Food and Drink sector

An Expert's View about Food , Beverages and Tobacco in Egypt

Posted on: 29 Sep 2012

The food and drink market continues to provide new opportunities for foreign investors, due to its large size and the fact that the market is not yet saturated.

The Food and Drink sector in Egypt Egypt manufactures 5% of the market’s vegetable and food processing equipment. Mainly spare parts for the sugar milling industry, bakeries, packaging and filling machinery Market overview If you are looking to invest in Egypt, now is a time for assessing, performing due diligence, and looking closely at market developments in relation to your particular sector. Over the past years there has been an increase in the quality of goods including baked goods, cheeses, dairy products, beverages and bottled mineral water. Organic production has been very common in Egypt although few producers are up to international standards. Processed and packaged food products are largely consumed by middle-higher income consumers. However, the processed food industry could be increasing due to growing fears over food hygiene and safety. The beverage sector of Egypt is not yet saturated and is still open for new products in both soft and hot drinks. The market is capable of absorbing more brands. This could include high-end products and health drinks. There is an audience for these drinks in international restaurants and cafés, which serve the upper class of young people. Key opportunities ξ The food and drink market continues to provide new opportunities for foreign investors, due to its large size and the fact that the market is not yet saturated. Demand for packaged and convenience foods will continue to grow due to higher levels of rising disposable incomes among some consumer groups and ongoing health and hygiene fears. ξ Egypt could serve as a manufacturing hub for the Middle East and wider African markets as it is a member of the COMESA. ξ Egypt's dairy sector offers strong growth potential. Soft drinks and bottled water consumption is expected to rise. Non-alcoholic beers have proved to be very popular and continue to offer growth opportunities for brewers. ξ The main opportunities for UK companies in Egypt in this field would be to apply R&D programmes to solve waste problems in: ξ Poultry, meat processing and fruit vegetables sub-sectors. ξ Fruit and vegetable from the farm to retail which could reach 40 % ξ One other area which could be targeted is the supply of agro-industry processing equipment which includes sugar crushing and refining plants, edible oil crushing and refining equipment, meat processing equipment, cake and biscuit manufacturing lines, snacks, silos, slaughterhouses, and packaging equipment. There are opportunities in the post harvest technology and associated food processing. Egypt’s food processing and packaging industry is expected to boom during the coming years. The increase is due to Egypt’s rapidly growing population and the privatisation of the remaining public sector entities, specifically the edible oil processing companies and the government’s continues focus on increasing exports. Latest export opportunities in the Food and Drinks sector Latest export opportunities in Egypt Getting into the market Egypt is an attractive market that can offer major business opportunities to informed traders and investors. Trade and investment between the UK and Egypt is promising. However it is not always an easy market. A successful entry into Egypt will be determined by the quality of the information and advice upon which the decision to enter is based. Continued success is also dependent upon the ability to navigate the laws and practices of Egypt. The Egyptian market requires careful study and a sustained sales effort. There is strong competition from other exporting countries. Price and credit terms are a deciding factor when obtaining contracts, though quality is increasingly important. Back-up servicing facilities and the supply of spare parts is also important. Having a local partner can be vital to successful penetration of this market. There are several reasons for this. Firstly, given the continuing bureaucracy, a local partner can shepherd the foreign business through the delays and obstacles. Secondly, foreign companies require a local agent to bid for government tenders. Thirdly, as the Egyptian market becomes more sophisticated there is a growing demand for after sales service, which a local agent can convincingly provide. In general, British products and services are very highly regarded in Egypt for their quality. The main obstacle facing the growth of British involvement in the Egyptian market is that British products have a reputation as being expensive compared to some foreign products, though this has lessened slightly over the past year as exchange rate fluctuations have been in favour of UK exporters. British companies wishing to develop their business in the Egyptian market are advised to undertake as much market research and planning as possible in the UK. More about doing business in Egypt Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits through our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. J Marwa Hussein, British Embassy Cairo. Tel: + 202 2791 6000 or email: Gary Hunt, British Embassy Cairo. Tel: + 202 2791 6000 email: UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events in the Food and Drinks sector Major Events Agrena 2013. An Exhibition for Poultry, Animal Production & Fish Wealth Oils & Fats International 2013 International Conference and exhibition of the technology in grain industry & products 1-3 March 2013 From Agriculture to Retailing November 28-29, 2012 Conrad Cairo Hotel Useful links More about OMIS and other UKTI services for exporters
Posted: 29 September 2012

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