Overview

  
(Exchange rate used: 1 USD = LE 5.50.  Values are in millions of U.S. Dollars.  Figures listed are unofficial estimates.)

The 2008 Egyptian market for food processing and packaging equipment was valued at nearly $1187 million 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 the 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 Products/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 boom during the next three years.  The increase is due to Egypt’s rapidly growing population and the privatization of the remaining public sector entities, specifically the edible oil processing companies and the governments continued focus on increasing exports. 

Resources

• (Commercial Service in Egypt:  http://www.buyusa.gov/egypt/en/
• U.S. Embassy:  http://usembassy.egnet.net
• USAID:  http://www.usaid-eg.org/
• World Bank:  http://www.worldbank.org/
• American Chamber of Commerce in Egypt:  http://www.amcham.org.eg
• Egyptian Government Web Portal:  http://www.egypt.gov.eg/english/

Contact for the Commercial Specialist in charge of the Food Processing Equipment Sector:  Heba Abdel-Aziz, heba.abdel-aziz@N0SPAM.mail.doc.gov