Degree
Master of Business Administration
Faculty / School
School of Business Studies (SBS)
Advisor
Mr. Qashif Effendi, Adjunct Faculty, Department of Marketing
Project Coordinator (External)
Ms. Syeda Fizza Ali, Senior Assistant Brand Manager, Lipton Teas & Infusions
Client
Lipton Teas & Infusions
Committee Member 1
Dr. Amber Gul Rashid, Project Reviewer,Department of Marketing
Project Type
MBA Research Project
Keywords
Powdered Iced Tea, Lipton, Pakistan Beverage Market, Go-To-Market, FMCG, Category Opportunity
Abstract / Summary
Lipton Pakistan Limited, part of Lipton Teas and Infusions, an independent tea company owned by CVC Capital Partners since its 2022 divestiture from Unilever, competes in the tea sector in Pakistan with its Yellow Label and green tea products. Lipton Pakistan’s domestic portfolio completely lacks a high-margin, low-infrastructure, scalable, powdered iced tea product, despite the success of this product in India, Bangladesh, and the Philippines and the absence of infrastructure in Pakistan. This report offers an extensive research framework to investigate the category opportunity for Lipton Powdered Iced Tea in Pakistan, based on secondary research and primary research in the form of a series of retail audits, focus groups, and a consumer survey. Pakistan is among the most appealing markets for powdered iced tea. There are favorable demand determinants, such as a population of over 240 million, 64% of which are less than 30 years of age, a median age of 19, major urban areas with extreme summer heat, as well as a shift in consumption toward more health-conscious options and away from carbonated soft drinks. By 2025, estimates of the FMCG sector in Pakistan forecast a value of $16 billion, growing at annual rates of 9%, with the drinks segment expanding at a CAGR of 10.1%. The powdered iced tea format is structurally more suited for countries like Pakistan. In India, a 400g Nestea powdered iced tea pack, selling for Rs. 165 (approximately), makes 30 glasses, which makes the cost per glass lesser than any bottled tea. In Bangladesh, 500g Nestea is produced locally, and in the Philippines, Nestlé Professional has dedicated B2B SKUs (Restaurant Blend and House Blend) exclusively supplied to its food service operators. The primary research we conducted to support the mentioned claims consisted of modern trade audits in 6 Karachi outlets, 5 focus group discussions with 26 participants, and a 80-person quantitative survey. This research substantiated the secondary research. The results from the modern trade audits showed that powdered beverages are an established category in Pakistan, and Tang is, by far, the market leader in the powdered drink category, with a 5:1 market dominance compared to all other brands. No powdered iced tea was found in any of the audited outlets, confirming a category gap. In the focus group discussions, participants named iced tea, specifically peach, as a beverage of choice, and while the consumption of iced tea is not habitual, there is an awareness of the product. The main obstacles are (1) product availability, (2) inconsistency of product quality, and (3) the lack of a habit. In the quantitative survey, the interest to trial was rated rather highly (average 6.79/10), with peach flavor being the most preferred flavor (72.5%), and the preferred trial format was single-serve sachets (50%). Analyzing the market context shows that the strongest indirect competition for powdered iced tea comes not from other iced teas, but from Tang (Mondelez), Rooh Afza (Hamdard), Pepsi, and Coke. These competitors draw on offerings that refresh consumers in the summer, the occasion for which a powdered iced tea would be positioned. However, they are all at a disadvantage in some way: Tang is a fruit drink and lacks tea’s health positioning: Rooh Afza is seasonal and occasion-based: Pepsi and Coke are on the receiving end of a global and regional consumer backlash to sugar and carbonation. Powdered iced tea, which is real tea fortified with Vitamin C and has a lower cost per serving, has a favorable competitive position against these products. From the integration of our detailed primary and secondary research, we identified four consumer segments: Gen Z students (18–24), young working professionals (22–35), household buyers and homemakers (25–50), and drinkers of ready-to-drink (RTD) beverages (18–45). This research has culminated in an actionable Go-to-Market strategy that outlines all the core elements for the FMCG category opportunity. This includes a phased launch plan and defined trial and activation plans, as well as product costs, product configurations and structures, prioritization of distribution routes, and market entry phases.
Recommended Citation
Farrukh, M., Haque, S. A., Fatima, M., & Raza, J. (2026). Assessing the Category Opportunity for Lipton Powdered Iced Tea in Pakistan (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-mba/374
