Carbonates in Egypt

PROSPECTS

Carbonates benefits from being the favoured soft drink in Egypt, with growth seen despite inflation

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

The health and wellness trend and higher unit-prices threatens consumption of carbonates

The health and wellness trend is slowly increasing in Egypt, a trend which sees consumers growing more health-conscious, switching to low-fat, sugar-free or naturally healthier food or drink products. In Egypt, an increasing proportion of consumers from the educated upper-middle classes and above, are switching to zero sugar and diet carbonates, or limiting their consumption of carbonates, and switching to healthier soft drinks.

Carbonates will continue to see growth over the forecast period, despite an expected price increase

It is expected that carbonates will continue to see positive growth, maintained by the increasing population, and the growing penetration by the manufacturers to reach new consumers. However, due to the lifting of power and fuel subsidisation, another wave of price increases is predicted for the forecast period.

COMPETITIVE LANDSCAPE

Coca-Cola expands its popular range with Coco-Cola Cherry, the first cherry carbonate launched in Egypt

In 2019, Coca-Cola bought Coca-Cola Cherry to shelves, launching the first-ever cherry-flavoured carbonate in Egypt. Coca-Cola Cherry is expected to be popular with middle- high-income consumers, who have had visibility and experience of the flavour from travelling abroad.

Coca-Cola and Pepsi increase their marketing activities to heighten demand during sporting events

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 relatively similar in price and taste to the average Egyptian consumer, means that both players focus on competitive marketing and promotions to gain ground.

Pepsi-Cola Egypt and Coca-Cola Egypt retain their top positions, keeping their prices low with local manufacturing

In 2019, 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.

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