Executive Summary

Aug 2019
Prospects
Demand for cheese remains strong despite economic pressures and price increases

Cheese has outperformed most packaged food categories since the devaluation of the Egyptian pound in late 2016 and this is due to the product’s status as an essential source of protein in the majority of Egyptian homes. Unprocessed cheese has continued to attract consumers despite dramatic price increases as it has continued to represent an affordable source of essential nutrition, with soft cheese registering positive volume growth in 2019, a demonstration of the stability and resilience of the category.

Strong local production supports appeal of cheese

The strength of local cheese production has supported the category’s relatively favourable performance in recent years as the devaluation of the pound has made it difficult for imported brands to compete on price. With locally manufactured products far more affordable, increases in local production volumes have been achieved, enabling local products to capture demand which would otherwise have been accounted for imported products.

Imported products still struggling, hindering hard cheese in particular

The difficulties faced by all imported products in the wake of the devaluation of the Egyptian pound earlier in the review period has placed massive pressure on demand for hard cheese, a category in which the majority of products are imported. This has led to demand narrowing to an affluent, urban-dwelling consumer base, with hard cheese already widely considered a niche category of expensive products by the end of review period.

Competitive Landscape
Obour land leads soft cheese but Domty presents strong challenge via innovation

Obour land Co remains the leading player in soft cheese despite its slender lead over second-placed Arabian Food Industry Co slipping as it lost value share over the course of the year. The company’s Obour land brand remains the leading name in soft cheese soft cheese by virtue of its wide variety of flavours and pack sizes, which range from 80g to 500g.

Cheesa’s leadership in hard cheese due to affordability and consistent availability

Riyada’s hard cheese brand Cheesa is the leading name in both packaged and unpackaged hard cheese and this is mainly due to the its affordable prices and wide availability. Cheese is usually presented prominently in the chiller cabinets of supermarkets and neighbourhood grocery stores throughout Egypt.

Best Cheese uses promotions to sustain leadership in spreadable processed cheese

Best Cheese Co for Dairy Products SAE leads sales in processed spreadable cheese with its Président brand. Président has been able to generate high levels of consumer trust in its quality and it is the first choice of many parents when looking for cheese to feed their families.

Prospects
Positive growth in shelf stable milk due to the category’s essential staple status

Shelf stable milk witnessed rising volume sales in 2019 in a continuation of the positive sales growth trends that were witnessed in the category throughout the review period. The resilience of shelf stable milk to the sales declines that have plagued the vast majority of packaged food categories since the devaluation of the Egyptian pound in late 2016 has been due mainly to its status as an essential staple among a very wide consumer base including rural and urban consumers of all income levels.

Low levels of brand loyalty present challenges to drinking milk players

With demand for drinking milk products based mainly on low price and with sales limited mainly to shelf stable milk, brand loyalty is relatively low in the category. In general, most consumers prefer to purchase the cheapest brand available and the specific identity of the brand and the origins of the product are of secondary importance.

Fresh milk and shelf stable milk slated for positive volume growth in forecast period

The forecast period is expected to see rising volume sales of cow’s milk, with fresh milk slated for a particularly strong performance. This is a reflection of the status of cow’s milk as a fundamental source of nutrition in the majority of Egyptian households.

Competitive Landscape
Juhayna’s Bekhero brand benefits from high consumer trust

Juhayna Food Industries remains the leading player in drinking milk products. The company’s Bekhero brand remains among the most famous Egyptian packaged food brands of all, offering a wide variety of products with a reputation for being healthy and safe.

Groupe Lactalis stakes a claim, joining Nestlé as one of the few foreign players

France-based multinational dairy producer Groupe Lactalis recently completed acquired 100% of Egyptian company Greenland Group of Food Industries, a move which will substantially strengthen its position in drinking milk products in Egypt during the forecast period. This will position Groupe Lactalis as one of the few successful international players in the category, joining Nestlé Egypt SAE, the leader in powder milk through its Nido range of products.

