Soft Drinks - Egypt

The Soft Drinks market in Egypt has been experiencing significant growth in recent years, driven by changing consumer preferences, emerging trends, and local special circumstances. Customer preferences in the Soft Drinks market in Egypt have been shifting towards healthier options, with a growing demand for low-sugar and natural beverages. This trend is in line with global market preferences, as consumers worldwide are becoming more health-conscious and seeking alternatives to traditional sugary drinks. In response to this demand, soft drink manufacturers in Egypt have been introducing a variety of healthier options, including low-calorie and natural fruit-based beverages. One of the key trends in the Soft Drinks market in Egypt is the popularity of local and traditional flavors. Egyptian consumers have a strong affinity for traditional flavors such as hibiscus, tamarind, and carob, which are often used in local beverages. Soft drink manufacturers in Egypt have been capitalizing on this trend by incorporating these flavors into their product offerings, appealing to the local taste preferences and cultural heritage. Another trend in the market is the growing popularity of functional beverages. Functional beverages are drinks that provide additional health benefits beyond basic nutrition, such as energy-boosting or immune-boosting properties. Egyptian consumers are increasingly seeking out functional beverages that offer specific health benefits, such as enhanced hydration, improved digestion, or increased energy levels. Soft drink manufacturers in Egypt have been responding to this trend by introducing a range of functional beverages, including sports drinks, vitamin-infused waters, and herbal teas. Local special circumstances also play a role in the development of the Soft Drinks market in Egypt. The country has a large and growing population, with a significant youth demographic. This young population is driving demand for soft drinks, as they are more likely to consume these beverages as part of their daily routines and social activities. Additionally, Egypt has a hot climate, which further contributes to the demand for refreshing soft drinks. Underlying macroeconomic factors also influence the Soft Drinks market in Egypt. The country has been experiencing steady economic growth, which has led to an increase in disposable incomes and improved standards of living. As a result, consumers have more purchasing power and are able to spend more on non-essential items such as soft drinks. This economic growth has also attracted foreign investment in the soft drink industry, leading to increased competition and product innovation. In conclusion, the Soft Drinks market in Egypt is developing in response to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The market is witnessing a shift towards healthier options, a preference for local and traditional flavors, and a growing demand for functional beverages. These trends are driven by a young population, a hot climate, and increasing disposable incomes. Soft drink manufacturers in Egypt are adapting to these trends by introducing new products and flavors, catering to the evolving needs and preferences of Egyptian consumers.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.