Egypt continues to face significant economic challenges in 2023 led by soaring inflation, a devalued currency and difficulty obtaining foreign currency. Importers are facing major challenges as they struggle to pay import shipments, which has led to fluctuations in the supply of tea and coffee.
Price sensitivity has escalated in 2023 and this is a challenge for hot drinks, which have become less affordable for many consumers in Egypt. As tea and coffee are basic commodities and widely consumed in Egypt, there has been various outcomes from the increase in prices.
Badawy & Sons Co has retained its commanding lead in hot drinks in Egypt in retail value sales terms in 2023 due to the dominant position of its El Arosa brand in tea, which is by far the largest of the main categories. Nestlé Egypt SAE, the top competitor in coffee thanks to the combined strength of its Nescafé and Nespresso brands, has remained the second ranked company overall, followed by Unilever Group, El Jawhara Co and Fawzy El Banan Co.
Small local grocers has remained the leading retail distribution channel for hot drinks in Egypt in volume sales terms in 2023, followed by supermarkets, food/drink/tobacco specialists and hypermarkets. In keeping with the trend observed over most of the review period, the market volume share of small local grocers is set to decline from 2023.
The year 2023 continues to witness the launch of many new commercial complexes and areas in Egypt, alongside new coffee shop concepts, mostly in New Cairo and 6th of October City, especially Sheikh Zayed. This is directly affecting on-trade sales of hot drinks, but is also having a positive effect on off-trade sales as leading supermarkets and hypermarkets continue to launch new branches within these complexes.
Over the forecast period, hot drinks is expected to grow at a steady pace in volume and constant value terms in Egypt, with coffee and tea showing much resilience in the face of further economic uncertainty. Population growth and traditional consumption habits will continue to buoy retail demand across the market, as will new launches, improvements in distribution and marketing activities.
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Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Egypt with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
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