The lifting of sanctions in Iran is expected to attract a number of global packaged food and beverages companies. Iran has 80 million consumers that is a huge market for these companies.
Several companies from the UK, New Zealand, US and Europe are vying for a share of this market.
Dairy is one sector that is expected to attract new players. Iran is among the world’s top ten fastest-growing dairy markets (according to Euromonitor data). Currently, the country’s dairy market is dominated by local players such as Pega Dairy and Solico Food. However, global brand Danone has been in the Iranian dairy sector since 2007 via a JV with local player – Sahar, despite the sanctions.
Lifting of the sanctions can help consumers have access to newer dairy products from European countries and the US, which account for the largest dairy regions in the world. New Zealand based dairy major Fonterra also plans to leverage on Iran’s dairy opportunity.
There are also players such as Saudi Arabia based Savola, that supplies edible oils and ghees to the Iranian market.
Nestle also operates out of Iran from its local factories in Qazvin and Polour where it produces infant cereals and formula and bottled water for the market.
The opening of the market will also intensify competition between new entrants and domestic players. The competition will also be influenced by factors such as inflation, spending power of consumers and other market factors.
The dominant local grocery stores account for a major share of the market. New hypermarkets and supermarkets have to compete with these traditionally popular stores to grab a share of the market.
More on new opportunities in Iran will be discussed at Iran PET (Iran PET Market, Applications & Recycling) on 11-12 April, 2016 in Tehran.
Contact Ms. Hafizah at email@example.com or call +65 6346 9218 for more information.