Analysis on the current situation of packaging equ

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Analysis of the current situation of the packaging equipment market in Egypt

the packaging equipment market in Egypt has been growing at a rate of 25% per year, full of many business opportunities, and the market has great potential. After the market analysis of the packaging equipment market in Egypt, this paper discusses the market opportunities, competitors and other situations, which is a beneficial reference for the export of China's packaging machinery to Egypt

the packaging equipment market in Egypt was estimated at 462million US dollars in 1996. By the end of 1998, it had been growing at an annual rate of 25%. There are many business opportunities here, and the market has great potential

30% of the packaging equipment market in Egypt is provided locally and 70% is imported from abroad. The main importing countries are Italy, China, Germany and Spain. The packaging equipment market is mainly concentrated in the rapidly developing fields of food processing, medicine and chemical industry, among which the packaging equipment used in the food processing industry accounts for 60% of all the packaging equipment market

American packaging equipment accounts for only 5% of the Egyptian packaging equipment market, but the local market is very acceptable to American equipment. Because American equipment has a very good reputation and real value. In addition, it is more beneficial for American exporters that local importers can get the support of the "international development's (AID) commodity import program (CIP)" provided by the United States when importing American equipment, which provides credit to end users and traders in Egypt. The products of American companies targeting 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 type forming, filling and sealing packaging equipment and butter tank production line

in Egypt, the packaging industry is not only regarded as a new development industry, but also trying to compete in the future international market. In order to achieve this development goal, it is necessary to obtain world-class packaging equipment

another factor for the further growth of domestic demand for packaging equipment in Egypt is the new cabinet government's promulgation of regulations: by 2000, all food must be packaged. In addition, there is the ongoing privatization process in Egypt. This process will stimulate new and old enterprises to carry out renovation, including the purchase of new packaging equipment. These equipment include vertical and pillow packaging machinery, bottle making production lines, box making equipment, tablet and capsule packaging lines, and filling lines

I. market evaluation

vertical and pillow packaging equipment can be manufactured in Egypt, but the quality is unstable. Now, Egyptian manufacturers have aligned their equipment technology with the export market. With the introduction of a large number of basic research projects related to graphene funded by the National Natural Science Foundation of China with 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 imported packaging equipment in Egypt

which packaging equipment to use depends on the type and shape of the goods sold. Liquid products can be packaged in wide mouth bottles or plastic bottles; The powder is packed in polypropylene bags, plastic containers, metal and paper boxes; The solid package is packed in cartons; The particles are packed in plastic bags or cartons (boxes). In addition, the packaging form used in the sale of large quantities of goods is different from that of retail goods. Retail goods can be packaged in glass, plastic, aluminum foil, Tetra pack and paper bags, while large quantities of goods are packaged in cartons, polyethylene bags, barrels (drums), etc

due to the regulations issued by the Egyptian government, all food must be packaged by 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 develop. It is expected that the various packaging equipment required by Egypt in the future will increase as follows:

1 Packaging machinery. It is generally divided into vertical packaging and pillow packaging. Vertical packaging machinery is used for filling and packaging goods with a certain capacity (small particles, grains, etc.). 75% of goods are packed with vertical packaging machinery, and the estimated growth rate of such machinery is 28%. Pillow packaging machinery is used for filling and packaging solid goods, such as soap, biscuits and chocolate bars. The growth rate of such machinery is estimated to be 35%

2. Bottle making production line. It is expected to increase by 24% in the next five years, because this growth rate can be achieved in the production industries of alcohol, alcohol, non-alcoholic beer, beverages, soft drinks and mineral water. In addition, edible oil will also increase by 79% during this period

3. Bag making machine. It is expected that in the next five years, Egypt's textile products, including bedsheets, bedspreads, towels and clothing, will increase by 10%. This will lead to an increase in the output of plastic packaging bags and increase the demand for bag making machines

4. Canning production line. Despite the high price of tinplate materials, Egypt still uses tinplate cans to pack instant foods such as butter, fish and tomato paste. It is estimated that in the future, the increase of shortening cans will be 23%, which is very beneficial to scientific research and teaching, and the increase of fish cans will be 22%. However, the number of canned tomato paste produced with tinplate packaging materials will decrease because local manufacturers are replacing tinplate with other cheaper metal packaging materials

