Savoury Snacks in Egypt

2021 DEVELOPMENTS

Revival in impulse purchasing and on-the-go consumption drives rebound in retail volume sales

Having declined during 2020, retail volume sales of savoury snacks will rebound strongly during 2021. With restrictions on movement easing, consumers will spend less time at home.

Popcorn benefits from shift to home entertainment

Popcorn was the top performer in savoury snacks during both 2020 in terms of its rate retail current value sales growth, and this trend will continue into 2021. This reflects the fact that consumers are still spending more time at home – watching films and TV series on their sofas, rather than visiting cinemas.

De facto price cut helps Chipsy For Food Industries Co SAE reinforce its leadership position

Chipsy For Food Industries Co SAE will remain the leader in savoury snacks during 2021. The breath of its product portfolio – which includes such international brands as Doritos, Sunbites and Lay’s – and distribution network are unmatched by any of its rivals.

PROSPECTS AND OPPORTUNITIES

Economic recovery, urbanisation and population growth and price stabilisation will all contribute to robust demand growth

While the rate of growth in retail current values sales of savoury snacks will ease during 2022, it will remain relatively robust during the remainder of the forecast period. Demand growth will be supported by an anticipated post-pandemic economic rebound, an increasing population and relatively muted growth in unit price.

Heightened consumer interest in health and wellness will drive a shift to healthier products and variants

Heightened consumer interest in health and wellness is likely to impact demand for savoury snacks during the forecast period. Health consciousness was growing even before the onset of the pandemic, and COVID-19 has strengthened this trend by underlining the health risks associated with obesity.

As supermarkets and hypermarkets proliferate, traditional grocery retailers will lose retail value share

Traditional grocery retailers continue to dominate the distribution of savoury snacks due to the accessibility of these stores to local consumers, but they are likely to lose retail value share to modern grocery retailers during the forecast period. Such chains as Carrefour and LuLu are steadily expanding their store footprints in Egypt – opening outlets in smaller urban centres and in residential areas in Cairo and Alexandria.