Market Trends of Egypt Food Colorants Industry
This section covers the major market trends shaping the Egypt Food Colorants Market according to our research experts:
Increasing Scope in the Food and Beverage Industry
With a population of more than 90mn people, Egypt holds a lucrative long-term potential in the food colorants market. Egyptians spend around 37% of their income on food, drinks, and tobacco, and additionally, food consumption is steadily increasing from a low base with a growth rate of more than 10% per year. In 2013, sales growth for alcoholic drinks increased by 18.14%, soft drinks increased by 14.29%, and mass grocery retail sales grew by 14.09% (as per the data provided by the Ministry of Foreign Affairs of Denmark). This makes Egypt a lucrative market for food colors during the forecast period, to give the consumers and tourists with the best quality food and beverages.
Strategically Moving Toward Natural Ingredients
With the increasing food safety concerns in Egypt and food safety regulations by the National Food Safety Authority (NFSA) in January 2017, food markets are pressurizing manufacturing to adopt clean labels. The major restraint faced by the industry is the rising awareness about the ill effects of synthetic colors. This has triggered the demand for natural colors, which have high costs when compared to synthetic colors. The increasing disposable incomes and changing lifestyles in the country are driving the demand for processed foods. The stringent food standard regulations by FDA and several Egyptian regulatory bodies are proving to be a constraint for manufacturers, thus forcing them to look for alternatives in the form of innovations in natural colorants, which is expected to increase their application during the forecast period.
