The soft drinks market in Egypt currently holds opportunity for the entrance of more international brands. With a population over the 80 million people, the market is capable of absorbing more brands and for highend products and health drinks distributed in international restaurants and cafés, which serve the upper class of youth.
Carbonates remain a popular soft drink type that Egyptians demand. These products are perceived to aid digestion and are consumed with or after meals. In addition, hot summer seasons in Egypt make carbonates a preferred beverage for people seeking cool refreshments. Other non-cola carbonates perform well in the local market.
As Egyptian consumers become more health conscious and concerned about their daily diet, the demand for other non-cola carbonates shows signs of growth. These products do not include caffeine, also used to aid digestion. The lifestyles of consumers in Egypt are becoming increasingly Westernized, and this trend continues to boost sales of carbonates.
The consumption of food and drink generally, including carbonates, is increasing due to growing interest in outdoor socializing in addition to the rise in international tourist traffic.
The rising trend of eating-out and/or take-away sandwiches through foodservice increased sales of carbonates.
Carbonates are considered the best match for fast food meals as they aid quick digestion. The main chained foodservice brands such as KFC and Pizza Hut have exclusive supply contracts with either Coca-Cola Egypt or Pepsi-Cola Egypt. Carbonates are consumed by different consumer categories in Egypt, although different types are more popular among specific consumer groups. For example, low calorie cola carbonates more popular among females and some more health conscious young male consumers. On the other hand, non-cola carbonates such as orange carbonates and mixers are very popular with children, as parents try avoid giving them cola carbonates which contain caffeine. The increasing number of consumer foodservice options such as cafés and fast food chains will boost sales growth during the forecast period.
Finding a local distributor that can identify the right channels of distribution is a key success factor to build brand recognition in the Egyptian market. Displaying brands in premium shelf space in the different hyper/supermarket around Cairo and the North-cost areas are good entry methods to the market.
The U.S. Commercial Service can assist interested companies in identifying potential distributors in Egypt through our different services.