Overview

(Exchange rate used: 1 USD = LE 5.75.  Values are in millions of U.S. Dollars.  Figures listed are unofficial estimates.)

The packaging industry in Egypt is considered a fledgling industry striving to expand and compete in international markets.  The packaging market is expected to reach $1 billion in 2007, with an expected annual growth of 25% over the next three years.  The growth rate is due to an anticipated increase in exports following Egypt’s signing of a tripartite agreement on the Qualified Industrial Zones (QIZs).  Egypt’s packaging equipment market is supplied 90% from imports and 10% from domestic sources, mainly from Italy, Far East, Germany, Spain, U.K. and the U.S.  The U.S. share currently stands at 7%, but the local market is very receptive to U.S. equipment due to its excellent reputation and perceived value.

Best Products/Services

• Vertical and Horizontal Packaging Equipment
•  Flow-Packaging Equipment
• Sleeve Shrink Machines
•  Sheer Packaging Equipment
•  Bar Coding
•  Bottle Filling Lines
• Tetra Pack Lines

Opportunities

The market is concentrated primarily in the rapidly growing food processing, pharmaceutical, and chemical manufacturing industries.  Packaging equipment for the food processing industry represents 50% of the total market.  It is expected that there will be an increase in exports in the textile and ready-made industry, food and leather, which will trigger an increase in demand for packaging equipment

Resources

Commercial Service in Egypt: http://www.buyusa.gov/egypt/en/
U.S. Embassy: http://usembassy.egnet.net
USAID: http://www.usaid-eg.org/
World Bank: http://www.worldbank.org/
American Chamber of Commerce in Egypt: http://www.amcham.org.eg
Egyptian Government Web Portal: http://www.egypt.gov.eg/english/

Contact for the Commercial Specialist in charge of the Packaging Equipment Sector: Heba Abdel-Aziz, heba.abdel-aziz@N0SPAM.mail.doc.gov