![FOOD and BEVERAGE INDUSTRY in EGYPT and MENA REGION] the Following Report Provides Market Data About the Sector of Food and Beverage Industry in the MENA Region](http://data.docslib.org/img/2ecf2a4cad0794b089fba91b16e78077-1.webp)
2014
Arab African Conferences and Exhibitions
[FOOD AND BEVERAGE INDUSTRY IN EGYPT AND MENA REGION] The following report provides market data about the sector of food and beverage industry in the MENA region.
Table of contents:
Overview Introduction Food and beverage market in Egypt. Market segmentation_ Egypt The beverage Market (market data)_ Egypt Food and beverage industry_ Egypt Facts and figures global beverage market Global Trade_ Egypt Food and Beverage export and import in Egypt Source markets for FDI to Egypt, 2003 to 2011
Food and beverage market in Libya Food and beverage market in Sudan Food and beverage market in Algeria Food and beverage market in Morocco Food and beverage market in Tunisia
Overview
Egypt is the most populated country in MENA region (90 Million), and it has one of the largest economies in Africa. Egypt’s economy traditionally associated with agriculture, which has become much more diverse, with focusing on industry to serve the local markets as well as Exports. The market is concentrated primarily in the rapidly growing food processing, pharmaceutical, and chemical manufacturing industries. Packaging equipment for the food processing industry represents 50% of the total market, which is growing at a pace of 25% annually, Opening up huge opportunities for international companies.
This report aims to provide information concerning the key elements regarding the sector of food and beverage technology in Egypt and MENA region generally.
The following report provides information concerning the food and beverage industry in MENA region, and the opportunities of the growing market in this sector. The report also includes market data concerning (Production, consumption, import, export etc.)
Introduction
The demand for food and beverages continues to rise concurrent to the population growth rate, therefore, the Egyptian market has great potential due to the rapid population growth, and that is associated with the surge in the food and beverage technology. In order to meet the growing consumption needs. Arab-African Conferences and Exhibitions is planning to establish a separated exhibition for beverages technology and to expand at 2015. Egypt is the center of MENA region; accordingly, we are aiming to make Afro Packaging and Afro Food Exhibitions the main for food and beverage technology exhibition in the MENA region.
Egypt is recognized for its low budget tourism, the hotels rate and accommodation in Egypt is quite cheap comparing to other countries in the region. Therefore, there is high potential for exhibition tourism in Egypt, as manufacturers will manage to save the high travel expenses, and they will be able to visit/exhibit in the biggest exhibition in North Africa, with a suitable budget.
Afro Packaging and Afro food has been recognized as the largest and most successful food packaging and food processing exhibition in Egypt and North Africa. Afro food and packaging exhibitions hosts 300 local and international exhibitors in its annual fair on an area of 12000 m2. At 2013 Afro packaging attracted over 10.000 professional visitors from Middle East, Europe and Africa. Afro packaging and Afro food exhibitions gather food professionals and food manufacturers, accordingly, by expanding our annual exhibitions and cooperating with Messe Munchen; we are expecting the exhibitors to reach (500) local and international exhibitor, and to attract over 20.000 visitor. Upon cooperating with Messe Munchen; local and international food professionals will be keen to join the exhibition. Consequently, Afro Packaging and food packaging and processing exhibitions Egypt is not going to be the platform of Egyptian manufacturers only, but it’s going to be the platform for food manufacturers across North
Africa.
The food and beverage market in Egypt
The food and beverage market in Egypt is constantly growing, according to the growing population rate, the food and beverage consumption is growing rapidly regardless of the political and economical situation in the country.
The rapid growth of the Egyptian population is associated with growing consumer demand; accordingly, at 2012 Business monitor international stated that there is a significant opportunity for the food and beverage sector in Egypt. BMI forecasted that the consumer group is predicted to spend more on fast- moving goods.
HEADLINE INDUSTRY DATA, 2012
Indicator 2011 forecast 2015 forecast Per capita Food Consumption +4.6% +55.9%
Mass Grocery Retail Sales +14.9% +251.9%
Carbonated Drink Sales +9.5% +73.0%
Source: BMI, 2012
As indicated above the end users consumption of food and beverage sector is concurrent to the population growth, the food and beverage industry is growing at a pace of 25% annually and it’s expected to be increased over the upcoming years; which makes Egypt an attractive market for international companies in the sector of food and beverage technology.
Egypt lacks a suitable agriculture land and poor infrastructure which is one of the factors that should keep the import demand for food and beverage high. The Egyptian food and beverage industry is composed of several companies. The growing demand of food and beverages, and the unsaturated market, makes the increase and development of food and beverage technology essential in order to meet the growing food demand. Hence, it indicates a high opportunity for opening new markets for food and beverage manufacture in the future.
The total number of food and beverages factories in Egypt is 3390, however, the rapid increase of the Egyptian population leads to growing consumption, therefore, it is expected that the food and beverage technology will continue to rise in future. According to US Agri-Food, the demand for convenience-based food has increased rapidly in Egypt as the increasing numbers of women have entered the work force. The number of independent, modern supermarkets as well as hyper markets has also rise, as traditionally family-run stores have gradually declined. Acceptance of Western products and brands is
also expected to increase with new entries in the market. The United State, France, Germany, Italy, Switzerland, Greece, Holland, Denmark, Thailand and China are the dominant suppliers of consumer- ready food products to Egypt.
Market segmentation
The Egyptian food products vary widely in type, composition, quality and distribution. The major segments of the food industry can be categorized as:
Processed Vegetables: Egypt’s export of processed increased 57.6% (from 92 to 145 million US$ in six years) Egypt stands 17th in the world, and the 3rd in the region. Furthermore, the domestic market is estimated to be growing at more than 20% a years. Hence, there is a great potential in the Egyptian market associated with the growing domestic demand and the export market for the Egyptian processed vegetables market.
Fruit Juices: Egypt has a recognized potential of the processing of fruit juices, due to the availability of fruit during off seasons, and through direct cost advantages. The sector has grown from $713,000 to $13.5 million in six years.
