Insight into Egypt's Food Packaging and Rubber and Plastic Machinery
Market News

Insight into Egypt's Food Packaging and Rubber and Plastic Machinery

Egypt is a major industrial country in North Africa, with a population of more than 100 million in 2020, an economic growth rate of 5.6% in 2019, a gross domestic product of US$280 billion, an average per capita national income of US$2,795, and an industrial growth rate of 1.8%.
Published: Feb 14, 2022
Insight into Egypt's Food Packaging and Rubber and Plastic Machinery

Egypt Packaging Industry Scale:

Egyptian packaging industry includes paper containers, packaging factory equipment, automatic filling, sealing and weighing machines, printing machines, tapes, plastic molds and pallets, transportation, warehousing and logistics, food and pharmaceutical packaging machines, bag making machines, material control equipment, vacuum packaging machines, conveyor belts, telescopic film packaging machines, and other industries have high market potential. According to the African Economic Outlook Report, the average economic growth rate in 2019 reached 4%, making it the fastest-growing region outside Asia. The economic growth rate of Africa also reached 4.1% in 2020.

Egypt imports large amounts of food packaging and rubber and plastic machinery, machinery for filling, capping, sealing, encapsulating or labeling bottles, cans, boxes, boxes or other containers, and machinery for gas injection of beverages. The top five countries exporting to Egypt in 2020 were Germany, Italy, France, China, and the United States. In terms of machines for packing and packaging, the top five countries exporting to Egypt in 2020 were Italy, Germany, China, Belgium, and Turkey.

In contrast, for imports of rubber and plastic machinery, machines used for rubber or plastic processing, or for the production of products made of these materials, the top five countries exporting to Egypt in 2020 were China, Germany, Italy, Austria, and Canada.

In 2020, the items exported to the Egyptian market from Italy, Germany, France, China, and Turkey were mainly food packaging machinery items. Compared with 2019, the import value of packaging machinery dropped by nearly 30%. Vegetable and food processing equipment produced in Egypt accounts for about 8% of the market, mainly for accessories, packaging, and filling machinery for the sugar and bakery industries. According to the free trade agreement signed by the Egyptian government, the zero-tariff rate of all products imported from the EU to Egypt enables the Egyptian government to continue to promote industrialization and export expansion. In addition to the zero-tariff rate stipulated by the EU, other countries that import to Egypt have a tariff of 5%.

Egypt Packaging Market Development:

Italy has become the preferred food packaging machinery supplier in the Egyptian market. The main reasons include: excellent quality and performance, high-tech oriented, easy to use, cheaper than machinery from other European countries, affordable prices and easy to obtain components, and a zero-tariff on imports from the EU.  Competition among local importers in Egypt is also very fierce, mainly focusing on after-sales maintenance services to attract more buyers' attention. However, local importers are also facing competition from local machinery manufacturers in Egypt, who choose to use components from Europe, China, or Taiwan. Locally manufactured machinery can be 30% to 40% cheaper than imported machinery, thereby attracting price-sensitive food packaging machinery buyers. Buyers prefer food packaging machinery that can handle different packaging materials and sizes. They pay close attention to price and quality, and also the ease of finding relevant components in the market.

Potential buyers of food packaging machinery in Egypt can be divided into:
  • Importers who import food packaging machinery from different countries and sell to local factories in Egypt.
  • Importers who import food packaging machinery from different countries and sell to local factories in Egypt.
  • New food processing plants that buy new production lines and packaging machinery from importers.
The purchasing behavior of potential buyers is mainly divided into:
  • Buyers with rich experience in food packaging machinery should submit the order to be purchased to the local machinery importer, and specify the detailed specifications and origin of the required machinery.
  • Buyers without experience in the food packaging industry turn to suppliers for assistance and advice, and at the same time require suppliers to provide relevant training in the use of machines.

Egypt Packaging Industry Exhibition:

When entering the Egyptian market, participating in local benchmark exhibitions is indispensable. Food Africa held in Cairo, the largest international food trade exhibition in Africa, with a fucus on the food industry and agricultural production, is an excellent starting place. This exhibition will combine innovative forms of display, social networking, and matchmaking to create a unique platform to enter the Egyptian market and understand the rapidly developing agricultural production in Africa. It is an excellent way to access and develop the Egyptian and African markets. In addition, the International Rubber and Plastics Industry Exhibition (PLASTEX) held in Cairo attracts buyers from Egypt, the Middle East, and Africa, as well as international and local leading rubber and plastics manufacturers and distributors. Suppliers of raw materials, components, machinery and technology, semi-finished products, terminal application products, etc. participate at this exhibition. It attracts more than 22,000 people from Egypt, Algeria, Morocco, Tunisia, Libya, Sudan, Kenya, Tanzania, Ethiopia, Saudi Arabia, and the United Arab Emirates, with many professionals and purchasing decision-makers participating in the event.

With a total population of over one hundred million, "eating" is a major event and basic daily necessity for the citizens of Egypt. Therefore, related business opportunities include food production of packaging materials and equipment, and manufacturers from various countries are competing to enter the Egyptian market. Due to the vigorous development of the local food industry in Egypt, there are more than 7,000 local food manufacturing companies. Related production of packaged foods has also grown in large numbers. Many international manufacturers are optimistic about the huge business opportunities in Egypt's food packaging materials and equipment industry and many have developed and operated in the Egyptian market. Under fierce competition from European countries and Chinese machinery manufacturers, Chinese manufacturers who were uncompetitive in quality in the past are now gradually introducing quality products that meet international standards, making food manufacturers who originally only considered buying European machinery and equipment brands began to express interest in Chinese manufacturers. Therefore, if Taiwanese manufacturers can actively promote the advantages of Taiwanese equipment to the Egyptian market, and provide products with competitive prices, coupled with immediate after-sales service, they will attract the favor of potential buyers in Egypt.

The development focus of the packaging industry in the future:

High-end technology products are the focus of competition in the development of food packaging machinery. Currently, high-tech products widely used in food and packaging machinery have the basic characteristics of high intelligence and high efficiency. Due to the continuous application of various high and new technologies, the development of food and packaging machinery in various countries has been greatly promoted. Continuous production has replaced intermittent production, specialized production has replaced generalized production, large-scale production has replaced the small and medium-sized production, and the whole-process quality control has replaced the quality control of the final product, etc. These technological breakthroughs have played a very positive role in the food packaging industry, driving the large-scale growth of the industry.

Published by Feb 14, 2022 Source :taiwantrade

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