FEASIBILITY AND POTENTIAL OF THE ICE CREAM INDUSTRY IN PAKISTAN: A CONSUMER BEHAVIOUR AND FINANCIAL FEASIBILITY ANALYSIS

Abstract

The ice cream industry in Pakistan is experiencing rapid growth, driven by urbanisation and a shift in consumer preference toward branded, hygienic food products. Yet a significant gap remains in the market: multinational brands are priced beyond the reach of average households, while local vendors often struggle to meet consistent hygiene and quality standards. This study evaluates the feasibility and market potential of an affordable ice cream venture in Pakistan. A survey of 300 consumers was combined with secondary industry data and analysed using SWOT, PESTLE and Porter's Five Forces frameworks to assess the competitive environment, alongside correlation, regression and chi-square tests to examine consumer purchase behaviour. Financial appraisal using Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period and Profitability Index (PI) was used to assess project viability. Results show that affordability (β = 0.41) and hygiene (β = 0.32) are the strongest predictors of purchase frequency (R² = 0.51), and that income is moderately correlated with consumption (r = 0.42). The financial appraisal indicates a positive NPV, an IRR well above the assumed discount rate, and a payback period of approximately 2.5 years. The study concludes that Pakistan's ice cream industry holds considerable potential for new, mid-tier entrants able to combine affordability with quality, hygiene and effective cold-chain management.