Egyptian packaging equipment market demand analysis

Egypt's packaging equipment market has been growing at a rate of 25% per year, full of many business opportunities, and the market has great potential.

After analyzing the Egyptian packaging equipment market, this paper discusses the market opportunities, competitors and other conditions, and is a favorable reference for China's packaging machinery exports to Egypt.

30% of the packaging equipment market in Egypt is supplied locally and 70% is imported from abroad. Importing countries mainly include Italy, China, Germany and Spain. The packaging equipment market is mainly concentrated in the rapidly growing food processing, pharmaceutical and chemical industries, with packaging equipment for the food processing industry accounting for 60% of all packaging equipment markets.

Packaging equipment in the United States accounts for only 5% of the Egyptian packaging equipment market, but the local market is very interested in US equipment. Because the equipment in the United States has a good reputation and preferential value. In addition, it is more advantageous for US exporters that local importers can obtain the support of the International Development Plan (AID) CommodityImport Program (CIP) provided by the United States when importing US equipment. It is for Egypt. End users and traders provide credit. US companies aiming at the Egyptian packaging equipment market include: semi-automatic vertical and pillow packaging equipment; corrugated box production equipment; polyethylene bottle production line; soap packaging production line; pillow forming, filling and sealing packaging equipment and butter tank production line. In Egypt, the packaging industry is not only considered to be an emerging development industry, but is also trying to compete in the future international market.

In order to achieve this development goal, it is necessary to obtain world-class packaging.

Another factor in the further growth in demand for packaging equipment in Egypt is that the new cabinet government has enacted regulations: by 2000, all food must be packaged. In addition to this, it is the privatization process being carried out in Egypt. This process will inspire new and old companies to renovate, including the purchase of new packaging equipment. These equipments include vertical and pillow packaging machines, bottle production lines, box making equipment, tablet and capsule packaging lines, filling lines, and the like.

Market assessment

Vertical and pillow packaging equipment can be manufactured in Egypt, but the quality is not stable. Now, Egyptian manufacturers have mapped the process technology of their equipment to the export market. With the introduction of advanced technology, the local market is expected to rely more and more on locally produced packaging machinery in the future, thereby reducing the market share of Egypt's imported packaging equipment market.

Which packaging equipment is used depends on the type and shape of the goods being sold. Liquid products can be packaged in jars or in plastic bottles: powder packaging in polypropylene bags, plastic containers, metal and carton packaging; solid packaging in cardboard boxes; and granular packaging in plastic bags or cartons (box) packaging. In addition, the form of packaging used for the sale of large quantities of goods is different from the packaging form of retail goods. Retail products can be made from glass, plastic, aluminum foil, plastic film cartons (Tetra-pack) and paper bags, while large-volume products are packaged in cartons, polyethylene bags, and barrels.

Due to the Egyptian government's promulgation, all food must be packaged by the year 2000, and the technology and materials used in the packaging industry must be constantly updated. This will promote the local packaging industry and enable the packaging market to continue to grow. 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 machinery is used to fill and package items of a certain capacity (small particles, grains, etc.), and 75% of the goods are packaged in vertical packaging machinery. The estimated growth rate of such machines is 28%.

Pillow packaging machines are used to fill and package solid items such as soaps, biscuits, and chocolate bars. These mechanical growth rates are estimated at 35%.

2. Bottle production line. It is expected to grow by 24% in the next five years, as this growth rate can be achieved in the alcohol, alcohol, non-alcohol beer, beverage, soda and mineral water production industries. Cooking oil will also increase by 79% during this period.

3. Bag Making Machine. It is expected that in the next five years, Egyptian textile products, including bed sheets, bedspreads, towels and clothing, will grow by 10%. This will lead to an increase in the production of plastic bags and an increase in the demand for bag making machines.

4. Can production line. Despite the high price of tinplate materials, Egypt still uses tinplate cans for convenience foods such as ghee, fish and tomato sauce. It is expected that canned butter can increase by 23% and canned fish by 22%. But canned tomato sauce made from tinplate packaging will be reduced because local producers are switching to tinplate in other metal packaging materials that are cheaper.

5. A box-making machine that can be directly viewed. The box can be viewed directly from a double-layer paper structure and is used for packaging of 12 items to 24 items. It is especially suitable for the packaging of confectionery, 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 demand for packaging line production lines.

6. Corrugated box production line. Foldable formed corrugated boxes are used for final product packaging in various industrial fields. Despite the recent factors that have reduced corrugated paper, the Egyptian market has not yet saturated, and this sector will grow by 40% every three years.

7. Dairy product packaging line. The dairy industry is expected to grow by 27% in the next five years. It uses cutting machinery to cut cheese and butter and wrap it in aluminum foil. Paper-plastic packaging for dairy and softer cheese (FetaCheese). In Egypt, a German company has long monopolized the market, and the company produces a packaging material for plastic coated carton. Their business strategy is to lend equipment to Egyptian producers, while requiring production: to buy the company's packaging materials. However, Austrian PKL has recently hit the market and is now selling its equipment and packaging materials to Egyptian producers.

8. Pharmaceutical packaging equipment. The pharmaceutical industry uses capsules, tablet packaging lines, ampoule (injection bottles) bottle making machines and filling and packaging equipment. Pharmaceutical capsules and tablets are packaged in co-extruded 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 pharmaceutical manufacturers now purchase a complete pharmaceutical production line, including the packaging system in the production line, which guarantees the entire Large degree of aseptic processing in production. This is necessary in order for the production of the drug to meet ISO quality standards.

9. Tube equipment. Due to the special nature of the chemical products, it is required to use specially treated steel cylinders and metal drums and use vertical packaging.

Good sales project

1. Semi-automatic vertical and pillow packaging machinery. Such equipment has high demand due to its low price. As local producers in Egypt have a stable market for their products, their speed of updating their existing production equipment will slow down. Therefore, the new estimate is that these manufacturers will continue to consider buying semi-automatic equipment instead of Fully automatic equipment.

2. Corrugated box production line. It is used in the final product packaging in most industrial sectors, although there are still many disadvantages, and the market is still growing. Foreign companies can still find good prospects in the sale of corrugated machinery or in the local manufacturing or production joint ventures with local businesses.

3. Complete production equipment and PET bottle filling machine for cooking oil and mineral water.

In the production of beverage bottles, Egypt has begun to replace high-concentration polyethylene materials with PET materials. Since PET bottles are more transparent and 10 times lighter than polyethylene bottles, PET materials are used in large quantities to produce mineral water bottles and edible oil bottles, which indicates a shift from PVC to the PET market. Egypt consumes 450 million bottles a year.

4. Pillow packaging production 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 packaging equipment for forming, filling and packaging cheese and butter. Dairy production is expected to grow by 27% in the next five years. Therefore, packaging equipment in the industry will continue to demand. In addition, the production line of butter tanks will increase by 23% in the next five years.

Market competition analysis

At present, packaging equipment manufactured in Egypt can meet the local market demand of 30%, but the process level and quality of the equipment are poor. With the introduction of advanced technology, high-quality packaging equipment will increase, which will reduce the market's import share.

Italy, Germany, and Spain are traditional Egyptian packaging equipment suppliers, and the products are mainly filled and packaged. The changes in the Egyptian packaging equipment market in 1995 were beneficial to packaging equipment in China, India and Taiwan. Because the packaging equipment in these countries and regions has a cheaper price and a higher technical content. China's packaging equipment is 30% cheaper than similar equipment in Europe, and India's similar equipment is 10% cheaper than China. Although products from Asia have a short service life (generally no more than 5 years), Egyptian skilled workers are able to repair many of these devices, which extends the life of these devices. Now, Asian products already account for Egyptian packaging. 22% of the total market share of the equipment market. In addition, due to the low price, Asian competitors also focus on participating in professional packaging exhibitions in Egypt to promote their products, while American manufacturers do not participate frequently.

As we all know, European packaging machinery has high quality and excellent process technology, as well as very good after-sales service. According to Egyptian importers, the reasons for their reluctance to import packaging equipment from the United States are: high freight rates and long negotiation time (may take two years). Some US companies lack interest in entering the Egyptian market, and the policy approval period is higher. There are very few long and service centers. If the US distributor has a suitable professional agent in Egypt responsible for the after-sales service guarantee of the US packaging equipment, then the US equipment can eliminate the above disadvantages and occupy the Egyptian market.

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