Dairy products: Total milk production within Egypt is estimated to be 3.8 million tons, with a total cattle population at around 7.3 million cattle. In addition, there are an estimated 8 million sheep and goats but which share a minimal portion of this output. Exports of cheese reached 11.6 million dollars, while imports reached 15.6 million dollars. Major products in food processing industry in Egypt
Milk and fruit juices
Soft drinks
Ice cream
Cheese (White and cheddar versions)
Sweet and salty snacks, processed food, oil and migraine
Drinking water
Processed meat, chickens and vegetables.
Source market survey
The beverage market
The following tables include information of the tradeoff volume of the different beverages segments, along with the expected increase by 2016.
Soft Drinks off-trade volume
Period Growth Million liters 2007 2012 2016 2012-16 in% Soft Drinks 1.234,0 1.669,2 2.065,7 23,8
Bottled Water 228,7 338,0 435,0 28,7
Carbonates 861,9 1.146,0 1.397,3 21,9
Fruit/Vegetable Juice 139,8 181,4 229,2 26,4
RTD Tea 0,3 0,3 0,4 33,3
Sport/Energy Drinks 0,1 0,1 0,1 0,0
Alcoholic Drinks off-trade volume
Period Growth Million liters 2007 2012 2016 2012-16 in% Alcoholic Drinks 106,2 157,5 227,0 44,1 Beer 104,3 155,0 223,6 44,3
Drinking Milk Products volume sales
Total milk production within Egypt is estimated to be 3.8 million tons, with a total cattle population at around 7.3 million cattle.
The table below includes information about the dairy products volume sales from 2007, and the expected increase at 2016. The period growth is significant, as it is expected to increase by 87.3 % which highlights an essential growth of the drinking milk industry sector in future.
Period Growth 1.000 tons 2007 2012 2016 2012-16 in% Drinking Milk Products 145,8 330,6 619,3 87,3
Food and Beverage industry The following table provides a precise data about the food and beverage industry in Egypt, the table illustrates the food and beverage industry different segments in terms of number of employees, profit and the total number of factories.
For instance: Sugar, Confectionery & Chocolates occupies the highest rank in the number of employees, and the profit etc. The food and beverage factories are classified to 3 classes in terms of (Number of employees, production, profit etc.
Total Paid-in- Class Class Class No of Members Divisions Capital (million A B C Employees Cos. L.E.)
1. Sugar, Confectionery & Chocolates 89618 718 20150 86 223 409
2.Milk & Dairy 77 121 95 30727 293 2973 Products
3.Juices, Drinks 64 160 None 36459 224 4154 and Water
4.Meats & Poultries 102 214 374 33793 690 6734 & Fish
5.Fruits & 54 140 161 34656 355 17171 Vegetables
6.Oil and Vegetable 22 40 72 25223 134 5340 fats
7.Specialty Foods, yeast and food 5516 145 1154 additives Food 37 108 None Additives
8.Different Food 76 213 478 24811 767 4353 Products
None Active None None None 1532 64 46 Members
Total 282335 3390 62075 518 1219 1589
Source chamber of food industries Machinery trade: Processing and Packaging Machinery for the Beverage and Food Industry- Imports in Egypt The following table captures the growth of the food and beverage machinery trade from 2007 to 2011. As illustrated the import rate increased by -1.1 % at 2010/2011.
Growth rate Million € 2007 2008 2009 2010 2011 2011/2010%
Imports 221 344 333 309 306 -1,1
Facts and Figures: Global Beverage Market
Top 10 Markets Soft Drinks, sorted by2012, off-trade volume
Period Growth Million liters 2012 2016 2012-16 in% USA 80.632 82.634 2,5 China 67.495 90.006 33,4 Mexico 36.105 41.637 15,3 Brazil 20.824 26.076 25,2 Japan 20.382 20.910 2,6 Germany 20.328 20.719 1,9 Indonesia 18.517 23.477 26,8 France 12.357 12.933 4,7 Italy 12.251 12.687 3,6 Russia 11.792 13.691 16,1 Egypt Rank 40 1.669 2.066 23,8
As indicated above Egypt is ranked 40 among regarding off trade volume, however, by 2016 the off trade volume is expected to increase to 23.8 %
Top 10 Beer Markets, sorted by2012, off-trade volume As indicated below the potential of the off-trade volume is expected to increase highly by 2016. Although Egypt is ranked 58 in the global beer market, the off-trade volume is expected to reach 44.3 % by 2016.
Period Growth Million liters 2012 2016 2012-16 in% China 24.463 29.563 20,8 USA 17.414 17.379 -0,2 Russia 9.251 9.042 -2,3 Japan 5.500 5.514 0,3 Mexico 5.434 6.074 11,8 Germany 5.386 5.256 -2,4 Brazil 5.063 6.414 26,7 Poland 2.872 2.852 -0,7 South Africa 2.516 2.713 7,8 Ukraine 2.298 2.472 7,6 Egypt Rank 58 155 224 44,3
Global Trade The charts below provide a breakdown of Egypt’s top trading partners in food, beverage products in 2011. The top destination markets for exports of these products were Saudi Arabia (9% of exports), Sudan (8%) and Libya (7%). Total exports of food beverage from Egypt reached ZAR9.2bn in 2011 declining by 0.73% from 2010.
The top source markets for imports of food, beverage products to Egypt in 2011 were Brazil (27% of imports), Argentina (11%) and the United States (10%). Total imports of food, beverage by Egypt reached ZAR18.6bn in 2011, and growing by 40.2%. This indicates that Egypt is a strong and growing importer of food, beverage products.
Destination markets for exports of food and Source markets for imports of food and beverage to beverage from Egypt, 2011 Egypt, 2011
KSA Brazil Sudan Argentina 9% Libya USA 8% 27% 27% UAE Netherlands 45% 7% Italy Germany
6% Jordan 2% Thailand 11% 5% Lebanon 2% UAE Morocco 3% Switzerland 3% 5% 10% 4% 4% Yemen 6% Malawi 4% 4% 4% 4% Somalia France
Food and beverage export and Import Data The Tables below include data regarding the top exports and imports of food and beverage products in Egypt.
