Introduction – The Coffee Market in Pakistan: A Brewing Storm of Challenges and Opportunities
The coffee sector in Pakistan is going through a whirlwind of change in 2025. With shifting global prices, sky-high import duties, and a rapidly evolving café culture, it’s clear that the market is not what it used to be.
Let’s break it down: Coffee imports in Pakistan now face hefty duties — up to 53% on finished products and 28% on bulk raw materials. These harsh taxes have led to a surge in smuggling, drowning out legitimate, tax-paying businesses. On top of that, the global coffee supply chain is under pressure due to climate-related disruptions in key producing nations like Brazil and Vietnam. The result? A whopping 38.8% surge in global coffee prices, according to the FAO.
Back home, recent floods have thrown another wrench into the supply chain. Infrastructure damage and inter-provincial transport delays mean higher costs and longer lead times. Despite all this, Pakistan’s love for coffee is growing. From Karachi’s hipster cafés to Islamabad’s cozy lounges, the demand is unmistakable — especially among Gen Z.
In response, industry leaders are pushing hard for policy reforms. They want coffee to be treated like tea, which enjoys much lower import duties. If successful, this could open the floodgates for investment, innovation, and local manufacturing.
So, what does this mean for you — whether you’re a buyer, retailer, or café owner? Simply put: You need to stay informed, agile, and connected. And that’s where platforms like Freshdi come into play, providing verified supplier data, market insights, and RFQ alerts to help businesses navigate the volatility.
Deep Dive – Market Movers: What’s Shaping Pakistan’s Coffee Scene in 2025
1. Coffee Demand is Brewing Up
The aroma of opportunity is strong. Pakistan’s coffee consumption is on a steady rise, especially among the youth in urban centers. Cafés are now more than just coffee spots — they’re lifestyle statements.
In 2022 alone, coffee sales reached Rs7.2 billion, and the trend continues upward. This cultural shift is creating exciting opportunities for suppliers, roasters, and café entrepreneurs.
2. $5 Million Investment by Mondelēz International
In one of the biggest moves of the year, Mondelēz International injected $5 million into its Pakistan operations in mid-2024. The goal? To localize 50% of its raw material sourcing (excluding cocoa beans) by 2025. This investment signals confidence in the local market and potential for export to regions like the GCC.
3. The Import Tariff Battle
Here’s the bitter truth: While tea is taxed at a modest 13%, coffee faces duties as high as 53%. This has discouraged formal imports and encouraged smuggling, eroding trust and profits.
The industry is now lobbying the government to remove the 28% combined Regulatory and Additional Customs Duty on bulk coffee imports. If approved, this could be a game-changer for price-conscious consumers and aspiring local brands.
4. Global Price Hikes and Local Impacts
The global climate crisis has directly hit coffee production in Brazil, Vietnam, and Indonesia. The FAO reports a 38.8% increase in coffee prices over the past year. These prices trickle down to Pakistan, raising costs for importers and end consumers.
5. Supply Chain Delays from Flooding
The recent floods in Pakistan have disrupted supply chains — especially for agri-based imports and inter-city logistics. Coffee, often shipped with other bulk goods, is also facing logistical delays and increased freight costs.
Top 7 Verified Coffee Suppliers in Pakistan – August 2025 Edition
If you’re sourcing coffee in this volatile climate, your supplier choice matters more than ever. Below are the top 7 verified suppliers in Pakistan, ranked based on their buyer reviews, certifications, global export capacity, and Freshdi platform activity.
1. Indho
Known for its consistent quality and smooth distribution process, Indho is a top choice for both local and international buyers. Their specialty? Premium instant and roasted coffee blends tailored for café chains and retail outlets.
2. Shaukat Marwat Group Of Companies
A powerhouse in bulk coffee trading, this group focuses on B2B exports and custom blends for private labels. Their logistics network is robust, making them a reliable partner in uncertain times.
3. Muhammad Umer
Muhammad Umer is gaining traction for sourcing and supplying organically processed coffee beans. Their strong reputation in the GCC market makes them ideal for exporters looking to scale.
4. Prvt Lmtd.
Specializing in instant coffee and pre-packaged blends, Prvt Lmtd. offers value-added products with flexible MOQ options. Great for new brands entering the market.
5. Focus Foods Services
This supplier bridges the gap between gourmet and commercial coffee needs. Their premium blends are popular with cafés and boutique roasters.
6. Afraz Ahmad
Afraz Ahmad stands out for offering customizable sourcing and private-label packaging. Their ability to adapt quickly to market changes has earned them a loyal buyer base.
7. Naeem Ullah
With a focus on consistency and long-term contracts, Naeem Ullah is ideal for buyers looking for supply chain stability. They specialize in both raw and semi-processed coffee products.
