Edita is active across Egypt and has grown a healthy export business in the face of a particularly tough regional climate. With the 2013 acquisition of HTT brands in Egypt, Libya, Jordan and Palestine, Edita greatly expanded its footprint. This was further built on in 2015 with the expansion of Edita’s agreement with HTT to include 12 additional MENA countries, namely Morocco, Algeria, Tunisia, Syria, Lebanon, Iraq, Bahrain, Oman, the UAE, Kuwait, Qatar and Saudi Arabia. Under the agreement Edita also acquired the right to manufacture and market 11 other Hostess Brands on a regional basis.
Edita has a footprint that includes all Egyptian governorates, either directly through the company’s wholly owned branches or indirectly through wholesalers and retailers, as well as exports to Iraq, Libya, Jordan, the West Bank, Palestine, Syria, Yemen, Oman, Tanzania, Saudi Arabia, Kuwait, Kenya, Morocco, Tunisia, Albania and Lebanon. The Middle East is the company’s main focus for exports, given its geographical proximity and cultural affinity with Egypt. The company relies on local distributors for the export business and deals with them on a cash-in-advance basis to mitigate the high risk profile of the key export destinations. The company provides considerable support for its distributors in its key export markets (marketing support) and accordingly has been able to garner considerable market share in several product categories in Jordan, Syria, Libya and Iraq.
The Egyptian Snack Food Market
Egypt offers a strong market proposition, with a large addressable market and a favorable backdrop for affordable snacks consumption. The market grew at a CAGR of 27.1% from 2010 to 2015, and management sees considerable opportunity for further growth on the back of improving spending power in the Arab world’s largest consumer market and economic recovery, as well as robust demographic trends and changing lifestyles and consumer habits in Egypt and the wider MENA region which continue to boost demand for packaged snack food products.
Egypt has a population of 92 million people, the largest in the MENA region
Egypt’s population grew at a CAGR of 2.7% from 2010-2015
More than half of Egyptians are under the age of 24, a prime snack-consumption age
Egypt’s consumers are famously price sensitive, placing Edita in a prime position with our products
Our convenient, individually wrapped packages are ideal meal-replacement options that are popular with a young, fast-paced society that is trending towards on-the-go consumption
The price points suitable for target consumers is EGP 0.5 to 3, well within Edita’s range
Egypt’s snack food market grew at a CAGR of 27% between 2010 and 2015
Edita holds a 12% share of Egypt’s EGP 17.5 billion snack foods market as of FY2015, the second largest in Egypt
Key Market Dynamics
The domestic market’s underdeveloped nature implies the dominance of traditional sales channels and the prevalence of affordable products, dictating food & beverage companies’ product / SKU offerings.
The majority of Egyptians are urban-dwelling, low- and middle-income consumers with vibrant but price-sensitive consumption patterns. Rapid urbanization has seen income levels rise and buying habits change. Today, most consumers consider snacking to be a pastime to alleviate boredom, a social habit while out with friends or a way to satisfy hunger pangs during a busy day. Consumption patterns are therefore characterized by multiple brand consumption, monthly consumption of at least 10 snack segments and in most cases a lack of brand or category loyalty. With consumption habits being somewhat impulse in nature, this translates into the bulk of sales being through traditional sales outlets (small grocers, kiosks, etc.) owing to immediate proximity and convenience, rather than being part of planned grocery shopping from larger outlets.
- Price consciousness skews demand towards affordable products, with a prevalence of single-serve SKUs in the EGP 0.5 – 3.0 price range.
- Heavily populated urban areas are easily accessible, but the country is also characterized by remote village settlements that are out of the reach of modern trade channels.
- Families living on strict budgets cannot do all of their shopping at one time, leading to frequent purchasing.
- Underdeveloped infrastructure networks limit mass shopping potential.
An affordable and diverse product portfolio and effective distribution platform with a wide geographic reach is the key to succeeding in the Egyptian market.
*All figures on this page are sourced from the IMF, CIA World Factbook, AC Nielsen Retail Audit, IPSOS.