Top 10 exports from food and beverage from Egypt, 2011.
The top exports of food and beverage products from Egypt in 2011 were cane, beet sugar and chemically pure sucrose followed by pipe as well sugar confectionery. Exports of prepared or preserved vegetables increased by 799.82% in 2011, while can or bet sugar and chemically pure sucrose increased by 1, 22.02%
Rank PRODUCPRODUCT (HS6) VALUE 2011 (ZAR) % GROWTH 2010/2011
1 Cane or beet sugar, & 1581 1122.02% chemically pure sucrose in solid form.
2 Sugar confectionery (incl. white 793 28.26% choc), not containing cocoa
3 Fruit & vegetable juices, 767 57.62% unfermented
4 Pasta & couscous 656 175.55%
5 Chocolate and other food 455 211.64% Preparations containing cocoa
6 Oil-cake 419 78.79%
7 Prepared or preserved 363 799.82% vegetables (incl. frozen)
8 Food preparations 351 101.38%
9 Ethyl alcohol & other spirits (if 302 263.20% indentured then higher than 80%
Total Exports 9 214 -0.73%
Source: Trade Map, 2012
Top 10 imports of food and beverage to Egypt, 2011.
The top imports of food and beverage to Egypt in 2011 were cane, beet sugar and chemically pure sucrose, followed by soya bean, oil-cake and other solid residues as well as pipe imports of bran sharps, and other residues increased by 102.22%.
Rank PRODUCPRODUCT (HS6) VALUE 2011 % GROWTH (ZARm) 2010/2011
1 Cane or beet sugar and chemically pure sucrose in 5 475 59.59% solid form
2 Soya-bean oil-cake and other 2 406 92.91% solid residues
3 Pipe, chewing & snuff tobaccos 1 668 42.48%
4 Beet-pulp, biogases and 957 25.51% brewing or distilling dregs and waste
5 Animal feed preparations 844 73.61%
6 Prepared/preserved fish & 772 0.93% caviar
7 Malt extract; food preparations of flour, meal, starch or malt 618 51.02% extract
8 Bran, sharps and other residues 707 102.22%
Total Imports 18 547 40.19%
Source: Trade Map, 2012
Source markets for Foreign Direct investment to Egypt (food, beverage sector), 2003-2011
The table below includes the top source markets for FDI to Egypt in the Food and Beverage sector, from 2003 to 2011.
Rank Country Number of % Projects Capex % Capex Companies % Companies projects (Zarm)
1 Saudi Arabia 7 17.07% 4 498.5 22.59% 2 6.25%
2 UAE 7 17.07% 1 261.36 6.33% 6 18.75%
3 United states 5 12.20% 1 181.98 5.94% 5 15.63%
4 France 3 7.32% 1 415.36 7.11% 3 9.38%
5 Netherlands 3 7.32% 346.1 1.74% 2 6.25%
6 Austria 3 7.32% 1 415.36 7.11% 2 6.25%
7 Spain 2 4.88% 1 249.45 6.27% 2 6.25%
8 United kingdom 2 4.88% 253.22 1.27% 2 6.25%
9 Kuwait 2 4.88% 6 516.35 32.73% 2 6.25%
10 Switzerland 2 4.88% 769.99 3.87% 1 3.13%
11 India 1 2.44% 39.69 0.20% 1 3.13%
12 Lebanon 1 2.44% 624.72 3.14% 1 3.13%
13 Germany 1 2.44% 165.91 0.83% 1 3.13%
14 Japan 1 2.44% 7.94 0.04% 1 3.13%
15 Greece 1 2.44% 165.91 0.83% 1 3.13%
Total 41 100.00% 19 911.81 100.00% 32 100.00%
Source: FDI Intelligence, 2012
The food and beverage market in Libya
Libya is the fourth largest country (total area: 1,759,540 sq km) on the African content. It has borders with 6 African countries: Egypt, and Sudan to the East, Tunisia and Algeria to the West, and Chad and Niger to the south. In the north, Libya’s coastline on the Mediterranean Sea extends for approximately 1,774 kilometers. Libya is quite recognized for agriculture plans, hilly areas and large desert space.
Despite of the average growing population rate, Libya remains a net importer of food due to climate conditions and domestic food production. Therefore, Libya is an attractive market in the sector of food and beverage industry due to the increasing import of food products.
Libya imports the majority of its food, but the agricultural industry is developing steadily year after year, due to the government’s investment, various irrigation projects and the use of fertilizer Libya is eager to reduce its dependency on oil as its source of income, and to increase its investment in several sectors including agriculture and fisheries. Agriculture is a government priority also to encouraging the domestic agricultural products and lessens the dependence on imported items.
According to the African Economic Outlook (2011), the mining and hydrocarbon industries accounted for well over 95% of the Libyan economy in 2010. Despite the agriculture sector being the third-largest in the economy, Libya remains a net importer of food due to climate conditions and domestic food production. The civil war in 2011 has also limited domestic output of food and beverages.
BMI View: At (2012), BMI indicated that per capita food consumption is forecast to grow by 12.13 % in 2012 and by 8% at a compound annual rate to 2016. Overall demand in the country is forecast to rebound in 2012, should the oil production industry recover.
Foreign direct investment in Libya remains suboptimal following the 2011 civil war, although the Middle East Association reported in July 2013 that interest from UK businesses was increasing across all sectors following a number of trade missions to the Libyan capital. Work has continued on rebuilding the country's fractured manufacturing and logistics networks, with a program that seeks to sell a number of state-owned companies into private hands announced in October 2013. Ongoing security risks and the opaque business environment continue to present downside, especially across the non-oil economy.
The former president of Libya's General National Congress, Mohammed Magariaf, warned in a televised speech on February 17 2013 that foreign companies' reluctance to invest in Libya will significantly slow the country’s development, boding poorly for the medium-term economic outlook and consumer spending.
HEADLINE INDUSTRY DATA (Local Currency)
Indicator 2014 forecast Forecast (CAGR) to 2018
Per capita Food Consumption +5.83% +3.47%.
Mass Grocery Retail Sales +13.51% +8.03%.
Source: BMI, 2014
The following graph tracks the population growth rate in Libya from 2000 to 2012. The growth rate has been quite stable, average of 2% annually.
Source: CIA World Factbook
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Libya 2.42 2.42 2.41 2.39 2.37 2.33 2.3 2.26 2.22 2.17 2.12 2.06 2.01 Source: CIA World Factbook
World development indicators: structure of merchandise imports_ Libya
The following table tracks the development of structure of merchandise imports in Libya from 2000 until 2012.
Country Merchandise Food Agriculture Ores and Manufacturers imports/ Total % raw materials Metals Total %/ $ millions Total % Total %/
2000 2012 2000 2012 2000 2012 2000 2012 2000 2012
Libya 3,732 23,000 28 12 1 1 1 2 70 84
Source: World Bank
Trade- Libya
The graph below shows Libya’s trade in food and beverages from 2002 to 2011. As demonstrated, Libya is a net importer of food and beverage products. Imports totaled ZAR3.8bn in 2011, a decline of 22.44% from 2010, while exports totaled ZAR6.26m, declining by 12.87% in 2010.
Libya Trade in food and beverages, 2002-2011
Source: Trade Map, 2012
Food and Beverage exports and imports-Libya
The following tracks the top 10 exports of food and beverage products from Libya in 2011. The top exports of food and beverage products from Libya were chocolate and other food preparations containing cocoa, prepared or preserved vegetables (including frozen) and bread, biscuits, wafers, cakes and pastries, the exports of prepared or preserved fish, and caviar increased by 97.33% in 2011.
Rank HS6 PRODUCPRODUCT VALUE 2011 % GROWTH CODE (ZAR) 2010/2011
1 Chocolate and other food 1806 preparations containing cocoa 1.95 ------
Prepared or preserved vegetables
2 (including frozen) 1.19 2004 ------
3 Bread, biscuits, wafers, cakes and 0.86 37.67% 1905 pastries
4 Prepared/preserved fish & caviar 1604 0.45 97.33%
5 Prepared or preserved vegetables 2005 (excluding frozen) 0.31 -22.86%
6 2202 Non-alcoholic beverages (excl. water, fruit or vegetable juices) 0.27 ------
7 Fruit & vegetable juices, 2009 unfermented 0.24 -83.95%
8 Sugar confectionery (including white 1704 choc), not containing cocoa 0.24 -18.60%
9 Cane or beet sugar and chemically 1701 pure sucrose, in solid form 0.21 ------
2106 Food preparations 0.19 ------10
TOTAL EXPORTS 6.25 -12.87%
Source: Trade Map, 2012
The following table tracks the top 10 imports of food and beverage products to Libya in 2011. The top imports of food and beverage products to Libya in 2011 were cane or beet sugar and chemically pure sucrose, prepared or preserved tomatoes, and prepared and preserved fish and caviar.
Rank HS6 PRODUCPRODUCT VALUE 2011 % GROWTH CODE (ZARm) 2010/2011 Cane or beet sugar and 1 1701 chemically pure sucrose, in solid form 715.37 -30.57%
2002 Tomatoes prepared or 2 preserved 614.43 20.96%
1604 Prepared/preserved fish & 3 caviar 452.12 -34.64%
1905 Bread, biscuits, wafers, cakes 4 and pastries 341.31 -21.34%
1806 Chocolate and other food 5 preparations containing cocoa 307.41 -10.82% Malt extract; food preparations 6 1901 of flour, meal, starch or malt extract 282.50 -4.47%
Non-alcoholic beverages (excl. 7 2202 water, fruit or vegetable juices and 217.26 -23.40% mi
8 2009 Fruit & vegetable juices, 186.08 -20.68% unfermented
Sugar confectionery (including 9 1704 white choc), not containing cocoa 84.99 -28.66%
10 2106 Food preparations 83.63 -50.00%
3 810.71 -22.44% TOTAL IMPORTS
Source: Trade Map, 2012
The top export & import markets for food and beverage products from Libya in 2011
The top export markets for food and beverage products from Libya in 2011 were Italy (41.26% share of exports), Belgium (19.08%) and Turkey (14.14%). In terms of export growth in 2011, the top markets were Belgium (16,273.53%) and Malta (57.85%).
RANK Destination market VALUE 2011 % Growth 2010- % Share 2011 (ZARm) 2011 1 Italy 2.58 ------41.26%
2 Belgium 1.19 16273.53% 19.08%
3 Turkey 0.88 ------14.14%
4 Thailand 0.45 ------7.13%
5 Jordan 0.40 -76.29% 6.44%
6 Egypt 0.34 22.03% 5.40%
7 Greece 0.31 ------4.94%
8 Malta 0.06 57.85% 0.92%
9 Ecuador 0.04 ------0.69%
10 Honduras 0.07 ------1.15%
Total Exports 6.26 -12.48% 100.00%
Source: Trade Map, 2012
The top import markets for food and beverage products to Libya in 2011 were Italy (21.79% share of imports), Turkey (16.04%) and Egypt (15.13%). In terms of import growth in 2011, the top markets were France (138.86%) and Turkey (52.67%).
RANK Destination market VALUE 2011 % Growth 2010- % Share 2011 (ZARm) 2011 1 Italy 830.32 31.92% 21.79%
2 Turkey 611.07 52.67% 16.04%
3 Egypt 576.58 12.07% 15.13%
4 Thailand 444.28 -17.96% 11.66%
5 Netherlands 294.83 -6.59% 7.74%
6 France 275.35 138.86% 7.23%
7 Brazil 137.23 -36.96% 3.60%
8 Spain 83.30 -48.24% 2.19%
9 Algeria 70.61 -63.07% 1.85%
10 Germany 63.53 -43.98% 1.67%
Total imports 3 810.71 -22.56% 100.00%
Source: Trade Map, 2012
Inward FDI food and beverage to Libya, 2003-2011
The table below lists two FDI projects initiated in Libya in the food and beverages sector. SlamaFreres initiated a manufacturing facility in the grains and oilseed sub-sector in January 2009, while Dardanel initiated a manufacturing facility in the fruits, vegetables and specialist foods sub-sector.
