EGYPT – Egyptian confectioner Eastern Co. for Manufacturing Sweets & Chocolate (Covertina) has announced plans to commission a new factory in the second half of 2024, with a total investment of 200 million pounds (US$6.5M).
The revelation was made by Raafat Salam, the company’s president, during the 2023 edition of the International Exhibition dedicated to agri-food industries (Food Africa) held from December 12 to 14 in Cairo.
The new investment aligns with Covertina’s ambitious goal of shipping half of its production to international markets by the end of 2024.
Covertina’s manager expressed the company’s intent to enter new markets in Africa, specifically targeting countries such as Kenya, Senegal, and Cameroon.
Founded in 1963, Covertina specializes in the production of a diverse range of confectionery items, including chocolate, biscuits, wafers, and chocolate cakes
Currently exporting to approximately 17 countries across Africa, the Middle East, North America, and Europe, the company’s expansion plan reflects a positive outlook for the confectionery industry.
According to data by Statista, Egypt’s confectionery market witnessed overall sales of US$24.81 billion in 2023, with an anticipated average annual growth of 8% until 2028.
Covertina’s decision to invest in a new factory comes at a time when Egypt’s agri-food sector is experiencing promising prospects, driven by demographic growth and increasing incomes, particularly in segments such as bakeries, snacks, and confectionery.
The Confectionery market in Egypt is projected to grow annually by 8.10% from 2023 to 2028, with an expected volume of US$3.67 billion kg by 2028.
The market is set to show a volume growth of 0.7% in 2024. Factors contributing to this growth include the rising demand for chocolates and sugar confectioneries, changing consumer preferences towards premium products, and increased brand loyalty.
Furthermore, several manufacturers are introducing new flavours in their product offerings along with attractive packaging designs which can be credited for driving sales through supermarkets/hypermarkets, online retail channels as well convenience stores across the nation.
However, the industry faces challenges such as stringent regulations governing food safety standards and high taxation rates, which have hindered market growth in recent years.
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