We highlight that, despite the gloomy short-term outlook for the economy, the core dynamics
that have attracted many companies to Egypt in the first place have not changed. Egypt has an enormous
population base, which is young and also expected to have greater spending power going forward. Egypt
is also arguably the cultural hub of the Arab world and can double up as an excellent gateway to the
wider North African and Sub-Saharan African regions. No other country in the Arab world can come
close to matching Egypt''s potential, in our view, which is why many of the world''s largest consumer
companies will very likely be increasing rather than cutting back their investment.
Headline Industry Data (local currency)
2012 per capita food consumption = +14.0%; forecast compound annual growth rate (CAGR) to 2016
= +13.5%
2012 alcoholic drink sales = +20.1%; forecast compound annual growth rate to 2016 = +18.6%
2012 soft drink sales = +19.3%; forecast compound annual growth rate to 2016 = +19.3%
2012 mass grocery retail sales = +19.4%; forecast compound annual growth rate to 2016 = +17.8%
Key Company Trends
Egypt Aims to Increase Sugar Production: In February 2012, local sugar refinery Nile Sugar reported
plans to expand its capacity by 40% over the coming year, as part of its programme to meet rising
demand. Currently, the company’s crushing and refining capacity is in the region of 7,000 and 1,200
tonnes of beet sugar per day respectively. In 2011, Nile Sugar reportedly operated at more than full
capacity, with its output topping 305,000 tonnes, all of which was destined for the local market. Nile
Sugar also imports raw sugar to meet the demand. According to official figures, Egypt still imports
around 1mn tonnes of sugar per annum, which meets one-third of domestic demand.
Turkish Discounter BİM Birlesik Magazalar (BİM) Eyeing Egypt: In March 2012, BİM – which currently
operates in Morocco – revealed plans to enter ‘Arab Spring’ markets. The discounter is expecting to
establish ten stores in Egypt in 2013, which will offer both private labels and foreign brands. By 2014, the
retailer’s total investment into Egypt is expected to top TRY25mn.
Key Risks to Outlook
External Risks: Although we expect economic activity to gradually gather steam over the coming
quarters, we believe the conditions necessary for a more aggressive acceleration are not yet present, with
fiscal and current accounts under strain as a result of the downturn. Moreover, the external climate is also
likely to prove less than favourable in the near term, with the eurozone (which absorbs one quarter of
Egyptian exports) having recently entered what may prove to be a protracted recession.
Egypt Food and Drink Industry
Table of Contents
BMI Industry View 7
SWOT Analysis 8
Egypt Food Industry SWOT 8
Egypt Drink Industry SWOT 9
Egypt Mass Grocery Retail Industry SWOT 10
Business Environment . 11
BMI’s Core Global Industry Views 11
Table: Core Views 19
Middle East Food & Drink Risk/Reward Ratings 20
Table: MENA Risk/Reward Ratings Subcategories, Q312 (scores out of 10) . 20
Table: MENA Food & Drink Risk/Reward Ratings, Q312 23
Egypt Food And Risk/Reward Rating 24
Macroeconomic Outlook . 25
Industry Forecast Scenario 27
Consumer Outlook 27
Food 31
Food Consumption 31
Table: Food Consumption Indicators – Historical Data & Forecasts 32
Confectionery . 33
Table: Confectionery Value/Volume Sales – Historical Data & Forecasts 34
Canned Food . 37
Table: Canned Food Value/Volume Sales – Historical Data & Forecasts . 37
Prepared Food . 39
Table: Meat . 39
Table: Fish 40
Table: Frozen Fruit & Vegetables . 43
Table: Jams & Jellies . 45
Pasta . 46
Table: Pasta 46
Oils & Fats . 47
Table: Oils & Fats 47
Drink . 51
Alcoholic Drinks 51
Table: Alcohol Drinks Value/Volume Sales – Historical Data & Forecasts . 52
Soft Drinks 56
Table: Soft Drinks Value/Volume Sales – Historical Data & Forecasts . 57
Hot Drinks 63
Table: Tea & Coffee Value/Volume Sales – Historical Data & Forecasts . 64
Trade. 65
Table: Trade Indicators 66
Mass Grocery Retail 66
Table: Mass Grocery Retail Sales By Format, % . 67
Table: Mass Grocery Retail Sales – Historical Data & Forecasts . 67
Food . 68
Egypt Food & Drink Report Q3 2012
© Business Monitor International Ltd Page 4
Key Industry Trends And Developments 68
Western Restaurants Prompt Casual Dining Expansion 68
Nestlé Increases Investment in Egypt 68
Foreign Interest Growing . 69
Domestic Companies Pursuing Local Expansion . 69
Firms Also Interested in Overseas Collaborations 70
Market Overview . 71
Food Processing 71
Confectionery . 72
Trade. 72
Agriculture 73
Dairy Industry 74
Sugar Processing Industry 74
Halal Food 75
Drink . 77
Key Industry Trends And Developments 77
Local Leaders Investing In Diversification And Capacity Expansion . 77
Cutting Down Tourism Reliance In Alcohol Sales 77
Multinational Interest Growing 78
Market Overview . 78
Alcoholic Drinks 78
Soft Drinks 79
Hot Drinks 80
Mass Grocery Retail 81
Key Industry Trends And Developments 81
Investment Interest Growing Slowly 81
Supply Chain Improvement 82
Carrefour MAF Continues Expanding 82
Makro Looks To Export Egyptian Produce 83
Market Overview . 83
Leading Retailers 84
Competitive Landscape 86
Table: Key Players in Egypt''s Food Sector 86
Table: Key Players in Egypt''s Drink Sector 87
Table: Key Players in Egypt''s Mass Grocery Retail Industry . 88
Company Monitor . 89
Food 89
Cairo Poultry Company (CPC) . 89
Faragalla . 90
Cadbury Schweppes (BimBim) 92
Drink . 93
Al-Ahram Beverages Co (ABC)/Heineken 93
Egypt Bottling Company (Pepsi) . 95
Coca Cola Bottling Company of Egypt . 96
Mass Grocery Retail 98
Metro (Mansour Group) . 98
Carrefour MAF 99
Spinneys Group 100
Egypt Food & Drink Report Q3 2012
© Business Monitor International Ltd Page 5
Table: Egypt''s Population By Age Group, 1990-2020 (''000) 102
Table: Egypt''s Population By Age Group, 1990-2020 (% of total) . 103
Table: Egypt''s Key Population Ratios, 1990-2020 104
Table: Egypt''s Rural And Urban Population, 1990-2020 . 104
Risk/Reward Ratings Methodology 105
Weighting 106
BMI Food & Drink Industry Glossary 107
Food & Drink. 107
Mass Grocery Retail 107
BMI Food & Drink Forecasting & Sourcing 109
How We Generate Our Industry Forecasts . 109
Sourcing . 110Table: Core Views
Table: MENA Risk/Reward Ratings Subcategories Q (scores out of )
Table: MENA Food & Drink Risk/Reward Ratings Q
Table: Food Consumption Indicators – Historical Data & Forecasts
Table: Confectionery Value/Volume Sales – Historical Data & Forecasts
Table: Canned Food Value/Volume Sales – Historical Data & Forecasts
Table: Meat
Table: Fish
Table: Frozen Fruit & Vegetables
Table: Jams & Jellies
Table: Pasta
Table: Oils & Fats
Table: Alcohol Drinks Value/Volume Sales – Historical Data & Forecasts
Table: Soft Drinks Value/Volume Sales – Historical Data & Forecasts
Table: Tea & Coffee Value/Volume Sales – Historical Data & Forecasts
Table: Trade Indicators
Table: Mass Grocery Retail Sales By Format %
Table: Mass Grocery Retail Sales – Historical Data & Forecasts
Table: Key Players in Egypt''s Food Sector
Table: Key Players in Egypt''s Drink Sector
Table: Key Players in Egypt''s Mass Grocery Retail Industry
Table: Egypt''s Population By Age Group ('')
Table: Egypt''s Population By Age Group (% of total)
Table: Egypt''s Key Population Ratios
Table: Egypt''s Rural And Urban Population
that have attracted many companies to Egypt in the first place have not changed. Egypt has an enormous
population base, which is young and also expected to have greater spending power going forward. Egypt
is also arguably the cultural hub of the Arab world and can double up as an excellent gateway to the
wider North African and Sub-Saharan African regions. No other country in the Arab world can come
close to matching Egypt''s potential, in our view, which is why many of the world''s largest consumer
companies will very likely be increasing rather than cutting back their investment.