DATE Investment Source Source Industry Sub-Sector Cluster Industry Capital Jobs Company Country State Sector Activity Activity (ZARbn)
Manufactu 3.53 21 Food & Grains & Food, Jan-09 SlamaFreres Tunisia Manouba ring Tobacco oilseed beverage Governate & tobacco
Fruits, Food, Nov-04 Dardanel Turkey Turkey Food & vegetables beverage Manufactu 4.82 259 Tobacco and specialist & tobacco ring foods Source: FDI Intelligence, 2012
Outward FDI
In December 2005, LAAICO (Libyan Arab African Investment Company) signed an agreement with the Uganda Coffee Development Authority (UCDA) to establish an instant coffee factory in Uganda.
The former data with regards to the Libyan geographical borders with Egypt, suggests a strong potential between Libya and Egypt in the sector of food & beverage industry, and by expanding Afro packaging & processing exhibitions; mutual cooperation between Libyan and Egyptians manufacturers will grow to rise in future.
The food and beverage market in Sudan
The Republic of the Sudan is an Arab republic in the Nile Valley of North Africa, bordered by Egypt to the north, the Red Sea, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the southwest, Chad to the west and Libya to the northwest. The Nile River divides the country into eastern and western halves.
Sudan is the third largest country in Africa (after Algeria and the Democratic Republic of the Congo) and also the third largest country in the Arab world (after Algeria and Saudi Arabia).
BMI View: We forecast that real GDP growth in Sudan will reach 2.5% in 2014, a significant improvement from the 2013 rate, estimated at 1.4%. Even so, significant headwinds persist, and this rate of economic expansion is far below the 6.8%-average the country experienced over the 10 years prior to the secession of South Sudan in 2011.
Inflation in Sudan averaged 36.6% over the first 11 months of 2013, among the highest rates in the world.
Unfortunately for consumer purchasing power, the trend is in the wrong direction, with price growth rising to 42.6% year-on-year in November, up from a low of 22.9% in August. Although policymakers have committed to bringing inflation under control by refraining from printing money to finance government expenditures, we expect that inflationary pressures will remain elevated over the near term. Despite these inflationary factors, we believe that the government's goal to halve inflation over the course of 2014 is within reach; our own forecast is for end-2014 price growth to fall to 25.0%.
According to CIA world Factbook The oil sector had driven much of Sudan's GDP growth since 1999. For nearly a decade, the economy boomed on the back of rising oil production, high oil prices, and significant inflows of foreign direct investment. Since the economic shock of South Sudan's secession, Sudan has struggled to stabilize its economy and make up for the loss of foreign exchange earnings. The interruption of oil production in South Sudan in 2012 for over a year and the consequent loss of oil transit fees further exacerbated the fragile state of Sudan’s economy. Sudan is also subject to comprehensive US sanctions. Sudan is attempting to develop non-oil sources of revenues, such as gold mining, while carrying out an austerity program to reduce expenditures. The world’s largest exporter of gum Arabic, Sudan produces 75-80% of the world’s total output. Agriculture continues to employ 80% of the work force.
GDP (purchasing power parity):
$89.97 billion (2013 est.)
$86.59 billion (2012 est.)
$89.51 billion (2011 est.)
GDP (official exchange rate):
$52.5 billion (2013 est.)
GDP - real growth rate:
3.9% (2013 est.)
-3.3% (2012 est.)
-1.8% (2011 est.)
GDP - per capita (PPP):
$2,600 (2013 est.)
$2,600 (2012 est.)
$2,700 (2011 est.) note: data are in 2013 US dollars
Gross national saving:
26.6% of GDP (2013 est.)
18.1% of GDP (2012 est.)
26.8% of GDP (2011 est.)
GDP - composition, by end use: household consumption: 64.1% government consumption: 11.3% investment in fixed capital: 23.2% investment in inventories: 3.4% exports of goods and services: 17.9% imports of goods and services: -19.9%
(2013 est.)
GDP - composition, by sector of origin: agriculture: 27.4% industry: 33.6%
Services: 39% (2013 est.)
Agriculture - products: cotton, groundnuts (peanuts), sorghum, millet, wheat, gum Arabic, sugarcane, cassava (tapioca), mangoes,
papaya, bananas, sweet potatoes, sesame; sheep and other livestock
Industries: oil, cotton ginning, textiles, cement, edible oils, sugar, soap distilling, shoes, petroleum refining, pharmaceuticals, armaments, automobile/light truck assembly
Industrial production growth rate:
11% (2013 est.)
Labor force:
11.92 million (2007 est.)
Labor force - by occupation: agriculture: 80% industry: 7%
Services: 13% (1998 est.)
Exports:
$4.145 billion (2013 est.)
$3.368 billion (2012 est.)
Exports - commodities: gold; oil and petroleum products; cotton, sesame, livestock, groundnuts, gum Arabic, sugar
Exports - partners:
UAE 63.2%, Saudi Arabia 9.2%, Ethiopia 5.3% (2012)
Imports:
$5.941 billion (2013 est.) country comparison to the world: 120
$8.123 billion (2012 est.)
Imports - commodities: foodstuffs, manufactured goods, refinery and transport equipment, medicines and chemicals, textiles, wheat
Imports - partners:
Macau 18.1%, India 8.8%, Saudi Arabia 7.9%, Egypt 6.7%, UAE 5.2% (2012)
Economic activities in agriculture land use: arable land: 5,5% //; - grass land: 46,3% //; - wooded area: 18,1% //; - arid land and desert: 30,1% agriculture: labor force: 63% //; - part of agriculture in GDP: 36% agricultural products: sugarcane, sorghum, millet, groundnuts, wheat, seed cotton, cottonseed, gum Arabic livestock (million): asses: 0,7 / camels: 3 / cattle: 37 / goats: 38 / poultry: 37 / sheep: 46
Percentage share of food commodity group in total DEC in Sudan
Following the former market data about Sudan, with regards to the geographical border with Egypt, also the absence of food and beverage trade fairs in Sudan. Egypt’s location will attract Sudanese manufacturers to visit Afro Packaging and Afro food Exhibition in order to be updated with the latest food and beverage technology.
