Executive Summary

Sep 2019
Prospects
Cheese seen as a convenient option for working mothers

Population growth and the popularity of cheese are expected to be the main growth drivers over the forecast period in Algeria. The share of local products is likely to increase as domestic manufacturers are seeking ways to differentiate their products and to compete against the leading international brands.

Dependence on milk imports expected to result in price rises within cheese

Fluctuations in the international price of powder milk remains the biggest challenge for cheese manufacturers in Algeria. Indeed, due to the limited availability of locally produced milk, which is the most important raw ingredient in cheese, local cheese production is highly depending on milk imports.

Taste, convenience and affordability behind popularity of spreadable processed cheese

Processed cheese dominates sales of cheese in Algeria with by far the most popular type being spreadable processed cheese. Within this category cream cheese is the most popular option being regarded by many Algerian consumers as tastier than any other product.

Competitive Landscape
Unibel retains lead thanks to competitive pricing and strong marketing

Unibel SA continued to lead cheese in 2019 due to its strength in spreadable processed cheese, which remains the most popular, cheapest and widely consumed cheese type in Algeria. Unibel enjoys a large product portfolio of very popular internationally recognised brands such as La Vache Qui Rit, Kiri and Picon.

International brands lead processed cheese thanks to higher quality reputation

Although the competitive landscape within cheese remained fragmented in 2019 there was little change in the standings of the leading players, with companies focused on ensuring their positions through strong distribution and maintaining prices where possible. Although local brands are more affordable, international brands account for a stronger share in cheese.

Premium cheese brands struggle due to import restrictions

Very few international brands are present in unprocessed cheese in Algeria. Indeed, growing restrictions on imports and the rising costs of imports, driven by the depreciation of the local currency, continues to restrict the share of imported premium cheese, such as unprocessed hard and soft cheese.

Prospects
Population growth and subsidies key to the growth of fresh milk

Drinking milk products continued to see steady retail volume growth in 2019, although much of this was down to strong population growth, with the category being relatively mature. Fresh milk is still seen as the cheapest protein, especially as it is subsidised by the state.

Shelf stable milk offers potential, being seen as high-quality and convenient, but high prices hinder sales

The price of shelf stable milk is not fixed and therefore the category offers more opportunities for growth, especially during periods of milk shortages. The category is far from reaching maturity, with many potential households not consuming shelf stable milk yet.

Flavoured milk drinks benefits from focus on product fortification

Although consumers in Algeria are becoming more health conscious flavoured milk drinks is expected to see strong growth over the forecast period. The Candia Choco brand, which dominates the category, is seen by some parents as a nutritious product despite its sugar content, with it being high in calcium and protein as well as being fortified with 10 vitamins.

Competitive Landscape
COLAITAL’s subsidised fresh milk helps it to retain the lead

Drinking milk products in Algeria is led by the state-owned Complexe Laitier d’Alger (COLAITAL), a subsidiary of GIPLAIT group. Its lead is down to its high production capacity, strong reputation and high level of consumer loyalty towards its brands.

Candia continues to dominate shelf stable milk despite supply shortages

As fresh milk is subsidised, the category is not very profitable and so many private companies are diversifying into yoghurt, cheese and other dairy products. Many smaller dairies are also looking to expand their production of shelf stable milk, although the purchase of specialist machinery, particularly for packaging, and the training of the workforce remains expensive.

Away from subsidised milk, international players dominate

In Algeria, domestic manufacturers lead subsidised fresh milk, with these players targeting mostly lower- and middle-income consumers. On the other hand, international players such as Candia Tchin-Lait, Nestlé and Groupe Lactalis dominate the smaller categories which carry higher unit prices, for instance shelf stable milk and premium powder milk, and thus target the middle and higher-income population.

Prospects
Sales of yoghurt expected to be driven by new flavours and innovations

Yoghurt and sour milk products is predicted to continue witnessing healthy growth in Algeria over the forecast period. As traditional products are reaching maturity, growth is expected to be driven by other more dynamic and innovative areas of dairy such as pro- and pre-biotic yoghurt, enriched and fortified yoghurt, drinking yoghurt in other pack sizes, and unusual flavours for spoonable flavoured yoghurt.

Economic uncertainty a threat to growth, with consumers likely to trade down

Yoghurt and sour milk products is expected to register slower value and volume growth over the forecast period in comparison with the review period. Ongoing economic uncertainty is set to continue impacting household incomes and the cost of imported materials, with unemployment also set to rise.

Drinking yoghurt remains an area with strong potential thanks to healthy image

Drinking yoghurt is expected to remain the most dynamic category over the forecast period with these products offering consumers both health benefits and convenience. Several yoghurt producers also introduced pourable plastic bottles towards the end of the review period, which are easy to store in small fridges.

Competitive Landscape
Laiterie Soummam looks for expansion as it invests in new dairy farm

Laiterie Soummam remained the clear leader in yoghurt and sour milk products in 2019. This can be attributed to the ongoing popularity of its brands, with the company using more raw milk than powder milk in its products.