Headline Industry Data (local currency)
2012 per capita food consumption = +14.0%; forecast compound annual growth rate (CAGR) to 2016
= +13.5%
2012 alcoholic drink sales = +20.1%; forecast compound annual growth rate to 2016 = +18.6%
2012 soft drink sales = +19.3%; forecast compound annual growth rate to 2016 = +19.3%
2012 mass grocery retail sales = +19.4%; forecast compound annual growth rate to 2016 = +17.8%
Key Company Trends
Egypt Aims to Increase Sugar Production: In February 2012, local sugar refinery Nile Sugar reported
plans to expand its capacity by 40% over the coming year, as part of its programme to meet rising
demand. Currently, the company’s crushing and refining capacity is in the region of 7,000 and 1,200
tonnes of beet sugar per day respectively. In 2011, Nile Sugar reportedly operated at more than full
capacity, with its output topping 305,000 tonnes, all of which was destined for the local market. Nile
Sugar also imports raw sugar to meet the demand. According to official figures, Egypt still imports
around 1mn tonnes of sugar per annum, which meets one-third of domestic demand.
Turkish Discounter BİM Birlesik Magazalar (BİM) Eyeing Egypt: In March 2012, BİM – which currently
operates in Morocco – revealed plans to enter ‘Arab Spring’ markets. The discounter is expecting to
establish ten stores in Egypt in 2013, which will offer both private labels and foreign brands. By 2014, the
retailer’s total investment into Egypt is expected to top TRY25mn.
Key Risks to Outlook
External Risks: Although we expect economic activity to gradually gather steam over the coming
quarters, we believe the conditions necessary for a more aggressive acceleration are not yet present, with
fiscal and current accounts under strain as a result of the downturn. Moreover, the external climate is also
likely to prove less than favourable in the near term, with the eurozone (which absorbs one quarter of
Egyptian exports) having recently entered what may prove to be a protracted recession.
Egypt Food and Drink Industry
Published: August 2012 No. of Pages: 111 Price: US $ 1175
Table of Contents
BMI Industry View 7
SWOT Analysis 8
Egypt Food Industry SWOT 8
Egypt Drink Industry SWOT 9
Egypt Mass Grocery Retail Industry SWOT 10
Business Environment . 11
BMI’s Core Global Industry Views 11
Table: Core Views 19
Middle East Food & Drink Risk/Reward Ratings 20
Table: MENA Risk/Reward Ratings Subcategories, Q312 (scores out of 10) . 20
Table: MENA Food & Drink Risk/Reward Ratings, Q312 23
Egypt Food And Risk/Reward Rating 24
Macroeconomic Outlook . 25
Industry Forecast Scenario 27
Consumer Outlook 27
Food 31
Food Consumption 31
Table: Food Consumption Indicators – Historical Data & Forecasts 32
Confectionery . 33
Table: Confectionery Value/Volume Sales – Historical Data & Forecasts 34
Canned Food . 37
Table: Canned Food Value/Volume Sales – Historical Data & Forecasts . 37
Prepared Food . 39
Table: Meat . 39
Table: Fish 40
Table: Frozen Fruit & Vegetables . 43
Table: Jams & Jellies . 45
Pasta . 46
Table: Pasta 46
Oils & Fats . 47
Table: Oils & Fats 47
Drink . 51
Alcoholic Drinks 51
Table: Alcohol Drinks Value/Volume Sales – Historical Data & Forecasts . 52
Soft Drinks 56
Table: Soft Drinks Value/Volume Sales – Historical Data & Forecasts . 57
Hot Drinks 63
Table: Tea & Coffee Value/Volume Sales – Historical Data & Forecasts . 64
Trade. 65
Table: Trade Indicators 66