The food and beverage market in Algeria
Algeria is the tenth-largest country in the world, and the largest in Africa With a total area of 2,381,741 square kilometers (919,595 sq m) and in the Mediterranean.[10] The country is bordered in the northeast by Tunisia, in the east by Libya, in the west by Morocco, in the southwest by Western Sahara, Mauritania, and Mali, in the southeast by Niger, and in the north by the Mediterranean Sea.
Food Industry is the second largest industry in Algeria and also Africa’s number one food products importer. Nearly %75 of its food products is imported.
Algeria has a small agricultural sector, which contributed 8% of GDP in 2010 and it is unable to meet the needs of the food and beverages processing sector. As a result, approximately 45% of food is imported. According to UKTI (2012) 27% of the Algerian population is below the age of 14, creating a market for sugar and confectionery products such as biscuits, crisps, chocolates and soft drinks.
Algeria ranks the 3rd worldwide from milk, and dairy products. One person in Algeria consumes around 2.5 kg biscuits per year. Average 900gr bread is consumed by one person in one day. It is also a significant importer of cheese for processed cheese manufacture. 27% of the Algerian population is below the age of 14, creating a market for sugar and confectionery products such as biscuits, crisps, chocolates and soft drinks.
According to Euro monitor Packaged food witnessed a dynamic value performance in 2013 following a price rise in all categories. Higher purchasing power, development of niche premium products and consumers’ willingness to spend more on added-value products boosted greater spending on non-staple food. Although price rises have triggered a little slowdown in volume performance due to careful spending by consumers, increased demand has sustained volume growth.
New product launches, advertising, promotional campaigns and the flourishing of hypermarkets and supermarkets have resulted in higher consumer awareness and spending. With a higher purchasing power and more retailing outlets, consumers of all income groups have become more sensitive to quality and price. This trend has been recognized by domestic producers through the introduction of quality new products, which has helped them reinforce their competitive position.
In most of the categories, domestic production from domestic companies or multinationals leads sales of packaged food. Innovative packaging designs and formats with improved quality have encouraged consumers to favor local products. Besides this, domestic production’s positioning on economy to standard platforms has led to volume growth despite the higher cost of raw materials. Despite the increasing prices of ingredients, domestic production is still able to offer prices lower than any imported brand, which is a major determinant in Algerian consumers’ decisions.
A solid performance is expected for both value and volume growth in 2013-2018. However, the maturity of some categories will affect their volume growth rates, which will be caught up by the growth of niche products. In this respect, although the government is expected to keep on subsidizing the two largest categories in packaged food, artisanal/unpackaged bread and fresh/pasteurized milk, added-value products such as premium-quality bread and UHT fresh milk will positively impact on overall value performance.
Major food and beverage products in the Algerian market:
Baby food Bakery Canned and preserved food Chilled processed food
Confectionery Dairy Dried processed food Frozen processed food Ice cream Meal replacement Noodles Oils and fats Pasta Ready meals Sauces, dressings and condiments Snack bars Soups Spreads Sweet and savory snacks
BMI View: We have revised upwards our forecasts for economic growth in Algeria, and now expect to see nominal GDP growing at a compound annual rate of 10.9% between 2014 and 2018 (up from a previous forecast of 8.3%), as we are more positive about private consumption. We continue to view inflation and political unrest as the biggest risks to consumption.
HEADLINE INDUSTRY DATA (Local Currency)
Indicator 2014 forecast Forecast (CAGR) to 2018
Per capita Food Consumption +6.87% +6.51%.
Mass Grocery Retail Sales +28.66% +23.19%.
Alcoholic drinks value sales grow +9.31% +7.94%.
Source BMI, 2014
Algeria’s global trade in food and beverages:
The graph below shows Algeria’s trade in food and beverages from 2002 to 2011. As demonstrated, Algeria is a net importer of food and beverage products. Imports totaled ZAR13.5bn in 2011, an increase of 51.6% from 2010, while exports totaled ZAR2.2bn, increasing by 15.7% in 2011.
The top exports of food and beverage products from Algeria in 2011 were cane or beet sugar and chemically pure sucrose, non-alcoholic beverages (excluding water, fruit or vegetable juices and milk) and molasses resulting from the extraction or refining of sugar. Exports of cane or beet sugar and chemically pure sucrose increased by 1,936.8% in 2011.
The top imports of food and beverage products by Algeria in 2011 were cane or beet sugar and chemically pure sucrose, malt extract and food preparations of flour, meal, starch and malt extract as well as food preparations. Imports of cane or beet sugar and chemically pure sucrose increased by 70.6% in 2011, while imports of sugar confectionery (including white chocolate) and not containing cocoa increased by 52.6% in 2011.
Top 10 exports from food and beverage from Algeria, 2011.
The top exports of food and beverage products from Algeria in 2011 were cane or beet sugar and chemically pure sucrose, non-alcoholic beverages (excluding water, fruit or vegetable juices and milk) and molasses resulting from the extraction or refining of sugar. Exports of cane or beet sugar and chemically pure sucrose increased by 1,936.8% in 2011.