5. Direct viewing packaging box manufacturing machinery. The direct viewing packaging box generally adopts a double-layer paper structure, which is applicable to the packaging of 12 to 24 commodities. It is especially suitable for the packaging of candy, tissue paper, medicine and other commodities. Double layer paper is also used in the manufacture of cigarettes. The production industry in this area is expected to grow by 26% in the next five years, which will lead to an increase in the demand for packaging box production lines

6. Corrugated box production line. Folding corrugated boxes are used for final product packaging in various industrial fields. Although there are many factors that reduce corrugated paper in the near future, the Egyptian market has not yet been saturated, and this field will grow by 40% every three years

7. Dairy products 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 is packaged with aluminum foil. Paper plastic packaging is used for dairy products and softer cheese. In Egypt, a German company has long monopolized the market. This company produces a packaging material for plastic coated cartons. Their business strategy is to lease the equipment to Egyptian manufacturers and require them to purchase the company's packaging materials. However, in order to improve the independent innovation ability and core competitiveness of the industry, Austrian p.k.l company has also recently entered this market and is now selling its equipment and packaging materials to Egyptian manufacturers

8. Pharmaceutical packaging equipment. The pharmaceutical industry uses capsule and tablet packaging lines, ampoule (injection bottle) bottle making machines and filling and packaging equipment. Drug capsules and tablets are packed in CO extruded polypropylene and aluminum-plastic packaging with multi-layer PVC film. Although the growth rate of drugs is expected to reach 40%, the demand for packaging machinery in the pharmaceutical industry has not increased. The reason is that most drug manufacturers now purchase a full set of drug production lines, which include a packaging system, so as to ensure the maximum aseptic operation in the whole production. In order to make the production of drugs comply with ISO quality standards, this practice is necessary

9. Barrel making equipment. Due to the particularity of chemical products, it is required to use specially treated steel drums and metal barrels and use vertical packaging

II. The best sales project

1 Semi automatic vertical and pillow packaging machinery. There is a high demand for such equipment because of its low price. As local manufacturers in Egypt have a stable market for their products, their speed of updating the original production equipment will slow down. Therefore, the new estimate is that these manufacturers will continue to consider purchasing semi-automatic equipment rather than full-automatic equipment

2. Corrugated box production line. It is applied to the final product packaging in most industrial fields. Although there are many adverse factors, the market is still growing. Foreign companies can still find good prospects in the sales of corrugated machinery, or in being allowed to manufacture locally or in joint ventures with local businesses

3. A complete set of production equipment and PET bottle filling machine for edible oil and mineral water. In the production of beverage bottles, Egypt has begun to replace high concentration polyethylene materials with PET materials. Because PET bottles are more transparent and ten times lighter than polyethylene bottles, PET materials are widely used in the production of mineral water bottles and edible oil bottles, which indicates the transformation of PVC to pet market. Egypt consumes 450million bottles a year

4. Pillow packaging production line for soap packaging. The market of this production industry still has potential, and it is expected to grow by 50% by 2001

5. Pillow type packaging equipment for cheese and butter forming, filling and packaging. Dairy production is expected to increase by 27% in the next five years. Therefore, there will be continued demand for packaging equipment in this industry. In addition, the butter can production line will also increase by 23% in the next five years

III. market competition analysis

at present, the packaging equipment manufactured on March 12 and in Egypt can meet 30% of the local market demand, 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 import share of the market

Italy, Germany and Spain are traditional packaging equipment suppliers in Egypt, and their products are mainly filling and packaging equipment. The changes in the Egyptian packaging equipment market in 1995 were beneficial to the packaging equipment in Chinese Mainland, India and Taiwan, China. Because the packaging equipment in these countries and regions has relatively low price and high technical content. The price of packaging equipment in China is 30% cheaper than that in Europe, while similar equipment in India is 10% cheaper than that in China. Although products from Asia have a short service life (generally no more than 5 years), Egyptian skilled workers are able to repair many such equipment, which extends the service life of these equipment. At present, Asian products have accounted for 22% of the total market share of Egyptian packaging equipment. 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 often participate

as we all know, European packaging machinery has high quality, excellent technology and excellent after-sales service. However, according to Egyptian importers, the reasons why they are unwilling to import packaging equipment from the United States are: high freight, long negotiation time (which may take two years), lack of interest in entering the Egyptian market by some American companies, long policy approval period and few service centers. If the U.S. seller has a suitable professional agent in Egypt to be responsible for the after-sales service guarantee of the U.S. packaging equipment, then the U.S. equipment can eliminate the above adverse factors and occupy the Egyptian market

source: Hou Tao, China Packaging

Copyright © 2011 JIN SHI