Friday, 18 March 2016

France, Indonesia and Pakistan Food and Drink Report Q2 2016; New Report Launched

France, Indonesia and Pakistan Food and Drink Report Q2 2016

While our consumer outlook for France has improved, the food and drink industry will experience only modest growth over the next five years due to high sector maturity and weak private consumption growth. Demand for convenience and rising health awareness will continue to have a longterm impact on the industry.

Latest Updates & Industry Developments
  • Our outlook for France has improved in recent quarters, which will translate into an improving outlook for the food and drink industry, although we caution that sales growth will remain modest. France has one of the most developed food and drink industries in the world, which limits room for growth.
  • Shifts in consumption patterns will greatly affect the drinks industry over the coming years. Although growing from a high base, mineral waters will continue to outperform as health consciousness remains key in purchasing decisions. In the alcoholic drinks category, consumers will increasingly favour quality over quantity, which will benefit spirits and premium beers.


Consumer spending will accelerate in Indonesia in 2016 and, combined with our favourable long-term outlook for the Indonesian consumer, will fuel sales of food and drink products. Nonetheless, obstacles remain at the industry level, including higher labour costs in the food retail sector and strict regulations on alcoholic drinks sales.

Latest Updates & Industry Developments
  • Although a significant acceleration of private consumption growth is unlikely over the coming quarters, we still expect consumer confidence to improve on the back of accommodative monetary policy and inflation levels heading lower. Over the medium-to-long term, we hold a favourable outlook for the Indonesian consumer, which will support headline sales of food and drink.
  • In particular, we see the strongest opportunities in targeting the emerging middle/upper-middle class in urban areas. This creates a strong potential to push innovative and premium foodstuff in the country.



We forecast growth for Pakistan's food and drink industry will be restrained by the country's ongoing security instability, which will hamper investor confidence. Industry growth will be driven by growing consumer spending owing to the country's low and stable inflation rates.

Latest Updates & Industry Developments
  • Food consumption will be driven by a large consumer base as well as high private consumption, at 83.5% as a percentage of GDP in 2016.
  • The country's water shortage will drive bottled water sales, with high growth rates in 2015 due to a severe water crisis.
  • Foreign investment in the MGR sector will remain limited due to ongoing security instability.

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