EGYPT – Kraft Heinz has announced plans to significantly increase its production capacity in Egypt, following a US$50 million expansion of its Cairo facility.
This move is part of a broader strategy to enhance the company’s export capabilities throughout the Middle East and Africa.
The Cairo plant, which has been operational since 1991 and serves as Kraft Heinz’s only factory in North Africa and the Middle East, is set to increase its export output by 65%.
In a bid to tap into Africa’s growing market, particularly the tomato ketchup segment, Kraft Heinz is eyeing significant growth.
The tomato ketchup market in Africa is projected to generate US$3 billion in revenue in 2024, with an annual growth rate of 10.4% expected between 2024 and 2029.
Globally, the United States remains the largest revenue generator in this market, expected to contribute US$6.072 billion in 2024.
The volume of the global tomato ketchup market is anticipated to reach 1.45 billion kilograms by 2029, with a growth rate of 3.9% in 2025.
The company is also committed to investing in sustainable agricultural projects within Egypt, aligning with the Egyptian government’s initiative to reduce reliance on imports and bolster Egypt’s position as a regional manufacturing hub.
Despite facing a slight dip in overall revenue, reporting USUS$6.4 billion in the first quarter of 2024—a 1.2% decrease from the previous year—the company continues to see strong performance in North America.
Net sales in this region reached US$4.8 billion during the same period, the highest revenue contribution by any region for Kraft Heinz.
Kraft Heinz has been on a steady trajectory, reporting US$26.64 billion in annual revenue for 2023, marking a modest increase of 0.59% from the previous year.
As of June 2024, the company’s gross margin stands at 34.29%, with a net margin of 10.62%. In 2023, the global sales of Kraft Heinz’s condiments and sauces reached approximately $8.9 billion, with US$1.85 billion reported in the first quarter of 2024 alone.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE
