Market Trends of Egypt Flexible Packaging Industry
This section covers the major market trends shaping the Egypt Flexible Packaging Market according to our research experts:
Growing Demand from Food Industry
- A significant increase in demand for bottled milk, frozen semi-prepared foods, and portable snacks has been witnessed. Additionally, food sales in this nation have increased due to the pandemic's alteration of consumer tastes and the need for flexible packaging due to health concerns.
- The COVID-19 pandemic across the country has resulted in a new transformation in Cairo's and Egypt's e-commerce segment. As a result of the pandemic, the closure of malls has changed the logistics landscape in Egypt. Consumers have shifted their preferences toward e-commerce; therefore, the e-commerce sector is striving to keep up with the rising demand for online shopping.
- Moreover, owing to the rising export of food and agricultural products, the government focuses on capturing opportunities that benefit the agriculture sector. According to the Minister of Planning and Economic Development, Egypt aims to increase its agriculture sector's gross domestic product (GDP) contribution to 12% by 2024 and increase agricultural production by 30% by 2024.
- Egypt is one of the prominent exporters of fruits and vegetables. According to the Ministry of Agriculture and Land Reclamation, Egypt's agricultural exports amounted to about 5.2 million tonnes from January to November 2021, recording an increase of around 600 tonnes from the same period in 2020. This growth in export activities witnessed the demand for flexible packaging.
- Further, according to a USDA report, the top consumer goods imported in 2021 by Egypt were beef and beef products, dairy products, spices, fresh fruits, tea, chocolate and cocoa products, tree nuts, soups and other meal preparations, fresh vegetables, chicken meat and products, and tree nuts (ex. eggs). The top suppliers were India, which contributed USD 692 million (18% of total share), Brazil, which contributed USD 324 million (9%), the United States, which contributed USD 243 million (6%); Kenya, which contributed USD 202 million (5%) the Netherlands, which contributed USD 163 million (4%) and Italy, which contributed USD 159 million (4%). The significant import of food products may create opportunities for several flexible packaging vendors.
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Bags and Pouches Segment Expected to Hold Significant Market Share
- Consumers have shown more preference for retail products, such as general merchandise, fabrics, apparel, and other accessories, besides food and beverages. Food and beverage retail products are expected to have a positive outlook with the fast-paced lifestyle of the people. The food and beverage end-use sector expects high demand for paper bags.
- Egypt is witnessing positive volume sales growth across packaged food as population growth continues to underpin rising sales across the country. All these factors are collectively expected to drive the consumption of consumer products that require bags for packaging. Furthermore, expanding new retail stores and outlets is estimated to augment the demand for plastic bags in the next few years.
- In addition, retail stores and brands majorly print their brand name along with promotional and marketing messages on the plastic bags. Increasing the use of bags as a low-cost marketing tool is anticipated to fuel the demand for the bags in the market in the coming years.
- Several initiatives by the government in the country are expected to positively impact the demand for paper bags. For instance, in August 2022, the government of Egypt targeted the reduction of the annual consumption of single-use plastic bags to 100 bags per capita by 2025 and 50 by 2030.
- Further, according to ITC data, in 2021, the imports of plastics and articles in Egypt were recorded at around USD 4093.208 million, a 37.42% increase in the value from the previous year, 2020, which recorded about USD 2978.579 million. Such a rise in imports may increase the adoption of flexible packaging in the country.
