THE ALGERIAN BAKERY AND PASTRY MARKET

The bakery and pastry market in Algeria: key facts.

• Sales increased by 8% to DZD 388 billion in November 2024.
• Pastries performed best, with sales up 9% to DZD 8 billion in November 24.
• The market leader is ARRUPAN Sarl with a 2% market share.
• Sales are expected to grow by 6% compared with 2024 in constant DZD (+1% to be added at that time).

In Algeria, bread is one of the products subsidised by the government, along with milk and other products. Its price is regulated by Executive Decree 96-132, which has been effective since 1996. Bread is therefore not expensive. A standard 250-gram baguette costs 7.50 dinars.

Currently, however, it often costs 10 dinars.Algeria is one of the countries where this food product is the cheapest in Africa. In fact, according to a recent study by Business Insider Africa (2024), Algeria is ranked second on the continent for the cheapest price of bread.

The study, which compared the price of a 500g baguette of fresh white bread using the dollar as the reference currency, reveals that Tunisia comes in first place with bread costing USD0.13. Algeria comes in 2^nd place with a baguette costing USD 0.16, the equivalent of almost DA 22 using the official exchange rate. The two countries are followed by Kenya with a baguette costing USD 0.47.

Morocco is in 4^th place with a loaf of bread costing USD0.50, followed by Egypt with bread costing USD0.60 and Mauritius with a baguette costing USD0.71.

In Algeria, other types of bread, which are not subsidised, cost more.

Future developments

Bakery products in Algeria recorded moderate constant value and moderate volume growth in 2024. Although inflation has decreased, consumers continue to be price-sensitive, preventing the premiumisation trend from developing. In addition, most of the population is rural and available incomes remain low.

Packaged flat bread records strongest growth in value terms

Bread as a whole is expected to see an increase in volume sales, with expansion driven primarily by growing consumer interest in non-traditional bread types, such as packaged flat bread, as well as packaged sourdough bread, with flat bread recording the strongest overall growth in both value and volume. That said, unpackaged sourdough bread remains the most important source of complex carbohydrates in the diet of most Algerians, but the high maturity of this market leaves little space for further growth.

The trend towards fresh artisan bakery products continues to influence purchasing habits

There is no major national player in bakery products in Algeria. Artisanal producers, mainly represented by small independent bakeries, will continue to take the lion's share of retail sales of bakery products in Algeria in 2024. This is due to their predominance in unpackaged leavened bread, although they also represent the bulk of sales of cakes and pastries. Artisanal bakers are not only the main producers but also the main retailers, as there is a strong tradition in Algeria of buying fresh bread directly from artisanal bakeries.

The leading companies with < 2% market share are Arrupan Sarl, Ets Zikiou Abdelaziz, Sawsan Food sarl, Amiral Food Import Export sarl, Palmary Food Coop, Iso-9 international sarl, Vicky Foods products Slu.

Outlook and opportunities

Bread is the most important food staple in the Algerian diet and this will support volume sales over the forecast period. Continued population growth will also increase volume demand. However, the high maturity of the segment will also constrain growth, particularly for unpackaged sourdough bread. As in 2024, packaged flat bread will record the strongest growth in value and volume, although from a low base, its novelty being the main driver of growth.

Sources : EuroMonitor Nov 2024

Study realised Béatrice de Reynal