects the total revenue of manufacturers and importers (excluding logistics costs, retail marketing costs and margins of retailers to be included in the final consumer price). Although small fluctuations were observed, the market value increased by an annual average of +2.2% from the year 2010 to 2018. The growth rate was the most significant in the year 2018, with an increase of 11% compared to the previous year. The bread and bakery products market reached 32.6 billion dollars that year.
On the basis of value, the estimated production of bread and bakery products at export prices in 2010 was realized as $18.5 billion. Total production value increased by an average of 7.9% annually from the year 2007 to 2010; the trend model remained relatively stable with only tiny fluctuations during the analyzed period. The growth rate was the fastest in 2008, with an increase of 17% compared to the previous year. Bread and bakery products peaked in 2018 and are expected to continue growing in the short term.
In Pakistan, the consumption of bread and bakery products remained at the level of 9.3 million tons until 2010. Bread and bakery consumption continued to show a relatively flat trend. The consumption of bread and bakery products, which remained below 10 million tons in terms of tonnage for a long time, started to increase rapidly since 2017. Bread and bakery consumption reached 10.2 million tons in that year. The consumption of bread and bakery products, which continued to rise in 2018, peaked at 10.6 million tons. The increase in bread and bakery consumption in the country is expected to reach even higher levels with rapid population growth.
MARKET DOMINATED BY DOMESTIC MANUFACTURERS
Fresh bread and various bakery products (8.6 million tons) constitute the product group with the largest consumption volume, which makes up 91% of the total volume. In addition, fresh bread and various bakery products are followed by gingerbread cookies, sweet biscuits and waffles (689K tons).
Between 2007 and 2018, the average annual growth rate in terms of bread volume of fresh bread and various bakeries and the bakery consumption was relatively low. As for the other consumed products, the following average annual growth rates have been recorded: gingerbread, sweet biscuits and waffles (-0.6% per year) and crispbread and rusks (+2.8% per year).
In terms of value, fresh bread and various bakeries ($24 billion) led the market alone. The second position in the ranking is occupied by gingerbread, sweet biscuits and waffles ($2 billion).
From 2007 to 2018, the annual average growth rate of fresh bread and various bakeries was +1.3%. As for other consumed products, the following average annual growth rates have been recorded: gingerbread, sweet biscuits and waffles (+ 0.4% per year) and crispbread and rusks (+ 11.5% per year).
With the increasing demand for bread and bakery in Pakistan, the market is expected to continue its increasing consumption trend over the next two decades. It is estimated that the market performance will increase to 12 million tons by the end of the market volume by expanding with the expected CAGR of +% since 2010.
In Pakistan, bread and bakery imports are negligibly small when compared to their production volumes. Therefore, the share of imports in the total market was practically not available in both volume and value. This has remained stable throughout the analyzed period, which means that domestic producers have fully met the bread and bakery demand. This concrete trade surplus reflects that the market continues to rise with domestic production and the industry is largely involved in the global market, which is likely to continue also in the medium term.
Pakistan owns a variety of bread, commonly called “Roti”. From light types of bread to heavy ghees and deep-fried types of bread, fluffy clay bakery bread, flat clay oven bread, bread filled with vegetables, ground beef or sweet mix, flatbread that can be consumed with all those delicious exotic Pakistani engravings, and pan pan bread which can be baked either thin-flat or fluffy-thick.
Pakistani cuisine is a refined blend of South Asia's various regional cooking traditions. Pakistani cuisine is known for its richness and taste. Pakistani cuisine varies greatly from region to region, reflecting the country's ethnic and cultural diversity. In an average Pakistani house, bread is served three times per meal, as no meal is complete without bread. In Pakistan, fresh bread is baked daily at every meal. The bread variety cooked in the normal baking oven is flatbread. Flatbread is baked in flat griddle pans. Pakistani flatbread is cooked in versatility according to taste and preference. It can be light and simple chapattis or buttered ghee parathas. Flatbread can be lightly spiced with a variety of spices and preferred ingredients. Or they can be filled with a mixture prepared with delicious vegetables, dessert, meat or other things. Pakistani flatbread is also made with various flours. Flatbread is baked quickly and easily in a regular flat griddle pan.
Also known as rotti, safati, shabaati, phulka and roshi, chapati is an unleavened pancake used as a staple of the people in Pakistan, India, Nepal, Bangladesh, Pakistan, Sri Lanka, East Africa, and the Caribbean.
Roti (also known as chapati) is a round pancake that is intrinsic to the Indian subcontinent, traditionally made from wholemeal flour and water. Roti is consumed in many countries around the world.
There is a lot of confusion on internet on whether Phulka/Roti and Chapati are same or not. The only difference I found is that chapati are traditionally made by patting the dough balls between the palms of the two hands and flattening it (chapat in hindi means flat). Then it is cooked on flat tawa (griddle). While the phulka are partially cooked on griddle and then cooked on direct heat which then puffs up into a ball due to accumulation of steam inside it. Once it puffs up, it is removed from heat and is ready to serve. Chapati are generally thicker and bigger while Phulka are about 6 inch in diameter and thin.
Taffetan, taftoon, taftun or nân-e taftun: Leavened flour bread from Iranian, Pakistani and Indian (especially Uttar Pradesh) cuisines. This bread is prepared with milk, yogurt, and eggs and is baked in a clay furnace.
It is a local food of Baluchistan province of Pakistan and Kermanshah & Baluchestan of Iran. Popular among nomadic Balochis, Kaak can be stored for a long time after cooking. They are wheat lumps that are wrapped around a rock and cooked around the fire.