Economy and Business life Into Egypt

How the basket of goods in Egypt changed over years

Based upon one of our previous articles, we have been asked to rewrite about this topic, in order to show how the basket of goods of consumers in the Egyptian society have been changed along years , the following points will summarize how the basket of goods have witnessed the changes from the 70s, 80s, 90s and the first 20 years of the new millennium , although, information included in this article represent our own opinion without a direct reference whether academic nor scientific we can base on, but we believe that our information accuracy is near exact by the end because it is based on practical evidences in the changes in the interest in resources, and here comes the points:

  • Food, although it is still constructing the main item in the Egyptian basket of goods, its ingredients have changed along the years, more reliance on ready baked food against cooking which was the main process for obtaining daily nutrition, also spending on snacks and sweets have been doubled or tripled, the normal household in the 70s and the 80s were rarely relying on restaurant meals, as a result , this reflected now in the multiplier effect in the number of new restaurants opened starting from the mid of the 90s.
  • Clothing, the average spending on clothing in the basket of goods increased by the end of the 90s till date, the average budget allocated for clothing increased gradually from a year to another, the Egyptian consumers started to change their mind by more reliance on expensive brands and imported clothes, thus , this resulted in increasing the amount that the consumers spend on average on fashion, and that was throttled down by the government protectionist policies increasing the tarrifs on imported fashion and accessory items in a trial to switch the buying habits of the consumers to the local products, and that was a problem the only one to be blamed on was the local fashion producers, the government gave them the golden opportunity to boost their sales and unfortunately they messed up the production, for the current situation in the second decade of the new millennium, they will have to feel guilty for every single error they made in the last 20 years of not getting the chance.
  • Spending on the internet and telecommunications services have entered the basket of goods of the Egyptian consumers heavily from the mid 90s, although the internet have not dominated the spending on telecommunications budget except from 2010 but it still have impacted the whole basket of goods, the spending had a very heavy impact on the Egyptian balance of payments, boosting the imports of phones, accessories and peripherals , yet it represented a good expansion opportunity that resulted in more jobs created and accelerated the latest boom in the market before the prolonged downturn.

Finally , as we can see, the basket had witnessed an increased spending on items that makes a fashion or trend, thus, any change in the fashion and trends will result in a rotation in the indicators, and that’s the point for the Egyptian market, it is not easily predictable in terms of consumers, they are unique in choices all the time.