Packaged Food in Egypt

New measures to overcome the difficult economic situation

Egypt is currently facing many challenges after the liberalisation of the Egyptian pound and the continuous rise in fuel prices due to the reduction in subsidies to ease the budget deficit. This, in turn, led to rises in production and running costs due to increased prices for electricity, raw materials, wages and transportation.

Consumers adapting to the new situation

Given the financial situation of the Egyptian economy at the end of the review period and the increased cost of living, consumers changed their buying habits. They tend to purchase cost-efficient promotional multipacks and economy packs; sales were oriented towards large pack sizes offering greater value for money.

The presence of new products other than brands

Market leaders maintained their positions by efforts such as refining their product portfolio by offering a variety of products with pricing-point segmentation approaches to encourage consumption, and targeted demographics seeking to save money with alternative products with lower prices. Meanwhile there was a notable rise in local producers due to the restriction on importing finished products and the high import taxes imposed by the government as an initiative to improve the economic situation by encouraging domestic production.

Modern grocery retailing grows

Despite packaged food customarily being sold via traditional grocery retailers in Egypt, modern grocery retailers are growing due to the trust of middle- and high-income consumers in these outlets. Apart from the variety of products these channels offer, there are internal promotional activities and an attractive and organised way of displaying products.

The future of packaged food in Egypt

Packaged food in Egypt is expected witness a positive retail value CAGR over the forecast period at constant 2018 prices. Manufacturers are anticipating that demand will recover and that consumers will embrace the new pricing, which is more stable.

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