The pet industry in Egypt

The economic downturn in Egypt is having a significant impact on the pet food industry. Both the depreciation of the local currency and import restrictions have made imported pet food less dominant in the market. Locally manufactured products have benefited, with brands thriving over the past year – and this growth is expected to continue.

Currency crisis

According to Euromonitor, the country’s pet food market was worth $13.7 million (€12.3M) last year and is expected to reach $15.3 million (€13.7M) in 2023.

Importers depend on banks for exchanging Egyptian pounds for foreign currency. But since the Ukrainian invasion, when foreign bond investors pulled $20 billion (€18B) out of Egyptian debt, banks no longer exchange currency for certain imports which are considered non-essential. That includes pet food.

Simultaneously, the government has taken steps to restrict the import of non-essential goods, with pet food topping the list. Tariffs and taxes have increased by 40%.

Prior to the currency crisis, imported brands such as Royal Canin, Nestlé Purina and Hill’s Pet Nutrition dominated the market. But pet food distributors warn that prices have increased by up to 100% since last year, and some imported products have disappeared or are on their way out.

“The market in Egypt was growing. But over the past year, we’ve almost stopped importing, because banks don’t provide any hard currency for importers in our field,” says George Sami Gerges, owner of Sami Pet Shop, a Royal Canin importer.

Reduced imports

The difficulties with imports have stimulated local manufacturing, with alternative brands such as Alpha, Migma, Legends and Ozzo emerging to cope with the demand.

“There is a significant reduction in the number of imported goods on the market, and some items have disappeared altogether. So people have started looking for alternatives, which has helped some local products,” says Omar Ibrahim, a pet shop owner and veterinarian. He explains that local products were unpopular before the crisis began last year. They represented less than 5% of market share, while this share now exceeds 30%.

Mixed opinions on quality

Some breeders have complained that local products are not of the same quality as the imported ones, and that their pets cannot adapt to them.

“We’ve tried these products, but we are not satisfied with them, and the prices are quite ridiculous,” explains Dina Zulficar, an animal and wildlife rights activist.

“Local production will not cover the market’s needs because all the manufacturers lack experience,” says Gerges, whose family has worked in the sector since 1954.

Omar Ibrahim, however, defends the locally produced pet food and says that the quality equals the price.

“We are trying as much as possible to rely on the local industry, because the future belongs to it. To depend on the importer is not sustainable.”

Owners struggling to afford their pets

Egypt has a large and growing population of pet owners, and the demand for high-quality pet products and services is increasing. But high inflation – prices increased by some 40.3% in May 2023 – is really affecting purchasing power. The Egyptian middle class, which has driven the growth of the local pet industry, is suffering as a result. Some try to adapt by preparing their pet’s food at home. Others cannot cope and abandon their pets on the street or take them to shelters.

The country has no official pet population data because most owners don’t register their pets. Euromonitor data concludes that in 2022 there were 4 million pets, and this is expected to increase by 90,000 this year.

Other figures, from the Egyptian Society for the Prevention of Cruelty to Animals, estimate the number of household pets at 8 million – 5 million cats and 3 million dogs. Plus almost 50 million stray dogs and more than 100 million stray cats that live on the streets of Egypt.