Egypt’s food market is booming

Egypt is one of the most populous countries in Africa and the Middle East with a population of around 100 million; the country’s population grows by about 2.5% annually. This also makes Egypt one of the world’s fastest growing markets for food and agricultural products, according to the USDA.

Egypt’s GDP in 2017 has an estimated value of about $193bn and is forecasted to reach around $251bn in 2018. The country has seen real GDP grow of 4.2% in 2017.

The average Egyptian consumer’s consumption of processed and manufactured foods has grown to reach $45bn in 2017, up from $32bn in 2008, reflecting around a 40% increase in less than a decade.

The USDA report forecasts that Egypt’s food processing and manufacturing sector will grow by 5% during the 2017-21 period in Egyptian pounds terms. The report forecasts that Egyptian processed and manufactured foods export sales will increase in the 2017-21 period, by around 4%.

With an estimated 5,200 food companies, Egypt’s food processors and manufacturers reportedly generated a turnover of $22.5 billion in calendar year 2017 (January-August), up nearly 55 percent by some estimates compared to the same period in 2016.

GROSS REVENUES OF FOODINDUSTRIES IN EGYPT

Egypt: HYPERMARKETS AND SUPERMARKETS SALES (MILLIONS)

Egypt: FOOD AND AGRICULTURAL PRODUCT SALES (EST.) BY SECTOR (2017)

Egypt: Number of Outlets by Category

Africa’s food and agricultural market to hit $1 Trillion by 2030

The continent’s food and agricultural market can reach the one-trillion-dollar mark in value by 2030, according to the President of the African Development Bank (AFDB), Akinwunmi Adesina. Household consumption will hit $2.5 trillion, with business-to-business expenditure at $3.5 trillion by 2025. Consumer spending in Africa is projected to reach $2.1 trillion by 2025. The continent’s population is projected to grow by 20% over the next eight years, with Africa’s youth making up 40% of the total.

African leaders have signed a Continental Free Trade Agreement as part of the ‘Integrate Africa’ project. According to Adesina, intra-trade in the continent will rise to 52% with this new agreement. The continental free trade area will stimulate intra-African trade by up to $35 billion per year, creating a 52% increase in trade by 2022.
The Egyptian exports to Africa increased by 17% in the first quarter of 2018 compared with the same period last year according to the Egyptian Minister of Trade and Industry.
Egyptian exports to Africa reached $901 million in the first quarter of this year compared to $745 million during the same period last year.

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