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The packaging equipment market in Egypt had been growing at a rate of 25% per year by the end of 1998. This is filled with a lot of business opportunities and the market has great potential.
30% of Egypt's packaging equipment market is provided locally and 70% is imported. Importing countries mainly include Italy, China, Germany and Spain. The packaging equipment market is mainly concentrated in the rapidly developing food processing, pharmaceutical, and chemical industries. The packaging equipment used in the food processing industry accounts for 60% of all packaging equipment markets.
Packaging equipment in the United States accounts for only 5% of the packaging equipment market in Egypt, but the local market is very acceptable for US equipment. Because, the equipment of the United States has a very good reputation and real value. In addition, it is more favorable for US exporters that local importers can receive support from the United States for the import of US equipment under the “International Development's (AID) Commodity Import Program (CIP)†provided by the United States. The end-users and traders provide credit. U.S. companies targeting Egypt's packaging equipment market include: semi-automatic vertical and pillow packaging equipment; corrugated box production equipment; polyethylene bottle production lines; soap packaging production lines; pillow forming, filling and sealing packaging equipment and butter tank production line.
In Egypt, the packaging industry is not only considered an emerging development industry, but it is also trying to compete in future international markets. In order to achieve this development goal, it is necessary to obtain world-class packaging equipment.
Another factor in Egypt's domestic demand for further growth in packaging equipment is the new cabinet government has enacted regulations: By the year 2000, all food products must be packaged. In addition, it is the process of privatization in Egypt. This process will inspire new and old companies to upgrade, including the purchase of new packaging equipment. These devices include vertical and pillow packaging machinery, bottle production lines, box making equipment, tablet and capsule packaging lines, and filling lines. First, market assessment
Vertical and pillow packaging equipment Egypt can produce its own production, but the quality is not stable. Now, Egyptian manufacturers have targeted the process technology of their own equipment to the export market. With the introduction of advanced technology, the local market is expected to rely more and more on local production of packaging machinery in the future, thereby reducing the share of Egypt's imported packaging equipment market.
Which packaging equipment to use depends on the type and shape of the goods sold. The packaging of liquid products can be packaged in either wide-mouth bottles or plastic bottles; powder packaging in polypropylene bags, plastic containers, metal and carton packs; solid packaging in cardboard boxes; and particulate packaging in plastic bags or cartons (Box) packaging. In addition, the packaging used for the sale of large quantities of goods is different from the packaging of retail goods. Retail goods can be glass, plastic, aluminum foil, Tetra-pack and paper bags, while large quantities of goods are packed in cartons, polyethylene bags, barrels (tubes), and the like.
Due to the promulgation of regulations by the Egyptian government, it is required that all foods must be packaged by the year 2000, and that the technologies and materials used in the packaging industry must also be constantly updated. This will promote the local packaging industry and enable the packaging market to continue to develop. It is expected that the various types of packaging equipment that Egypt will need in the future will have the following growth:
1. Packaging machinery. Generally divided into vertical packaging and pillow packaging. Vertical packaging machines are used to fill and pack items with a certain capacity (small grains, grains, etc.), and 75% of goods are packaged in vertical packaging machines. The estimated growth rate of such machines is 28%. Pillow-type packaging machines are used for filling and packaging solid items such as soaps, biscuits, and chocolate bars. The growth rate of such machines is estimated at 35%.
2. Bottle production line. It is expected to increase by 24% in the next five years, as this growth rate can be achieved in the alcohol, alcohol, non-alcoholic beer, beverage, soft drinks, and mineral water production industries. Also, it is during this period that the consumption of oil will also increase by 79%.
3. Bag making machine. As it is expected that in the next five years, Egyptian textile products, including bed sheets, bedspreads, towels, and clothing will have a 10% increase. This will lead to an increase in the output of plastic bags and increase the demand for bag machines.
4. Canning production line. In spite of the high price of tinplate materials, Egypt still uses tinplate cans to package convenience foods such as butter, fish and tomato pulp. It is expected that canned butter will grow by 23% in the future and canned fish will increase by 22%. However, canned tomato cans produced from tinplate packaging materials will be reduced because local producers are switching to other metal packaging materials that are cheaper to replace tinplate.
5 can be directly looking at the box manufacturing machinery. The double-layer paper structure can be used for direct view of the box, and it is actually used for the packaging of 12 items to 24 items. It is particularly suitable for packaging of candy, tissue paper, medicines and other commodities. Double-layer paper is also used in cigarette manufacturing. The production industry in this area is expected to grow by 26% over the next five years, which will lead to an increase in the demand for packaging boxes.
6. Corrugated cardboard box production line. Collapsible formed corrugated boxes are used for final product packaging in various industrial fields. Despite the recent existence of a number of factors that have reduced the use of corrugated paper, the Egyptian market has not yet been saturated, and this area will have a 40% increase every three years.
