Egypt: Food Processing Ingredients
Egypt’s food processing is a very dynamic sector, averaging a compound annual growth rate of 12 percent in the last 5 years. The food processing industry in Egypt is very fragmented, providing ample opportunities to tap into the market at all levels. Barriers to entry are low, as Egypt only requires product registration for special dietary food products. However, many U.S. food ingredients face high tariffs vis-a-vis ingredients from Europe, Africa and the Middle East, which enjoy a favorable tariff regimen due to trade agreements. The top U.S. food ingredient export to Egypt is processed dairy products at $106 million in 2014 or 82 percent of total exports of U.S. food ingredients, and will remain the leading food ingredient export from the US in the near future. Other best prospects include U.S. processed eggs, retaining a 20 percent market share and an annual growth rate in sales of 5 percent. U.S. processed vegetables and pulses have established a niche market in Egypt’s food processing sector. Food preparations face comparatively lower tariff rates at 5 percent, against the non-tariff rate for African, European, and Middle Eastern competitors.