🔄 Dynamic Ranking Note: Keep in mind that supplier performance can shift quickly based on demand, RFQ activity, and buyer feedback. Platforms like Freshdi often feature “Suppliers of the Month” or “Top Exporters of the Quarter” to reflect real-time performance metrics.
Market Navigation – Strategic Moves for Coffee Buyers in Pakistan
So, how should businesses respond to this ever-changing coffee landscape?
Rethink Your Sourcing Strategy
With global prices rising and local duties staying high (for now), buyers must diversify their sourcing options. Consider working with suppliers offering ready-to-sell products to minimize import processing costs.
Watch Out for Smuggled Brands
The influx of smuggled coffee might look attractive due to lower prices, but it’s risky. Quality assurance, regulatory compliance, and brand reputation are at stake. Stick to verified suppliers on platforms like Freshdi to avoid hidden pitfalls.
Invest in Local Value Addition
With major players like Mondelēz investing in local sourcing, the trend is clear — value addition within Pakistan is the future. Partner with suppliers that offer packaging, processing, and private-label options to reduce dependency on high-duty imports.
Focus on Urban Markets
Urban centers like Lahore, Karachi, and Islamabad are where coffee demand is booming. Tailoring your product offerings — whether instant sachets or cold brews — to these regions can maximize returns.
Conclusion – The Coffee Compass for 2025 Buyers in Pakistan
Pakistan’s coffee market in August 2025 is a mixed bag — filled with opportunity but not without its challenges. From soaring global prices and domestic floods to skyrocketing demand and hopeful investment news, the market is dynamic and full of potential.
Here’s what you need to keep in mind:
- Import duties remain high, but industry advocacy could change that soon.
- Global price hikes are affecting local costs — plan ahead.
- New investments signal long-term confidence in Pakistan’s coffee industry.
- Verified suppliers like those listed above can help you stay compliant and competitive.
Platforms like Freshdi are crucial in times like these. From real-time RFQ trends to supplier verification and product sourcing tools, Freshdi empowers buyers to make smart, agile, and profitable sourcing decisions.
Key Takeaways
- Coffee demand in Pakistan is rising, especially among young urban consumers.
- High import duties encourage smuggling and hurt formal businesses.
- Major investments are being made in local sourcing and processing.
- Verified suppliers on Freshdi offer secure, quality-focused sourcing.
- Supply chain resilience is key — choose adaptable, transparent partners.
Checklist for Coffee Buyers in Pakistan – August 2025
✅ Choose verified suppliers via trusted platforms like Freshdi
✅ Monitor tariff reforms and adjust sourcing strategies accordingly
✅ Avoid smuggled products despite lower prices
✅ Focus on urban markets with tailored offerings
✅ Explore local packaging and processing to reduce costs
Future Outlook – Where is Pakistan’s Coffee Market Headed?
The next 12–18 months could bring pivotal changes. If tariff reforms come through, expect an influx of investment, more affordable retail pricing, and a stronger local manufacturing ecosystem.
Pakistan has the potential to become a regional hub for value-added coffee exports — especially to the Gulf. But to unlock this, businesses must stay informed, strategic, and well-connected.
That’s why platforms like Freshdi matter more than ever — helping buyers adapt to change, discover top suppliers, and stay ahead of the curve.
FAQs
1. Why are coffee prices rising in Pakistan in 2025?
Global climate issues have reduced coffee yields, pushing up international prices. Combined with high local import duties and supply chain disruptions, this has driven up prices domestically.
2. Is it worth buying coffee from local suppliers in Pakistan?
Absolutely. Local suppliers offer value-added products, customizable blends, and faster delivery. With platforms like Freshdi, you can verify quality and certifications before placing orders.
3. How can I avoid smuggled coffee products?
Stick to verified suppliers listed on B2B platforms like Freshdi. These sellers go through compliance checks and are reviewed by other buyers.
4. What types of coffee are most in demand in Pakistan right now?
Instant coffee and ready-to-drink cold brews are hot right now, especially among Gen Z and urban consumers. Packaged blends for café chains are also in high demand.
5. Are there any government initiatives to support the coffee sector?
While no formal programs are in place yet, industry stakeholders are pushing for duty reductions. If successful, this could lead to more support and investment in the sector.
References
- Dawn – High Tariffs and Smuggling
- Pakistan Point – Global Coffee Prices
- Tribune – Tariff Advocacy
- The News – Café Culture & Gen Z
- Ingredients Network – Mondelēz Investment
- Dawn – Floods Impacting Logistics
- Global Agriculture – Supply Chain Disruption
