Carbonates in Egypt

PROSPECTS

Carbonates in Egypt

Carbonates is the most popular type of soft drink among Egyptians. Low health awareness among the majority of Egyptian consumers contributes to their remaining popular, despite their high sugar content.

Trends and reactions

The health trend in Egypt is still ongoing, with an increasing proportion of Egyptians, mainly from the educated upper middle classes and above, switching to zero sugar and diet carbonates, or limiting their consumption and switching to healthier soft drinks. Consumption has also been constrained by the increase in prices, which has led many Egyptians to limit their carbonates consumption.

Carbonates forecast to continue to grow

It is expected that carbonates will continue to see positive growth, maintained by the increasing population, and the growing penetration of the market by the manufacturers to reach new consumers. In the short term, it is expected that growth in carbonates will continue to slow, as the economic reform programme continues; However, in the long term, as the measures take full, it is expected that carbonates will see stronger growth.

COMPETITIVE LANDSCAPE

Pepsi-Cola Egypt/Alkan Bugshan leads carbonates

In 2018, Pepsi-Cola Egypt/Alkan Bugshan continued to lead the Egyptian carbonates market in terms of off-trade value, followed by Coca-Cola Egypt. The two companies lead in all carbonates categories – regular cola and low calorie carbonates, and non-cola carbonates.

Carbonates distribution in Egypt

Distribution is considered essential in carbonates, as manufacturers depend on distribution to reach new consumers and increase revenues. Street kiosks are still considered an essential channel, as its common for Egyptians to patronise street kiosks for refreshment drinks, especially younger consumers.

Creative and extensive marketing campaigns by leading players

In 2018, the intense competition between the two main rivals in the Egyptian carbonates market, Coca-Cola Egypt and Pepsi-Cola Egypt/Alkan Bugshan, with products that are fairly similar in price and taste to the average Egyptian consumer, meant that the focus in competition was on marketing and promotion. Pepsi-Cola Egypt/Alkan Bugshan celebrated its 70 year anniversary with a promotional campaign featuring young influencers, using billboards and television advertisements.

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