Almarai registers strong growth as Dina Farm maintains leadership in fresh milk

Almarai Co Ltd, the GBO of the Almarai and Beyti brands, was among the category’s best performers in 2019 as more consumers placed their trust in the quality of its products. In addition, the company introduced new 750ml packs for its Almarai flavoured milk brand during the year, attracting children with the unique shape of these new packs.

Prospects
Demand for plain yoghurt remains robust due to its status as an essential foodstuff

Sales of yoghurt continued to increase in volume and value terms in 2019 and this was mainly due to the essential status of plain yoghurt in the diets of the majority of Egyptians. Plain yoghurt dominates overall sales of yoghurt in Egypt and this has ensured that the category has been able to withstand the pressures that have been placed on most packaged food categories since the devaluation of the Egyptian pound in late 2016.

Promotions, multipacks, bundling and advertising support demand for yoghurt

Recent years have seen Egypt’s leading yoghurt brands engage in continuous efforts to support sales growth through the use of price promotions. This has ensured that yoghurt remains reasonably affordable for the majority of consumers at a time of rapidly rising prices in the wake of the 2016 currency devaluation.

Rising production costs and intense price competition to place pressure on players

The forecast period is expected to see the leading players in yoghurt come under increasing pressure from rising fuel and electricity prices, which is likely to place pressure on their margins. At the same time, the requirement to keep unit prices as low as possible in order to avoid alienating consumers and ensure consistent demand is likely to present major challenges to all companies operating in the category.

Competitive Landscape
Juhayna Food Industries relies on flavour innovation to support its leading position

Juhayna Food Industries remains the leading name in yoghurt and sour milk products, offering a wide range of products across various categories. The company has long been known for its innovation and regular launches of new products and 2019 saw the introduction of three new flavours in sour milk products including cinnamon.

Almarai bets on the underdeveloped category of flavoured yoghurt for sales growth

Almarai has long focused on flavoured yoghurt to generate sales, with the resulting that the company is the category’s leading GBO. 2019 saw Almarai introduce new fruit flavoured yoghurt containing real chunks of fruit under the Almarai Treats brand.

Danone assumes the leading position in plain yoghurt as it launches new packaging

2019 saw Danone assume the leading position in plain yoghurt, which it had previously lost to Best Cheese Co for Dairy Products, the local owner of the Nestlé brand in plain yoghurt, in 2017. During 2019, Danone developed new brighter packaging for its plain yoghurt, while the recipe for the product itself was modified to make it richer in taste and thicker in texture.

Prospects
Unfavourable economic situation places pressure on sales of other dairy

2019 saw volume sales decline in all other dairy categories as consumers continued to avoid spending money on non-essential packaged food items. The categories to register the steepest declines were cream and chilled dairy desserts and this is linked to high unit prices in these categories and the competition they face from packaged food categories with lower unit prices.

Relatively positive performance for plain fromage frais and quark based on novelty

Plain fromage frais and quark registered the least severe volume sales declines of any category in other dairy in 2019 and this is a reflection of the category’s novelty, which means that affluent middle- and high-income consumers are still interested in purchasing these products in search of something a little different. However, sales of plain fromage frais and quark remain very low in Egypt and these products have not yet achieved widespread appeal.

Complete recovery of other dairy sales not expected during forecast period

With sales of other dairy likely to remain under pressure throughout the forecast period, none of the categories in other dairy should be expected to begin registering positive volume growth before the end of the forecast period. The main reason for the expected poor performance of other dairy is that the products within the category are generally considered to be unnecessary luxuries, which limits demand to a relatively small base of affluent middle- and high-income urban consumers.

Competitive Landscape
Danone uses advertising to reinforce its dominant position in chilled dairy desserts

Danone Egypt remains the dominant player in chilled dairy desserts as its Danette brand has become virtually synonymous with the category in Egypt. This very strong position has been hard-earned however, with Danone having focused heavily on pushing Danette for several years.

