Egypt’s bottled water market is booming due to health and urban lifestyle trends

Cairo (Special about Egypt) – The bottled water market in Egypt saw rapid growth between 2017 and 2021, driven by urbanization, increasing health awareness, and increased consumer spending, according to the website’s disclosure I say strategist.

This sector, valued at US$ 1.45 billion in 2021 with a compound annual growth rate of 5.4%, has increased in demand due to concerns about the quality of tap water, changing lifestyles, and health awareness that ‘ increasing among Egyptians.

In terms of per capita consumption, the use of bottled water increased at a CAGR of 3.25% from 2017 to 2021, reaching US$ 14.48 per capita. Packaging size options were led by 1.5 liter bottles, accounting for 27.2% of the market value, followed by 1 liter and 500 ml bottles. Supermarkets and hypermarkets were the main sales channels for bottled water, which accounted for 42.7% of the total volume in 2021.

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Leading and competing brands in the market

The market saw Nestlé (with brands such as Nestlé Pure Life and Baraka) as the leader, accounting for a share of 31.3% in 2021. Aquafina followed PepsiCo and Coca-Cola with 25.2% and 17.8% respectively. Smaller brands had a combined market share of 25.7%, reinforcing the significant competition within the Egyptian bottled water industry.

Economic and environmental challenges

Despite its growth, the market has faced challenges. Economic instability, especially after the devaluation of the currency in 2016, has led to inflationary pressures, increasing production and distribution costs. This situation has pushed bottled water prices higher, affecting affordability for low-income consumers.

In addition, environmental sustainability has become an important issue, with growing concerns about plastic waste affecting Egypt’s ecosystems. Although some companies have begun to explore environmentally friendly packaging, limited recycling infrastructure has presented significant challenges.

Government regulation and tap water improvements

The Egyptian government has introduced stricter regulations regarding the production and labeling of bottled water, with the aim of improving safety and quality. These regulations, while beneficial to consumers, imposed additional compliance costs on producers.

At the same time, government initiatives to improve water infrastructure have improved the quality of tap water in some areas, forcing some consumers to return to tap water as a more cost-effective alternative.

Competition with other drinks

In addition to economic and environmental factors, bottled water has also faced competition from other beverages, such as soft drinks and juices. To counter this, bottled water brands have started promoting health benefits, and launching premium and functional water options. These innovations aim to appeal to Egypt’s health-conscious customer base, especially among the younger urban population.

Market Forecast: Forecast of conditions to 2027

Looking to the future, the bottled water market in Egypt is expected to continue to expand, depending on economic conditions. With steady economic growth, the market may reach US$2.16 Billion by 2027. However, if the economic performance falls below expectations, the market capitalization may drop to US$1.29 Billion, and may higher than expected growth pushing the market to US$2.29. One billion US dollars by 2027.

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