Consumers in the Egypt spent close to 8 billion Egyptian Pounds, (1.33 billion USD) on salty snacks, sweets and other treats last year.
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
GAIN Report Number:
Snacking in Egypt
With its population growing and an extensive distribution network and low prices, sweet and savory
snack demand in Egypt is expanding. Consumers in the Egypt spent close to 8 billion Egyptian Pounds,
(1.33 billion USD) on salty snacks, sweets and other treats last year. Sales grew by five percent in 2011
compared to 2010, but on a volume basis, the category posted a decline of 3 percent due to inflation and
economic condition post-revolution.
Despite this decline, the salty snacks market in Egypt has attracted new investors even post-revolution,
with five new brands entering the market in 2011 supported by heavy media campaigns. Currently the
salty snacks market is estimated at 130,000 tons per year with the potato chip category leading the field
with a 60% share.
Egyptians throughout history have been fond of sweets and snacks. Ancient Egyptians illustrated their
passion for sweets through drawings on the sides of the Abu Simbel temple in Aswan back in 2600BC.
Sweet and salty treats became a part of the Egyptian culture and the tradition has launched an industry
that continues to grow.
Snacks, as a sector, are the least affected by inflation due to high demand and low price. Salty snacks
are particularly popular and make up 44 percent of the confectionary market and consumers in Upper
Egypt, mostly rural population, are particularly fond of them.
Chocolates and biscuits are the second biggest categories with 18 percent and 14 percent of the market
respectively. Just as with salty snacks, both biscuits and chocolates have attracted new investments in
2011, mainly from Turkish manufacturers.
The cake and croissants category represents 13 percent of the confectionary market and is dominated by
a large local manufacturer who has almost LE 1 billion in annual sales.
Despite stagnation in 2011, investors are still interested in the Egyptian market given its large size. This
sector has also proven to be good investment especially post- revolution as it has managed to maintain
growth despite the economic and political upheaval.
Sweet and savory snacks
Sweet and savory snacks in Egypt performed well in 2010, with volume sales reaching 52,000 tons and
sales of LE 1.4 billion. The availability of a diverse range of sweet and savory snacks in terms of both
price and flavor is significant and contributes to the category?s favorable position. Successful marketing
strategies and promotions such as offering new flavors and larger packaging sizes for the same price,
also contributed significantly to the favorable performance of sweet and savory snacks in 2010.
Furthermore, the availability of sweet and savory snacks across all grocery retail channels from
supermarkets and hypermarkets to small grocery retailers and kiosks, allowed Egyptian consumers of all
income groups, to find sweet and savory snacks anywhere throughout the country.
The sweet and savory snacks market categories in Egypt include: Chips/Crisps, Extruded Snacks, Fruit
Snacks, Nuts, Popcorn, Pretzels and Tortilla/Corn Chips
Chipsy for Food Industries Company SAE, continued to lead sweet and savory snack industry in Egypt
during 2009 with 52% of the market. Chipsy markets a wide variety of food brands including its leading
brand Chipsy as well as Crunchy, Cheetos, Doritos, El Abtal, Lay?s and many others. The sweet and
savory snacks brand of Chipsy is one of the most popular among Egyptian consumers.
Sweet and savory snacks are expected to grow steadily during t 2012, with volume growth of 5% and
constant value growth of 4% expected. Sales will be led by chips and crisps, the most popular type of
sweet and savory snacks among children and adults alike. Egypt?s current population growth, combined
with extensive distribution and low unit prices, will lead to sweet and savory snacks remaining popular
in Egypt throughout the forecasted period.
Sugar confectionery continued to remain a popular segment in Egypt. A large segment of the Egyptian
population falls below the poverty line and eating sweets regularly is part of their diet as they are not as
health conscious or aware of the risks that these snacks pose.
El Rashidy El Mizan Confectionery continued to dominate the segment in 2009 with a 22% share. They
produce the Halva product which is the most popular seller within the sugar confectionery segment.
Halva is consumed mainly by the lower income majority.
The sugar confectionery demand is expected to continue to grow by 1% in value terms and 2% in
volume terms. Both of these growth rates are relatively low, as the economic crisis in recent years has
caused people to curb their spending or spend on cheaper products than they previously had. However,
companies are not expected to witness severe losses, as consumers get used to certain sugar products
that they have been consuming for many years and are likely to cut out other items they consider
luxuries in order to save money.
Biscuits sales remained the second most popular category within the bakery segment in Egypt due to
their wide appeal to all ages and income groups. Biscuits are eaten in various forms and flavors. Sweet
biscuits remain the most popular due to their association with teatime which is a national pastime in
Egypt. The Egyptian Company for Food (Biscomisr) continued to lead the biscuits segment in 2009,
capturing a 14% value-share of the total biscuits segment. The company has had a presence in the
country for many years and has created a renowned brand name for itself by continuously upgrading its
quality and distribution patterns in order to capture as much of the segment as possible. Its brands
include Choco, Dandosha, Date Bars, Lux, Maamoul Bisco Misr, Marie, Marie Ica, Nice, Picnic and
Ramsis. Lux continues to remain its most popular brand with a 3% value-share.
