Updated Jan 20, 2023 19:49

Salt Market in Egypt

Market Overview
After three years of growth, the Egyptian salt market decreased by -% to $ in . In general, consumption, however, saw a mild increase. Over the period under review, the market reached the peak level at $ in 2009; however, from 2010 to , consumption remained at a lower figure.

In value terms, salt production stood at $ in estimated in export price. Over the period under review, the total production indicated a measured expansion from 2007 to : its value increased at an average annual rate of +% over the last fifteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, production decreased by -% against indices. The pace of growth appeared the most rapid in 2009 when the production volume increased by %. Over the period under review, production reached the peak level at $ in ; however, from to , production stood at a somewhat lower figure.


Consumption
In , consumption of salt and pure sodium chloride decreased by -% to tons for the first time since 2017, thus ending a four-year rising trend. Over the period under review, consumption, however, recorded a modest expansion. Salt consumption peaked at tons in 2009; however, from 2010 to , consumption failed to regain momentum.

The value of the salt market in Egypt fell dramatically to $ in , dropping by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, posted slight growth. Salt consumption peaked at $ in 2009; however, from 2010 to , consumption remained at a lower figure.


Market Forecast
The salt market is expected to start a downward consumption trend over the next eight years. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -% for the eight-year period from to , which is projected to depress the market volume to tons by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of salt in Egypt were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for salt.


Trade Balance
Egypt remains a net exporter of salt; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.