Algeria
North Africa
Discover more about the Algeria market including overviews about the retail, foodservice, and food-processing sectors
3rd
Largest U.S. export market for processed foods in North Africa
$3.9M
U.S. exports of processed foods to Algeria
10th
Most populous country in Africa
Market Overview
Euromonitor reports that the economy in Algeria grew in real terms in 2022, driven by rising public and private spending, capital investment and external demand. However, the global economic slowdown, elevated inflation and tightening financial conditions are set to undermine business and consumer confidence globally, weighing on the country's economic outlook.
- Following real growth of 3.2% in 2022, Algeria's economy is expected to expand at an average annual real gross domestic product (GDP) rate of 3.8% in 2023 and 3.1% in 2024.
- Inflation in Algeria is forecast to slow down to 8.7% in 2023 from 9.7% in 2022.
- While Algeria's merchandise exports increased by 68.3% and imports fell by 0.5% during 2022, the country remained a net exporter of goods.
In 2023 Algeria had a population of 44.7 million (CIA World Factbook Est.). The median age was 28.9 years, and the population growth rate was 1.6%. Algeria is the 10th most populous country in Africa, and the 32nd most populous country in the world. It is also the largest country in Africa and the 10th largest country in the world based on land mass.
USDA's Foreign Agricultural Service Office in Algiers reports that the desert covers more than four-fifths of the country. Hydrocarbons have long been the backbone of the economy, accounting for roughly 30% of GDP, 60% of budget revenues, and 90.5% of export earnings (2020). The agriculture sector contributes on average 12% of Algeria's GDP and employs 20% of the population in rural areas.
Top U.S. Processed Food Exports to Algeria (2023)
- Processed/Prepared Dairy Products – down 68%
- Food Preparations and Ingredients – up 34%
- Syrups and Sweeteners – up 386%
Market Opportunities
- Algeria is still largely unexplored and a developing market
- Reputation of U.S. agriculture and agribusiness for quality and reliable supply
- Local industries and processing sectors expanding rapidly and rely on imported raw materials
Key Issues
- U.S. is at a geographical disadvantage, due to Algeria's proximity to Europe
- Relatively high cost of U.S. food and agricultural products compared to imports from other countries
- Traditional distribution networks still predominant; high value products subject to high customs duties
Retail Sector
$13.1B
Estimated total retail sales in the packaged food market in 2023
39.9%
Growth rate of retail sales in the packaged food market since 2019
$19.2B
Expected retail sales of packaged food by 2028
High Growth Product Categories
Foodservice Sector
This sector is growing, yet it still needs further expansion. The opening of five-star international hotel chains as well as local three-star hotel chains increases demand for imports and ingredients. Domestic fast food and new restaurant chains are growing as well.
Food-Processing Sector
Although the local food manufacturing industry is improving, the sector is fundamentally dependent on imports of ingredients and raw materials. Population increase and growing demand for convenient processed foods favor the expansion of the food processing industry.
Additional Market Data
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