The Egyptian bottled water market from 2017 to 2021 was characterized by rapid growth, driven by urbanization, health consciousness, and increased consumer spending. However, the market also faced significant challenges, including economic instability, environmental concerns, and competition from tap water and other beverages.
Egyptian Bottled Water Market Size
The bottled water market in Egypt increased at a compound annual growth rate (CAGR) of 5.40%. As a result, it reached 1.45 billion USD in 2021.
The consumption per capita of bottled water in Egypt showed an overall increase in the period 2017-2021. Until 2021, it grew at a CAGR of 3.25% to reach 14.484 USD per capita.
In 2021, in terms of packaging size, the bottled water market in Egypt was dominated by 1.5L bottles, which accounted for 27.2% of the total value. It was followed by 1L bottles and 500ml bottles with shares of 26.9% and 24.1%, respectively. That left 21.8% of the market value to all other bottle sizes.
Broken down by retail distribution channels, the bottled water market in Egypt was led by supermarkets and hyper markets. In 2021, they accounted for 42.7% of the total volume. That left 57.3% to all other retail distribution channels in the same year.
In 2021, the leading company on the bottled water market in Egypt was Nestle with its Nestle Pure Life and Baraka brands. In 2021, they accounted for 31.3% of the total volume. The leading company was followed by PepsiCo (Aquafina) and Coca Cola with shares of 25.2% and 17.8%, respectively. That left 25.7% to all other companies in the same year.
Imports and Exports of Air Conditioner in Egypt
The imports of bottled water to Egypt in the period 2017-2021 decreased at a CAGR of -5.95% to reach 543 thousand USD.
The exports of bottled water from Egypt in the period 2017-2021 decreased at a CAGR of -23.67% to reach 2.71 million USD.
As a result, the trade balance of bottled water in Egypt was positive and recorded an overall decrease during the analyzed period. Until 2021, the trade balance decreased at a CAGR of -26.16% to reach 2.16 million USD.
Key Trends in the Egyptian Bottled Water Market
Egypt’s population grew rapidly between 2017 and 2021, particularly in urban areas. That brought about lifestyle changes that made bottled water more convenient for hydration. Urban dwellers, especially those in Cairo and Alexandria, increasingly opted for bottled water due to its ease of access, perceived safety, and convenience.
One of the primary drivers behind the rise in bottled water consumption in Egypt was the widespread concern over the quality of tap water. Issues related to water pollution and outdated infrastructure made many Egyptians wary of drinking water directly from the tap. Egyptian bottled water companies capitalized on these concerns by positioning their products as a safer and more reliable alternative.
Another major trend was the growing emphasis on health and wellness among Egyptian consumers. Bottled water became synonymous with a healthier lifestyle, especially as awareness about the health risks associated with sugary beverages increased. The shift encouraged more consumers to choose bottled water over carbonated drinks or juices. Additionally, the rise of fitness culture in Egypt, particularly among younger demographics, helped boost the demand for bottled water as part of a healthy diet.
There was also a noticeable shift towards premium and functional water products in the Egyptian bottled water market. Premium bottled water, often marketed as being sourced from natural springs or boasting added minerals, began to attract a niche market of affluent consumers. Functional water, enriched with vitamins and minerals, also began to gain traction as health-conscious consumers sought products that offered additional benefits beyond hydration.
Packaging innovations also played a significant role in the evolution of the bottled water market in Egypt. As environmental concerns began to rise globally, Egypt saw increased interest in eco-friendly packaging solutions. Companies started to explore sustainable packaging alternatives, such as biodegradable bottles or packaging made from recycled materials. Additionally, smaller, portable packaging sizes became more popular as urban consumers sought convenience in their on-the-go lifestyles.
Restraints in the Egyptian Bottled Water Market
Egypt experienced significant economic fluctuations, with inflation being one of the most pressing issues. The devaluation of the Egyptian pound in 2016, followed by continued inflationary pressures, led to higher production and distribution costs for bottled water companies. As a result, many companies were forced to raise prices, which affected demand among lower-income consumers. Although rising disposable income in urban areas helped mitigate this challenge, it remained a major concern for the broader market.
Environmental sustainability became an increasingly important issue during this period, with growing concerns about plastic waste and its impact on Egypt’s ecosystem. The bottled water industry faced criticism for contributing to plastic pollution, particularly in the Nile River and the Mediterranean Sea. In response, some companies began to adopt eco-friendly practices, such as using biodegradable bottles and promoting recycling initiatives. However, these efforts were still in their early stages and faced significant challenges due to limited infrastructure for recycling and waste management in Egypt.
While concerns about the quality of tap water persisted, the government made efforts to improve water infrastructure and address contamination issues. As these improvements began to take effect, some consumers returned to tap water, particularly in regions where water quality improved noticeably. That posed a challenge for the bottled water market in Egypt, which had previously thrived on perceptions of tap water as unsafe.
Moreover, bottled water faces competition from other beverage categories, such as juices and carbonated drinks. While health-conscious consumers prefer bottled water, many others continue to choose more flavorful alternatives. This competition forced bottled water companies to differentiate their products through branding, marketing, and product innovation.
The Egyptian government implemented stricter regulations regarding the production, labeling, and distribution of bottled water during this period. These regulations aim to ensure product safety and quality but also impose additional costs on manufacturers who need to invest in compliance measures. Smaller companies found it particularly difficult to meet these regulatory requirements, which created barriers to entry and limited competition in the market.
Forecast for the Egyptian Bottled Water Market
Under the base forecast scenario, the Egyptian economy is expected to show steady growth in the medium term. As a result, the Egyptian bottled water market is expected to reach 2.16 billion USD by 2027.
If the Egyptian economy does not reach expectations, it will show declining rates in the medium term. In this case, the bottled water market in Egypt will fall to 1.29 billion USD by 2027.
If the Egyptian economy exceeds expectations, the bottled water market in Egypt is forecast to reach 2.29 billion USD by 2027.
