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Egypt Glass Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Egypt Glass Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • March 2021
  • 78 pages
  • ID: 6036743
  • Format: PDF
  • Mordor Intelligence LLP

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The Egyptian Glass Packaging Market was valued at USD 49.21 million in 2020, and it is expected to reach USD 95.92 million by 2026, registering a CAGR of 12.22%, during 2021-2026. With the COVID-19 outbreak, the Egyptian glass packaging market is expected to witness impeded growth, as the country’s food and beverage sector faces a major setback due to supply chain disruption and partial lockdown being imposed to curb the spread of the pandemic. As per the Chairperson of the Food Export Council Egypt, the country’s food export may decrease by 30% due to the ongoing pandemic.

- Egypt is the most populated country in the MENA region, with a population of 99.2 million, and it has one of the largest economies in Africa. According to the IMF, the GDP of the country is expected to reach USD 1496.43 billion in 2020, from USD 854.05 billion in 2010. The increasing population, increasing disposable income, and changing lifestyle in the country are driving the growth of the market studied.
- Egypt’s membership of COMESA regional economic bloc, along with its strategic location linking the Asia and EMEA, makes the country the gateway to the East and North African markets, with favorable trade agreements. This factor makes the country a significant importer and exporters of several products, such as food, beverages, cosmetics, and pharmaceuticals.
- Furthermore, there is scope for substantial growth across Egypt’s soft drinks sector. With approximately 90% of the population practicing the Islamic religion, the alcohol industry is very marginal. However, the country witnessed significant adoption of soft drinks. According to Social Bakers, the popular soft drinks in Egypt are Coca-Cola, followed by Fayrouz, 7UP, and Beyti Tropicana.
- Additionally, the country’s cosmetic industry is growing, due to changes in lifestyle and an increase in the use of cosmetics to enhance the overall appearance. The increasing demand from the cosmetic sector is also driving the need for the glass packaging. According to Cosmetics Business, the market value for nail cosmetic products grew by 17.8% in 2019 in Egypt.

Key Market Trends
Glass Jars are expected to Register a Significant Growth

- Glass Jar is among the most preferred packaging material for packaging food and beverages as it preserves food and beverages for a long term and avoids contamination. The ability of glass jars in preserving the aroma and flavor of the product is driving the demand.
- Therefore, most of the restaurant are using mason glass jars to serve pudding, cold coffee, ice-cream, dessert, etc. as they are attractive, easy to wash and reusable. Also, due to rise in environment awareness among customers is also forcing food manufactures to reconsider their packaging. For instance, Cairo Fresh Basket offers fruits and vegetable salad in eco-friendly baskets and jars.
- As in the country, species are prominent part of food culture therefore, most the people utilize glass jars to store variety of species and herbs as they are transparent therefore easy to locate and non-reactive in nature.
- Many vendors in the market are modernizing their manufacturing plants by switching to advanced tools and production infrastructure to meet the needs of its quality conscious customers.
- For instance, Arab Pharmaceutical Glass Co., has upgraded its manufacturing plants by switching to electronically controlled glass melting furnaces, six automated production lines, electronically controlled state-of-the-art forming machines and inspection machines. It offers glass jars to pharmaceutical companies such as Gsk, Aventis Pharma, MEPACO, Novartis Pharmaceuticals, etc.

Beverage Industry Expected to Exhibit Significant Adoption

- Milk is the most preferred dairy product across Egypt. Furthermore, the high content of moisture and minerals in milk makes it very challenging for vendors to store it for an extended period. This is one of the significant reasons for milk being traded as milk powder or processed milk. With the current milk processing technology, fluid milk packed in a bottle has a shelf-life between 10 and 21 days when stored at 4-8°C. With the advent of processes, like UP and UHT, the shelf life of packaged milk has been further extended up to a year without refrigeration. ?
- The trend of on-the-go consumption, the convenience of the smooth pour, the appealing packaging quality, and health awareness showcased by beverage companies have augmented the demand for beverage products packaging. ?Nowadays, the primary factor behind expanding the sales of dairy products is the different forms of packaging available. Earlier, milk was available only in gable-topped cartons. At present, milk is delivered in portable, brand-friendly glass bottles, which is an attractive option for increasingly busy consumers.?
- In June 2020, Tetra Pak launched a new, first-of-its-kind low-energy processing line for juice, nectar, and still drinks (JNSD) to take beverage processing to a new level of efficiency. It uses a combination of Pasteurization, Filtration, and UV Light technology to treat beverages in two separate streams, which are aseptically blended into the final beverage.

Competitive Landscape
The Egypt Packaging Market is fragmented with few firms operating in the market space. The companies continue to innovate and enter into stragtegic partnership in order to maintain their market position or share.

- February 2021 - The brand Company launched a glass bottle packaging in Egypt for freshly squeezed Juice for a company named Grocer.

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