Biscuit sales are expected to grow by 2% in constant value terms and 4% in volume terms during 2012.
This segment remains popular with the majority of the population who fall below the poverty line due to
their low cost. Biscuits are also a popular snack as they are high in carbohydrates and more filling.
Impulse and indulgence products
The confectionary items placed on store counters such as milk products, ice cream, snack bars,
cupcakes, gum and beverages grew in 2011, due to their appeal to a large customer base in Egypt. With
the population of Egypt steadily increasing at 2% annually and now approaching 85 million, demand
continues to grow.
Edita for Food Industries was the company with the largest market share at 6%. This is due to the
company?s wide portfolio of products such as Molto, Hoho?s and Twinkies. The company has a strong
distribution system and very effective distribution channels. The company is the only food manufacturer
to reach a large number of small kiosks in Egypt, making their products accessible to most consumers,
especially children. The launch of the new cake Todo is also adding more strength to the company and
increasing brand awareness. The launch was accompanied by a heavy advertising campaign on
television channels, radio and billboards across the country.
Impulse and indulgence product sales are expected to reach LE 6 billion by 2015. This is a positive
growth rate, especially considering the economic climate. However, value sales are not expected to rise
dramatically over the forecasted period as companies strive to keep production costs down.
Unpackaged artisanal bread (balady bread) remained the most important bakery category with sales of
LE 24 billion in 2010 (USD 4 billion). This is mainly due to most Egyptians having extremely low
disposable income and consume balady bread as it is cheap and widely available; it has been the staple
of the Egyptian diet for many years. The Egyptian government provides this subsidized bread to the
entire population and it is considered a political commodity. Tight regulations have been placed to
control production and distribution of balady bread, however, subsidized flour is leaked on to the
market, creating a crisis in the supply to legitimate distribution channels.
Artisanal products led sales in the nutrition staples market with just over 60% of sales. This is largely
due to the fact that they are substantially cheaper than packaged products and therefore appeal to the
large lower income population.
Multinational Corporate Presence in Egypt:
Kraft Cadbury Schweppes Plc is the market leader with almost 13% of the Middle East market. The
company?s Egyptian operation, known as Kraft Cadbury Egypt Group, is the leading manufacturer of
chocolate (Cadbury Dairy Milk, Moro, Allora, Gersy, Mandolin, Kraft brands), sugar confectionery
(Jelly Cola, Jelly Juice, and Jelly Mix), and gum (Chiclets, Hearty, Trident, Adams, Blox) in Egypt.
Now with over 80 confectionery product offerings, the company has a stronghold in the Middle East
with a particular presence in Egypt, where the corporate giant has almost 50% of market share for
Mars Inc has a regional office in Egypt. In the Middle East, the company has gained significant brand
recognition with its Snickers®, Mars®, M&M®, Twix®, Bounty®, Skittles®, and Galaxy® brands.
With more than USD 3 Billion sales in 2010-2011.
Other major multinational companies with sizeable sales in Egypt include Nestle, Unilever and Perfetti
Van Melle Group among others. Together, these four multinational companies account for 10.2% of the
retail market in the Middle East and they compete intensely for additional sales.
Most Middle Eastern markets rely on imports to meet their demand and the confectionery market is
poised for growth in the years to come. Increased competition from local producers and foreign
suppliers is anticipated. European producers are the main source of competition to the American
companies at least when it comes to imports. This is particularly true within the chocolate segment since
developed countries, like those within the EU, tend to be mature markets for confectionery, growth will
come from markets such as Egypt.
Most exports come from Italy, Spain, Germany, and Belgium. Companies from the EU have strong
brand recognition and are associated with premium quality and product innovation. Although U.S.
products are perceived to be of high quality, awareness of U.S. brands other than industry leaders like
Wrigley or Hershey is relatively low. Some traders have also reported that consumers simply prefer the
taste of European products over competing American, especially for chocolate because it is considered
smoother and more sugary.
Sugar-free and nutritional candy is a developing sector in the Middle East. Low sugar or sugar substitute
candies using Maltitol are now being imported and are gaining popularity in the Egyptian market as
consumers become more health conscious.
Dubai Silicon Oasis (HQ)
Tel: +971 4 372 4363
*Noozz.com Business Analysts
40 Grosvenor Gardens,
London, United Kingdom,
*The Daily News, Egypt
Cadbury Egypt Food Ind.
Mr. Gawad Abaza, Managing Director
10th Ramadan City 2, B2, Sharkeyah, Egypt
Mars Egypt Industries Factory
6th October Industries City, 3rd Area, Giza, Egypt
(Manufactures Chocolate, Candies, & Gum)
10th of Ramadan Industry Area A2
Tel: 0 15 364755 ? 360370
Horriyah 2000 (Chocolate & Sweets)
Mr. Hassan Fendi, Chairman
14 Shobra St., Cairo, Egypt
Tel: 0 2 25761743 ? 25771591
Kraft Foods Misr Trading
(Importer & Distributor of Kraft Products)
Cairo Tel: 0 2 26966200
Mr. Ayman Shaheen
Elnahada Ean Elvreibbor, Port Said, Egypt
Tel: 0 66 3355515