Smaller packs appear in cream as players seek to attract price-sensitive consumers

Juhayna Food Industries remains the leading player in cream with its brand Juhayna Whipping Cream now available in three different pack sizes ranging from 200g to one litre. The product range is promoted with the cooperation of popular TV chefs, who can often be seen on television and social media preparing recipes using Juhayna Whipping Cream.

Bel Egypt’s Kiri dominates fromage frais and quark as local brands compete strongly

The 2016 devaluation of the Egyptian currency led to Pinar Dairy Food Co withdrawing from fromage frais and quark, creating a vacuum in the category. The company’s Pinar brand had been the leading name in the category for a long time and the sudden absence of the brand on retail shelves created opportunities for France-based multinational company Groupe Bel to position its Kiri brand as the obvious replacement products for consumers who had previously favoured Pinar.

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Dairy in Egypt

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Egypt 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 Egypt, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Egypt 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 Egypt?
  • What are the major brands in Egypt?
  • 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 Egypt - Category analysis

Butter and Spreads

HEADLINES

PROSPECTS

More moderate volume declines in 2019 as consumers adjust to new price reality
Rising inbound tourism flows support growth in sales of butter and spreads
High prices continue to place pressure on demand for butter in rural areas

COMPETITIVE LANDSCAPE

Afia vies with Arma, with latter benefiting from launch of coconut ghee
Anchor extends its lead in butter, competing effectively on price with Lurpak
Price promotions important in swaying consumer choice

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

Demand for cheese remains strong despite economic pressures and price increases
Strong local production supports appeal of cheese
Imported products still struggling, hindering hard cheese in particular

COMPETITIVE LANDSCAPE

Obour land leads soft cheese but Domty presents strong challenge via innovation
Cheesa’s leadership in hard cheese due to affordability and consistent availability
Best Cheese uses promotions to sustain leadership in spreadable processed cheese

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 Sales of Unprocessed Cheese by Type: % Value 2014-2019
Table 18 NBO Company Shares of Cheese: % Value 2015-2019
Table 19 LBN Brand Shares of Cheese: % Value 2016-2019
Table 20 Distribution of Cheese by Format: % Value 2014-2019
Table 21 Forecast Sales of Cheese by Category: Volume 2019-2024
Table 22 Forecast Sales of Cheese by Category: Value 2019-2024
Table 23 Forecast Sales of Cheese by Category: % Volume Growth 2019-2024
Table 24 Forecast Sales of Cheese by Category: % Value Growth 2019-2024

Drinking Milk Products

HEADLINES

PROSPECTS

Positive growth in shelf stable milk due to the category’s essential staple status
Low levels of brand loyalty present challenges to drinking milk players
Fresh milk and shelf stable milk slated for positive volume growth in forecast period

COMPETITIVE LANDSCAPE

Juhayna’s Bekhero brand benefits from high consumer trust
Groupe Lactalis stakes a claim, joining Nestlé as one of the few foreign players
Almarai registers strong growth as Dina Farm maintains leadership in fresh milk

CATEGORY DATA

Table 25 Sales of Drinking Milk Products by Category: Volume 2014-2019
Table 26 Sales of Drinking Milk Products by Category: Value 2014-2019
Table 27 Sales of Drinking Milk Products by Category: % Volume Growth 2014-2019
Table 28 Sales of Drinking Milk Products by Category: % Value Growth 2014-2019
Table 29 NBO Company Shares of Drinking Milk Products: % Value 2015-2019
Table 30 LBN Brand Shares of Drinking Milk Products: % Value 2016-2019
Table 31 Distribution of Drinking Milk Products by Format: % Value 2014-2019
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Volume 2019-2024
Table 33 Forecast Sales of Drinking Milk Products Products by Category: Value 2019-2024
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2019-2024
Table 35 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2019-2024

