Beer - Egypt

The Beer market in Egypt has been experiencing significant growth in recent years.

Customer preferences: Egyptian consumers have shown a growing interest in beer, with an increasing number of people choosing it as their preferred alcoholic beverage. This shift in consumer preferences can be attributed to several factors. Firstly, beer is seen as a more affordable option compared to other alcoholic beverages such as wine or spirits. Additionally, the younger generation in Egypt is becoming more open to trying new products and experimenting with different flavors, which has contributed to the rising popularity of beer.

Trends in the market: One of the key trends in the beer market in Egypt is the growing demand for craft beer. Craft breweries have gained popularity among consumers who are looking for unique and high-quality beer options. These breweries often offer a wide range of flavors and styles, appealing to the evolving tastes of consumers. The craft beer trend has also been fueled by the increasing number of microbreweries and brewpubs in Egypt, which provide consumers with a more immersive and personalized beer-drinking experience. Another trend in the market is the rise of non-alcoholic beer. Health-conscious consumers are increasingly opting for non-alcoholic beer as a healthier alternative to traditional beer. Non-alcoholic beer offers the same taste and experience as regular beer, but without the negative effects of alcohol. This trend is particularly appealing to individuals who want to enjoy the social aspects of drinking beer without the risk of intoxication.

Local special circumstances: Egypt has a predominantly Muslim population, and the consumption of alcohol is regulated by Islamic law. While alcohol is not prohibited in Egypt, there are restrictions on its sale and consumption. This has created a unique market environment for beer producers and retailers. Beer is primarily consumed by non-Muslims and tourists, and it is often associated with social gatherings and celebrations.

Underlying macroeconomic factors: The growth of the beer market in Egypt can also be attributed to the country's improving economic conditions. Egypt has seen steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. As a result, more people are able to afford discretionary items such as beer. Additionally, the tourism industry plays a significant role in driving the beer market, as tourists visiting Egypt often seek out local beers as part of their cultural experience. In conclusion, the Beer market in Egypt is developing due to changing customer preferences, including a growing interest in craft beer and non-alcoholic beer. The local special circumstances, such as the predominantly Muslim population and the regulations surrounding alcohol consumption, also shape the market. The underlying macroeconomic factors, including improving economic conditions and the tourism industry, further contribute to the growth of the beer market in Egypt.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.