Although Egypt's economic and political risk profile may deteriorate in the short term, this does not take away from the fact that there are huge opportunities on the consumer side. Egypt is without question the most exciting domestic demand story in the Middle East and North Africa, in our opinion. Taking account of its huge population (over 80mn) and the fact that there is so much room for incomes to rise, multinational companies with exposure are bumping up investment spending. As incomes rise over the next few years, Egyptians are going to spend more and more on fast-moving consumer goods, with particularly exciting opportunities emerging at the mass market level.
Headline Industry Data (local currency)
?? 2011 per capita food consumption +4.6%; forecast to 2015 +55.9%
?? 2011 carbonated drink sales +9.5%; forecast to 2015 +73.0%
?? 2011 mass grocery retail sales +14.9%; forecast to 2015 +251.9%
Key Company Trends
Nestlé Increases Investment in Egypt – Swiss food giant Nestlé has recently announced plans to invest CHF160mn in Egypt over the next three years. The move is in line with the firm’s strategy to increase sales revenue from emerging markets. Over the last decade the company has invested a total of CH170mn in the country. The focus is on increasing production in Egypt, the company’s only facility outside Europe for the production of Movenpick ice cream and a manufacturing base for products including Cerelac infant cereal and Maggi soups and bouillons.
Makro Exports Egyptian Produce – In summer 2011, as part of a global initiative undertaken by parent company Metro Cash & Carry, Makro Egypt announced the launch of its own export programme to support local farmers and manufacturers to export to Metro Group countries. In the first year of the programme, the retailer will start with the export of around 500 tonnes of grapes before expanding its focus to other fresh produce. It is expected that these exports will generate revenues of EGP42.8mn in total. Once that target has been achieved, a fully fledged Metro Trading Office will be established, and Makro expects that revenues from Egypt's exported produce will increase substantially in future years.
Key Risks to Outlook
Regulatory Environment – Egypt's regulatory environment remains a concern. Infrastructure continues to misfire and internal trade systems remain weak, which contribute to Egypt being a high-cost market. For the time being, wide income inequalities will also continue to limit the scope of return on investment.
Political Unrest – In addition, a resumption of large-scale protests on the same scale as witnessed in early 2011 would do further harm to the country's all-important tourism sector, and hold back the economy's growth potential in the process.
[Studien Infos ausblenden]

BMI Industry View . 5
SWOT Analysis 7
Egypt Food Industry SWOT . 7
Egypt Drink Industry SWOT 8
Egypt Mass Grocery Retail Industry SWOT . 9
Business Environment 10
BMI’s Core Global Industry Views .. 10
Table: BMI Food And Drink Core Views 15
Middle East Food And Drink Business Environment Ratings . 16
Table: Middle East & North Africa Food & Drink Risk/Reward Ratings Q311 .. 19
Egypt Food And Drink Business Environment Rating.. 20
Macroeconomic Outlook 21
Table: Egypt - Economic Activity, 2006-2015.. 23
Industry Forecast Scenario 24
Consumer Outlook 24
Food. 27
Food Consumption . 27
Table: Food Consumption Indicators .. 27
Drinks . 28
Alcoholic Drinks . 28
Beer .. 28
Table: Beer Sales 28
Soft Drinks . 29
Table: Soft DrinksSales 30
Mass Grocery Retail 30
Table: Mass Grocery Retail Sales .. 31
Table: Grocery Retail Sales By Format (%) – Historical Data And Forecasts . 31
Trade .. 32
Table: Sectoral Trade .. 33
Food . 34
Key Industry Trends And Developments 34
Nestlé Increases Investment in Egypt 34
Juhayna Set for Growth .. 34
Multinational Interest Growing .. 35
Domestic Companies Pursuing Local Expansion 36
Domestic Companies Also Interested in Overseas Collaborations . 36
Western Restaurants Prompt Casual Dining Expansion . 37
Market Overview .. 38
Food Processing . 38
Trade 39
Agriculture . 39
Dairy Industry .. 40
Sugar Processing Industry . 41
Halal Food . 41
Drink 43
Key Industry Trends And Developments 43
Cutting Down Tourism Reliance In Alcohol Sales . 43
Multinational Interest Growing .. 44
Market Overview .. 44
Alcoholic Drinks . 44
Soft Drinks . 44
Hot Drinks . 45
Mass Grocery Retail .. 47
Key Industry Trends And Developments 47
Investment Interest Growing Slowly . 47
Supply Chain Boost 47
Carrefour MAF Continues Expanding . 48
Makro Looks to Export Egyptian Produce . 48
Market Overview .. 49
Leading Retailers 49
Competitive Landscape .. 51
Table: Key Players in Egypt's Food & Drink Sector. 51
Table: Key Players In Egypt's Mass Grocery Retail Industry 52
Company Analysis . 53
Food. 53
Cairo Poultry Company (CPC) 53
Faragalla 54
Cadbury Schweppes (BimBim) . 55
Drink 56
Al-Ahram Beverages Co (ABC) .. 56
Egypt Bottling Company (Pepsi) . 57
Mass Grocery Retail 58
Metro (Mansour Group) . 58
Carrefour MAF 59
BMI Food And Drink Methodology 60
Food And Drink Business Environment Ratings 60
Table: Rewards 61
Table: Risks .. 62
Weighting .. 62
Table: Weighting 63
BMI Food And Drink Industry Glossary . 64
Food And Drink .. 64
Mass Grocery Retail . 64
BMI Food And Drink Forecasting And Sourcing .. 66
How We Generate Our Industry Forecasts 66
Sourcing .. 67
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