Baby food in Egypt witnessed higher growth in 2021 than in 2020, especially dried baby food which was replaced by solid food due to tight budgets in 2020 as a result of the tough economic conditions and consumers reducing non-essential spending. In 2021, the economy recovered, inflation decreased, there was no lockdown, working conditions were normal and the unemployment rate declined (starting in the last quarter of 2020).
There was increase in traditional trade in baby food over modern trade as it is more convenient and less crowded. Also, sales in health and beauty specialists (pharmacies) increased, especially home deliveries, due to the more visits for medicine, meanwhile e-commerce grew but at a slower pace than in 2020 as consumers went out and visited stores more in 2021.
Nestlé gained market share and strengthened its lead over Danone in 2021 as a result of distribution and supply chain improvements (recovered after the pandemic). The company returned to be the leader in milk formula in Egypt in 2021.
Baby food is expected to witness good growth in the forecast period due to price stability and YOY growth in the economic conditions that Egypt is witnessing is encouraging consumers to buy speciality food. The increase in the birth rate and the number of women working will also increase the demand for baby food in the period to 2026.
Baby food manufacturers understand the importance of interacting with consumers via social media and have increasingly adopted new strategies for promoting their products via social media platforms. These include business partnerships and attractive offers designed to retain consumers.
While a return to 2020’s exceptional level of e-commerce growth is unlikely, there is potential for the recent boom to lead to further development of the channel over the forecast period. E-commerce retailers such as Amazon-owned Souq saw a huge rise in sales during the peak of the COVID-19 pandemic and associated lockdown as many consumers perceived e-commerce to be safer.
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This report originates from Passport, our Baby Food research and analysis database.
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