Rank HS6 PRODUCPRODUCT VALUE 2011 % GROWTH CODE (ZAR) 2010/2011
1 1701 Cane or beet sugar and chemically 1 936. 8 14.87% pure sucrose, in solid form
2202 Non-alcoholic beverages (excl. 190.9 -2.04% 2 water, fruit or vegetable juices and milk) 1703 Molasses resulting from the 23.1 41.65% 3 extraction or refining of sugar 1905 Bread, biscuits, wafers, cakes and 20 .6 119.46% 4 pastries
2009 Fruit & vegetable juices, 11 .2 244.22% 5 unfermented
1804 Cocoa butter, fat and oil 8 .1 -61.36% 6
2204 Wine of fresh grapes 8 .1 -36.87% 7 2002 Tomatoes prepared or preserved 5 .4 1393.76% 8
1902 Pasta & couscous 3 .6 ------9
2201 Mineral & aerated waters 2 .3 171.11%
10
2 216.1 13.42% TOTAL EXPORTS
Source: Trade Map, 2012
The top imports of food and beverage products by Algeria in 2011 were cane or beet sugar and chemically pure sucrose, malt extract and food preparations of flour, meal, starch and malt extract as well as food preparations. Imports of cane or beet sugar and chemically pure sucrose increased by 70.6% in 2011, while imports of sugar confectionery (including white chocolate) and not containing cocoa increased by 52.6% in 2011.
Rank HS6 PRODUCPRODUCT VALUE 2011 % GROWTH CODE (ZARm) 2010/2011 Cane or beet sugar and 1 1701 chemically pure sucrose, in solid 8 035.2 70.6% form
Malt extract; food preparations of 1901 1 005.4 39.1% 2 flour, meal, starch or malt extract
Food preparations 2106 999.9 11.6% 3
Yeast 2102 555.9 4.1% 4
Chocolate and other food 1806 416.4 42.0% 5 preparations containing cocoa
2002 Tomatoes prepared or preserved 269.2 -6.4% 6
Sugar confectionery (including 1704 196.0 52.6% 7 white choc), not containing cocoa Fruit & vegetable juices, 2009 183.1 44.8% 8 unfermented
Bread, biscuits, wafers, cakes and 1905 175.8 17.2% pastries 9
Sauces mixed condiments & 2103 172.9 26.4% 10 mixed seasonings
333 832.5 50.9% TOTAL IMPORTS
Source: Trade Map, 2012
Export and Imports markets, Algeria
The export markets for food and beverage products from Algeria in 2011 were Iraq (13% share of exports), Tunisia (10%) and Italy (10%). In terms of export growth in 2011, the top markets were Italy (1,790%) and Iraq (967%).
RANK Destination market VALUE 2011 % Growth 2010- % Share 2011 (ZARm) 2011 1 Iraq 296 295 967% 13%
2 Tunisia 219 708 112% 10%
3 Italy 212 798 1790% 10%
4 Bulgaria 206 326 - 9%
5 Syrian Arab Republic 193 994 -53% 9%
6 Sudan 142 884 -62% 6%
7 Netherlands 123 829 508% 6%
8 Spain 114 589 680% 5%
9 Guinea 88 286 -3% 4%
10 Poland 86 963 - 4%
Total Exports 2 216 134 13.4% 100% Source: Trade Map, 2012
The import markets for food and beverage products to Algeria in 2011 were Brazil (49.7% share of imports), France (15.4%) and Spain (3.5%). In terms of import growth in 2011, the top markets were Brazil (76.1%) and Italy (54%).
RANK Destination market VALUE 2011 % Growth 2010- % Share 2011 (ZARm) 2011 1 Brazil 6 729 899 76.1% 49.7%
2 France 2 077 197 36.8% 15.4%
3 Spain 468 300 32.1% 3.5%
4 China 425 725 -8.6% 3.1%
5 Turkey 422 410 5.5% 3.1%
6 Germany 293 749 8.8% 2.2%
7 Netherlands 276 204 -5.6% 2.0%
8 Belgium 270 243 -32.2% 2.0%
9 Egypt 241 999 9.0% 1.8%
10 Italy 232 687 54.0% 1.7%
Total imports 2 032.87 59.89% 100.00%
Source: Trade Map, 2012
Inward FDI food and beverage to Algeria, 2003-2012
The table provides a listing of all inward FDI projects to Algeria in the food and beverages sector from January 2003 to June 2012. Seven projects were initiated by French companies. Inward FDI ranged across various sub-sectors, with the dairy products sub-sector attracting three projects. Five manufacturing and four retail projects were initiated.
DATE Investment Source Sub-Sector Industry activity Capital Jobs Company Country investment (ZARm) Oct-11 Nestle Switzerland Dairy Manufacturing 82.64 50 products
Sep-11 Irish Dairy Ireland Dairy Sales, Marketing & 65.46 27 Board products Support
Jul-08 Quick Belgium Food Retail 171.00 198 services
Mar-07 Quick France Food Retail 10.80 8 services
May-06 Lesaffre France Grains & Manufacturing 481.92 259 oilseed
Mar-06 Carrefour France Food & Retail 171.00 198 Market Beverage (Champion) Stores (Food & Tobacco) Nov-05 Danone France Bakeries & Manufacturing 245.46 231 tortillas Sep-05 France Food & Retail 171.00 198 Carrefour Beverage Market Stores (Champion) (Food & Tobacco)
Jul-05 Danone France Logistics, 171.00 147 Dairy Distribution & products Transportation
Jan-05 Nestle Switzerland Soft drinks Manufacturing 272.46 170 & ice
Jan-04 Lesaffre France Grains & Manufacturing 204.55 123 oilseed
Source: FDI Intelligence, 2012
Outward FDI to Algeria 2003-2012
Algerian companies initiated four FDI projects in the food and beverages sector, from January 2003 to June 2012. Of these projects, 2 were initiated in Tunisia, while three projects manufacturing activities in the sugar and confectionery products sub- sector.
DATE Investment Source Sub-Sector Industry activity Capital Jobs Company Country investment (ZARm) Oct-11 Cevital Tunisia Sugar & Manufacturing 481.92 259 confectiona ry products
Oct-11 Cevital United Sugar & Manufacturing 247.91 107 States confectiona ry products
Oct-11 Cevital Iraq Sugar & Manufacturing 330.55 127 confectiona ry products
Nov-09 Cevital Tunisia All other Manufacturing 129.28 585 food
Source: FDI Intelligence, 2012
The food and beverage market in Morocco
The Kingdom of Morocco is a country in the Maghreb region of North Africa. Morocco has a population of over 33 million and an area of 446,550 km2 (172,410 sq mi).
