Middle East and Africa - Algeria - Egypt - Saudi Arabia - South Africa - UAE

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Socioeconomic Variables MIDDLE EAST AND AFRICA: EGYPT

• Disposable income just slightly outpaces the regional average, due in part to heavy concentration of youth • GDP shows some diversity in terms of economic activities

Total GDP % Split by Sector 2012 vs. 2017 Disposable Income Per Capita

Population by Age Group: Egypt

• GDP breakdown is fairly fragmented in Egypt, with no single sector accounting for more than 18% of value in 2012

• Egypt ranks ahead of the region in terms of disposable income per capita and dynamic CAGR of 13% is forecast through 2017

• Through 2017, only slight gains are expected by both the “top” and “bottom” of the population

Total GDP Value: US$211.8 billion / Real GDP growth, 2011-2012: 9%

18%

18%

17% 13%

11%

10%

5% 8%

18%

19%

18%

14%

10%

9%

6% 7%

Manufacturing

Mining and Quarrying

Agriculture, Hunting, Forestry and Fishing

Wholesale and Retail Trade Etc.

Financial Int., Real Estate, Renting, BusinessActivities

Transport, Storage and Communications

Construction

Other

2012

2017

31% 32% 33%

64% 63% 62%

4% 5% 6%

0%10%20%30%40%50%60%70%80%90%

100%

2007 2012 2017

65+

15-64

0-14

0%

3%

6%

9%

12%

15%

0

2

4

6

8

10

Global Middle Eastand Africa

Egypt

US

$, '0

00

2007

2012

2017

CAGR 07-12

CAGR 12-17

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Chocolate, Sugar and Gum Headlines MIDDLE EAST AND AFRICA: EGYPT

Plain milk chocolate tablets hold the lion’s share

• Plain milk chocolate tablets serve as the dominant type of tablet chocolate, however, it is gradually losing share to filled tablets

• Tablets together with countlines remain the most marketed categories

Boiled sweets being the largest in value

• Boiled sweets account for a 25% value share and are mostly favored by children due to an affordable price

Sugarized gum sees the fastest value growth

• Value growth is being driven by high price rises due to inflationary pressure on raw sugar as well as steady volume growth

Great start for diabetic chocolate

• Diabetic chocolate, albeit a niche market, experience high growth as it appeals to a high to mid income consumer base

Not a bright future for sugar-free gum

• Sugar-free gum lack s a health awareness campaign that promotes sugar-free alternatives

• Fortified/functional chewing gum is also not expected to increase value share as it is limited to high-income consumers due to its high price label

Sugar confectionery expected to lose out to chocolate confectionery

• Many companies are losing interest in the sugar confectionery category due to low margins and are attracted by the higher value chocolate categories in which Cadbury and Nestlé operate

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Trade Snapshot MIDDLE EAST AND AFRICA: EGYPT

US Exports to Egypt by Volume

Category HS Specifications 2012 Applied Tariff Taxes & Fees

Chocolate

Sugar Confectionery

Gum

Tariff Schedule

Tonn

es

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011

Chocolate Candy

Candy Sugar and Non Sugar

Gum

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Market Snapshot: Chocolate Confectionery MIDDLE EAST AND AFRICA: EGYPT

Market Size, Growth % Opportunity Analysis – Chocolate Confectionery

Competitive Landscape Analysis – Chocolate Confectionery

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Market Snapshot: Gum MIDDLE EAST AND AFRICA: EGYPT

Market Size, Growth % Opportunity Analysis – Gum

Competitive Landscape Analysis – Gum

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Market Snapshot: Sugar Confectionery MIDDLE EAST AND AFRICA: EGYPT

Market Size, Growth % Opportunity Analysis – Sugar Confectionery

Competitive Landscape Analysis – Sugar Confectionery