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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

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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 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.
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