North Africa Market Overview

The African Development Bank reports that growth in North Africa is projected to remain at 3.9% in 2024 and increase by 0.2% to 4.1% in 2025. Whereas all countries in the region are expected to grow, the expansions are either modest or a moderation of 2023 estimates. Growth in Libya, estimated at 10.1% in 2023, dropped to 7.1% in 2024 and only 5.5% in 2025. This sharp slowdown reflects the devastating effects of the September 2023 floods in the eastern part of the country and the political uncertainty constraining the country's economic recovery from this disaster.

In Egypt, growth is projected to moderate from an estimated 3.7% in 2023 to 2.3% in 2024 and then 4.5% in 2025. High inflation and foreign exchange shortages will continue to constrain economic growth in the medium term. Furthermore, the war in the Middle East poses a security risk to Egypt that could reduce tourism inflows.

U.S. exports of processed foods to North Africa dropped 29% to US$89.8 million in 2023, but have since recovered in 2024 to US$169.6 million, growth of 89%.

According to Euromonitor, retail sales in the packaged food market in North Africa reached US$52.7 billion in 2024. That represents a growth rate of 75% or US$22.3 billion since 2020. By the year 2029, retail sales in the packaged food market in North Africa are expected to reach US$126.9 billion, a growth rate of 105.5% and US$65.3 billion from 2025.