Current value sales in the Egyptian Away-From-Home Tissue and Hygiene market increased by 4% from 2009 to reach E£140 million in 2010. Sales were boosted by growing focus on toilet hygiene. Toilet paper recorded the highest current value growth of 5% in 2010. A sharp 9% constant value drop for AFH tissue was recorded in 2010. Fragmented sales were led by Al Bardi. A 10% constant value decline is expected for the overall forecast period.
Sales growth slowed to 4% in current value terms for overall AFH tissue and hygiene in 2010 over the previous year, in comparison to a review period current value CAGR of 6%. Growth slowed partly due to growing price competition but also due to the impact of the economic downturn. This resulted in a poorer travel and tourism performance towards the end of the review period, hindering sales to horeca customers. In addition, many business/industry customers sought to reduce costs towards the end of the review period, which hindered sales growth in these channels.
There was a marked decline in constant value unit price in 2010 over the previous year, with an overall drop of 9% for AFH tissue. All product areas saw a sharp decline, with this linked to a growing focus on cost reduction following the economic downturn. AFH napkins and tablecloths however saw the sharpest decline at 10%, as domestic players Al Bardi and Pyramids reduced prices in the hope of attracting a wider range of horeca customers.
AFH hygiene continued to remain insignificant at the end of the review period, with no sales for AFH incontinence or wipers. Incontinence products in general remained insignificant at the end of the review period, with limited distribution for these products. Wipers meanwhile saw little demand, with AFH customers preferring to keep costs to a minimum by using textile cloths and cleaning solutions rather than disposable wipers.
AFH tissue and hygiene is dominated by many domestic leaders from retail tissue and hygiene, especially Arab Paper & Hygienic Products, Al Bardi and Pyramids. These companies enjoy strong competitive advantages in terms of production capacity, pricing, delivery and distribution. They are able to offer low prices for bulk orders and thus appeal to AFH customers, who are typically highly cost-conscious.
Multinational companies are negligible in AFH tissue and hygiene sales. Multinationals' products are simply too expensive for the majority of AFH customers compared with domestic products. In Egypt, the AFH channel is very price-sensitive and all AFH customers seek the lowest-priced products. As a result, economy brands continued to dominate sales of AFH products.
Most AFH customers do not to stick with one supplier. Instead, AFH customers constantly switch from one supplier to another in order to obtain the lowest possible prices. Price, reliable supply and service, including the offer of free serviced dispensers, are the most influential factors in AFH customers' choice of supplier.
Horeca sales are expected to be hard hit at the start of the forecast period as a result of the Egyptian revolution in January 2011. This revolution and ongoing political unrest resulted in a sharp drop in tourism in the year, while tourist-focused outlets are the main horeca customers for AFH tissue and hygiene. Recovery in travel and tourism will depend on how swiftly Egypt returns to stability.
If Egypt does achieve stability swiftly, the horeca channel is however likely to be among the strongest performers during the forecast period. A rising shopping mall culture and continual expansion in the number of consumer foodservice outlets will also boost AFH sales, with strong development in tourism expected in large cities such as Cairo, Alexandria, Hurghada and Sharm el Sheikh.
Makro of Germany entered Egypt in 2010. This cash-and-carry retailer is expected to expand during the forecast period and will thus provide a widening range of business/industry and horeca customers with bulk tissue and hygiene at extremely low prices. The entrance of this company is expected to hinder AFH sales during the forecast period, with many business/industry and horeca customers viewing bulk buying at low prices easier and more flexible than forming supply agreements directly with manufacturers.
This Away-From-Home Tissue and Hygiene in Egypt report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data 2006-2010, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, distribution or pricing issues. Forecasts to 2015 illustrate how the market is set to change.
Product coverage: Away-From-Home Hygiene, Away-From-Home Tissue.
Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.
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