A Bright Future for the Food and Beverage Industry in Egypt and Africa
Africa’s Share of the Global Food Market to double by 2050
$519 Billion Expected Food Spending in Africa by 2028
$26.8 Billion Value of Non-Alcoholic Beverage Trade with a Projected Growth Rate of 6.7%
$89.5 Billion Size of Egypt’s Food Market in 2024
16.8% Projected Growth Rate in the Egyptian Market over the Next Four Years
Local Investment: The Key to Success in Egypt and Africa
The food and beverage industry in Africa and Egypt has seen remarkable development in recent years, as markets across the continent embrace new trends aligned with population growth, urbanization, and economic shifts. These transformations are reflected in the expanding middle class and increased demand for premium food products.
International reports predict that Africa’s share of the global food market will double by 2050, with the continent experiencing significant growth in the food sector, driven by demographic shifts, urbanization, and rising incomes.
According to the Food and Agriculture Organization (FAO), half of Africa’s population, which exceeds 1.4 billion people, will be urban dwellers by 2050. This demographic shift is playing a major role in changing consumer preferences and driving demand for a wider variety of food products, including ready-to-eat meals and packaged foods.
Regarding spending, food expenditure in Africa is expected to reach $519 billion by 2028, with an annual growth rate of 7%. Meanwhile, non-alcoholic beverage market growth is expected to reach 6.7%, totaling $26.8 billion by the same year.
Egypt’s food market saw a 35% growth in 2024, reaching EGP 4.0 trillion (equivalent to $89.5 billion). The report predicts that food spending in Egypt will continue to grow at an average annual rate of 16.8%, reaching $125.4 billion by 2028.
With inflation rising in the country, significant changes are anticipated in food spending patterns. Expenditures on basic goods such as bread and oils are expected to rise, while consumer preferences in major cities like Cairo and Alexandria will increasingly lean toward ready-to-eat and packaged foods.
Despite the vast opportunities, both the African and Egyptian markets face challenges such as inflation and economic fluctuations, which impact consumer spending behaviors. A heavy reliance on imported goods is contributing to price increases, prompting African governments to take steps to boost local production and reduce imports.
Through the African Continental Free Trade Area (AfCFTA) initiative, African governments aim to facilitate intra-continental trade by reducing tariffs by up to 90% on agricultural products. This will support trade flows between African countries and encourage local investments in the food industry.
The Digital Future of Trade
On another front, the increasing adoption of digital trade is driving notable growth in both the African and Egyptian markets. In Egypt, the e-commerce sector is developing rapidly, especially in the food sector, with a growing shift of consumers toward online shopping solutions, reflecting global trends in this area.
Across Africa, mobile commerce is experiencing accelerated growth, with consumers increasingly relying on digital payment services. This growth is enhancing access to food products and opening new investment opportunities in the market.
With growing economic challenges in both the Egyptian and African markets, investing in local manufacturing remains one of the best strategic options for international companies looking to enter these markets. Local manufacturing helps companies avoid high import duties and offers more cost stability while aligning with the preferences of local consumers who favor locally produced goods.
The Egyptian government offers numerous tax incentives and customs exemptions to encourage companies to boost local production. Local manufacturing also strengthens the economy, contributes to job creation, and supports sustainable development in the country.
In a report published by Informa Egypt, the international study emphasized that a bright future for the food and beverage industry in Egypt and Africa requires a collaborative effort between the public and private sectors to enhance local production, innovate products, and expand digital channels to meet the growing needs of consumers. While the continent faces economic challenges, the vast opportunities presented by urbanization, population growth, and rising incomes provide an ideal environment for investment and sustainable growth in this sector.