Other Dairy

HEADLINES

PROSPECTS

Unfavourable economic situation places pressure on sales of other dairy
Relatively positive performance for plain fromage frais and quark based on novelty
Complete recovery of other dairy sales not expected during forecast period

COMPETITIVE LANDSCAPE

Danone uses advertising to reinforce its dominant position in chilled dairy desserts
Smaller packs appear in cream as players seek to attract price-sensitive consumers
Bel Egypt’s Kiri dominates fromage frais and quark as local brands compete strongly

CATEGORY DATA

Table 36 Sales of Other Dairy by Category: Volume 2014-2019
Table 37 Sales of Other Dairy by Category: Value 2014-2019
Table 38 Sales of Other Dairy by Category: % Volume Growth 2014-2019
Table 39 Sales of Other Dairy by Category: % Value Growth 2014-2019
Table 40 Sales of Cream by Type: % Value 2014-2019
Table 41 NBO Company Shares of Other Dairy: % Value 2015-2019
Table 42 LBN Brand Shares of Other Dairy: % Value 2016-2019
Table 43 Distribution of Other Dairy by Format: % Value 2014-2019
Table 44 Forecast Sales of Other Dairy by Category: Volume 2019-2024
Table 45 Forecast Sales of Other Dairy by Category: Value 2019-2024
Table 46 Forecast Sales of Other Dairy by Category: % Volume Growth 2019-2024
Table 47 Forecast Sales of Other Dairy by Category: % Value Growth 2019-2024

Yoghurt and Sour Milk Products

HEADLINES

PROSPECTS

Demand for plain yoghurt remains robust due to its status as an essential foodstuff
Promotions, multipacks, bundling and advertising support demand for yoghurt
Rising production costs and intense price competition to place pressure on players

COMPETITIVE LANDSCAPE

Juhayna Food Industries relies on flavour innovation to support its leading position
Almarai bets on the underdeveloped category of flavoured yoghurt for sales growth
Danone assumes the leading position in plain yoghurt as it launches new packaging

CATEGORY DATA

Table 48 Sales of Yoghurt and Sour Milk Products by Category: Volume 2014-2019
Table 49 Sales of Yoghurt and Sour Milk Products by Category: Value 2014-2019
Table 50 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2014-2019
Table 51 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2014-2019
Table 52 Sales of Flavoured Yoghurt by Flavour: Rankings 2014-2019
Table 53 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2015-2019
Table 54 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2016-2019
Table 55 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2014-2019
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2019-2024
Table 57 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2019-2024
Table 58 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2019-2024
Table 59 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2019-2024

Packaged Food in Egypt - Industry Overview

EXECUTIVE SUMMARY

Harsh economic conditions continue to cast a shadow over packaged food
Volume sales bounce back as consumers adjust to the new reality
Steep unit price rises for imported products lead to a revival of local production
Traditional channels continue to dominate as growth in modern grocery retailers stalls
The industry performance likely to depend on the state of the Egyptian economy

FOODSERVICE

Sales to Foodservice
Strong growth in foodservice results in foodservice value sales outperforming retail volume sales
Foodservice supply operations become more of a focus for key packaged food players
Economic recovery, the accelerating pace of life and growth in inbound tourism set to support foodservice growth
Consumer Foodservice
Boom in full-service restaurants linked to rising inbound tourism flows
Social media becomes an important emotional method for consumer foodservice companies
Middle Eastern cuisine remains dominant across consumer foodservice

CATEGORY DATA

Table 60 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 61 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 62 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 63 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 64 Sales of Packaged Food by Category: Volume 2014-2019
Table 65 Sales of Packaged Food by Category: Value 2014-2019
Table 66 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 67 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 68 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 69 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 70 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 71 Distribution of Packaged Food by Format: % Value 2014-2019
Table 72 Distribution of Packaged Food by Format and Category: % Value 2019
Table 73 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 74 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 75 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 76 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources