Carbonates in Egypt

2020 IMPACT

COVID-19 leads to a shift in consumption habits as retail absorbs some of the losses from foodservice outlet closures

During the COVID-19 pandemic, consumer foodservice outlets remained closed for much of 2020, and when they were permitted to reopen, they were restricted to takeaway and delivery services, with further restrictions emerging later in the year when the epidemiological situation in Egypt flared up once more. Due to the widespread closure of consumer foodservice in Egypt, total volume sales of carbonate declined, as off-trade volume sales could not compensate for the full extent of the heavy loss of sales through consumer foodservice in 2020.

Companies continue to pursue expansion plans, undeterred by COVID-19

Before the outbreak of the COVID-19 pandemic, key players in carbonates revealed substantial expansion plans for the country, including the category leader Pepsi-Cola Egypt / Alkan Bugshan. The leading player continued to pursue its expansion plans in Egypt in 2020, undeterred by the impact of the COVID-19 pandemic continuing its USD500 million investment plan.

Leading players do battle through marketing as Coca-Cola launches business support campaign

In 2020, Pepsi-Cola Egypt / Alkan Bugshan continued to lead carbonates in off-trade value terms, followed by Coca-Cola Egypt. The two players lead in all types of carbonates, including cola carbonates, low calorie cola carbonates, and non-cola carbonates.

RECOVERY AND OPPORTUNITIES

On-trade sales face a long road to recovery ahead

Over the forecast period, as the effects of the COVID-19 pandemic begin to subside in Egypt, on-trade sales will begin to recover. In 2021, on-trade volume sales are projected to surge as consumer foodservice begins to reopen throughout the country and life begins to return to normal.

Prices set to rise as the category works out supply chain issues

According to industry sources, average unit prices in carbonates are projected to rise going into the forecast period. This will have the greatest impact at the very beginning of the forecast period in the early months of 2021.

Leading players continue to invest in distribution, marketing and manufacturing

Over the forecast period, undeterred by the COVID-19 pandemic, major players in carbonates will continue to invest heavily in improving their presence in Egypt. Companies such as Pepsi-Cola Egypt / Alkan Bugshan and Coca-Cola Egypt are expected to continue to invest heavily in their Egyptian business in order to ensure consistent and robust distribution networks, local manufacturing, and marketing and advertising campaigns.