Hot Drinks in Egypt
Euromonitor International's Hot Drinks in Egypt market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data
Tables: 84 | Publication date: Apr 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Strong value growth due to price hikes
The hot drinks market in Egypt registered strong value growth in 2008. Value growth outpaced volume growth, due to continuous unit price increases across all three sectors. Prices were driven upwards by rising international prices of raw materials and increasing production costs. The dramatic rise in the national consumer price index during 2008 was the highest jump in 16 years. According to the Central Agency for Public Mobilization and Statistics (CAPMAS), this was mainly due to a 33% year-on-year increase in food and beverage prices. Egypt’s inflation appeared to be under control until the start of the year, but began to surge in March due to the rising international cost of raw materials.
Other hot drinks remains the most dynamic sector
Other hot drinks remained the most dynamic sector in 2008, in both volume and value terms. This can be attributed to the strong performance of chocolate-based flavoured powder drinks, which became more popular in both the off-trade and on-trade channels. The fact that children, who represent the main consumer base for chocolate-based flavoured powder drinks, account for a high percentage of the Egyptian population means that there is considerable potential for development. While many parents in Egypt allow older children to consume tea or coffee, chocolate-based flavoured powder drinks are more popular with younger children, who often consume them before going to school or at bedtime. Demand therefore tends to peak during the school year. Moreover, the on-trade channel accounts for a sizeable volume of chocolate-based flavoured powder drinks all year round. The drinks are served hot in winter and iced during the long hot summer season.
Development of new retail channels contributes to the performance of hot drinks
Metro Cash & Carry recognised Egypt’s great economic potential early on and will open its first store in Cairo by late 2009. This will be followed by store openings in Alexandria. If all pre-conditions are met accordingly, Metro Cash & Carry aims to open up to 10 stores in Egypt in the medium term. In the long term, the retailer will open up more than 20 stores in the region.
Al Arosa tea by Badawy & Sons Co dominates value sales
Badawy & Sons Co gained popularity in Egypt during the review period, due to its strong presence in urban and rural retail channels, as well as its reasonable pricing. In 2008, the Al Arosa tea brand remained the dominant hot drinks brand. Lipton by Unilever Group was in second place, thanks to its wide brand recognition by Egyptians. Lipton is perceived as a foreign brand, with extensive advertising activities on different satellite television channels. To some extent, this perception limits brand penetration among mass consumers, who prefer local products. However, Lipton is the preferred brand among high-income and middle-income consumers. The brand is also served by companies, in order to establish a certain status in front of clients. El Jawhara, another key tea brand, was in third place in 2008.
Performance expected to slow down during the forecast period
Both on-trade and off-trade volume growth of hot drinks are expected to slow down in the immediate years of the forecast period, before picking up later on. The international financial crisis is expected to have a negative impact on tourist traffic, as well as on local purchasing power. However, given Egypt’s healthy annual population growth rate, together with its growing number of specialist coffee shops and casual dinning restaurants, on-trade volume sales will be maintained. Other hot drinks will remain the most dynamic sector, mainly due to the high percentage of children in the Egyptian population.
Table of contents
HOT DRINKS IN EGYPT : MARKET INSIGHT
EXECUTIVE SUMMARY
Strong value growth due to price hikes
Other hot drinks remains the most dynamic sector
Development of new retail channels contributes to the performance of hot drinks
Al Arosa tea by Badawy & Sons Co dominates value sales
Performance expected to slow down during the forecast period
KEY TRENDS AND DEVELOPMENTS
Tourism has a positive impact
Urbanisation drives consumption
Increasing number of retail outlets has a positive impact
Private label products on the rise
Current Impact
APPENDIX
Published Data Comparisons
DEFINITIONS
Summary 1 Research Sources
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Hot Drinks Company Shares by Value 2004-2008
Table 12 Hot Drinks Brand Shares by Value 2005-2008
Table 13 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 14 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 15 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 17 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 19 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 21 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 23 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 24 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
LOCAL COMPANY PROFILES - EGYPT
BADAWY & SONS CO - HOT DRINKS - EGYPT
Summary 2 Badawy & Sons Co: Key Facts
Summary 3 Badawy & Sons Co: Operational Indicators
Summary 4 Badawy & Sons Co Production Statistics 2007
Summary 5 Badawy & Sons Co: Competitive Position 2008
BADAWY & SONS CO - HOT DRINKS - EGYPT
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Badawy & Sons Co: Key Facts
Summary 7 Badawy & Sons Co: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 8 Badawy & Sons Co Production Statistics 2007
COMPETITIVE POSITIONING
Summary 9 Badawy & Sons Co: Competitive Position 2008
EL JAWHARA CO - HOT DRINKS - EGYPT
Summary 10 El Jawhara Co: Key Facts
Summary 11 El Jawhara Co: Production Statistics 2007
Summary 12 El Jawhara Co: Competitive Position 2008
EL JAWHARA CO - HOT DRINKS - EGYPT
STRATEGIC DIRECTION
KEY FACTS
Summary 13 El Jawhara Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 14 El Jawhara Co: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 15 El Jawhara Co: Competitive Position 2008
ISIS CO - HOT DRINKS - EGYPT
Summary 16 Isis Co: Key Facts
Summary 17 Isis Co: Production Statistics 2007
Summary 18 Isis Co: Competitive Position 2008
ISIS CO - HOT DRINKS - EGYPT
STRATEGIC DIRECTION
KEY FACTS
Summary 19 Isis Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 20 Isis Co: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 21 Isis Co: Competitive Position 2008
MISR CAFé CO - HOT DRINKS - EGYPT
Summary 22 Misr Café Co: Key Facts
Summary 23 Misr Café Co: Production Statistics 2007
Summary 24 Misr Café Co: Competitive Position 2008
MISR CAFé CO - HOT DRINKS - EGYPT
STRATEGIC DIRECTION
KEY FACTS
Summary 25 Misr Café Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 26 Misr Café Co: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 27 Misr Café Co: Competitive Position 2008
COFFEE IN EGYPT
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 25 Instant Coffee by Speciality Type 2004-2008
Table 26 Retail Sales of Coffee by Type: Volume 2003-2008
Table 27 Retail Sales of Coffee by Type: Value 2003-2008
Table 28 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 29 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 30 Standard Vs Coffee Pods 2004-2008
Table 31 Coffee Company Shares 2004-2008
Table 32 Coffee Brand Shares 2005-2008
Table 33 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 34 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 35 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 36 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN EGYPT
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 37 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
Table 38 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 39 Retail Sales of Tea by Subsector: Value 2003-2008
Table 40 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 41 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 42 Tea Company Shares 2004-2008
Table 43 Tea Brand Shares 2005-2008
Table 44 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 45 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 46 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 47 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN EGYPT
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 48 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 49 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 50 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 51 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 52 Other Hot Drinks Company Shares 2004-2008
Table 53 Other Hot Drinks Brand Shares 2005-2008
Table 54 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 55 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 56 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 57 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013