Nestlé Invests In Future Growth
Nestlé Pakistan has completed a new factory in Sheikupura, the latest in a succession of expansion projects in the country that have totalled more than US$148mn over the last two years. The new facility has been built to meet increasing consumer demand for Nestlé's dairy, juice and bottled water products, and the company's investment signals continuing confidence in Pakistan as an important growth market. Despite the documented risk associated with investing in Pakistan , Nestlé's continuing success in the market reflects BMI 's optimistic near-term consumer outlook for the country and the opportunities present in the food and drink sector over a longer-term time horizon .
With a population of nearly 180mn, Pakistan's potential consumer base proves particularly attractive for multinational fast-moving consumer goods firms such as Nestlé that follow low-cost and high-volume models. Declining borrowing costs, disinflationary pressure and general economic development continue to drive demand for packaged food products , such as Nestlé's Maggi noodles, which offer both convenience and affordability. Sales of t he company's b ottled water and NESFruita premium juice drinks are also likely to see impressive growth, prompted by growing demand for premium beverage options in a largely non-alcohol drinking population.
The d airy segment is positioned to do particularly well following this recent increase in production capacity , paired with the company's impressive network of 200,000 local dairy farmers. The fact that Nestlé is increasing supply of products such as its UHT fortified MilkPak alongside powdered products such as Nestlé Everyday is in line with growing health consciousness among consumers and increasing demand for nutritional value. Nestlé is well positioned to meet this growth in demand given i ts impressive portfolio of dairy products. Refl ecting a wider strategy to expand dairy production in emerging markets such as China, India and recently Sri Lanka, Nestlé looks confident about the promising growth potential of the dairy segmen t .
|Dairy Set For Strong Growth|
|Pakistan - Processed Liquid Milk Sales (tonnes)|