Food Processing Equipment in Egypt

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

Last updated: 23 Feb 2011

Overview

The 2010 food and drink market continues to provide new opportunities for foreign investors, due to its large size and currently remaining unsaturated. Demand for packaged and convenience foods will continue to grow due to higher levels of rising disposable incomes among some consumer groups and continued health and hygiene scares. A reduction in tariffs has enabled manufacturers to create good quality food and drink products at reasonable prices. With a population of 80 million, Egypt is the largest market in the Arab world. Additionally, a free trade zone between all Mediterranean states and the EU is expected to be in place by 2010. Egypt’s dairy sector offers strong opportunities, with low per capita dairy consumption in the region presently, but rising along with increased exposure. The government is also selling a number of its stateowned companies, many of which are good opportunities for foreign investors.

 

The tourism sector continues to grow; the restaurants and hotels sector grew by 13.3% in FY 06/07 and the number of visitors rose by 18.4% from last year to date. Egyptian exports increased by 23.3% and food consumption is expected to increase by 29.7% over the next five years to reach $44.58 billion in 2012, while per capita food consumption will grow to $527.9 billion. Growth will be driven by the spread of mass grocery retail outlets and exposure to western products and consumption methods. This should drive up average consumer spending at the supermarket among middle and upper income bracket consumers The 2009 Egyptian market for food processing and packaging equipment was valued at nearly $1,484 billion and is expected to grow at an annual rate of 25% over the next three years.

 

Egypt’s food processing and packaging equipment market is comprised of 95% imports and 5% domestic goods. The food processing and packaging equipment sector covers the following: flourmills and silos, sugar milling equipment; slaughterhouses, edible oil crushing and refineries; agro-industries (vegetable and fruit processing, dairy processing, beverages and meat processing), confectionery and snacks. The local market is very receptive to U.S. equipment because of its excellent reputation and perceived value.

 

One specific area U.S. firms can target 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 lines, snacks, silos, slaughterhouses, and packaging equipment.

 

The majority of the vegetable and food processing equipment are imports, mainly from Italy, Germany, Spain, U.K., USA, and Far East. The U.S. has a market share of 7%; however, it can further increase its share by appointing local agents, offering improved after-sales service, and pricing more competitively. 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.

 

Best Prospects/Services

• Sugar Mills

• Slaughter Houses

• Edible Oil

• Fruit and Vegetables processing

• Meat Processing

• Dairy Processing

• Confectionery

• Breweries

• Snacks

• Packaging Equipment

• Silos & Storage Facilities

 

Opportunities

Egypt’s food processing and packaging industry is expected to see substantial growth during the next three years. The increase is due to Egypt’s rapidly growing population reaching 85 million and its growth of 1.2 million annually. Other factors spurring this industry growth are the privatization of the remaining public sector entities specifically the edible oil processing companies and the government’s continued focus on increasing exports. These changes will require the acquisition of world-class food processing and packaging equipment.

 

 

Read the full market research report


Posted: 08 June 2010, last updated 23 February 2011

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