7. Dairy product packaging line. The dairy industry is expected to grow by 27% over the next five years. It cuts cheese and butter using a cutting machine and wraps it in aluminum foil. Paper and plastic packaging for milk and soft cheese (Feta Cheese). In Egypt, a German company has monopolized the market for a long time and the company produces a packaging material for plastic film carton. Their business strategy is to lend equipment to Egyptian producers while requiring manufacturers to purchase the company's packaging materials. However, Austrian PKL recently entered this market and is now selling its equipment and packaging materials to Egyptian producers.
8. Drug packaging equipment. The pharmaceutical industry uses capsules, tablet packaging lines, ampoule (injection bottle) bottle making machines and filling and packaging equipment. Pharmaceutical capsules and tablets are packaged using coextruded polypropylene and aluminum-plastic packaging with multiple layers of polyvinyl chloride film. Although the growth rate of pharmaceuticals is expected to reach 40%, the demand for packaging machinery in the pharmaceutical industry has not increased because most drug manufacturers now purchase a full-scale drug production line. The packaging line is included in the production line, which ensures the entire The greatest degree of aseptic operation in production. This is necessary in order for the production of drugs to meet the ISO quality standards.
9. Tube making equipment. Due to the special nature of chemical products, it is required to use specially processed steel cylinders and metal drums for packaging and use vertical packaging. Second, the best sales project
1. Semi-automatic vertical and pillow packaging machinery. This type of equipment has a high demand due to its low price. As local Egyptian producers have a stable market for their products, they will be slower to update their existing production equipment. Therefore, the new estimate is that these manufacturers will continue to consider buying semi-automatic equipment instead of Fully automated equipment.
2. Corrugated cardboard box production line. It is used in the packaging of final products in most industrial sectors, although there are many unfavorable factors and the market is still growing. Foreign companies can still find good prospects in the sales of corrugated paper machinery or allowed to manufacture locally or in joint ventures with local merchants to manufacture products.
3. The full set of production equipment and PET bottle filling machines required for cooking oil and mineral water. In the production of beverage bottles, Egypt has begun replacing PET materials with high-density polyethylene. Because PET bottles are more transparent and weigh ten times lighter than polyethylene bottles, PET materials are used in large quantities to produce mineral water bottles and edible oil bottles, which heralds a shift from PVC to the PET market. Egypt consumes 450 million bottles a year.
4. Pillow packaging line for soap packaging. The market for this production industry still has potential, and by 2001 it is expected to grow by 50%.
5. Pillow type packaging equipment for cheese, butter forming, filling and packaging. Dairy production is expected to increase by 27% over the next five years. Therefore, there will be continued demand for packaging equipment in this industry. In addition, the shortening production line will also have a 23% growth over the next five years. Third, market competition analysis
At present, packaging equipment manufactured in Egypt can meet the market demand of 30% of the local market, but the technological level and quality of the equipment are poor. With the introduction of advanced technologies, high-quality packaging equipment will increase, which will reduce the market's share of imports.
Italy, Germany, and Spain are Egyptian traditional packaging equipment suppliers. The products provided are mainly filling and packaging equipment. Changes in the packaging equipment market in Egypt in 1995 benefited packaging facilities in China, India and Taiwan. Because, these countries and regions have cheaper packaging equipment and higher technical content. China's packaging equipment costs 30% cheaper than similar equipment in Europe, and India's similar equipment is 10% cheaper than China's. Although products from Asia have a short lifetime (generally no more than 5 years), Egyptian skilled workers can repair many of these devices, thus extending the useful life of these devices. At present, Asian products have accounted for 22% of the total share of the Egyptian packaging equipment market. In addition, due to cheap prices, Asian competitors also focus on participating in professional packaging exhibitions in Egypt to promote their products, while American manufacturers do not participate often.
As we all know, European packaging machinery has extremely high quality and excellent process technology, as well as very good after-sales service. However, according to Egyptian importers, the reasons for their unwillingness to import packing equipment from the United States are: high freight costs, long negotiation time (perhaps two years), some US companies lack of interest in entering the Egyptian market, and the policy approval period The length and service center are few. If U.S. sellers have appropriate professional agents in Egypt responsible for the after-sales service guarantee of U.S. packaging equipment, U.S. equipment can eliminate the aforementioned unfavorable factors and occupy the Egyptian market.
The packaging equipment market in Egypt has been growing at a rate of 25% per year. It is full of many business opportunities and the market has great potential. After analyzing the market of Egypt's packaging equipment market, we discussed the market opportunities, competitors and Other conditions. It is an advantageous reference for China's export of packaging machinery to Egypt.