Danone sees slight recovery after suffering due to shift in production processes

Danone Djurdjura, which was ranked second behind Soummam earlier in the review period, had dropped to fourth place by the end of the review period. Danone cannot compete with Soummam in terms of either production capacity or distribution.

Hodna sees strong growth thanks to marketing investment and new product launches

Hodna Lait witnessed the largest increase in value share in 2019 with it offering popular brands both in yoghurt and in sour milk products. The company focused on promoting the health benefits of its products at the end of the review period, with it using a range of media, including social media, to put its message across.

Prospects
Affordable and indulgent – a winning combination

Other dairy continued to see strong growth in current value and retail volume terms in 2019, with growth and sales being largely generated by chilled dairy desserts. Within this category there are a number of large local and international players offering a wide range of tasty and indulgent options, with chocolate puddings being particularly popular.

Cream on the rise as consumers start cooking international dishes

Cream is projected to record the most dynamic growth in retail volume terms over the forecast period, albeit from a low base. Demand for cream is projected to rise thanks to the growing interest among mid- and high-income households in cooking international dishes at home.

Healthy image of fromage frais and quark supports growth

Fromage frais and quark is the second largest category of other dairy with it benefiting from a healthier image than some other dairy products. Fromage frais and quark is used in cooking as well as being eaten on its own and is seen to be a good source of calcium, protein and vitamin B12, among other nutrients.

Competitive Landscape
Strong network of refrigerated distribution ensures Soummam’s leading position

Laiterie Soummam remained the leading player in other dairy in Algeria in 2019. The company’s leading position is due not only to the high equity of its brands but especially to its strong network of refrigerated distribution allowing the company to be present in every single independent small grocer across the country and giving it an additional competitive advantage over other players.

Local players outperform imported brands thanks to more affordable prices

Domestic players such as Soummam, Trefle and Danone Djurdjura performed very well against their international rivals at the end of the review period. Indeed, local dairy players are offering good quality products at more affordable prices which is helping their brands to be very competitive.

Danette returns to growth with new packaging and affordable pricing

Danone Djurdjura remained one of the three leading players in other dairy in Algeria in 2019 thanks to the strength of its flagship brand Danette in chilled and shelf stable desserts. The company lost share earlier in the review period after it took the decision to align its local portfolio’s flavours with those of Danone globally.

Want to find out more about this report?
Request more information
Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Your Recently Viewed Reports

Dairy in Algeria

Samples (FAQs about samples):

Delivery: Files are delivered directly into your account within a few minutes of purchase.

Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Algeria with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Dairy industry in Algeria, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Algeria market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Dairy in Algeria?
  • What are the major brands in Algeria?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Dairy in Algeria - Category analysis

Butter and Spreads

HEADLINES

PROSPECTS

Butter and spreads set to benefit from population growth
Growing health awareness expected to impede the growth of butter and spreads
Uncertain political and economic situation in Algeria threatens to undermine growth

COMPETITIVE LANDSCAPE

Cevital increases its lead with wide portfolio of quality brands
Import restrictions impact smaller players but category remains fragmented
Affordable prices key to demand, with disposable incomes under pressure

CATEGORY DATA

Table 1 Sales of Butter and Spreads by Category: Volume 2014-2019
Table 2 Sales of Butter and Spreads by Category: Value 2014-2019
Table 3 Sales of Butter and Spreads by Category: % Volume Growth 2014-2019
Table 4 Sales of Butter and Spreads by Category: % Value Growth 2014-2019
Table 5 NBO Company Shares of Butter and Spreads: % Value 2015-2019
Table 6 LBN Brand Shares of Butter and Spreads: % Value 2016-2019
Table 7 Distribution of Butter and Spreads by Format: % Value 2014-2019
Table 8 Forecast Sales of Butter and Spreads by Category: Volume 2019-2024
Table 9 Forecast Sales of Butter and Spreads by Category: Value 2019-2024
Table 10 Forecast Sales of Butter and Spreads by Category: % Volume Growth 2019-2024
Table 11 Forecast Sales of Butter and Spreads by Category: % Value Growth 2019-2024

Cheese

HEADLINES

PROSPECTS

Cheese seen as a convenient option for working mothers
Dependence on milk imports expected to result in price rises within cheese
Taste, convenience and affordability behind popularity of spreadable processed cheese

COMPETITIVE LANDSCAPE

Unibel retains lead thanks to competitive pricing and strong marketing
International brands lead processed cheese thanks to higher quality reputation
Premium cheese brands struggle due to import restrictions

CATEGORY DATA

Table 12 Sales of Cheese by Category: Volume 2014-2019
Table 13 Sales of Cheese by Category: Value 2014-2019
Table 14 Sales of Cheese by Category: % Volume Growth 2014-2019
Table 15 Sales of Cheese by Category: % Value Growth 2014-2019
Table 16 Sales of Spreadable Processed Cheese by Type: % Value 2014-2019
Table 17 NBO Company Shares of Cheese: % Value 2015-2019
Table 18 LBN Brand Shares of Cheese: % Value 2016-2019
Table 19 Distribution of Cheese by Format: % Value 2014-2019
Table 20 Forecast Sales of Cheese by Category: Volume 2019-2024
Table 21 Forecast Sales of Cheese by Category: Value 2019-2024
Table 22 Forecast Sales of Cheese by Category: % Volume Growth 2019-2024
Table 23 Forecast Sales of Cheese by Category: % Value Growth 2019-2024