Real GDP/Inflation rate
Agriculture accounted between 12 and 20 percent of the total Moroccan GDP, while Food & Beverage industry account for 8 percent of the total GDP. Food and beverage industry generates 8 billion dollars. There are 2000 companies working within the food industry.
BMI View: We continue to hold a negative shorter-term view on Morocco's food and drink industry owing to its weak private consumption outlook and the value-added tax and agricultural sector tax increases for food items introduced in 2014. Moroccan households will be further squeezed by increasingly limited credit availability and constrained government spending in 2014. Our longer-term view for Morocco's food and drink industry is more positive, as it will benefit from ongoing structural reforms, the country's promising demographic profile and sizable investment in tourism.
HEADLINE INDUSTRY DATA (Local Currency)
Indicator 2014 forecast Forecast (CAGR) to 2018
Per capita Food Consumption +1.3% +1.7%
Mass Grocery Retail Sales +7.1% +7.9%
Soft drinks Growth +1.6% +2.2%
Source BMI, 2014
Major Food and beverage products in Morocco
Vegetables cans, fruit juice, biscuits, corn cans, fast food Products, pet foods, sauces, corn Flacks, pasta, product designated to hotels (portion jam..), snack products, and beers.
Morocco export 600 Million Dollars of fish product which represent 40% of Morocco food & beverage products exportation. The main importing countries are the European unions, USA, Japan.
Morocco is the first exporter in the world of Sardine Pilchards, and the third exporter in the world of Agar product. This industry has 406 unity inland and 390 boats with refrigeration system and employs 75000 people.
According to Euro monitor Packaged food in Morocco continued to experience positive growth, despite toughening economic conditions. Moroccan consumers proved to be reluctant to drastically reduce spending on basic foodstuffs. Instead, they opted to cut their expenditure on non-basic goods and services that are not prime necessities. However, price-sensitive buyers are shifting towards economy brands and, in some cases, private label due to decreasing purchasing power. With regard to manufacturer activity, leading companies are gradually increasing their spend on new product developments and promotional activities, which is also helping to sustain growth within packaged food categories.
The leading producers of packaged food in Morocco continued strengthening their competitive edge through the introduction of healthy and convenient products. This was largely due to the increasingly sophisticated demand patterns of Moroccan consumers, many of whom are becoming more health conscious. Moreover, Moroccan consumers are gradually becoming more accustomed to reading the nutritional information labels that are printed on all packaged food packaging in Morocco. Examples include St Dalfour sugar-free jam by Foods & Goods SA, Pralinutta sugar-free chocolate spread by Madico PM Casablanca, Yawmy 00% by Centrale Laitière Maroc Lait and Duetto vegetable-based whipping cream, free from cholesterol and trans fats by Extraport Company SARL, in order to cater to the demand of Morocco’s health-conscious consumers.
The food and beverage market in Tunisia
The republic of Tunisia is the northernmost country in Africa and, at almost 165,000 square kilometers (64,000 sq mi) in area, the smallest country in the Maghreb region of North Africa. It is bordered by Algeria to the west, Libya to the southeast and the Mediterranean to the north and east. As of 2013, its population is estimated at just fewer than 10.8 million.
Tunisia has an association agreement with the European Union and is a member of La Francophone, the Arab Maghreb Union, the Arab League and the African Union. Close relations with Europe – in particular, with France – have been forged through economic cooperation, privatization and industrial modernization. Tunisia is recognized for non-metallic mineral products, food and beverages.
According to Business monitor international The Tunisian consumer was badly affected by the political crisis that has engulfed the region since 2011.With inflows of foreign investment and tourism being hit by the uncertain security situation, activity in the private sector was sluggish throughout 2011 and 2012. Unemployment remains stubbornly high, running at over 15%, while the anticipated pickup in foreign investment will take time to feed through to consumer spending. Moreover, much of the foreign aid that has been pledged to the government will likely be tied to specific infrastructure projects. Although this will have benefits in terms of employment, it will also limit the government’s room to implement populist spending policies such as public sector wage hikes or increased subsidies for food and fuel, which would boost consumer spending more directly.
HEADLINE INDUSTRY DATA (Local Currency)
Indicator 2013 forecast Forecast (CAGR) to 2017
Per capita Food Consumption 10.4% 7.9%.
Mass Grocery Retail Sales 15.9% 11.7%.
Source BMI, 2014
BMI: Key Regional Company Trends
Casino and Al-Meera Investing In Retail: In February 2012, French retailer Casino signed a joint venture (JV) agreement with Qatari retail group al-Meera Holding with plans to open outlets in North Africa and Jordan. The JV, called ALGE Retail, is looking at expansion in Tunisia, Libya and Egypt. It will be head quartered in Geneva, with Casino owning 49% and al-Meera owning 51%.
Spanish Dairy Firm Investing: In December 2011, Spanish dairy firm Kaiku announced the purchase of Tunisia-based CLM-Vitaliat, the country’s second-largest dairy producer with revenues of aroundEUR70mn. Kaiku and CLM-Vitaliat previously collaborated on yoghurt products for five years, and the acquisition will give Kaiku increased exposure to the immature Tunisian market.
The table below provides the industrial evolution from 1995 to 2005 (%) in food and beverages, machinery, manufacturing, and electronic equipment in Tunisia.
Pattern of specialization: evolution from 1996 to 2005
Industries Evolution between 1995-2005 % Food and beverages -0.23%
Non metallic mineral products 0.31%
Machinery 0.01%
Manufacturing 0.14%
Electronic equipment ------
Source market research
Over all the Tunisia food and beverage market has not been stable post Tunisian revolution, however, the latest market reports indicated a potential growth in the food and beverage market as the political and economical state is becoming stable.
The previous market data is dedicated to provide the information of the potential growing market in Egypt, with regards to its relation with the North African region. Afro packaging and Afro food exhibition is the major food and processing exhibition in North Africa, accordingly, by cooperating with Messe Munchen there will be great opportunities for food manufacturers to explore the latest beverages technology as well as exchanging ideas and exploring the numerous opportunities in the Egyptian, and North African markets.