Mass Grocery Retail 66
Table: Mass Grocery Retail Sales By Format, % . 67
Table: Mass Grocery Retail Sales – Historical Data & Forecasts . 67
Food . 68
Egypt Food & Drink Report Q3 2012
© Business Monitor International Ltd Page 4
Key Industry Trends And Developments 68
Western Restaurants Prompt Casual Dining Expansion 68
Nestlé Increases Investment in Egypt 68
Foreign Interest Growing . 69
Domestic Companies Pursuing Local Expansion . 69
Firms Also Interested in Overseas Collaborations 70
Market Overview . 71
Food Processing 71
Confectionery . 72
Trade. 72
Agriculture 73
Dairy Industry 74
Sugar Processing Industry 74
Halal Food 75
Drink . 77
Key Industry Trends And Developments 77
Local Leaders Investing In Diversification And Capacity Expansion . 77
Cutting Down Tourism Reliance In Alcohol Sales 77
Multinational Interest Growing 78
Market Overview . 78
Alcoholic Drinks 78
Soft Drinks 79
Hot Drinks 80
Mass Grocery Retail 81
Key Industry Trends And Developments 81
Investment Interest Growing Slowly 81
Supply Chain Improvement 82
Carrefour MAF Continues Expanding 82
Makro Looks To Export Egyptian Produce 83
Market Overview . 83
Leading Retailers 84
Competitive Landscape 86
Table: Key Players in Egypt''s Food Sector 86
Table: Key Players in Egypt''s Drink Sector 87
Table: Key Players in Egypt''s Mass Grocery Retail Industry . 88
Company Monitor . 89
Food 89
Cairo Poultry Company (CPC) . 89
Faragalla . 90
Cadbury Schweppes (BimBim) 92
Drink . 93
Al-Ahram Beverages Co (ABC)/Heineken 93
Egypt Bottling Company (Pepsi) . 95
Coca Cola Bottling Company of Egypt . 96
Mass Grocery Retail 98
Metro (Mansour Group) . 98
Carrefour MAF 99
Spinneys Group 100
Egypt Food & Drink Report Q3 2012
© Business Monitor International Ltd Page 5
Table: Egypt''s Population By Age Group, 1990-2020 (''000) 102
Table: Egypt''s Population By Age Group, 1990-2020 (% of total) . 103
Table: Egypt''s Key Population Ratios, 1990-2020 104
Table: Egypt''s Rural And Urban Population, 1990-2020 . 104
Risk/Reward Ratings Methodology 105
Weighting 106
BMI Food & Drink Industry Glossary 107
Food & Drink. 107
Mass Grocery Retail 107
BMI Food & Drink Forecasting & Sourcing 109
How We Generate Our Industry Forecasts . 109
Sourcing . 110Table: Core Views
Table: MENA Risk/Reward Ratings Subcategories Q (scores out of )
Table: MENA Food & Drink Risk/Reward Ratings Q
Table: Food Consumption Indicators – Historical Data & Forecasts
Table: Confectionery Value/Volume Sales – Historical Data & Forecasts
Table: Canned Food Value/Volume Sales – Historical Data & Forecasts
Table: Meat
Table: Fish
Table: Frozen Fruit & Vegetables
Table: Jams & Jellies
Table: Pasta
Table: Oils & Fats
Table: Alcohol Drinks Value/Volume Sales – Historical Data & Forecasts
Table: Soft Drinks Value/Volume Sales – Historical Data & Forecasts
Table: Tea & Coffee Value/Volume Sales – Historical Data & Forecasts
Table: Trade Indicators
Table: Mass Grocery Retail Sales By Format %
Table: Mass Grocery Retail Sales – Historical Data & Forecasts
Table: Key Players in Egypt''s Food Sector
Table: Key Players in Egypt''s Drink Sector
Table: Key Players in Egypt''s Mass Grocery Retail Industry
Table: Egypt''s Population By Age Group ('')
Table: Egypt''s Population By Age Group (% of total)
Table: Egypt''s Key Population Ratios
Table: Egypt''s Rural And Urban Population
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