Mawlid Nabawi Sweets: A Festive Treat or Financial Burden?

Updated 9/3/2024 8:00:00 AM

In Egyptian culture, Mawlid Nabawi, the commemoration of the birth of Prophet Muhammad, is among the few celebrations people eagerly anticipate. A key aspect of this festive occasion is the indulgence in Mawlid Nabawi, a variety of delectable sweets made from sugar and nuts.

However, the prices of Mawlid Nabawi sweets increase every year. This year, the Mawlid almost coincides with the back-to-school season, posing a challenge for parents whether to maintain the ritual or drop it this year. Producers of Mawlid Nabawi sweets also find themselves under pressure to ensure steady sales of their products amid these challenges.

The Sugar and Nuts Market

In 2023, the inflation rate for sugar, jam, honey, chocolate, and confectionery products in Egypt reached a staggering 34.4%, up from 24.3% in 2022. This significant increase has undoubtedly impacted the overall cost of living for Egyptians and put a strain on household budgets, as mentioned in the Central Agency for Public Mobilization and Statistics’ (CAPMAS) August 2024 Consumer Price Index (CPI) Bulletin.

Concurrently, the nuts market in Egypt has witnessed robust growth. According to Statista, the market revenue is projected to reach $0.82 billion in 2024, with an annual growth rate of 8.09%.

Moreover, nuts consumption is expected to reach 136.10 million kilograms by 2029, indicating a steady increase in demand. This surge is driven by the increasing popularity of nuts as a healthy snack and their incorporation into diverse culinary dishes.

The export of Egyptian peanuts has also seen a positive trend. In May 2024, the value of peanut exports amounted to $5.176 million, surpassing the $3.898 million recorded in May 2023. This growth in peanuts highlights the growing demand for Egyptian peanuts in international markets, which can contribute to the country's foreign exchange earnings.

Meanwhile, Egypt's sesame imports were valued at $10.192 million last May, compared to $2.704 million in the same month of 2023, according to CAPMAS’ Monthly July 2024 Bulletin on Foreign Trade Data.

Economic Impact of Mawlid Nabawi

Despite being seasonal, the Mawlid sweets industry can contribute positively to the economy. Nirmeen El Sayyad, UN Women Project Manager at the American University in Cairo (AUC) and an economic expert, tells Arab Finance: “Mawlid Nabawi sweets have a positive impact on the sweets industry. It boosts demand, leading to increased seasonal employment.”

“This demand generates income for the seasonally employed workers hired to meet the occasional demand,” El Sayyad points out.

Meanwhile, the Mawlid Sweets production can impact other industries during its season. El Sayyad explains, “The input materials needed to produce Mawlid sweets are varied, including sugar, nuts, and food coloring products. Demand for packaging to handle and deliver these sweets also increases during the season.”

“An overall increase in demand for mawlid sweets will definitely have its positive effects on integrating industries as previously mentioned, whereby flourishing for a limited time these industries through extra demand,” she adds.

Price Hike Impacts

As the annual celebration of Prophet Muhammad’s birthday approaches, Egypt’s production and consumption of Mawlid sweets grow. However, this year’s consumption might be lower than previous ones due to high prices.

Osama, a distributor for a known patisserie, explains to Arab Finance, “The cost of manufacturing Mawlid sweets has grown significantly this year. For patisseries catering to medium-income buyers, this price hike can be overwhelming.”

“As the Mawlid sweets are seasonal, patisseries need to sell most of them. These patisseries have increased prices by around 25%. Other patisseries that target higher-income buyers increased prices by 50% or more,” Osama says.

El Sayyad agrees, explaining, “One of the main ingredients of the making of mawlid sweets is sugar, which has seen continuous price increases over the past couple of years. Sugar prices have jumped from EGP 12 per kilogram in 2022 to an average of EGP 40 now.”

“Other input costs, such as electricity, minimum wages, and rent, have also risen, contributing to the overall hike in Mawlid sweets prices. This, in turn, has inverse effects on demand, especially among low-income families,” as per El Sayyad.

As for consumers, many of them are adjusting their purchases of Mawlid sweets this year. Naglaa, a 32-year-old working mother, tells Arab Finance: “This year, we will buy a smaller box of sweets compared to previous years.”

Meanwhile, Ahmed, a 34-year-old breadwinner, says, “We usually like certain types of Mawlid sweets, so instead of buying a box, we will only purchase a few pieces.”

Accordingly, these changes in consumer behavior have directly affected sales, impacting patisseries. “Sales are low this year due to high prices. A family of five members will need around a three-kilo box. Such a box costs around EGP 600 at the patisseries targeting medium-income citizens and about EGP 1,500 at higher-end patisseries," Osama points out.

Patisseries usually start producing Mawlid sweets nearly two months ahead of the celebration, based on sales estimates. Since they are seasonal, patisseries try to sell these sweets and offer huge discounts.

“This year’s sales are very low. In past years, customers would queue for their turn to buy sweets from our stores, often waiting in their cars until it was their turn. But this year, the stores are almost empty,” Osama explains.

Yet, many patisseries are trying to get out of the bottleneck. Osama adds, “Some patisseries are introducing measures to facilitate purchase, offering options to pay in three installments in cooperation with workers’ unions. Another option is offering discounts of around 20% on group and union purchases to offset the price increase.”

The Mawlid Nabawi celebration, a cultural cornerstone in Egypt, is inextricably linked to enjoying traditional sweets. However, rising costs, particularly for sugar and other ingredients, have significantly pushed prices higher, impacting both consumer demand and the economic benefits associated with the season.

By Sarah Samir