Tea in Egypt

PROSPECTS

Tea culture is booming in Egypt as many consumers considered tea to be a necessity

Tea is the most popular hot drink in Egypt, considered an essential item by many. It is consumed by all income groups, and is readily available and widely distributed across the country.

Inflation impacted the growth of tea but did not result in a decline as consumers switched products

The high inflation that started in 2017 impacted tea. This was a direct result of the partial lifting of fuel and power subsidies, which was part of an economic reform programme that aims for the total removal of fuel and power subsidies by 2021.

The health and wellness trend benefits sales of green tea, known for its health benefits

As the health and wellness trend sees consumers more interested in nutritional and health benefits food and drink provide, green tea is on the rise. Green tea is popular among mid to high-income consumers, who are well educated and are more health aware; this was evident by the increase in distribution of green tea, which was more readily available across the country in 2019.

COMPETITIVE LANDSCAPE

Players use on-pack promotions to compete and attract price-conscious consumers

On-pack promotions were on the rise in 2019, appealing to price-sensitive consumers who are looking for ways to save. Most developments focused on price, mainly as a response to the inflation, which has caused consumers to switch brands or decrease their consumption.

As Egyptian currency strengthens, international imported teas may consider decreasing their prices

Foreign currency exchange rate has recently been on the decline, as the Egyptian pound strengthens against the US dollar. This is likely to be reflected on the price of imported players, as more imported teas, such as Ahmad Tea and Rabea Tea, will consider decreasing their costs.

Lipton respond to the health and wellness trend by launching a range of fruit/herbal teas to consumers

In 2019, Lipton launched new fruit/herbal tea with a broad variety of different flavours. These new products are in line with the growing health and wellness trend, that has a specific focus on herbal and flavoured tea products.

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