Processed Fruit and Vegetables in Algeria

TRENDS

Processed fruit and vegetables continued to be stimulated by population growth, increasing urbanisation and by the demand for staple foods at more affordable prices. In addition, the weaker economic conditions in Algeria due to the oil crisis with decreasing disposable income is limiting spending by consumers. Moreover, value and volume growth continued to be driven by the rising convenience trend in 2017, pushed by the increasing number of women joining the workforce and therefore having insufficient time to prepare fruit and vegetables at home. Hence, processed food is the best alternative to ensure their daily nutrition due to the increasing desire for convenient and easy-to-prepare food. Besides, processed fruit offers a cheaper way to consume fruit as well as allowing consumers to access fruits which are not available in the fresh format in Algeria, such as exotic fruits.

COMPETITIVE LANDSCAPE

Izdihar SpA led the category in 2017 with a retail value share of 27%. Indeed, with long-established brands in several packaged food categories and a good reputation the company has maintained its leadership and enjoyed strong consumer loyalty and brand recognition in Algeria. In addition, Izdihar, as a domestic player, offers good quality products at affordable prices compared to the imported brands, which was a key factor in helping the company to maintain its lead in processed fruit and vegetables throughout the review period.

PROSPECTS

Over the forecast period, demand for processed fruit and vegetables is expected to increase taking into account the expected population growth and rising urbanisation in Algeria. In addition, persistent inflation in food prices is expected to mostly affect low-income consumers, who will turn to processed fruit and vegetables as fresh products are more expensive. Furthermore, as more consumers desire convenience, there will be a continuous shift in preference by urban consumers towards processed fruit and vegetables to complement homemade meals over the forecast period, which will help fuel future growth. Indeed, the trend towards busier lifestyles is projected to increase and further strengthen consumer appreciation for the convenience of processed fruit and vegetables.

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