According to the World Bank, Algeria is an upper middle income country and its economy is dominated by the state. The Algerian government stopped the progress of privatization of state-owned industries and forced regulations on imports and foreign involvement in its economy. Algeria has struggled to develop industries beyond hydrocarbons due to high costs and static state administration. Algerian government developed the country’s economy by attracting foreign investments outside the energy sector that helped to reduce high youth unemployment rates. The Algerian economy grew in 2011, driven by consumer spending, in the construction and public-works sector.
Ken Research, a market research firm predicts, the decelerated economic conditions in Algeria due to oil crisis and low disposable income is limiting consumer spending. The increase in number of women joining the workforce and insufficient time to prepare fruit and vegetables at home led to more sales and volume growth in this sector. Working women preferred processed food as the best alternative to use in their daily nutrition due to increasing desire for convenient and easy-to-prepare food. In addition, packed processed fruit is available any time of the year in markets compared to few fruits available only in the seasons.
With the increase in population and urbanisation there is demand for staple foods at more affordable prices. Therefore, processed food and vegetables are encouraged in Algeria. The long-established brands maintain their leadership while enjoying strong consumer loyalty and brand recognition in many package food categories. The local brands offers good quality products at affordable prices compared to imported brands. Algeria's markets witnessed an extraordinary rise in the prices of vegetables and fruits due to the snowstorms that struck the country in 2017 and the framers were unable to harvest crops in time.
According to research report “Processed Fruit and Vegetables in Algeria” , processed Fruit and Vegetables in Algeria continue to record a sustainable growth despite a slight slowdown, even though falling oil prices slow down the economic growth. The local brands sales grow rapidly due to increased in the commodity prices and import restrictions. All the supermarkets show enormous growth compared to the independent small grocery stores, in sales of processed fruit and vegetables. The processed fruit and vegetables sector is expected to see a healthy growth over the coming years.
The expectation of processed fruit and vegetables growth in Algeria anticipates a massive demand due to the expected population growth. The rise in food prices is expected to mostly affect low-income consumers, who will purchase processed fruit and vegetables as fresh products are more expensive. There will be continuous improvement in processed fruit and vegetables sector to complement homemade meals by urban consumers over the coming period, which helps growth in this sector. The busier lifestyle is projected to increase and it will further strengthen consumer appreciation for the convenience of processed fruit and vegetables.
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