Drinking Milk Products

HEADLINES

PROSPECTS

Population growth and subsidies key to the growth of fresh milk
Shelf stable milk offers potential, being seen as high-quality and convenient, but high prices hinder sales
Flavoured milk drinks benefits from focus on product fortification

COMPETITIVE LANDSCAPE

COLAITAL’s subsidised fresh milk helps it to retain the lead
Candia continues to dominate shelf stable milk despite supply shortages
Away from subsidised milk, international players dominate

CATEGORY DATA

Table 24 Sales of Drinking Milk Products by Category: Volume 2014-2019
Table 25 Sales of Drinking Milk Products by Category: Value 2014-2019
Table 26 Sales of Drinking Milk Products by Category: % Volume Growth 2014-2019
Table 27 Sales of Drinking Milk Products by Category: % Value Growth 2014-2019
Table 28 NBO Company Shares of Drinking Milk Products: % Value 2015-2019
Table 29 LBN Brand Shares of Drinking Milk Products: % Value 2016-2019
Table 30 Distribution of Drinking Milk Products by Format: % Value 2014-2019
Table 31 Forecast Sales of Drinking Milk Products Products by Category: Volume 2019-2024
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Value 2019-2024
Table 33 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2019-2024
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2019-2024

Other Dairy

HEADLINES

PROSPECTS

Affordable and indulgent – a winning combination
Cream on the rise as consumers start cooking international dishes
Healthy image of fromage frais and quark supports growth

COMPETITIVE LANDSCAPE

Strong network of refrigerated distribution ensures Soummam’s leading position
Local players outperform imported brands thanks to more affordable prices
Danette returns to growth with new packaging and affordable pricing

CATEGORY DATA

Table 35 Sales of Other Dairy by Category: Volume 2014-2019
Table 36 Sales of Other Dairy by Category: Value 2014-2019
Table 37 Sales of Other Dairy by Category: % Volume Growth 2014-2019
Table 38 Sales of Other Dairy by Category: % Value Growth 2014-2019
Table 39 NBO Company Shares of Other Dairy: % Value 2015-2019
Table 40 LBN Brand Shares of Other Dairy: % Value 2016-2019
Table 41 Distribution of Other Dairy by Format: % Value 2014-2019
Table 42 Forecast Sales of Other Dairy by Category: Volume 2019-2024
Table 43 Forecast Sales of Other Dairy by Category: Value 2019-2024
Table 44 Forecast Sales of Other Dairy by Category: % Volume Growth 2019-2024
Table 45 Forecast Sales of Other Dairy by Category: % Value Growth 2019-2024

Yoghurt and Sour Milk Products

HEADLINES

PROSPECTS

Sales of yoghurt expected to be driven by new flavours and innovations
Economic uncertainty a threat to growth, with consumers likely to trade down
Drinking yoghurt remains an area with strong potential thanks to healthy image

COMPETITIVE LANDSCAPE

Laiterie Soummam looks for expansion as it invests in new dairy farm
Danone sees slight recovery after suffering due to shift in production processes
Hodna sees strong growth thanks to marketing investment and new product launches

CATEGORY DATA

Table 46 Sales of Yoghurt and Sour Milk Products by Category: Volume 2014-2019
Table 47 Sales of Yoghurt and Sour Milk Products by Category: Value 2014-2019
Table 48 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2014-2019
Table 49 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2014-2019
Table 50 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2015-2019
Table 51 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2016-2019
Table 52 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2014-2019
Table 53 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2019-2024
Table 54 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2019-2024
Table 55 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2019-2024
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2019-2024

Packaged Food in Algeria - Industry Overview

EXECUTIVE SUMMARY

Low disposable income levels threaten packaged food
Demand for quick, convenient meals boosts value sales for packaged goods
The ban on imports is positive news for domestic players
Independent small grocers are the leading distribution channel, benefiting from an extensive presence in Algeria
Demographic trends will drive growth in packaged food consumption over the forecast period

FOODSERVICE

Sales to Foodservice
Packaged food volume sales to foodservice will increase as busy consumers eat out more often
A rise in chained players will boost value sales
Foodservice volume sales are set to remain low despite an increase in consumers
Category Data
Table 57 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 58 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 59 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 60 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 61 Sales of Packaged Food by Category: Volume 2014-2019
Table 62 Sales of Packaged Food by Category: Value 2014-2019
Table 63 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 64 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 65 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 66 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 67 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 68 Penetration of Private Label by Category: % Value 2014-2019
Table 69 Distribution of Packaged Food by Format: % Value 2014-2019
Table 70 Distribution of Packaged Food by Format and Category: % Value 2019
Table 71 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 72 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 73 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 74 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources