The Food and Beverage Market Entry Handbook: Iran

July 2017

Prepared by

The Food and Beverage

Market Entry Handbook

Iran A Practical Guide to the Market in Iran for European Agri-food

Products and Products with Geographical Indications

Enjoy Itrsquos from Europe ndash Market Entry Handbook

The Exporterrsquos Handbook Iran How to use this Handbook

1 | P a g e

EUROPEAN COMMISSION

Consumers Health Agriculture and Food Executive Agency

Promotion of Agricultural Products Unit

E-mail Chafea-agri-eventseceuropaec



2 | P a g e

This document has been prepared for the Consumers Health Agriculture and Food Executive Agency (Chafea) acting under the mandate from the European

Commission It reflects the views only of the authors and the Commission Chafea cannot be

held responsible for any use which may be made of the information contained therein

More information on the European Union is available on the Internet (httpeuropaeu)

Luxembourg Publications Office of the European Union 2017

PDFVolume_01 EB-06-17-135-EN-N ISBN 978-92-9200-772-0 DOI 102818876680

copy European Union 2017

Reproduction for commercial purposes is not authorised

Europe Direct is a service to help you find answers

to your questions about the European Union

Freephone number ()

00 800 6 7 8 9 10 11

() The information given is free as are most calls (though some operators phone

boxes or hotels may charge you)



3 | P a g e

Table of Contents

The Exporterrsquos Handbook Iran 8

How to use this Handbook 8

Country Overview 10

Iran at a glance 10

The Iranian Food and Beverage market 17

Operating in the Iranian market 24

Logistics services and infrastructure 24

Distribution 31

Business environment 32

Consumer profile 34

Market Access and Entry 36

SWOT analysis 37

Market information 38

Cultural sensitivities 38

Market size market share growth drivers and trends 38

Market access and market entry strategy 40

Key Markets by Geography 41

Legislation Regulations and Administrative Information 46

Import ndash Export rules 47

GI and IP protection 48

Customs SPS requirements and Labelling 49

Iranrsquos relationships with the GCC 6 and other regional bodies 53

Market snapshots 55

Beverages 55

Consumption 55

Offer 59

Distribution 61

Summary 62

Products with Geographical Indications 64

Consumption 64

Offer 68

Distribution 76

Summary 79



4 | P a g e

Fresh meat 80

Consumption 81

Offer 83

Distribution 87

Summary 87

Processed meat 88

Consumption 88

Offer 90

Distribution 94

Summary 95

Olive Oil 96

Consumption 96

Offer 99

Distribution 104

Summary 104

Fresh Fruit and Vegetables 105

Consumption 106

Offer 108

Distribution 114

Summary 115

Processed Fruits and Vegetables 116

Consumption 117

Offer 120

Distribution 124

Summary 125

Dairy Products 126

Consumption 127

Offer 132

Export 133

Distribution 137

Summary 137

Processed Cereals 139

Consumption 139

Offer 143

Export 144



5 | P a g e

Distribution 148

Summary 148

Baked Goods 150

Consumption 150

Offer 152

Distribution 155

Summary 156

Chocolate 157

Consumption 157

Offer 159

Export 160

Distribution 163

Summary 163

Confectionery 165

Consumption 165

Offer 168

Import 170

Distribution 174

Summary 175

Honey Products 176

Consumption 176

Offer 177

Export 179

Distribution 181

Summary 182

Cotton Plants 183

Consumption 183

Offer 184

Distribution 189

Summary 189

Communication 191

Advertising in Iran 191

Presenting a Product in Iran 198

Target Audience 199

Communications Campaigns in Iran 200



6 | P a g e

Promoting your Product 200

DOs AND DONrsquoTs 202

DO 202

DONrsquoT 203

Quick Facts 204

Synopsis 207

SWOT and 4P analysis 207

4P Analysis 210

Conclusion 212

Support Service Directory 214

Relevant Business Associations in Europe 214

Directory of EU member State Embassies 215

Useful Organisations and Service Providers in Iran 220

Calendar of Trade Events in Iran 221

Annex I - EU Products Registered as GIs in Iran 222

Annex II - Professionals Contact Database 228

Major Retailers 228

Restaurants and Hotels 228

Importers and Distributors 229

Media 230

Bloggers 231

VIP Chefs 232

Annex III Case Study Choosing the Right Local Partner is the Key to

Success in Iran 233

Company Profile 233

Distribution Channels and Customer Base 233

Challenges in Iran 233

Marketing Strategy and Key to Success 234

Table of figures 235

List of tables 239



7 | P a g e

List of Acronyms

CAGR Compound Annual Growth Rate

FampB Food and Beverage

FDA Iran Food and Drug Administration

GTC Government Trading Corporation of Iran

ICCIMA Iran Chamber of Commerce Industries

Mines and Agriculture

IDICC Iran Dairy Industries Corporation

IMI Industrial Management Institute

IQIS Iranian Quarantine and Inspection Service

IRR Iranian Rial

ISIRI Institute of Standards and Industrial

Research of Iran

IVO Iran Veterinary Organization

MENA Middle East and North Africa

PPO Plant Protection Organization

RAJA Iranian Railway Company

TISC Technology and Innovation Support Centre

TRIPS Trade Related Aspects of Intellectual Property

Rights Agreement

TSP Targeted Subsidies Policy

WIPO World Intellectual Property Organisation



8 | P a g e

The Exporterrsquos Handbook Iran

This Handbook is intended to act as a reference for those agri-food producers

planning for or in the process of entering the Iranian market This Handbook

provides step-by-step guidance on the operationalisation of the market in Iran

including relevant information such as analysis of product-specific markets market access and market entry procedures - including as applicable at the

bilateral and regional levels - Intellectual Property Rights (IPR) for products

with Geographical Indications (GI) a signposting and referral system providing

useful contacts to professional buyers and strategies for penetrating the

Iranian market

How to use this Handbook

The applicability of each section of this Handbook will depend on your stage of

market entry company profile product range and existing business strategies

For those wishing to learn more about the Iranian food and beverage (FampB market in general Sections 4 and 5 provide an overview of the business

climate These sections include political geographic economic and cultural

information relevant to successful market entry and performance The

information contained within these sections is of a general nature so may not

be relevant for those in the more advanced stages of market entry

If you are interested in the market in Section 6 you may find out more

information relevant to your product through the 14 Market Snapshots for selected products These sections illustrate market dynamics including

overview entry procedures sanitary and phytosanitary requirements and

more specific to each of the following product categories

1 Beverages

2 Products with Geographical Indication

3 Fresh Meat

4 Processed Meat 5 Olive Oil

6 Fresh Fruits and Vegetables

7 Processed Fruits and Vegetables

8 Dairy Products

9 Processed Cereals

10 Baked Goods 11 Chocolate

12 Confectionery

13 Honey Gum Resins and Plant extracts

14 Cotton living plants

This information will provide more industry-specific intelligence to consider as

part of any market entry or market expansion strategies The information

contained in this Handbook is a first resource to consult in deciding how to export your product to the Iranian market and does not constitute legal

guidance Applicable legislation regulations and market information are



9 | P a g e

frequently updated or changed in Iran and should be reviewed with a

knowledgeable export support service or import counsellor prior to market

entry

If you have already decided to market your product in Iran but need some

assistance getting there then the detailed information in Sections 7 onwards

can point you in the right way In Section 7 you will find the necessary information to build your communication strategy including statistics on social

media usage main media channels and the local rules on advertisement

Section 8 provides practical tips and a concise list of recommendations on what

to do and what not to do The Synopsis in Section 9 presents an overview of

the FampB market in Iran through SWOT analysis and 4P Analysis Finally Section

10 provides a Support Services Directory which includes a well-informed contact network of service providers business facilitation support

organisations and business contacts which can be vital in entering and building

a brand in the Iranian market


Country Overview Iran at a glance

10 | P a g e

Country Overview

Iran at a glance

Iran is a Middle Eastern country sharing a land border with Turkey Armenia

Azerbaijan Turkmenistan Afghanistan and Pakistan Its coastal borders open

to the Caspian Sea in the North and the Persian Gulf and Gulf of Oman in the

South

Figure 1 Map of Iran1 copy

1 Image obtained from Wikimedia Commons avalailable at

httpscommonswikimediaorgwikiFileMap_of_Iranjpg Copyright copy



11 | P a g e

Modern Iran has its foundations in the Islamic revolution of 1979 led by

Ayatollah Khomeini There is a clerical and religious hierarchy on which political

power in the country rests Members of parliament (the Islamic Consultative

Assembly) are popularly elected and must be vetted by a 12-member Council

of Guardians which includes six clerical members appointed by the head of state (Supreme Leader Ayatollah Ali Khamenei) This body must also approve

all legislation coming from the parliament2 In May 2017 Hassan Rouhani

(pictured3) won a second term as President of Iran with 57 per cent of the

vote4

The country has the second largest economy in the

Middle East and North Africa (MENA) region after

Saudi Arabia principally focused on the hydrocarbon agriculture and services sectors It is

characterised by large natural gas reserves and

proven crude oil reserves both of which are relied

upon by the government to a large extent (oil

exports account for around 80 per cent of total export earnings and make up roughly 40-50 per cent

of the government budget5)6

In Iran agricultural production accounts for nearly

10 per cent of its economy and the sector offers

employment to about 18 per cent of Iranrsquos

population Currently about 27 per cent of Iranrsquos population is rural however

this number has been steadily declining over time due to increasing economic

development that has brough about rapid urbanization and industrialization7

Many international sanctions imposed on Iran were lifted in January 2016 following the reaching of an agreement between Western powers and the

country to limit Iranrsquos nuclear programme New sanctions imposed by

Washington due to a ballistic missile test carried out by Iran are specific to

entities and individuals linked to the missile programme This re-entry into the

2 United States Institute of Peace ldquoThe Parliamentrdquo Iran Primer August 2015 available at

httpiranprimerusiporgresourceparliament 3 Hamed Malekpour Tasnim News Agency Image obtained from Wikimedia Commons avalailable at

httpscommonswikimediaorgwikiFileHassan_Rouhani_in_Saadabadjpg Copyright copy 4 Financial Tribune ldquoRouhanirsquos Inauguration Heralds Stronger International Tiesrdquo August 2017 available

at httpsfinancialtribunecomarticlesnational69995rouhani-s-inauguration-heralds-stronger-

international-ties 5 Cordesman Anthony ldquoThe Iran Nuclear Agreement and Iranian Energy Exports the Iranian Economy

and World Energy Marketrdquo Center for Strategic and International Studies August 2015 available at

httpscsis-prods3amazonawscoms3fs-

publiclegacy_filesfilespublication150817_Impact_Agreement_Iranpdf 6 World Bank ldquoIran Overviewrdquo April 2017 available at

httpwwwworldbankorgencountryiranoverview 7 Mesbah Motamed Developments in Iranrsquos Agriculture Sector and Prospects for US Trade United States

Department of Agriculture A Report from the Economic Research Service July 2017 pp 2 available at

httpswwwersusdagovwebdocspublications84408aes-100pdfv=42937

Figure 2 Hassan Rouhani

President of Iran copy



12 | P a g e

global economy could have far-reaching economic effects given the large size

of its economy8

Table 1 Country factsheet

Iran

Official name Islamic Republic of Iran (Jomhuri-ye

Eslami-ye Iran)

Political system Theocratic republic

Head of state Supreme Leader Ayatollah Ali Khamenei

Head of Government Hassan Rouhani

Capital Tehran

Flag

Official languages Persian is the official language others include Azeri Turkic and Turkic dialects

Kurdish Gilaki and Mazandarani Luri

Balochi and Arabic

GDP PPP

- Per capita PPP

- Trend

USD 1359 trillion (2014 World Bank

latest 1185 trillion EUR)

- USD 16507 (2014 World Bank

latest 14397 EUR)

- Following sustained growth in

both indicators from 2005 Iran experienced a dip in GDP and GDP

per capita from 2011 ndash 2013 with

a rebound from 2013-2014

8 International Monetary Fund ldquoEconomic Implications of Agreement with the Islamic Republic of Iranrdquo

Regional Economic Outlook Middle East and Central Asia Report October 2015 pp 81 ndash 88 available at

httpwwwimforgexternalpubsftreo2015mcdengpdfmreo1015ch5pdf



13 | P a g e

Currency

- Exchange rate trend

Iranian Rial (IRR)

- From 2002 to 2011 IRR per USD

increased from roughly 6907 to

10616 From 2012 to 2016 the rate of increase has been higher

with a move from 12176 in 2012

to 30915 in 2016

GDP PPP (billion current international

$)

GDP per capita PPP (current international

$)

12000

13000

14000

15000

16000

17000

18000

19000

900

950

1000

1050

1100

1150

1200

1250

1300

1350

1400

GD

P p

er c

ap

ita

PP

P (

curr

ent

inte

rna

tio

na

l $)

GD

P P

PP

(b

illio

n c

urr

ent

inte

rna

tio

na

l $)



14 | P a g e

Major cities

- Metropolitan population (CIA 2015)

- Province

Tehran (Capital)

- 84 million

- Tehran

Mashhad

- 3 million

- Razavi Khorasan

Esfahan

- 188 million

- Isfahan

Karaj

- 181 million

- Alborz

Shiraz

- 166 million

- Fars

Tabriz

- 157 million

- East Azerbaijan



15 | P a g e

Population density

Land area 1628750 sq km

Population

- Median age

- Trend

- Age by cohort

79926270 (2016)

- 2940

- The previous three national

censuses show Iranrsquos population

grew at 660 from 2008-2011

and at 636 from 2011-2016



16 | P a g e

Labour force (economic participation of population

aged 10 and over 2016)

- Employment share by

sector

- Unemployment rate of population aged 15 and

over

2640 million

- Agriculture sector 1940

Manufacturing sector 3150

Services sector 4910

- 1270

5 4 3 2 1 0 1 2 3 4 5

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80-84

90-94

100 and over

Population (million)

Ag

e


Country Overview

17 | P a g e

Provinces

- Population (million 2016)

Information aggregated from World Bank Statistical centre of Iran CIA world factbook World Food Programme

The Iranian Food and Beverage market

Overview

Globally it is estimated that the Muslim consumer category spent USD 117

(EUR 102) trillion on Food amp Beverage (FampB) in 2015 representing 17 per

cent of global expenditure in the category Additionally the 2015 Halal

Certified FampB Market is estimated to have been USD 415 (EUR 362) billion In

106 114

327 1327

077 278

070 129 127

086 328

143 176

160 071

471 643

195 316

058 178 174 187

253 485

512 391

095 116 127

271

ZanjanYazd

West AzarbeyejanTehran

South KhorasanSistanamp Baluchestan

SemnanQom

QazvinNorth Khorasan

MazandaranMarkazi

LorestanKordestan

Kohgiluyeh amp BoyerahmadKhuzestan

Khorasan-e-RazaviKermanshah

KermanIlam

HormozganHamedanGolestan

GilanFars

EsfahanEast Azarbayejan

Chaharmahal amp BakhtiyariBushehrArdebilAlborz


Country Overview The Iranian Food and Beverage market

18 | P a g e

this year of Muslim countries Iran ranked 6th in terms of the FampB market at

that time9

Table 2 Top Food amp Beverage markets by Muslim country

Muslim country Size of Food amp Beverage

mkt 2015 (USD billion)

Indonesia 155 (135 EUR)

Turkey 116 (101 EUR)

Pakistan 106 (9245 EUR)

Egypt 78 (68 EUR)

Bangladesh 69 (601 EUR)

Iran 59 (5145 EUR)

Saudi Arabia 48 (4186 EUR)10

Food and Beverage is a very important category in terms of household

expenditure in Iran the latest information available in this area shows that in the period March 21st 2015 ndash March 19th 2016 gross expenditure per urban

household on FampB was 83276315 IRR (roughly EUR 2253) this made up

2360 per cent of total urban household expenditure11

Iranrsquos FampB market is growing due primarily to a growing population The

Iranian government has set a policy which aims to make the country as self-

sufficient in this area as can be particularly from Western countries This has

led to a widely regulated food market Iran is largely self-sufficient in vegetables and nuts as well as wheat and barley and has the worldrsquos largest

production of pistachio nuts saffron and berberies There is little import of

chicken meat cheese and milk though the country does import a significant

amount of red meat butter fish fruit and wheat There is opportunity for EU

FampB companies to import in several areas including specialised products in the

processed foods sector due to small variation in products in the country12

The Iranian government outlines its ambitions for the Iranian Food and Beverage category in its 20 year outlook plan which is currently just over

halfway through (2005-2025) Here the government states that production

capacity of food and beverage within the country should hit 100 million tons

by the end of the period In addition to this it is aiming for value added of

food and beverages to the economy of 1570 per cent Finally with respect to

9 Thomson Reuters ldquoState of the global Islamic economy report 20162017rdquo 2016 available at

httpceifibaedupkpdfThomsonReuters-stateoftheGlobalIslamicEconomyReport201617pdf 10 Thomson Reuters ldquoState of the global Islamic economy report 20162017rdquo 2016 available at

httpceifibaedupkpdfThomsonReuters-stateoftheGlobalIslamicEconomyReport201617pdf 11 Central Bank of the Islamic Republic of Iran ldquoHousehold Budget Surveyrdquo March 21st 2015 ndash March

19th 2016 Report October 2015 available at httpwwwcbiirsimplelist1421aspx 12 Ministry of Foreign Affairs of Denmark ldquoThe agriculture and food market in Iranrdquo March 2017

available at httpwwwlfdk~medialffor-medlemmervirksomhedsmedlem-hos-

osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da



19 | P a g e

exports it plans that value by the end of the period reaches USD 65 (EUR

567) billion13

To be taken into consideration in this market is Halal Halal is defined as ldquoFood

permitted per Islamic dietary guidelines from the Quran Muslim followers

cannot consume pork or pork by-products animals that were dead prior to

slaughtering animals not slaughtered properly or not slaughtered in the name of God blood and blood by-products alcohol carnivorous animals birds of

preyrdquo Currently Iran has the fifth largest market for Halal food products after

Indonesia Turkey Pakistan and Egypt14

Knowledge of market competitors when entering any market is an advantage

in any sector in February 2016 the Industrial Management Institute (IMI)

published names of the first 500 domestic food manufacturing companies with

the highest sales rate in 2015 in Iran the top companies are listed here15

Table 3 Top domestic companies in Food amp Beverage sector in Iran by sales 2015 copy

Company Sales 2015 (USD MLN)

Sina Food Industry Group 61354 (EUR 535)

Iran Dairy Industries Corporation

(IDICC)

4954 (EUR 4321)

Dashte Morghab Co (1amp1 Industrial

Production Group)

3897 (EUR 3399)

Pakdis Co 3516 (EUR 3067)

Taliseh Nemooneh Co 2689 (EUR 2345)

Chaharmahal Sugar Co 177 (EUR 1544)

Zamzam Mashhad Co 1743 (EUR 1520)

Minoo Group 1354 (EUR 1181)

Biscuit Gorji Company 1348 (EUR 1176)

Sayeh Gostar Pars Managers ndash Economic and Business Consultancy16

13 ldquoIranrsquos Agriculture Machinery and Internal Combustion Engine Market Studyrdquo SGPM Economic and

Business Consultancy October 2016 14 Islamic Chamber Research and Information Center ldquoHalal Food Lifestyle sectors to be worth $247

Trillion by 2018rdquo Halal World Institute May 2015 available at

httphalalworldinstituteorgnewsdetail475lang=enWUEJ_GjyhhF 15 ldquoIranrsquos Agriculture Machinery and Internal Combustion Engine Market Studyrdquo SGPM Economic and

Business Consultancy October 2016 16 ldquoIranrsquos Food Sectorrdquo SGPM Economic and Business Consultancy October 2016 Image Copyright copy



20 | P a g e

Iran FampB Trade profile

Currently the EU overall ranks as Iranrsquos 5th largest trading partner accounting

for 6 per cent of Iranrsquos trade Whilst before the sanctions regime the EU was

Iranrsquos first trading partner The United Arab Emirates and China are currently

Iranrsquos most important partners17

Exports to Iran in the FampB category have seen a rather sharp decline in the

recent past World exports have seen from 2012-2016 a drop in total value of

exports here of 47 per cent whereas the EU-28 from 2012-2015 have seen a drop of just over 50 per cent Iranrsquos FampB related exports center mainly on

horticultural crops including tree nuts fruits and vegetables with pictachios

being a major export article18

Figure 3 Exports to Iran of Food amp Beverage categories

copy UN Comtrade19

Data on Harmonized System categories relevant to FampB from the UN Comtrade

database shows that imports to Iran from all countries is concentrated in a

relatively small number of categories the top five categories listed below made

up just over 80 per cent of imports to Iran in 2016

17 European Commission ldquoIran Traderdquo Countries and Regions Iran April 2017 available at

httpeceuropaeutradepolicycountries-and-regionscountriesiran 18 Mesbah Motamed Developments in Iranrsquos Agriculture Sector and Prospects for US Trade United States


httpswwwersusdagovwebdocspublications84408aes-100pdfv=42937 19United Nations International Trade Statistics Database Department of Economic and Social

AffairsStatistics Division available at httpscomtradeunorg

000

100

200

300

400

500

600

700

800

900

2012 2013 2014 2015 2016

Exp

ort

s to

Iran

USD

bill

ion

World

EU-28



21 | P a g e

Table 4 Imports of selected Food amp Beverage categories to Iran 201620

Category

Percentage of total trade

value

Cereals 4457

Animal or vegetable fats and oils and their cleavage

products prepared edible fats animal or vegetable

waxes

1464

Meat and edible meat offal 952

Coffee tea mate and spices 695

Sugars and sugar confectionery 545

Fish and crustaceans molluscs and other aquatic

invertebrates 372

Miscellaneous edible preparations 344

Edible fruit and nuts peel of citrus fruit or melons 296

Dairy produce birds eggs natural honey edible products of animal origin not elsewhere specified or

included

271

Preparations of vegetables fruit nuts or other parts

of plants 199

Cocoa and cocoa preparations 175

Preparations of cereals flour starch or milk pastry

cooks products 113

Edible vegetables and certain roots and tubers 081

Beverages spirits and vinegar 026

Animal or vegetable fats and oils 006

Preparations of meat of fish or of crustaceans

molluscs or other aquatic invertebrates 003

Preparations of vegetables fruit or nuts 001

Preparations of cereals flour starch or milk bakers

wares 000

copy UN Comtrade21

Total imports for the above categories in 2016 were 4458 billion USD (39

billion EUR)

20 Data used in this table is a mirror data collected by UN Comtrade from world export data it is not directly

obtained from Iran 21 United Nations International Trade Statistics Database Department of Economic and Social




22 | P a g e

Iran has within the FampB categories mentioned above a number of partners

which are more important than others The top 20 trading partners provided

just under 96 per cent of imports in the studied categories in 2016 Further

Brazil is by far the biggest partner and the top four countries importing to Iran

in 2016 (Brazil India Russia and Malaysia) make up just over 63 per cent of the total In terms of EU countries there are four which figure in the top 20

Germany France Spain and Romania

Figure 4 Percentage of total selected Food amp Beverage exports to Iran of top 20

exporters (2016)22

copy UN Comtrade23

Focusing on the top seven product categories and the top 10 exporters to Iran

it can be seen that there is differentiation in the importance to Iran of the

various partner countries

22 Total trade value for all exporters was USD 4458 billion data available at comtradeunorgdata extracted

June 2017 HS codes extracted 2-4 7-10 15-22 23United Nations International Trade Statistics Database Department of Economic and Social


051

059

061

063

065

077

081

082

134

210

243

301

343

371

380

554

694

919

1705

3176

Ecuador

Australia

Romania

Rep of Korea

USA

Spain

Philippines

France

Indonesia

New Zealand

Argentina

Kazakhstan

Turkey

Sri Lanka

China

Germany

Malaysia

Russian Federation

India

Brazil



23 | P a g e

Figure 5 Percentage of top seven selected Food amp Beverage categories attibutable to

partner countries (imports to Iran)

copy UN Comtrade24

With the lifting of sanctions from Iran countryrsquos trading profile is likely to

change For example lower trade costs and access to new suppliers in new

24 United Nations International Trade Statistics Database Department of Economic and Social


Brazil

Brazil

BrazilBrazil

India

India

India

India

Russia

Russia

Malaysia

Mal

aysi

a

Ge

rman

y

Germany

Ch

ina

Ch

ina

China

Sri Lanka

Turkey

Turkey

Turkey

Kazakhstan

Argentina

Other

Other

Other OtherOther

Other

Other

0

10

20

30

40

50

60

70

80

90

100

Cereals Animal orvegetable fatsand oils and

their cleavageproductsprepared

edible fatsanimal orvegetable

waxes

Meat andedible meat

offal

Coffee teamate and

spices

Sugars andsugar

confectionery

Fish andcrustaceansmolluscs andother aquaticinvertebrates

Miscellaneousedible

preparations


Country Overview Operating in the Iranian market

24 | P a g e

markets can raise imports for many food and beverages products such as rice

barley corn and soybeans for which Iran is not nearly self-sufficient25 as well

as for new products from different markets including the European Union

markets

Operating in the Iranian market

Logistics services and infrastructure

Although Iran has access to five important international transit and business

corridros (International North-West Transport Corridor Transport Corridor Europe Caucasus Asia International East-West Transport Corridor South Asia

Corridor and Asian Land Transportation Infrastructure Development) 26

The country does not have a particularly well-developed infrastructure

environment compared to the rest of the region it scores rather low on

Logistics performance according to the World Bank (see graph below) One of

the reasons for this current situation is believed to be high levels of red tape

in the country which cause delays in construction The country is however trying to improve the landscape by increasing investment in infrastructure

after the lifting of economic sanctions in January 2016 This should help the

country to attract more FDI in infrastructure from several countries including

most notably India as demonstrated by the announcement in February 2016

of Iranrsquos interest in gathering 8 billion USD (69 billion EUR) of infrastructure

related investment from India27

25 Mesbah Motamed Developments in Iranrsquos Agriculture Sector and Prospects for US Trade United States


httpswwwersusdagovwebdocspublications84408aes-100pdfv=42937 26 Financial Tribune ldquoIran Logistics Industry Overviewrdquo January 2017 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets56843iran-logistics-industry-overview 27 The Dollar Business ldquoIran Invites India to Invest in $8 Billion Projectrdquo Countries and Regions Iran

February 2016 available at httpswwwthedollarbusinesscomnewsiran-invites-india-to-invest-in-8-

billion-project41106



25 | P a g e

Figure 6) Logistics Performance Index 2016

World Bank28

The following section gives an overview of the main distribution networks

within the country to aid with company logistics planning

Road

Most domestic trade in Iran takes place via roads Road infrastructure links all

cities and the majority of towns in Iran Most roads (around 73 per cent in

2011) are paved and there is good connection to neighbouring countries to

the north west and east In total there are roughly 83 thousand KM of main

roads highways freeways and access roads There is control of the roads by the Traffic Police (supervised by the Ministry of Road and Transportation)

28 Global Rankings 2016 The World Bank available at httpslpiworldbankorginternationalglobal

0

1

2

3

4

5Customs

Infrastructure

International shipments

Logistics competence

Tracking amp tracing

Timeliness

United Arab Emirates Region Middle East amp North Africa Iran Islamic Rep



26 | P a g e

aided by the fact that all trucks transit trailers are equipped with GPS to

control location and speed29

Figure 7) Main road networks of Iran30 copy

Travel time for products in the FampB sector is important for this reason average

travel times between a number of the main cities and towns is stated below

Table 5 Travel time from capital city to major towns in Iran road

Tehran Tabriz Isfahan Shiraz Mashhad Hamedan Yazd

Tehran - 7h 5h 11h 10h 4h 7h

Bandar

Abbas

16h 22h 11h 8h 17h 16h 10h

29 Logistics Capacity Assessments ldquoIran Logistics Assessment World Food Programmerdquo Regional

Economic Outlook Middle East and Central Asia Report June 2016 available at

httpsdlcalogclusterorgdisplaypublicDLCAIran2C+Islamic+Republic+of 30 United Nations Image obtained through Wikimedia Commons available at

httpscommonswikimediaorgwikiFileUn-iranpng Copyright copy



27 | P a g e

Bandar

Anzali

(Rasht)

5h 7h 10h 16h 14h 6h 13h

Bandar Imam

(Port

close to Ahvaz)

13h 16h 11h 7h 20h 10h 12h

World Food Programme31

Air

Throughout the country there are 54 major airports Iran Air is the national

airline and operates both domestic and international flights The main national airport Mehrabad is located in the countryrsquos capital Tehran Following this

Mashhad airport is the second most crowded airport in the country in terms of

air traffic It can be said that in general international connections with Iranrsquos

airports have been improving over the recent past as long ago as 2007

international flights were moved from the main airport Mehrabad to the Imam

Khomeini International Airport (which is outside of the capital) due to a need

for further capacity32



httpsdlcalogclusterorgdisplaypublicDLCAIran2C+Islamic+Republic+of 32 Ibid



28 | P a g e

Figure 8 Airports of Iran

World Food Programme

Maritime Shipping

For exporters looking to enter the Iranian market the Seaway is a key point of

entry Overall capacity at Iranrsquos ports in the recent past has been increasing by the end of 2015 it was expected that container unloading and loading

capacity at ports would be around 7 million33 There are 16 ports in the country

with three points of concentration

Bandar Abbas is a highly important port amongst these given that it handles

an estimated 90 per cent of the countryrsquos container throughput Bandar Anzali

in the north is the biggest port in this part of the country on the Caspian Sea

Finally The Imam Khomeini Port is located in the northern part of the Persian Gulf and due to good rail connections (which link it with the entire country) is

an important transit entry point for cargo34

Iranian seaports are expected to play even greater role in contributing to the

development of countryrsquos economy as major European shipping companies are

looking to return to Iran The government is welcoming these big international






29 | P a g e

shipping companies and it has indicated that no limitations will be posed on

the returning shipping companies35

Further information on Iranian ports can be found at the website of the Ports

and Maritime Organization here

Figure 9 Ports of Iran36


Rail

In Iran there are around 11106km of railroad track37 This is small when

compared to countries with similar size for example Germany has 19 times

more than Iran and Poland 11 times more Goods coming from the major port

Bandar Abbas are distribuned through trucks and freight trains the Tehran-

Bandar-Abbas railroad specifically connects this port with the railroad system

35 ldquoNo Limitations for Liners Returning to Iranrdquo World Maritime News February 2017 available at

httpworldmaritimenewscomarchives212061no-limitations-for-liners-returning-to-iran 36Logistics Capacity Assessments ldquoIran Logistics Assessment World Food Programmerdquo Regional


httpsdlcalogclusterorgdisplaypublicDLCAIran2C+Islamic+Republic+of 37 Iran Journey ldquoTransport in Iranrdquo 2011 available at httpwwwiranjourneycomcontentsTI



30 | P a g e

of Central Asia via Tehran and Mashhad Railroads are generally in good

condition throughout the country though it should also be noted that the

network as a whole is rather under-developed in terms of reach This is

expected to improve over time especially as within infrastructure one of Iranrsquos

strategic goals is to expand the railway network with 25000km of track expected in 202538 A current example of this expansion is the investment

project of EUR 1176 million in a stretch of railway connecting Shiraz Bushehr

and Asalouyeh39

Figure 10 Railroads of Iran


The Islamic Republic of Iran Railways is the national state-owned railway

system of Iran freight transport management specifically is coordinated by

the Railway Transportation Company (The Raja Passenger Train Company manages passenger trains) all of these are overseen by the Iranian Ministry



httpsdlcalogclusterorgdisplaypublicDLCAIran2C+Islamic+Republic+of 39 The Swedish Trade and Invest Council ldquoA new dawn for Swedish Business in Iranrdquo Business Sweden

2016 available at httpwwwbusiness-swedenseglobalassetsbusiness-sweden---a-new-dawn-for-

swedish-business-in-iranpdf



31 | P a g e

of Roads and Transportation It was estimated in 2015 that 33 million tonnes

of goods were transported annually by the rail network 9 per cent of all

transportation in the country40

Again travel time for the FampB sector is an important factor to take into

consideration an indicative list of travel times by train to major towns and

cities in Iran is provided below

Table 6 Travel times from capital city to major towns in Iran rail

Tehran Tabriz Mashhad Bandar

Abbas

Bandar Imam

Khomeini

Khosravi

Tehran - 7h 12h 17h 15h 10h

Tabriz 7h - 16h 21h 15h 10h

Mashhad 12 16h - 15h 21h 18h

Bandar

Abbas 17h 21h 15h - 12h 18h

Bandar Imam

Khomeini

15h 15h 21h 12h - 10h

Bazargan 10h 3h 20h 1 day 17h 12h

Sarakhs 12h 20h 2h 17h 1 day 19h

Khosravi 10h 10h 18h 18h 10h -


Distribution

Currently the focus of grocery retailing is on traditional forms of retail in Iran

Independent outlets (traditional grocery retailers) accounted for 98 per cent

of value sales in grocery retailers in 2016 There is a large number of small

groceries and fooddrinktobacco specialists in the country which are

convenient for shoppers Bakers butchers greengrocers and confectioners were the dominant types of fooddrinktobacco specialist retailers in the

country in 2016 Within other grocery retailers the Kiosks in the country

(which sell grocery items among other products) were the dominant format

in 201641

There is however a shift occurring in shopping habits and the retail landscape

Traditional grocery retailers are moving towards more modern forms of

shopping with independent groceries that have high turnover tending to



httpsdlcalogclusterorgdisplaypublicDLCAIran2C+Islamic+Republic+of 41 Iran Here ldquoRetail in Iranrdquo March 2016 available at httpsiranherecomretails-in-iran



32 | P a g e

convert to the supermarket format to fulfil demand and increase shelf space

Supermarkets and hypermarkets more modern types of grocery outlets

continue to increase market share due to price competitiveness and

promotional activities Consumers however continue to have preferences for

items such as bread meat and fruit through more traditional channels due to perceived higher levels of freshness and quality42 Internet retailing of grocery

items is also a small but emerging distribution point in the country expected

to grow in importance through platforms such as Digikalacom43

Whilst traditional grocery is clearly dominant in the country in terms of value

growth in these areas is expected to slow over the next few years with more

modern grocery formats expected to continue to grow market share

Business environment

Generally the business environment in Iran is quite difficult though there are

several steps being taken to improve in this area by the government Relevant

authorities have established a ldquoone stop shoprdquo for businesses which should

allow for more simplified administrative procedures This should be a positive

for EU FampB sector companies looking to do business in the country However further steps such as regulatory reform are required to increasingly attract

foreign companies and investment Iran is also characterised by a high level

of state interference in the economy as well as some red tape which in some

cases further complicate the environment44

In comparison with the other 190 countries studied by the World Bank in 2017

it would seem that relatively Iran is more difficult to do business in than the

average given that its 2017 lsquodoing businessrsquo rank was 120190 (more info here) This however does not show the whole picture as there is variation

depending on the topic for example in the sub-sector ldquodealing with

construction permitsrdquo Iran ranked 27190

42 Financial Tribune ldquoWhy Grocery Stores Outnumber Any Other Shop in Tehranrdquo June 2015 available

at httpsfinancialtribunecomarticleseconomy-business-and-markets19404why-grocery-stores-

outnumber-any-other-shop-in-tehran 43 Muftah ldquoDigikala An eCommerce Success Story in Iranrdquo September 2014 available at

httpsmuftahorgsecret-digikalas-successWWTiioiGOUk 44 World Bank ldquoEase of Doing Business in Iranrdquo Doing Business Report 2017 available at

httpsdoingbusinessorgdataexploreeconomiesiran



33 | P a g e

Table 7 Iran ease of doing business rank (no190 other countries)

Overall 120

Starting a business 102

Dealing with Construction

Permits 27

Getting Electricity 94

Registering Property 86

Getting Credit 101

Protecting Minority Investors 165

Paying Taxes 100

Trading across Borders 170

Enforcing contracts 70

Resolving Insolvency 156

World Bank

For further information and insight into doing business in Iran the World Bankrsquos

ldquoDoing Business 2017rdquo for Iran is suggested available here

The legal system in Iran is poorer in quality when compared to other countries in the region there is also a heavily regulated private sector as well as

regulatory weakness An important point to consider for FampB sector companies

looking to enter the Iranian market is the differential treatment given to

domestic versus international investors international investors are required to

obtain a licence of operation from the organisation of Investment Economic

and Technical Assistance of Iran45

The Regulatory Quality Ranking for 2014 of Iran is very low owing to the high level of state interference in economic activities This ranking for Iran is in the

bottom ten in the world as well as regionally in 201446

There are a number of positives for the business environment in the country

This includes ICT which is developing at a strong pace which would

increasingly facilitate business opportunities The government has initiatives

to remove the cap on internet speeds and introduce 3G and 4G in the country

The government is also planning to expand internet services to rural areas via

45 Ministry of Economic Affairs and Finance Organization for Investment Economic and Technical

Assistance of Iran ldquoGuidance and FAQs on Foreign Investment in the Islamic Republic of Iranrdquo Invest in

Iran 2017 available at httpsinvestiniranirenfaq 46 World Bank 2015 Doing business 2016 measuring regulatory quality and efficiency - Iran Islamic

Republic of Doing business 2016 Washington DC World Bank Group

httpdocumentsworldbankorgcurateden890901467986376633Doing-business-2016-measuring-

regulatory-quality-and-efficiency-Iran-Islamic-Republic-of



34 | P a g e

deployment of 4G LTE mobile technology47 In addition to this higher

education rates are increasing in the country a positive for the business

environment however Iran is still faced with a brain drain problem which

complicates the business environment further This is due to educated and

skilled Iranians leaving for better jobs and higher wages

Consumer profile

Since 1979 Iran has been fairly isolated from the international economy a

factor which has affected consumer behaviour Iranians over the past five

years particularly have become more cautious when purchasing items either

by holding off on impulse purchases or price checking products Given this historical restraint it is believed that there is a desire for high quality Western

products now that sanctions are being lifted

The cultural shift in society seen over the past decade is particularly acute in

the young consumer section of the economy Where in the past dining outside

home was not the norm the situation is now relatively more relaxed and

younger generations feel comfortable going out to cafes and restaurants where

before they would have organised activities at home This more relaxed attitude is a positive for EU exporters given that there is openness to Western

goods and services in Iran In addition to this desire for Western brands well

off Iranians often look to buy luxury goods as a status symbol48 Furthermore

Iranian cosnumers expect the top quality from products as they have been

accustomed to high-qulity products provided at a an affordable price in the past At the same time majority of Iranian consumers are relatively price

sensitive and look for the products with best value for money

The diet of the Iranian population varies depending on the region however

many dishes include fresh meat and nuts

pomegranate yoghurt sumac turmeric and

saffron Fruit consumption is relatively high

whilst eating raw vegetables is not particularly common Popular dishes include lsquoChelo Kababrsquo

(pictured49) a national dish of Iran consisting of

steamed saffron Persian rice and Kabab

lsquoKhoreshtrsquo a stew served with Iranian rice

lsquoAashrsquo thick soup lsquoKookoorsquo vegetable souffleacute

47 ldquoIran to boost internet speeds cooperate with Kazakhstanrdquo TeleGeography May 2016 available at

httpswwwtelegeographycomproductscommsupdatearticles20160517iran-to-boost-internet-speeds-

cooperate-with-kazakhstan 48 Lens Culture ldquoIranrsquos Booming Consumer Culturerdquo June 2014 available at

httpswwwlensculturecomarticlesthomas-cristofoletti-iran-s-booming-consumer-culture 49 Image obtained through Wikimedia Commons available at

httpscommonswikimediaorgwikiFileKababi_alborz2jpg Copyright copy

Figure 11 Chelo Kabab copy



35 | P a g e

and lsquoPollorsquo white rice with meat or vegetables and herbs50

A lot of Iranian dishes are a combination of rice with meat lamb chicken or

fish with onion vegetables nuts and herbs The consumer profile is dictated

to a certain extent by the distinction that is made between lsquohotrsquo (lamb chicken

fish sheeprsquos milk mint and generally all sweets) and lsquocoldrsquo (beef cowrsquos milk

lettuce spinach and generally all sour things) foods with a balance between hot and cold being considered ideal Additionally given the importance of

religion in the country consumer eating habits are affected by religious

leaders a clear example of the influence of religion is the banning of the eating

of pork or animals that do not have vertebras51

There is a growing demand by the consumer in Iran for Western food In

addition to this there is a shift particularly in the younger generations towards

more convenient foods for example packaged foods including yoghurts due to time savings Traditionally popular and also time saving is street food in

the country Popular dishes in this market for the Iranian consumer include

falafel Persian Pizza Shish Kabob and hotcold soups and stews52

Alcohol is banned though smuggled often through the port town of Kish Pepsi

and Coca-Cola amongst the consumer population are popular in addition to

the domestic version Zamzam Here there is a split between younger and

older consumers with younger preferring these lsquoblackrsquo soft drinks whilst older generations opt more often for orange coloured fizzy soft drinks referred to as

lsquoKanadarsquo In addition to this at meal times the drink lsquodoughrsquo is popular a

yoghurt based mint drink in carbonated and non-carbonated versions Tea is

also extremely popular as is fruit juice There is a growing demand for milk

based products due to calcium deficiencies that affect many Iranians as well

as bottled water due to its link with weight loss and healthier skin53

Bazaars (tradirional markets) are still the favoured palces for Iranian

consumers to shop for food and beverage products At the same time big shopping malls are also gaining popularity as they offer entertainment together

with shopping Younger generations are especially drawn towards super- and

hypermarkets as most of the foreign brands get marketed in supermarkets and

hypermarkets54

50 Food in Every Country ldquoFood in Iran ndash Iranian Cuisinerdquo Foods of the Iranians Available at

httpwwwfoodbycountrycomGermany-to-JapanIranhtml 51 Ibid 52 Food Republic ldquoPersian Food Primer 10 Essential Iranian Dishesrdquo 2014 available at

httpwwwfoodrepubliccom20141029persian-food-primer-10-essential-iranian-dishes 53 Trend News Agency ldquoIran is worldrsquos largest consumer of soft drinksrdquo November 2013 available at

httpsentrendaziran2215398html 54 Lens Culture ldquoIranrsquos Booming Consumer Culturerdquo June 2014 available at

httpswwwlensculturecomarticlesthomas-cristofoletti-iran-s-booming-consumer-culture


Market Access and Entry Operating in the Iranian market

36 | P a g e

Market Access and Entry

A number of EU FampB products including those with GI are already being

exported to Iran This includes for example Nutella (Italy) Bavaria non-

alcoholic drinks (Netherlands) Haribo (Germany) Delverde (Italy) Royal

Dansk (Netherlands) Evian (France) Badoit (France) Twinings (UK) Frico

Cheese (Netherlands)

To help you navigate this shifting market this section includes information on Cultural Sensitivities Market Size and Market Share Growth Drivers and

Trends Market Access and Entry Strategy Key Markets by Geography

Customs SPS Requirements and Labelling Status of GI and IP protection

Role and influence of GCC6 and other regional bodies

The information contained in this section is designed to be used as a

complement to the product-specific Market Snapshots in Section 4 You can

find a list of FampB products covered by this handbook below

Beverages GI products Fresh Meat Processed Meat Olive Oil Fresh Fruits

and Vegetables Processed Fruit and Vegetables Dairy Products Processed Cereals Bread Pastry Cakes Biscuits and other bakery products Chocolate

and derived products Confectionery Honey Gums Resins and Plant Extracts

Cotton Living Plants


Market Access and Entry SWOT analysis

37 | P a g e

SWOT analysis

Strengths

bull EU already has presence in Iran in the FampB sector easing awareness of EU products

bull EU products in the country are regarded as high quality driving demand

Weaknesses

bull Relativly high pricing for EU products compared to domestic substitutes dampens demand

bull Local knowledge in the country is key to success and not easily established by new entrants

Opportunities

bull Increasingly westernised population open to EU products can be targeted

bull Growing population with higher disposable income should be increasingly receptive to EU products

Threats

bull Iranian government pushes domestic production which could hamper EU entrants

bull Trade with ECO may be strengthened pushing out EU exporters

bull Iran has a difficult relationship with the West which weakens certainty in the market


Market Access and Entry Market information

38 | P a g e

Market information

Cultural sensitivities

Iran is a deeply religious country with the strong majority of the population 994 per cent55 being Muslim This religious aspect permeates into all aspects

of life including sensitivities around food and drink

Islamic decrees forbid the eating of Pork other foods must be lsquoHalalrsquo products

which are definitely Halal are Milk (from cows sheep camels and goats)

Honey Fish Plants (which are not intoxicant) Fresh or naturally frozen

vegetables Fresh or dried fruits Legumes and nuts like peanuts cashew nuts

hazelnuts walnuts Grains such as wheat rice rye barley oat Animals are also Halal but they must be slaughtered according to Islamic Law (Zabihah)56

Additionally Alcoholic consumption is forbidden in the country and their

importation is prohibited57

The opposite of Halal is Haram (unlawful) products which are Haram are

(some already mentioned above) pigs blood carnivorous animals almost all

reptiles and insects the bodies of dead animals Halal animals that are not

slaughtered according to Islamic Law Wine Ethyl Alcohol and Spirits These

must be avoided by all Muslims58

Further reports of supposedly Halal meat containing significant levels of Pork (Haram) in Iran mean that consumers are aware of the possibility that what

they are purchasing is not necessarily what it purports to be making it even

more important for EU exporters to follow guidelines and show their products

compliance with these local cultural sensitivities59

Market size market share growth drivers and trends

EU exports to Iran in the Food and Beverage category grew just over 11 per

cent during the period 2008-2016 with a varied picture depending on the sub

category Currently lsquoPrimaryrsquo food and beverage mainly used for industry is

the most important export and has over the years experienced highs (2014)

and lows (2010-2011) This category is similar in importance to EU exports as Processed Food and Beverage mainly for household consumption which has

followed an opposite flow to the previously mentioned category in that in 2010-

2011 it experienced a boost whilst in 2013 it was at a low for the period

studied

55 US Central Intelligence Agency ldquoIranrdquo The World Factbook 2017 available at

httpsciagovlibrarypublicationsthe-world-factbookgeosirhtml 56 Eat Halal ldquoWhat is Halalrdquo 2014 available at httpwwweat-halalcomwhat-is-definition-of-halal 57 European Commission ldquoIran Ficherdquo July 2017 available at

httpmadbeuropaeumadbviewPageIFPublihtmdoc=overviewamphscode=2200ampcountryid=IRh1 58 Eat Halal ldquoWhat is Haramrdquo 2014 available at httpwwweat-halalcomharam 59Muslim Village ldquoScientists Develop New Halal Meat Testrdquo February 2014 available at

httpsmuslimvillagecom2014020149491scientists-develop-new-halal-meat-test



39 | P a g e

Figure 12 Value (EUR) of exports of Food and Beverage from EU-28 to Iran over time

by sub-category

Eurostat60

As seen in the country overview section of this handbook the EU in 2015 made

up just over 11 per cent of world exports to Iran in the Food and Beverage

category

Generally the trend in the future in the Food amp Beverage sector in Iran is

expected to be positive A number of factors will influence the outlook for the

category one of these is the general stance of the Iranian government to

encourage domestic production of products over importation for example in the Agricultural Food Sector relevant to Food amp Beverage Iran is also in the

agriculture horticulture field rather self-sufficient it is estimated that around

90 per cent of products here come from within the country The economy is

built on a concept of resilience which requires self-sufficiency this trend is also

likely to impact on EU Food and Beverage importers to the country in that it is probable that there is stiff competition from domestic companies as well as

the attitude that domestic is better61 A growing population in the country also

inevitably means that for the majority of products and sectors including FampB

there will be increased demand in the future for products which is a positive

for EU entrants to the market A general increase in per capita income also in the country means that consumers have more disposable income and are also

more likely to try potentially more expensive EU product offerings The recent

60 Eurostat available at httpeceuropaeueurostat 61 Netherlands Chamber of Commerce ldquoRoad2IranXL Conferencerdquo 2017 information is based on the

interviews with companies and trade representatives

euro 0

euro 100000000

euro 200000000

euro 300000000

euro 400000000

euro 500000000

euro 600000000

euro 700000000

euro 800000000

euro 900000000

euro 1000000000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Va

lue

in E

UR

Primary mainlyfor industry

Processedmainly forhouseholdconsumption

Processedmainly forindustry

Primary mainlyfor householdconsumption



40 | P a g e

lifting of sanctions also is likely to continue to boost the prospects for this

sector62

Market access and market entry strategy

Having a strategy when entering any market in any sector is extremely

important there are a number of factors to take into consideration in the Food and Beverage sector in Iran which are generally applicable to other sectors of

the economy as well

A reliable local partner is seen as possibly the single most important step in

the market entry process This relationship should ease workings with

government agencies and intermediaries in the marketplace It goes without

saying that the local partner should have a good understanding and knowledge

of the Food and Beverage sector in the country but in addition to this good

government contacts are important for the partner to have63

As a corollary to finding a local partner within Iran it is important for Food and

Beverage exporters to build trust and personal relationships with the market

Oftentimes it is the case that on first contact there is simply the establishing

of the relationship without necessarily talk of business being conducted This

is an important factor to take into account when thinking about market access

strategy for Iran a word of caution also however as lsquomiddle-menrsquo will be keen to present themselves as invaluable for new market entrants from the EU all

will not be so 64

Oftentimes going solo when entering a market is an arduous process given

the significant amount of local knowledge which is required in order to make

the process a success This is also part of the reason why domestic companies

are strong in Iran as they of course have more knowledge about Iranian

consumers their habits and the local market65 To ease entry into the Iranian market therefore it is suggested that Food and Beverage exporters look to join

trade missions (either at the EU or national level) that will help to guide them

through the process The format of the mission may vary though generally the

main goal is to establish long lasting business collaborations in the country as

well as to provide legal know-how and advice on market entry strategies66 Indeed EU Agriculture and Rural Development Commissioner Phil Hogan will

be leading a Food and Beverage delegation to Iran (and Saudi Arabia) on 7-12

November 2017

When entering a new market the question of what representation presence

to have in the country arises this is also something Food and Beverage

exporters will want to look at when devising a strategy for the Iranian market

62 Italian Trade Agency ldquoMarket Overview of Iranrsquos Agricultural Food Sectorrdquo ICE January 2016 63 Netherlands Chamber of Commerce ldquoRoad2IranXL Conferencerdquo 2017 64 Ibid 65 ldquoIranrsquos Agriculture Machinery and Internal Combustion Engine Market Studyrdquo SGPM Economic and

Business Consultancy October 2016 66 Netherlands Chamber of Commerce ldquoRoad2IranXL Conferencerdquo 2017



41 | P a g e

It is believed to be valuable for new market entrants to establish a presence

in Iran with either a local branch or potentially otherwise a joint venture this

would be an alternative to direct export from the EU One of the reasons for

this strategy would be tax benefits The Head of Iranrsquos Tax Administration has

pointed out that Iran plans to attract EUR 80bn of FDI and is therefore offering tax exemptions ranging from 5 to 20 years In addition Iranrsquos Investment

Organization provides investment guarantees Having a physical presence in

Iran would also potentially be a first step into other countries in the region67

Another challenge when entering the Iranian market are the currently still

limited relations between Iranian and European banks this is even after lifting

of the sanctions against the country Most large European banks do not process

transactions with Iranian banks because of their exposure to US sanctions Smaller banks that do not have this exposure do have banking relations with

Iran Larger banks such as ABN AMRO apply a case-by-case approach although

ABN AMRO has a lsquowhite-listingrsquo method which means transactions involving

agricultural products face less difficulties Large European banks will likely

continue their current approach towards Iran for the next few years68

Table 8 Selection of Iranian banks with presence or correspondence in the EU and vice versa

European banks with Iranian

correspondent relations

Iranian banks with subsidiary in Europe

KBC (Belgium) Bank Melli (Germany)

Danske Bank (Denmark) Bank Sepah (Germany)

DZ Bank (Germany) EIH-Bank (Germany)

Banque Wormser Fregraveres (France) Bank Tejarat (France)

Banca Popolare di Milano (Italy) Bank Saman (Italy)

Banca Popolare di Sondrio (Italy) Persia Bank (UK)

Oberbank (Austria) Bank Melli (UK)

Raffeisen (Austria)

BCP (Switzerland)

Key Markets by Geography

Iran is split into 31 provinces governed from a local centre which is usually the

largest local city The most populous provinces which will be explored in more detail in this section are Tehran (1327 million) Khorasan-e-Razavi (643

million) Esfahan (512 million) Fars (485 million) and Khuzestan (471

67 Netherlands Chamber of Commerce ldquoRoad2IranXL Conferencerdquo 2017 68 Ibid



42 | P a g e

million) Most populated cities correlate to a large extent with size of province

see country overview section for more data

Tehran

Tehran is the most populated province in the country and over 60 per cent of

its about 13 million provincial population lives in the capital Tehran (pictured69)

of the country situated in this province of the same name The province was

proclaimed the capital of the country by Agha Mohammad Khan in 1778 Since

then the province has only grown in importance in the country today it has roughly 26 per cent of all

industrial units in the country

accounts for roughly 30 per

cent of the Iranian economy

and makes up about 40 per cent of Iranrsquos consumer

market This province hosts a

large proportion of the total

Iranian population and at

18909 km2 is relatively small

especially when compared to provinces further to the West

and South of the country For

this reason the province and

especially the capital are likely

to be highly important markets for EU Food amp Beverage

exporters when entering the Iranian market The province has relatively good

transport links when compared to other regions in Iran in particular it hosts

the main national airport Mehrabad as well as an international airport outside

of the city for international flights (Imam Khomeini International Airport) 70

Khorasan-e-Razavi

This province in Iran is situated to the East of Tehran and has land borders

with Turkmenistan and Afghanistan With around 64 million inhabitants it is

the second largest province in the country but has only about 40 per cent the population of the province of Tehran71 Khorasan-e-Razavi was part of a larger

province which in 2004 was split into three North Khorasan and South

Khorasan being the two other provinces which split Mashhad is the capital

and with about 3 million inhabitants makes up over 40 per cent of the total

population in Khorasan-e-Razavi72 After Tehran the capital of the province has the second most crowded airport in the country and goods from the major

69 Milad Mosapoor Image obtained from the Wikimedia Commons website available at

httpscommonswikimediaorgwikiFileTehran_tower_viewjpg 70 SOLA Iran ldquoAbout Tehranrdquo August 2017 available at httpwwwsola-irancomenpagephprid=32 71 City Population ldquoIran Major and Midsize Citiesrdquo September 2016 available at

httpswwwcitypopulationdeIran-Citieshtmladmid=1387 Copyright copy 72 Ibid

Figure 13 Tehran (capital) copy



43 | P a g e

port of Bandar Abbas can reach the capital via the Tehran-Badar-Abbas

railroad

Figure 14 Mashhad capital of Khorasan-e-Razavi Iran73 copy

Mashhad is Iranrsquos holiest

city the name

means lsquothe

burial place of a

martyrrsquo and

millions make the pilgrimage to

the holy Shrine

of Imam Reza

every year

Partly because of this the city is

primarily

focused on the

tourism trade

Mashhad is situated about

900 km East

from Tehran The cityrsquos main agricultural products include dry fruits various

kinds of nuts sweets and saffron

Esfahan

Esfahan is a province in the centre of Iran close to Tehran province which is

to the north It forms the start of a part of a set of a larger group of provinces

which extend down to the south and east of the country as opposed to the

provinces to the west and North-West which are mostly relatively small in comparison This region is slightly smaller than Khorasan-e-Razavi with

roughly 5 million inhabitants The capital of Esfahan is Isfahan which has

roughly 37 per cent of the total population of the province74

73 Arian Zwegers Picture obtained from Wikimedia Commons available at

httpscommonswikimediaorgwikiFileMashhad_the_holy_shrine_of_Imam_Reza_(6209041600)jpg

Copyright copy 74 City Population ldquoPopulation of the Counties of Esfahanrdquo September 2016 available at

httpswwwcitypopulationdephpiran-esfahanphp



44 | P a g e

In addition to a large

potential market the

Capital Isfahan (pictured75)

should in the next few

years see improvements in its infrastructure which

should facilitate business

for Food and Beverage

exporters as well as of

course other industries In general the current

administration is keen to

boost the countryrsquos railway

network and the

managing director of the Iranian Railway Company

(RAJA) announced in late

2016 that an express

railway from Tehran capital to Isfahan would be constructed in the next three

years76 In addition to this Austrian Airlines announced in late 2016 that they would be adding a route from Vienna to Isfahan in addition to their already

established service to Tehran This indicates growing interest in the country

and will further facilitate access of FampB companies to this part of the country77

Fars

Fars is a province located in the south west of Iran whilst it does not reach to

the Persian Gulf it is close and so is within relatively easy reach of a number

of ports along this part of Iranrsquos maritime border useful for EU Food amp

Beverage exporters to the country The Province has around 485 million

inhabitants This province is also one of the cultural centres of Iran in fact it is the original homeland of the ancient Persians and it is also the economic

centre of Southern Iran Here the major industry is predominantly agriculture

with the main products being cereal citrus fruits dates sugar beets and

cotton something which Food exporters from the EU would want to take into

account when deciding where to distribune products in the country

Khuzestan

Khuzestan province is situated in the West of the country and has a land border

with Iraq the population of the province is around 471 million Ahvaz is the

75 Author Arad Mojtahedi Image obtained from Wikimedia Commonsavailable at

httpscommonswikimediaorgwikiFileNaghshe_Jahan_Square_Isfahan_modified2jpg Copyright copy 76 Iran Business News ldquoTehran-Isfahan Railway to be built in 3 yrsrdquo August 2016 available at httpsiran-

bncom20160831tehran-isfahan-railway-to-be-built-in-3-yrs 77 Iran Business News ldquoAustrian Airlines to Launch Flights to Isfahanrdquo August 2016 available at

httpwwwiran-bncom20160823austrian-airlines-to-launch-flights-to-isfahan

Figure 15 Isfahan capital of Esfahan copy



45 | P a g e

capital78 It also opens to the Persian Gulf to the south This makes it a rather

easily accessible province by sea for all industries including that of Food amp

Beverage for example it has been seen in the country overview section that

the Imam Khomeini Port in the province has good connections by rail to the

entire country

One aspect for EU Food amp Beverage exporters to think about when entering the market is the various ethnic groups and peoples in the country In

Khuzestan for example there are amongst others Indigenous Persians

Iranian Arab tribes and Armenians throughout the region Another thing to

think about is the varying diets of the Iranian people which will impact on

sales of exporters in the different cities and provinces of the country Given

that Khuzestan has a maritime border it is not surprising that seafood is a very

important part of the cuisine in the province

Figure 16 Iranian provinces reference map79 copy

78 City Population ldquoIran Major and Midsize Citiesrdquo September 2016 available at

httpswwwcitypopulationdeIran-Citieshtmladmid=1387 79 Author Ali Zifan image obtained through Wikimedia Commons available at

httpscommonswikimediaorgwikiFileMap_of_Iran_with_province_names_and_neighboring_landsvg

Copyright copy


Market Access and Entry Legislation Regulations and Administrative Information

46 | P a g e

Legislation Regulations and Administrative Information

For rules and guidelines related to legislation regulations and administrative

information in Iran The Trade and Promotion Organization of Iranrsquos Ministry of

Industry Mining and Trade can provide general information In addition to this

the Ministry has published a number of links to some of the relevant legislation which can be accessed by interested parties in the Food amp Beverage sector

see enmimtgovirindexphp for the home page

In this area there are further relevant agencies that EU exporters of Food amp

Beverage to the country should be aware of These include but are not limited

to

- The Iran Food and Drug Administration (FDA) which Provides licenses

for food imports based on examination by its experts

- The Plant Protection Organization (PPO) which is responsible for

implementing the Plant Protection Law issues permits and can take

quarantine decisions

- The Iran Veterinary Organization Quarantine amp Biosecurity (IVO) which

is responsible for setting standards regarding animal products ranging

from production to packaging labelling and transport

- The Institute of Standards and Industrial Research of Iran Iran National Organization of Standardization (ISIRI) which is the Iranian

agency for standardisation and certification and is Iranrsquos representation

to the ISO The ISIRI has an office for evaluation of the quality of

importexport products

These agencies have published many product-specific and phytosanitary rules

on their websites This section therefore gives an overview of relevant

information for EU Food and Beverage exporters looking to enter the Iranian

market

It is further recommended for better understanding of the rules regarding food imports that potential market entrants seek local partners with further specific

knowledge of the situation on the ground These partners should be able to

provide further guidance on the basic entry flow show here



47 | P a g e

Figure 17 Import process for Meat Processed Foods Fruits amp Vegetables Dairy

Products ConfectioneryChocolate

Elaborated on the basis of review of legislation of above mentioned agencies and semi-formal interviews with both locally engaged and EU based stakeholders

Import ndash Export rules

EU Food amp Beverage exporters wanting to do business in Iran will need to

register with the Ministry of Industry Mine and Trade and with the Iran

Chamber of Commerce Industries Mines and Agriculture (ICCIMA) Registration will yield a commercial card and code to use on commercial

documents as well as an import licence which is required for importations into

Iran In addition online registration is required with the Trade Promotion

Organization of Iran for electronic processing of trade transactions80

The Export-Import Regulations Act full version available via Trade Promotion

Organization of Iran which can be accessed here is a key document and

provides information on regulations related to import into the country A number of pertinent articles for the EU Food amp Beverage exporter are shown

here

80 European Commission ldquoOverview of Import Proceduresrdquo European Commission Trade Database May

2017 available at

httpmadbeuropaeumadbviewPageIFPublihtmdoc=overviewamphscode=2200ampcountryid=IRkap58

EU Producer finds local agent with relevant expertise

Local Agent Importer (with Commercial Card) seeks approval of relevant agencies (FDA IVO PPO ISIRI) based on producers information Obtains Letter of Credit from a bank

Transport often arranged by Local AgentImporter

Customs Inspection (and sampling) at port of entry (byCustoms officers and representatives of the relevant

agencies)

Distribution (often arranged by Local Agent Importer)



48 | P a g e

Article 3 - Engaging in the business of exportation and importation of goods

for commercial purposes requires a commercial card which shall be issued by

Iran Chamber of Commerce Industries and Mines and approved by the

Ministry of Commerce

Article 5 - All productive ministries are required to forward to the Ministry of

Commerce not later than the 4th of February (15th of Bahman) of each year their proposals for the following year concerning the export and import

conditions in respect of goods similar to those produced domestically having

taken into account the internal requirements and exigencies of the country

Article 6 - Iranian means of transport shall have priority to transport all goods

imported into the country However the directive pertaining to the use of

foreign means of transport whether sea air road and railway carriers shall be

drawn up by the High Council for the Co-ordination of National Transportation

in conformity with the ordinance approved by the Council of Ministers

Article 8 - Importers of various goods whether governmental or not shall refer exclusively to the Ministry of Industry Mine and Trade for licensing their

imports and registration of their orders Note 1 The import license shall serve

also as a clearance permit and no separate permit shall be required

As with other sections related to regulations and procedures the seeking of

professional advice on the matter is encouraged

GI and IP protection

Iran is a member of the World Intellectual Property Organisation (WIPO) within the country the Ministry of Culture and Islamic Guidance is the

competent authority with respect to this area

Within this there are a number of relevant laws that Iran has enacted in the

areas of GI and IP as well as treaty memberships These include the act for

the protection of geographical indications (enacted 2005) Customs law

(enacted 2011) Lisbon Agreement for the protection of appellations of Origin

and their international registration (since 2006) By-Law subject of Article 16 concerning Protection of Geographical Signs (since 2005) Act of Plant

Varieties Registration Control and Certification of Seeds and Seedlings (since

2003) and the Madrid Agreement for the Repression of False or Deceptive

Indications of Source on Goods (since 2004)81

Specifically looking at the act on protection of geographical indications it can

be seen in article 5 that

ldquoThe following Geographical Indications shall not be protected

81 World Intellectual Property Organization ldquoIslamic Republic of Iranrdquo 2017 available at

httpswipointwipolexenprofilejspcode=IR



49 | P a g e

A- Indications that do not correspond to the definition in Article 1(A)82

B- Indications which are contrary to the principals of Sharia public order or morality

C- Indications that are not protected in their country of origin or their protection has been ceased or indications that have fallen into disuse in their country of origin within the

framework of the conventions to which Iran has accededrdquo

The Deputy Head of Judiciary and Head of the State Organization for

Registration of Deeds and Properties of the Islamic Republic of Iran noted in late 2016 a number of steps that Iran had taken over the past year to advance

its progress in Intellectual Property rights Revision of the laws and regulations

related to intellectual property rights Commemoration of IP Day and opening

up the receiving office for filing international applications under PCT

Commencing the implementation of the biennium project for the establishment of Technology and Innovation Support Centre (TISC) Organizing several

national training workshops and seminars in the various fields of IP rights in

cooperation with the related national entities83

For further information on relevant laws and treaty memberships see the WIPO

website here84 Geographical Indications can be registered with the Iran

Intellectual Property Office State Organization for Registration of Deeds and

Properties There is a searchable database on these on the relevant website found here85 For more detailed enquiries related to the Food and Beverage

sector it is recommended to seek the advice of a professional in this area

Customs SPS requirements and Labelling

Customs

IRICA the Islamic Republic of Iran Customs Administration is responsible for

customs procedures at ports of entry into the country see their website here

For the Food amp Beverage sector specifically there is a wide range of potential

import duties depending on the product

Table 9 Import duties for selected products in 2016 Iran

Product Import duties

Beef 5-15

Dietetic foods (chicken meat) 32

Fish 5-40

82 ldquoGeographical Indicationrdquo means an indication that identifies a good as originating in the territory a region

or locality of the country provided that the quality reputation or other characteristics of the good is

essentially attributable to its geographical origin 83 World Intellectual Property Organization ldquoSpeech by His Excellency Mr Toiserkanirdquo Fifty-Sixth Series

of Meetings of the Assemblies of the Member States of

WIPO October 2016 available at httpswipointedocsmdocsgovbodyena_56a_56_i04pdf 84 World Intellectual Property Organization ldquoIslamic Republic of Iranrdquo 2017 available at

httpswipointwipolexenprofilejspcode=IR 85 The searchable database is currently available only in Farsi



50 | P a g e

Prepared fish 40-55

Butter packaged in packages of

500 gr or less 55

Butter packaged in packages

more than 500 gr 20

Cheese 55

Frozen Vegetables 55

Wheat 10

The Agriculture and Food market in Iran Ministry of foreign affairs of Denmark

Registration with the Ministry of Economic Affairs and Finance will be necessary

for customs duties and tax payments The import registration Import Licence

gained from registering with the Ministry of Industry Mines and Trade also

serves as a customs clearance permit86 The Trade Promotion Organization of

Iran provides further details on specific duties for all categories divided into 21 different broad categories a number of which of course are relevant to EU

Food amp Beverage exporters For details please visit this page on the TPO

website

Easing the customs process for EU Food amp Beverage exporters to Iran is the

implementation in the country of the Automated System for Customs Data

(ASYCUDA World) which allows for electronic submission of the required

documents This system is not however universally available though further

integration can be expected in the future The main documents usually required along with a Customs Import Declaration are Freight documents

Commercial Invoice or Pro Forma Invoice Certificate of Non-Preferential

Origin Packing List Insurance Certificate87

SPS requirements

Given that Iran is an observer at the WTO the WTO SPS Agreement does not

apply to the country Measures in these cases for SPS are usually based on

international standards and principles

There are a number of identified SPS requirements relevant to the EU Food amp

Beverage sector described in the Iran fiche of the EU Commissionrsquos Market

Access Database an overview is given here


2017 available at

httpmadbeuropaeumadbviewPageIFPublihtmdoc=overviewamphscode=2200ampcountryid=IRkap58 87 Ibid



51 | P a g e

Table 10 Selected SPS requirements for Iranian market

Area Details

Animals and Products of Animal

Origin

Animals and products of animal origin are subject to veterinary control upon arrival and must be accompanied by

a corresponding veterinary health certificate

Required Veterinary Health Certificate for Animal Products

Refer to Ministry of Agriculture Department of Livestock

Affairs

State Veterinary Law available here

Pest Risk Analysis

(PRA)

A PRA is to be conducted on plants plant products or other regulated articles by the National Plant Protection

Organization (NPPO) ie the Plant Protection Organisation coming under the Ministry of Agriculture if the risk

associated with their importation is unknown

Refer to Ministry of Agriculture Plant Protection

Organisation

Plants and

Plant

Products

For the importation of plants and plant products as well as seeds and seedlings import approvals by the Ministry of

Agriculture are mandatory Goods subject to phytosanitary

control will be inspected at the customs office of entry and

must be accompanied by a Phytosanitary Certificate

Shipments of plants and plant products may only be entered

into the country through specific customs offices of entry

authorised in the respective provinces to inspect consignments subject to plant quarantine requirements see

Iran fiche at here for full details


Organisation

Plant Protection Act available on this website

Foodstuffs

The Ministry of Health and Medical Education is the responsible authority for foodstuffs In order to import food of any kind the foreign manufacturer must be registered

with the Food and Drug Organization (FDO) An additional

product registration with the same body results in a sanitary

licencehealth certificate for the products in question and

may facilitate the market access of the goods



52 | P a g e

For designated foodstuffs an additional import approval is

to be obtained from the FDO Prior to their release onto the

Iranian market imported foodstuffs are subject to

documentary checks and as the case may require physical inspection and sample taking and analysis procedures After

successful inspection the commodities may be released

through customs and receive a marketing authorisation

which is a prerequisite for placing the products on the Iranian

market

Depending on the type of good various exporters

certificates may have to be presented either for the product registration or for its actual customs release eg laboratory

results declaring that the product is fit for human

consumption or a certification of free circulation in the

country of export Additional certificates may be mandatory

eg sanitary certificates for foodstuffs of animal or plant origin Please refer also to the corresponding sections above

Moreover foodstuffs bearing higher risks eg live animals

fresh bovine meat poultry eggs or milk may require

specific attestations ie that they are BSE-free free from

foot and mouth disease or that the residue levels (eg of

dioxin or pesticides) remain below the threshold levels

For foodstuffs containing substances of animal origin a halal certification is required proving that the animal produce

conforms to the food standards set by Islamic rules

concerning the contents and the manufacturing process of

the goods

Selected information from EU Commissionrsquos Iran Market Access Database Fiche

Labelling

Labels for Food and Beverage must be written in Persian88 There are a number

of labelling requirements for Foodstuffs on the Iranian market that must be

followed details required are listed here


2017 available at



Market Access and Entry Iranrsquos relationships with the GCC 6 and other regional

bodies

53 | P a g e

Table 11 Labelling requirements for Foodstuffs in Iran

Labelling requirements Iran

Product and brand

nametrademark

Ingredients and additives (in

descending order of importance)

Net weight (metric units) Nutritional information

Origin and name of fat or oil

if applicable Country of origin

Name and address of the

manufacturer

Production and expiry dates on the original labels of the packages and

containers no additional stickers are

allowed

Special storage transportation and preparation instructions if

applicable

Meat and meat products must bear the indication that they have been

manufactured according to the

Islamic rules

EU Commissionrsquos Iran Market Access Database Fiche

Iranrsquos relationships with the GCC 6 and other regional bodies

Iran is present in various international organisations and bodies these include

being a member of the D-8 the Economic Cooperation Organization the G-18 the Organisation of Islamic Cooperation The South Asian Association for

Regional Cooperation the World Customs Organization Observer at the WTO

and the World Intellectual Property Organization89 An important regional

body with which Iran has a quite tense relationship is the GCC 6 made up of

Bahrain Kuwait Oman Qatar Saudia Arabia and the United Arab Emirates

Perhaps one of the more relevant regional bodies for Iran is the Economic

Cooperation Organization which is composed of nine other regional partners Afghanistan Azerbaijan Kazakhstan the Kyrgyz Republic Pakistan

Tajikistan Turkey Turkmenistan and Uzbekistan The aim of the body is to

promote economic technical and cultural cooperation amongst member

states90


httpciagovlibrarypublicationsthe-world-factbookgeosirhtml 90 Economic Cooperation Organization ldquoIntroduction to ECOrdquo 2017 available at

httpwwwecointin2htm



bodies

54 | P a g e

Preferential trade agreements here are operational which means that

competition for EU Food amp Beverage exporters is likely to be relatively strong from these countries than it would be given equal treatment This is also the

case with Iranrsquos participation in the Global System of Trade Preferences

amongst Developing Countries Further goods from Belarus Bosnia and

Herzegovina as well as Syria may be given preferential treatment another

factor to take into consideration when entering the market91

Given most recent data available it would seem that ECO members in terms of

Food amp Beverage exports to Iran are not so far behind the EU-28 especially given the difference in total number of countries as well as the fact that below

trade data was not available for three ECO member countries However it has

to be noted that EU-28 data from 2012-2014 was substantially higher than

ECO in Food amp Beverages and ECO over the period shown has a downward

trend in terms of exports to Iran in this category

Figure 18 Exports from ECO members and EU-28 over time of Food amp Beverage to Iran

copy UN Comtrade92


2017 available at

httpmadbeuropaeumadbviewPageIFPublihtmdoc=overviewamphscode=2200ampcountryid=IRkap58 92 United Nations International Trade Statistics Database Department of Economic and Social


$0

$200000000

$400000000

$600000000

$800000000

$1000000000

$1200000000

$1400000000

$1600000000

2012 2013 2014 2015 2016

Trad

e v

alu

e (

USD

)

EU-28

ECO


Market snapshots Beverages

55 | P a g e

Market snapshots

Beverages

Consumption

Iran is the second largest retail market for soft drinks in the Middle East with value sales of EUR 245 billion in 2015 retail value sales are expected to grow

30 per cent CAGR from 2015-202093 Iranian soft drink consumption is largely

dominated by carbonated drinks however increasing health awareness and

negative publicity have affected Iranian preferences in this category of

beverage the population generally is switching to healthier options like fruit

juice concentrates and alcohol-free beers

4111 Carbonated Drinks

Eating out is considered a leisure activity where there is an opportunity to socialise A growing middle class and the modernization and Westernization of

the Iranian traditional lifestyle have driven Iranian families to switch from

93 Bourse and Bazaar ldquoArab Business in Iran Looking Beyond Regional Rivalryrdquo June 2015 available at

httpwwwbourseandbazaarcomarticles2015618arab-business-in-iran-looking-beyond-regional-rivalry

Strengths

bullSecond largest soft drink retail market in the Middle East

bullHighly educated population with increasing Purchasing Power

bullIranians adoption of western modern life make European brands strong competitors on the market

Weaknesses

bullIran is not part of the WTO

bullWeak supply chain and low retail modernization

Opportunities

bullPost sanctions Iran is a market of eager consumers looking for new alternatives and products

bullIranian consumers are very health conscious and prefer natural or low sugar products

Threats

bullStrong competition from local brands

bullIranian government policies are highly protectionist

bullForeign products face high level of tariffs



56 | P a g e

eating at home to restaurants Increasing demand for restaurants especially

fast food restaurants has boosted growth of carbonated drinks consumption

Carbonated drinks account for a sizeable share of volume sales of soft drinks

in Iran94

In spite of this carbonated drinks

demand has grown at a slower pace compared to other drinks

categories Increasing concerns

regarding health and wellness in

Iranian society as well as lack of

innovation and diversification of

the carbonated drinks offer has driven consumers to switch to

other types of drinks including

doogh (a local yoghurt-based

beverage) and non-alcohol beer

Pepsi Coca-Cola and cola

variants such as the domestic

brand Zamzam considered the Muslim alternative to American

branded colas are the main

carbonated colas consumed by Iranians Consumers pair soft drinks with meat-

heavy meals as it is said the drink helps with digestion The host at most dinner

parties offer guests a choice between what are colloquially referred to as lsquoblackrsquordquo versus lsquoorangersquo or lsquokanadarsquo soft drink the former referring to any

orange-coloured fizzy soft drink

Parents tend to tell their kids not to consume soft drinks on an empty stomach

and soft drinks and other carbonated drinks are rarely consumed between

meals Considered a healthier alternative low-calorie cola and lsquodiet colasrsquo sales

have been increasing also responding to consumeracutes health awareness

4112 Bottled Water

Each Iranian consumes 15-20 litres of bottled water per year on average considerably low compared with other countries in the region95 There are

growing opportunities for increased sales in these categories in the upcoming

years96 Even though most Iranians feel that it is safe to consume tap water

94 How to invest in Iran ldquoSoft drinks Marketrdquo November 2015 available at

httpwwwhowtoinvestinirancomsoft-drinks-market

96 Financial Tribune ldquoBottled Water Consumption in Iran Meagerrdquo June 2017 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy65908bottled-water-consumption-in-

iran-meager

Figure 19) Carbonated Drinks often Positioned in Refrigerated Display in Combination with

Other Products to Appeal to Convenience-oriented Consumers



57 | P a g e

Iran has experienced an extreme water crisis in the last few years Population

surge water administration and agricultural policies insufficient rainfall and

the countryacutes climate conditions all threaten Iranacutes water supply97 In the

following years as the economy improves the Iranian government will

continue to struggle to improve the quality of water As a consequence

Iranianrsquos are more likely to rely on imported bottled drinking water

Consumers already drink bottled water both at home and when they are out

and about In the past Iranians would boil water to sanitize it and then keep

it in the fridge Bottled water offers a convenient alternative Single-serve

water bottles are growing in popularity The link between drinking greater

quantities of water and weight loss has become well-known amongst younger

health-conscious Iranians

4113 Non- Alcoholic Beer

Since the Iranian Revolution in 1979 alcohol production possession and

consumption is illegal and punishable in Iran Only minorities are allowed to

consume and produce alcohol but not to commercialize it

However non-alcoholic beer consumption has grown significantly The law has given non-alcoholic beer a significant chance to be preferred by Iranian

consumers This is because drinking beer even the non-alcoholic variety

offers a glamorous image and appeals to a popular desire for a global lifestyle

The Middle East accounts for one third of global consumption of Alcoholndashfree

beer In 2012 Iranians drank nearly four times as much non-alcoholic beer as

they did in 200798 As a consequence this product category has considerable

market potential for EU producers

Producers have also attracted consumers with a diverse range of products in

assorted flavours and packaging formats an important factor which helps to explain the rapid development of per capita consumption Non-alcoholic beer

is also considered a healthy alternative to carbonated drinks

4114 Fruit Juice

Consumption of Juice has been affected by high inflation In response

producers have been diversifying their product ranges to more affordable

optionsThe Juice sector is largely dominated by domestic manufacturers

including Alifard Co and Takdaneh Co Production depends largely on imports

of concentrates as the countryacutes supply is not enough for required production Local brands have maintained a significant market share due to their low

domestic production costs local market knowledge and product

diversification as well as their launching of affordable products for low income

97 The Media Express ldquoHow Serious is Water Crisis in Iranrdquo April 2017 available at

httpsthemediaexpresscom20170415how-serious-is-water-crisis-in-iran

98 How to Invest in Iran ldquoNon-alcoholic Beer Market in Iranrdquo November 2015 available at

httpwwwhowtoinvestinirancomnon-alcoholic-beer-market-in-iran



58 | P a g e

consumers Iran has the capacity to produce most fruit juices and concentrates

locally except for exotic fruits and flavours however current imports are

sizeable and growing99

Iranians enjoy drinking fruit juice but rarely drink it during breakfast or other

meals Fresh fruit juices are typically consumed in the afternoon between lunch

and dinner and in the evenings In the hot summer months Iranians drink Sharbat a mix of cooked sugar and water and a sweet fruit to cool down

Tehran is packed with fruit juice stands that are always bustling during the

afternoons and evenings Pomegranate juice is a top seller among locals

4115 Energy Drinks

Energy drinks have been hit by higher taxes which will affect growth for this drinks category

Preferred mainly by the

young energy drinks

have continued to gain

popularity among people aged between

15 and 31 for their high

sugar and caffeine

levels Red Bull leads

the energy drinks

market

Energy drink brands use marketing

campaigns to seduce

and communicate with

their young customers Most of these campaigns involve Western and Iranian

sport stars and a fancy lifestyle with which the young population identify

4116 Challenges for EU products

The United Arab Emirates and other Middle Eastern countries are Iranrsquos key

trade partners and will be the greatest beneficiaries of Iranrsquos economic

development once the country enters into a new sanctions-free era

High inflation and increasing price levels have reduced consumer purchasing

power affecting their preferences In 2013 the inflation rate reached 347 per

cent its highest level in the last 10 years100 Inflation in 2016 was 88 per cent

99 International Trade Center ldquoFruit Juice More Profitable Than Oil for Iranrdquo March 2016 available at

httpwwwintracenorgblogfruit-juice-more-profitable-than-oil-for-iran

Figure 20 Energy Drinks and Carbonated Drinks in Tehran Supermarket



59 | P a g e

falling below 10 per cent for the first time in a quarter of a century due to a

less accommodating monetary policy101 Poor supply chain management and

infrastructure represents an obstacle for delivering products to final

consumers102

Offer

4121 Domestic Offer

Iranian production capacity of fruit juice is estimated to be between 130000 and 140000 tons in spite of this total production stands at 60000 tons

Packaging is imported from countries like Switzerland France and Italy

however local companies are starting to meet the needs of the industry and even export packaging machinery to other countries in the region Producers

also point out that the lack of a proper supply chain has affected sales and

production of fruit beverages103

4122 Imports

Figure 21 Juice - of value of imports to Iran in 2016 by country of origin

copy ITC Trade Map104

Iran is an observer member of the WTO therefore the Iranian government has

overall control over the countryacutes trade policy Importers must register with

the Ministry of Economic Affairs and Finance for customs duty and tax

101 World Bank ldquoIran Overviewrdquo April 2017 available at httpworldbankorgencountryiranoverview 102 Iran Meat International Exhibition ldquoFood Industry in Iranrdquo Iran Meat Exhibition Report 2017 available

at httpwwwiranmeatexcomencontentfood-industry-iran 103 International Trade Center ldquoFruit Juice More Profitable Than Oil for Iranrdquo March 2016 available at

httpwwwintracenorgblogfruit-juice-more-profitable-than-oil-for-iran 104 Trade Map International Trade Centre wwwtrademaporg Product 2009 Fruit juices incl grape must

and vegetable juices unfermented not containing added spirit

Thailand34

Spain15Kuwait

13

Brazil12

Oman8

United Kingdom8

Italy3

Netherlands3

Germany2

Ireland2



60 | P a g e

payments and must also register online with the Trade Promotion Organization

of Iran Foodstuffs are classified as conditional or restricted goods105 and

require a license or authorization to be imported to Iran Food importers are

required to comply with standards specified by ISRI (Institute of Standards

and Industrial Research of Iran) and must also register at the Ministry of

Health

In addition there is a tax or surcharge equivalent to 10 per cent of the cost

of transporting goods imported into Iran when shipping is not carried out on

an Iranian flag line ie vessels belonging to the Iranian Republic Shipping Line

(IRSL) The average tariff applied by Iran for imports of Fruit Juices is 61 per

cent106 Companies like Alifard export to markets like Saudi Arabia the United

States and EU

Figure 22 Juice - value exported to Iran in 2016 by country of origin


4123 EU GI Products and labelling

Iran is party to the Lisbon Agreement for the Protection of Appellations of

Origin and their International Registration

Iranian food standards are based mainly on Codex Alimentarius regulations

and to some extent on European and US standards but modified to reflect

105 Iranian customs regulations distinguish 3 categories of goods in terms of import procedures

1 Permissible goods Licenced or approved provided import criteria are met

2 Conditional or restricted goods require a licence or authorisation such as foodstuffs and

telecommunications equipment prohibited goods which are forbidden under Islamic Sharia law or other

Iranian law for example alcoholic drinks

3 Restricted and conditioned can also apply to imports that are similar to locally manufactured goods 106 Trade Map International Trade Centre wwwtrademaporg 107 Ibid wwwtrademaporg Specific product is 2009 Fruit juices incl grape must and vegetable juices

unfermented not containing added spirits

34

2011

7

7

5

4

43

3 2

Russian Federation

Germany

Austria

Turkey

Kuwait

Korea Republic of

Netherlands

Japan

Malaysia

India

Canada



61 | P a g e

local conditions The Food and Drugs Administration (FDA) an agency of the

Ministry of Health is the authority in charge of granting labelling and

certifications to food products in Iran

Currently the Iranian government aims to implement the ldquoFood Traffic Light

planrdquo as part of their health policy in order to help consumers make healthier

choices with regards to the amounts of unhealthy substances in food items108

Distribution

4131 Non Alcoholic Beer

Total supply and consumption of non-alcoholic beer has been on the rise since 2012 Per capita consumption of this product was around 55 litres in 2014

and is expected to reach 10 litres in 2021109

Popular brands include Delster produced by State-owned and market leader

Iran Behnoush Company which dominates sales of non-alcoholic beer in Iran

The company engages in the production marketing and export of beer soft

drinks fruit juices and other beverages in Iran

Other producers include Arpanoosh Industrial Co a company founded in 2002

and based in Tehran which manufactures and markets non-alcoholic malt beverages under the brand Istak Global giants including Carlsbergrsquos Moussy

are also sold in Iran Sweet and fruity flavours are increasingly popular among

younger Iranians


Khoshgovar Mashhad Co Coca-Cola Corsquos subsidiary is the market leader for carbonated drinks Rapid expansion of on-trade outlets especially fast food

restaurants has boosted carbonated drinks consumption However cola

consumption growth is being affected by a lack of product innovation and rising

concerns regarding health and wellness

Low-calorie cola perceived to be healthier is the most popular category within cola carbonates and also had the strongest off-trade volume growth rate in

2016 Iranians consumed 92 billion liters of carbonated drinks in 2015 with

an average of 42 liters per person per year110 mainly through off-trade

channels from traditional grocery retailers supermarkets and hypermarkets

108 Tehran Times ldquoTraffic lightrsquo labels to guide Iranians toward healthier foodrdquo May 2017 available at

httpwwwtehrantimescomnews413178Traffic-light-labels-to-guide-Iranians-toward-healthier-food 109 How to Invest in Iran ldquoNon-alcoholic beer market in Iranrdquo November 2015 available at

httpwwwhowtoinvestinirancomnon-alcoholic-beer-market-in-iran 110 Financial Tribune ldquoIranians Top Guzzlers of Carbonated Drinksrdquo November 2015 available at

httpsfinancialtribunecomarticlespeople30309iranians-top-guzzlers-of-carbonated-drinks



62 | P a g e

4133 Fruit Juice

Juice production is led by four key suppliers Local producer Alifard Co leads

the juice market with its Sunich and Sherissa brands Alifard uses its own distribution company Sayesaman to reach the majority of the population in

Iran

Juice producers are completely dependent on high volumes of concentrate

imports as the domestic production of concentrates is not enough to cover the

domestic demand Popular juice flavours include orange as the best-selling

product pineapple mango grape and cherry

Lack of diversification and a desire for a healthier lifestyle have driven Iranian

consumers to switch to this category Manufacturers have shifted their strategy towards developing more natural products as consumers are increasingly

aware of the side effects of preservatives and are eager to consume products

with little or no risk for their health

4134 Mapping On-trade Sector

Restaurants and fast food chains are growing rapidly to satisfy demand of Iranian families currently there are an estimated 20000 fast food branches111

It is estimated that Iranian families spend an average of 2655 USD (2413

EUR) per family eating in restaurants and fast food chains112

Tourism is an important activity for Iranrsquos economy and plays a major role in

the development of on-sector outlets In 2014 the tourism industry contribuned with 63 per cent of total GDP and by 2025 this contribution is

expected to grow to 78 per cent113 Iranrsquos tourism industry has been growing

rapidly following the lifting of economic sanctions According to Iranrsquos Cultural

heritage Handicrafts and tourism Organization the country is expected to

receive up to 20 million visitors by 2025114

Summary

Increased health consciousness amongst consumers creates opportunities for products branded with natural organic and low sugar labels Consumersrsquo

eagerness to adopt Western customs and to have access to diverse and new

products will create opportunities for European products to participate in the

111 Bourse and Bazaar ldquoTelepizzas Arrival in Iran Shows Supersized Ambitionrdquo July 2016 available at

httpwwwbourseandbazaarcomarticles201771telepizza-arrival-in-iran-shows-supersized-ambition 112 Financial Tribune ldquoFast Food Industry in Iranrdquo July 2016 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets45173fast-food-industry-in-iran 113 Iran Tourism News ldquoIran international tourist arrivals to rise by almost 12 in 2017rdquo 2017 available

at httpirantourismnewscomiran-international-tourist-arrivals-to-rise-by-almost-12-in-2017 114 Financial Tribune ldquoIrans 2025 Tourism Target Elusiverdquo April 2017 available at

httpsfinancialtribunecomarticlestravel61770irans-2025-tourism-target-elusive



63 | P a g e

market Lifting of sanctions will create a more competitive environment for

European companies to participate in the market


Market snapshots Products with Geographical Indications

64 | P a g e

Products with Geographical Indications

Consumption

Iran is a party to the Lisbon Agreement for the Protection of Appellations of Origin and their International Registration through which it offers protection

to a good number of European products with GI status that are sold in Iranian supermarkets Even though the country itself has several products that are

protected with GI status the products with PDOPGI and TSG status are still

not very well-known amongst Iranian consumers115 As these labels are not

very well-known the consumers are also not very well educated about the

value and benefits of the products with geographical indications The consumers might not immediately recognize the European PDOPGI or TSG

labels and might not automatically associate these labels with premium

115 Therani and Manap ldquoUrgency and Benefits of Protecting Iranian Carpets using Geographical

Indicationsrdquo Journal of Intellectual Property Rights July 2012 pp 72 ndash 82 available at

httpnoprniscairresinbitstream123456789157361JIPR2018281292072-82pdf

Strengths

bull Iran is party to the Lisbon Agreement and thus offers protection to GIs registered with WIPO

bullIranians are increasingly looking to buy European quality products

Weaknesses

bull Legal awareness and enforcement of laws to protect GIs are still relatively low in Iran

bullLow consumer awareness on GIs

bull Majority of Irans populations belongs to lower middle class

Opportunities

bull Rising awarenss of GIs could lead to increased consumption

bullGood marketing campaigns could lead to rising awareness of GIs and to consumers increased willingness to buy these products

Threats

bull Persisting economic stagnation could reduce consumers willingness to buy high-priced GI products

bullGI products could lsquoget lostrsquo amongst other European quality products unless they are well marketed



65 | P a g e

quality It could therefore be quite difficult to market products with GI status

in Iran by only relying on the marketing power of the PDOPGI or TSG label

At the same time as more Western products continue to enter Iran as

sanctions against Iran are being lifted Iranian consumers are getting more

and more used to European products and also to European quality products

Thus good marketing based on the quality of the PDOPGI and TSG label could help to raise consumer awareness of products with GI status which in turn

could lead to increased consumer willingness to buy products with GI status

Furthermore the Iranian government is also in the process of strengthening

the laws and regulations on the protection of products with GI status thus

further raising peoplesrsquo awareness of products with GI status116

4211 Consumer profiles and trends

The gradual lifting of some sanctions on Iran has led to greater availability of foreign products on the countryrsquos market As more sanctions are expected to

be lifted Iranian consumers are looking forward to buying more foreign food and beverage brands Many Iranian consumers indicate that they are

interested in buying imported products which most believe offer better quality

In addition in general Western products (products from Europe and the

United States) are perceived to have high quality by Iranian consumers

Furthermore Iranian consumers

value the quality of products

Studies reveal that even though the purchasing power of the majority of

people decreased in the eight years

of the Mahmoud Ahmadinejad

regime Iran still has a demanding

society when it comes to luxury brands and quality products and

services Many luxury malls selling

luxury products and high-quality products and have opened in Tehran and

other Iranian cities in recent years and most of them are fully packed on

weekends117 Due to growing access of young Iranians to global trends and

lifestyles through the internet and especially through social media Iranians are becoming more and more brand-conscious shoppers who prefer quality

products118 This can potentially be advantageous for the European producers

of products with GI status as the products are generally perceived to be of high



httpnoprniscairresinbitstream123456789157361JIPR2018281292072-82pdf 117 MampM Global ldquoA guide to Iranrsquos marketing opportunities lsquostylishrsquo consumers and burgeoning media

scenerdquo Journal of Intellectual Property Rights September 2016 available at httpmandmglobalcoma-

guide-to-irans-market-opportunities-stylish-consumers-and-burgeoning-media-scene 118 Luxury Society ldquoThe Promise of Iranrdquo June 2017 available at

httpsluxurysocietycomenarticles201701promise-iran

Figure 23 European GI Products Sold in Tehran Supermarket



66 | P a g e

quality and the GI label is considered to be the proof of this Thus as the

Iranians are interested in high quality products there could be a promising

market in Iran for European products with GI status

At the same time as consumers are not educated about GI products and as

they might not know the added value that these products have then products

with GI status may run the risk of lsquogetting lostrsquo amongst the flood of Western products entering Iran These brands would likely need to compete with their

non-GI counterparts that are also by default considered as quality products as

consumers perceive the majority of Western products to be of high quality to

begin with

Despite the above consumers in Iran are looking forward to buying more

Western high-quality products However the majority of the Iranian consumer

base is currently not able to afford European high-priced products with GI status For the past 10 years Iran has had an unequal income distribution

which has led to the predominance of lower social classes meaning a large

proportion of the population is trapped in a low-income status119 The lowest-

income class will need to sacrifice the quality to price considerations and would

thus not be able to afford high-priced European premium products

Furthermore the higher price of European product with GI status is not only a

concern for the lowest-income classes but also for the middle and upper middle classes High inflation (inflation about 40) during the term of

Mahmoud Ahmadinejad increased the price of imported consumer goods as

well as domestic consumer goods which eventually reduced consumersrsquo

purchasing power in Iran This meant that foreign products became

increasingly not affordable for many people including people from the lower

and upper middle class As an end result consumers became generally more price-sensitive This means that the majority of Iranian consumers are still

very price-sensitive and willing to sacrifice the quality of the product to cheaper

price The fact that imported premium products tend to be expensive for

Iranian consumers and that consumers in Iran are quite price-sensitive means

that European products with GI status can expect some challenges when

entering Iranrsquos market

At the same time there are reasons to be optimistic According to Danish market research Iranian GDP is expected to increase further reaching 54 per

cent in 2017 and 59 per cent in 2018 as the country is slowly coming out of

recession According to the study this positive development in the Iranian

economy is then expected to contribune to a general increase in food

consumption and demand as it is likely to increase living standards for the gradually growing middle class in Iran raise purchasing power restore

consumer confidence and possibly reduce unemployment This is then

119 World Bank ldquoIran Economic Monitorrdquo Global Practice for Macroeconomics amp Fiscal Management

MENA Region Fall 2016 available at

httpdocumentsworldbankorgcurateden741891483046725613pdf111462-WP-P162048-PUBLIC-

IranEcoMonitor-12-22-2016pdf



67 | P a g e

expected to raise the demand for more expensive and specialized food

products120 This could potentially be good news for the European producers

of products with GI status as these products are likely to be more expensive

on Iranrsquos market

4212 Cultural sensitivities

When European companies are planning to export their products with GI status

to Iran there are a few cultural sensitivities to take into account

For religious reasons (to be in accordance with the Islamic laws) Iran bans

imports of alcoholic beverages live swine pork and foodstuff ingredients or

additives that contain pork products including pork fat and gelatine121 Thus European PDOPGI labelled products falling into these categories cannot be

exported into Iran

Furthermore according to Iranian export-import regulations the importation

of products which are prepared form the meat of religiously banned animals

or of religiously allowed animals but slaughtered according to non-Islamic rules

is prohibited122 This means that animals used to produce any products need

to be slaughtered according to Islamic religious rules which means that slaughterhouses need to be certified by respected Islamic Certification

Organizations European PDOPGI and TSG labelled products that do not meet

these standards cannot be exported to Iran


As mentioned above Iranian consumers have very low awareness of products

with GI status as Iranian producers currently only market a few products as

products with GI status on the local market Thus consumers might not always

know the added value that products with GI status have Therefore products

with GI status may run the risk of lsquogetting lostrsquo amongst the flood of Western products to Iran once more sanctions are lifted because these brands would

need to compete with their non-GI counterparts that are also by default

considered as quality products as consumers perceive the majority of Western

products to be of high quality to begin with The main challenge for European

producers would thus be the creation of a marketing strategy that educates

consumers about the added value of products with GI status

Another challenge for European producers has to do with Iranian governmental policies According to Danish research Iranian import duties on food are

relatively high and the duty is increasing as the level of food processing of the

imported food is increasing As an example the import duty for lsquoprepared

120 Ministry of Foreign Affairs of Denmark ldquoThe agriculture and food market in Iranrdquo March 2017 available

at httpwwwlfdk~medialffor-medlemmervirksomhedsmedlem-hos-

osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da 121 Islamic Republic of Iran Ministry of Industry Mine and Trade ldquoExport-Import Regulations 2016rdquo Trade

Promotion Organization of Iran 2016 available at

httpengtpoirindexaspxsiteid=5ampfkeyid=ampsiteid=5amppageid=24256 122 Ibid



68 | P a g e

meatrsquo is substantially higher than it is for lsquomeatrsquo not already processed

Similarly the import duty for butter or cheese packed in small packages (less

than 500 g) is much higher than the import duty for butter or cheese that is

to be repackaged in Iran According to the research this is a system put in

place in order to stimulate bulk import and encourage food processing packing or repacking to take place locally in Iran123 For some European producers of

products with PDOPGI and TSG label it might be important to do the

packaging in Europe and thus their products might become very expensive on

the Iranian market and would experience difficulties in competing with the

products that have been repackaged in Iran

Offer

As Iran offers protection to geographical indications there are several local products with GI status available in Iranrsquos market With the lifting of the

sanctions many European products with GI status also became available in

Iranrsquos market

4221 Domestic offer

Iran produces domestically several products with GI

status Most well-known are perhaps Iranian carpets

which have also been registered under the Lisbon Agreement with the World Intellectual Property

Organization (WIPO) From food and beverage

products the most famous Iranian products with GI

status are Anar de Saveh or Pomegranate of Saveh

and Khorma e Mazafati de Bam or Mazafati date of Bam which are also protected under the Lisbon

Agreement124

The pomegranate of Saveh (pictured125) originates from the Saveh province of

Iran and this variety of pomegranate tree produces an abundance of large

deep red fruit with very big juicy arils and soft seeds The flavour of the fruit

is sweet and tart with a great balance of sugar to acidity and the skin rarely

cracks Iran is also the largest producer of pomegranate in the world with annual output of more than 1 million tons of pomegranate The lionrsquos share of

this production comes from the Saveh region which is protected by

geographical indications126



osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da 124 World Intellectual Propertu Organization ldquoThe Lisbon System International Protection for Identifiers if

Typical Products from a Defined Geographical Areardquo Available at

httpwwwwipointedocspubdocsengeographical942wipo_pub_942pdf 125 Image obtained from Pixabay available at httpspixabaycomenpomegranate-fruit-tropics-exotic-

2103105 Copyright copy 126 Islamic Republic News Agency ldquoIran Known as the Worldrsquos largest Producer of Pomegranatesrdquo

December 2015 available at httpwww8irnairenNews81876021

Figure 24 Pomegranate

of Saveh copy



69 | P a g e

Another product with GI status Mazafati dates from the Bam region are one

of the many different kinds of Iranian date fruits This kind of Date due to

high moisture content is not used as nuts The date has an attractive black

colour its moisture depends on harvest time its size is between125 to 25127

The Bam region has around 28000 hectares of lands dedicated to this Date

and 120000 tons of the Date is harvested from the land annually128

Albeit not registered under the Lisbon Agreement another popular Iranian

product with local GI status is the Iranian

Saffron from Khorasan (pictured129 Its

superiority also comes from a rich heritage of

indigenous knowledge and skills in growing the

crop Therefore the technology of producing and processing saffron and even its uses have

been shaped according to the indigenous

knowledge of saffron growing areas Iran is also

the worldrsquos largest producer of saffron and

according to the governor of the Khorasan province the province produces the lionrsquos share

of Iranian saffron amounting to over 170 tons

annually 130

4222 Import

Currently Iran imports many products with geographical indication status

including products from the European Union Member states Cheese holds the

largest share of imports into Iran amongst the products with GI status as many

European cheeses enjoy GI protection in Iran due to being internationally

registered under the Lisbon Agreement131

4223 Export

Iran exports many of its products with GI status as it is the largest producer

of pomegranates and saffron and a major producer of dates For example Iran exports annually about 10000 metric tons of pomegranates the main markets

being China the Persian Gulf Arab states and Europe132 In Europe the biggest

receivers of Iranian pomegranates are Germany the UK Sweden and

127 Date Fruit ldquoMazafati Daterdquo Available at httpwwwdatefruitirmazafati-date 128 Ibid 129 Author Safa Daneshvar Image obtained from Wikimedia Commons available at

httpscommonswikimediaorgwikiFileSaffron-IMG_6640-2jpg Copyright copy 130 ldquoRural Development and Agrifood Product Quality Linked to Geographical Origin in Asiardquo 2009

available at

httpwwwfaoorgfileadmintemplatesolqdocumentsBangkokProceedingsQualityoriginAsiaFinalpdf 131 World Intellectual Propertu Organization ldquoThe Lisbon System International Protection for Identifiers if


httpwwwwipointedocspubdocsengeographical942wipo_pub_942pdf 132 Islamic Republic News Agency ldquoIran Known as the Worldrsquos largest Producer of Pomegranatesrdquo


Figure 25 Iranian Saffron from Khorasan copy



70 | P a g e

Switzerland133 The majority of production comes from the Saveh region and

large amounts of these products with GI status will also end up on international

markets including in Europe Similar to pomegranates Iran is a major

exporter of its GI status dates It is estimated that Mazafati Date of Bam enjoys 20 per cent of the nations total export of Dates with the products being

exported to all over the world including UAE Iraq India Russia Ukraine Pakistan Europe (UK Sweden Norway Denmark and Germany) and other

countries134 According to the ITC trade map Iran exports about 130000 tons

of dates annually135

4224 Focus on PDO PGI TSG and Organic Label

Iran has currently a functioning system of GI protection that the Government

is planning to make more effective Iran is currently however not party to the

Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement

which would grant world-wide protection to its own GI products The GI

products are currently protected through domestic laws and through major international laws The Act for Protection of Geographical Indications (2005)

has in fact created a system that allows the registration of products with GI

status and there are already quite a lot of Iranian products registered as GIs136

However there are as yet no European products registered as GIs in Iran

On the other hand Iran is also party to the Lisbon Agreement for the Protection

of Appellations of Origin and their International Registration The Lisbon

Agreement was specifically concluded in response to the need for an international system that would facilitate the protection of a special category

of geographical indications or ldquoappellations of originrdquo in countries other than

the country of origin by means of their registration with WIPO through a single

procedure for a minimum of formalities and expense137 According to the

Lisbon Agreement Iran has committed itself to protecting around a hundred

European products with GI status Most of these products belong to the cheese category For an overview of the European products with GI status protected

under the Lisbon Agreement and not refused by Iran please see Annex I

133 Financial Tribune ldquoPomegranate Exports Earn $38 Millionrdquo February 2017 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy59074pomegranate-exports-earn-38-

million 134 Date Fruit ldquoMazafati Daterdquo Available at httpwwwdatefruitirmazafati-date 135 Trade Map International Trade Centre available at wwwtrademaporg 136 World Intellectual Property Organization ldquoCountry Profile Islamic Republic of Iranrdquo 2017 available

at httpwwwwipointdirectoryendetailsjspcountry_code=IR 137 World Intellectual Property Organization ldquoThe Lisbon System International Protection for Identifiers if


httpwwwwipointedocspubdocsengeographical942wipo_pub_942pdf



71 | P a g e

Table 12) National Legal Framework for the Protection of GIs in Iran

National Legal Framework for the Protection of GIs in Iran

Relevant Regulatory

Framework

Act for Protection of Geographical Indications (2005)

An International registration of foreign GIs through the

Lisbon Agreement is possible under the following

conditions

1 The GI must come from a State signatory of the Lisbon

Agreement

2 This International registration will only have effect in the

countries signatories of the Lisbon Agreement

Type of

Protection

Protection of Geographical Indications (a collective

trademark only collective accusations could apply)

Scope of

Legislation

Applicable to goods (agricultural andor industrial) andor services Geographical indications for alcoholic beverages

and pork products as well as retail and wholesale service

are excluded

Source The English version of the Law is available on the WIPO

website here

Relevant Articles in the

National Law


Article I

ldquoGeographical Indicationrdquo means an indication that identifies a good as originating in the territory a region or

locality of the country provided that the quality reputation

or other characteristics of the good is essentially

attributable to its geographical origin

Article III

A geographical indication shall be protected regardless of

whether it has been registered or not It shall be protected

if it fulfills the conditions set forth in Article 1(A) above and

in the proceedings initiated under this Act where the geographical indication has been registered it shall raise

the legal assumption that such an indication is a

geographical indication within the meaning as prescribed in

Article 1(A)



72 | P a g e

Article V

The following geographical indications shall not be

protected A- Indications that do not correspond to the

definition in Article 1(A) B- Indications which are contrary

to the principals of Sharia public order or morality C-

Indications that are not protected in their country of origin or their protection has been ceased or indications that have

fallen into disuse in their country of origin within the

framework of the conventions to which Iran has acceded

Article VII

The application for registration of a geographical indication

shall be filed by the following persons with the Organization

for Registration of Deeds and Estates A- Any natural

person or legal entity or groups of such persons or entities

who are engaged in the production of the goods indicated in the application in the geographical area specified in the

application B- Any competent authority in production

distribution or policymaking for the goods being registered

Article VIII

Article 8- The following items shall be specified in the

application A- Name address and nationality and the legal

capacity of the applicant B- The geographical indication

registration of which is applied for C- The geographical area to which the geographical indication relates D- The

goods the geographical indication relates to E- The quality

reputation or other characteristics of the goods for which

the geographical indication is used Note The applicant

shall pay the prescribed application fees

Article IX

Manner and stages of filing the application is as follows A)

The Organization for Registration of Deeds and Estates

shall examine the application to determine if it complies with the requirements of Articles 5(B) 7 and 8 and the

Regulations pertaining thereto and then shall proceed with

its publication provided that it fulfils the required

conditions

B) Where the provisions of paragraph (A) above are not

fulfilled the interested party or competent authority may

in line with the Regulations of the present Act submit his opposition to the application for registration of the



73 | P a g e

geographical indication to the Organization for Registration

of Deeds and Estates

C) The Organization for Registration of Deeds and Estates

shall notify a copy of the opposition to the applicant The

applicant shall respond to the opposition within the

prescribed period Failure to send a response by the applicant within the prescribed period shall be considered

as withdrawal of the application

D) If the applicant sends a counter ndashstatement the

Organization for Registration of Deeds and Estates shall

furnish a copy of the same to the person filing the

opposition and after hearing the parties shall make a

decision about the opposition

E) Where the Organization for Registration of Deeds and

Estates finds that the conditions set forth in paragraph (A) are fulfilled and no opposition has been filed against the

application or the opposition has 6 been rejected the said

Organization shall register the geographical indication

publish a notice to that effect and shall issue to the

applicant the certificate of registration

WIPO138

In reality even though the Law for Protection of Geographical Indications was

adopted in 2005 enforcement of GI protection is still relatively weak in Iran

The enforcement of GI protection is weak mainly because of problems such as

the lack of a national institution for submission and follow-up on applications the lack of an

implementation system and certifier body and

a shortage in the required legal awareness

professional knowledge and financial capabilities

in existing organizations139

At the same time there are a good number of

European products with GI status available in Iranrsquos market as many of them are also

protected under the Lisbon Agreement

Examples include Grana Podano Cheese (Italy)

138 World Intellectual Property Organization ldquoCountry Profile Islamic Republic of Iranrdquo 2017 available

at httpwwwwipointdirectoryendetailsjspcountry_code=IR 139 Source Food and Agriculture Organisation of the United Nations 2009 Rural Development and Agrifood

Product Quality Linked to Geographical Origin in Asia

httpwwwfaoorgfileadmintemplatesolqdocumentsBangkokProceedingsQualityoriginAsiaFinalpdf

Reproduced with permission

Figure 26 Grana Podano Being

Sold in Tehran Supermarket



74 | P a g e

Camembert de Normandie (France) Aceto Balsamico di Modena (Italy) and

Pecorino Romano (Italy) For the whole list of European products with GI

status protected under the Lisbon Agreement and not refused by Iran please

see Annex I

There is however no protection for geographical indications in Iran for wines

and spirits not even under the Lisbon Agreement because alcoholic beverages are prohibited from being produced sold consumed imported or exported in

Iran pursuant to Islamic Law Despite this there are many European alcoholic

beverages registered under the Lisbon Agreement Iran has legally refused to

protect these GIs140

42241 Organic Label

According to German market research knowledge of organic food in Iran is

very superficial and the organic market in Iran is only slowly beginning to form although organic products are relatively frequent in Iranian supermarkets

and traditional markets due to natural production

methods141 According to the same study in some

areas Iran has also been exporting certified organic

products abroad even to Europe and among the

producers of organic food in South Asia Iran already occupies a considerable position today The

study further clarifies that Iranian organic livestock

products mainly include fish chicken and other

poultry species and domestic markets are the main

production and consumption centres of these products142 According to German market research

with respect to Iranian dry fruits and vegetables

more than 40 per cent of saffron and barberries and

up to 100 per cent of pomegranates are produced

organically The former Iranian Deputy Minister of Agriculture Mohammed Ali Nikbakht explained

that Iranian agriculture has the potential to operate

in several markets with their organic products He

further explained that about 20 per cent of meat and fisheries products and

about 20 per cent of grain production come from organic production143

140 World Intellectual Property Organization ldquoThe Lisbon System International Protection for Identifiers if


httpwwwwipointedocspubdocsengeographical942wipo_pub_942pdf 141 Bundesministerium fur Ernahrung und Landwirtschaft ldquoThe Food Market in Iran rdquo [Der

Lebensmittelmarkt im Iran] October 2016 available at

httpsagrarexportfoerderungdefileadminSITE_MASTERcontentfilesMarktstudien2016Kurzstudie_L

ebensmittel_Iran_COMMIT_Dezember2016_-_Internetdateipdf 142 Ibid 143 Ibid

Figure 27 EU Organic Products Sold in Tehran Supermarket



75 | P a g e

The German study further reveals that according to the Director General of the

Office for Rural Cooperatives there is as yet no integrated market for the

supply of healthy and organic food He sees the responsibility especially in the

private sector which now has to create suitable shops for organic food to meet

demand which is mainly evident in the big cities144

Organic food must also bear the organic label in Iran An updated version of the Requirement of production processing inspection amp certification labeling

and marketing of organic food (INSO - 11000) was published by the Institute

of Standards and Industrial Research of Iran (ISIRI) in 2014 which deals with

organic standards in Iran In these standards a list of permitted organic inputs

was also included145 The standards can be downloaded from the ISIRI website

4225 Mapping of Main Competitors

For European products with GI status the main competitors on the market are

similar products with no GI status These could be local products similar to

the European products with GI status or other European products that are similar but do not have GI status since European products are already

perceived as premium quality by Iranian consumers Consumers who are

generally price-sensitive are likely to prefer the lower priced European

products with no GI status to the pricier European premium products awarded

GI status

As Iranian consumers are considered price-sensitive and as there are many

non-GI counterparts of European products available in Iranrsquos market European products with GI status could potentially run the risk of losing market share to

some of their non-GI counterparts unless marketed properly

Additionally the agriculture and food market in Iran is heavily regulated

through subsidies for local producers as well as having import quotas import

duties and lengthy license and approval processes which will also be challenges

for European producers of GI products especially packaged goods Also

according to Danish market research veterinary rules are used as practical trade barriers vis-agrave-vis imports These factors also complicate access for

international companies to the Iranian market146

144 Bundesministerium fur Ernahrung und Landwirtschaft ldquoThe Food Market in Iran rdquo [Der



ebensmittel_Iran_COMMIT_Dezember2016_-_Internetdateipdf 145 International Society of Organic Agriculture Research ldquoCountry report Iranrdquo Available at

httpwwwisofarorgisofarindexphp2-uncategorised120-country-report-iran






76 | P a g e

4226 Specific customs and SPS requirements

European products with GI status would not face any different customs and

SPS requirements than their non-GI counterparts Customs and SPS

requirements vary according to product Any products containing alcohol or

pork are forbidden from entering Iran

European producers of products with GI status should keep in mind that the

Iranian government has also set import duties for each product entering the

country The duties vary from each product to the other In case of foreign production import duties are very high in order to support local

manufacturers The import duties change each year and are available in the

Iran ImportExport regulation book147

Companies should also keep in mind that engagement in exportation and

importation activities for commercial purposes requires a commercial card to

be issued by the Iran Chamber of Commerce Industries and Mines and

approved by the Ministry of Commerce Moreover importers are required to

register their import orders with the Ministry of Commerce148

The Iran export-import regulations are accessible also via the Iran Trade

Promotion Organization website

Distribution

European products with GI status are already sold in many supermarkets and smaller stores of the biggest cities in Iran Products with GI status are also

probably best sold in the bigger supermarkets and hypermarkets as these are the preferred retail outlets for younger consumers who are eager to buy

Western products

4231 Structure of the distribution

Iranian agri-food distribution is quite fragmented and it involves quite many players According to the Danish study traditionally both cooperatives

individual farmers and ranchers do not have direct access to the retail market

when they distribune their products Instead the produced food passes

through several different distribution channels before finally reaching the retail

buyers The prices of many products also increase considerably due to inefficient distribution channels in which each dealer involved in the process

charges relatively high sales commissions149 This could also be the case with

some international imports According to the same Danish study in Iran food

is generally distribuned via 1202 refrigerated centres with a total capacity of

approximately 2 million tons 4584 warehouses with a capacity of 87 million tons and 216 silos with a capacity of 84 million tons According to the study



osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da 148 Ibid 149 Ibid



77 | P a g e

a method to improve and increase the efficiency in the food distribution system

in Iran would be to expand the Agricultural Commodities Exchange The

Agricultural Commodities Exchange currently distribunes twenty commodities

including sugar saffron corn wheat oil rice pistachios and barley150

For European producers of products with GI status it would be recommended

to work with local distributors and buyers as they generally have better knowledge of the local market and they could get the products to different

retail outlets

In Iran distribution of agricultural produce is largely done through agents or

wholesale distributors Distributors can supply to both modern and traditional

retail outlets depending on what the focus of the producer is151 In Iran

European producers could also work with wholesalers Wholesalers normally

supply large quantities of commodities to retailers mainly in rural areas as well as to the food service industry restaurants152 European producers of

products with GI status are likely have limited cooperation with the

wholesalers as their quantities tend to be smaller and many focus on selling

already packaged goods

For European producers of products with GI status it could also be desirable

to work together with importers Importers generally purchase goods from

foreign countries and supply these then to distributors Key food products that

are most often imported through importers include meat and wheat153

Iranian distribution network covers different types of players Importers wholesalers distributors and retailers are interconnected in a fragmented

industry dominated by bazaars which are marketplaces located in almost every

city in Iran In these bazaars individual retailers bauy their products from a

few wholesalers154

Currently Iran still has a very traditional retail environment with strong

dominance of traditional grocery outlets which account for almost 90 per cent

of sales in in the food and beverages sector However the process of conversion to modern channels started since 2008 with the launch of Carrefour

supermarket chain in Iranian market This process has been very slow and the

main reason for this has been the sanctions in place against the country155 At

the same time with the removal of sanctions rapid growth of Carrefour and

entry of other modern retailing giants has been slowly occurring and this has



osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da 151 Italian Trade Agency ldquoMarket Overview of Iranrsquos Agricultural Food Sectorrdquo ICE January 2016 152 Ibid 153 Ibid 154 Financial Tribune ldquoBeating the Bazaar Retailing in Iranrsquos Consumer Marketrdquo March 2016 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy37730beating-the-bazaar-retailing-in-

iran-s-consumer-market 155 Industry Sourcing ldquoIranrsquos food and beverage marketrdquo November 2016 available at

httpwwwindustrysourcingcomarticleiranE28099s-food-and-beverage-market



78 | P a g e

led to more popularity of hypermarkets at the expense of the loss of

independent small groceries This has much more benefit for multinational

brands as modern channels give them better opportunity to increase visibility

and brand awareness Usually domestic brands are not very strong in using

space and opportunity in modern channels and multinationals use this chance more efficiently due to their better experience156 This means that European

producers of products with GI status could have their best chances to market

their products in big supermarkets and hypermarkets At the same time the

majority of Iranian consumers still shop at the bazaars or traditional smaller

shops for their groceries

Similarly to many other emerging markets Iranrsquos e-commerce sector is

quickly gaining popularity the young population is technologically more sophisticated and the penetration of internet is increasing At the same time

e-commerce in the food and beverage sector is still negligible

4232 Mapping on and off Sector

There are about 1149 hotels guest houses and other accommodation facilities

in Iran that also offer food services There are also estimated to be about

30000 restaurants cafes and other relevant places in the cities of the

country In addition there are 3162 restaurants and venues outside of cities

supported by the Cultural Heritage Handcrafts and Tourism Organization However other official bodies which work without permission must also be

added to these official figures Currently however there is no reliable data on

this157

According to German market research the HoReCa sector is similar to small

and medium-sized foodstuffs Hotels restaurants and cafeacutes either buy from

small regional wholesalers or they supply directly through a distribution

company158


As mentioned above Iran has a very fragmented distribution network and

succeeding in Iran really comes down to finding a good partner in the country

to work with Furthermore issues like the amount of red tape involved might make it little more challenging to find good partners159 Also the fact that

relationships and partnerships matter a lot in Iranrsquos business environment

156 Industry Sourcing ldquoIranrsquos food and beverage marketrdquo November 2016 available at

httpwwwindustrysourcingcomarticleiranE28099s-food-and-beverage-market 157 Bundesministerium fur Ernahrung und Landwirtschaft ldquoThe Food Market in Iran rdquo [Der



ebensmittel_Iran_COMMIT_Dezember2016_-_Internetdateipdf 158 Ibid 159 The Swedish Trade and Invest Council ldquoA new dawn for Swedish Business in Iranrdquo Business Sweden





79 | P a g e

might make it difficult for smaller European companies with more limited

budgets to do business in Iranrsquos market

Summary

Even though Iran has functioning laws on protection of geographical indications

and the country is party to the Lisbon Agreement for the Protection of Appellations of Origin and their International Registration the concept of

geographical indications is still not very well-known amongst Iranian

consumers When consumers make their purchasing decisions they are

interested in the quality of the product however they might not yet associate

the PDOPGI and TSG labels with superior quality To most consumers European products are of higher quality than local products or products from

many other countries and thus they may fail to see the added value of the

PDOPGI and TSG label Furthermore Iranrsquos market is still relatively price-

sensitive which means that many consumers might not be able to afford

European premium products with GI status At the same time as Iran is also promoting its own products with GI status consumer awareness of GIs is likely

to rise The European producers of products with GI status should focus on

appropriate marketing strategies in order to raise consumer awareness of their

superior products


Market snapshots Fresh meat

80 | P a g e

Fresh meat

The opening of the Iranian market following the lifting of sanctions by the west

is evident also in the fresh meat market which has started to recover in the past year after a few years of little or no imports and exports in this sector

Recently signed agreements such as the one between Iran and New Zealand

imply that the Iranian government is ready to enter into commitments which

open up the meat market With this being said imports of fresh meat products

have to comply not only with health requirements like other agriculture products but also with Halal requirements which is a disadvantage for

European exporters Poultry meat production is especially protected and

imports in this category require a specific import permit Another difficulty

faced by European economic actors is that local distribuners and wholesalers

control distribution in the agriculture sector both for domestic products and for imports and exports To succeed in the Iranian market foreign companies

are strongly advised to establish cooperation with local companies

Strengths

bullReadiness for the opening up of the market and signing of new trade agreements

Weaknesses

bull Prohibition of Non-Halal meat

bullControl of distribution channels by local players

Opportunities

bullGrowing demand and insufficient local production are likely to increase the demand

Threats

bull Pressure against imported meat from local producer organisations is likely to persist



81 | P a g e

Consumption

In 2016 average per capita consumption of meat was 2986 kg comprised of

2353 kg of poultry meat (788 per cent) 318 kg of beef and veal meat (1008

per cent) and 332 kg of sheep meat (1112 per cent)

Figure 28 Consumption of meat in Iran by category 2016

OECD ndash FAO

After a relatively sharp decrease in consumption between 2011 and 2013

consumption has since recovered and is expected to continue growing albeit

slowly Demand is likely to gradually grow following the lifting of the sanctions

and the resulting expected increase in household income According to

prospects consumption will rise to 3127 kg per capita by 2021160

Figure 29 Consumption of meat in Iran 2011-2016 and prospects for 2017-2021 (kg per capita)

OECD ndash FAO

160 OECDFAO (2016) OECD-FAO Agricultural Outlook 2016-2025 OECD Publishing Paris

httpdxdoiorg101787agr_outlook-2016-en

poultry 7880

beef amp veal 1008

sheep 1112

27

28

29

30

31

32

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Co

nsu

mp

tio

n k

g p

r ca

pit

a



82 | P a g e

4311 Consumer Profile and Trends

In Iran poultry is preferred to red meat as it is cheaper than red meat Within

the red meat category there is a preference in the Persian cuisine for lamb

meat It is used in traditional dishes such as Chelo Koresh Tah Chin (layered

rice yogurt and lamb) or the many Dolmeh dishes

The growing importance of health considerations is also affecting meat

consumption trends in Iran As part of this trend vegetarian diets are

becoming more popular although for many among the wider public vegetarianism is still considered strange as the Iranian cuisine is very meat-

intensive The first vegetarian restaurant in Iran was established as part of the

Iranian Artistrsquos Forum in 2001 followed by other restaurants offering

vegetarian options Customers of the vegetarian restaurants are usually

middle class young and educated

The primary meat that is consumed in Iran is lamb Until the mid-20th century

beef was not commonly consumed in Iran It used to be considered as a poor type of meat to the extent that Persian royalty would look down upon

Europeans for eating this kind of meat Chicken used to be considered a

delicacy though this has changed with the growing influence from Western

culture which increased the popularity of growing and eating chicken Fish is

currently quite popular in Iran which was not the case traditionally outside of the coastal areas Pork meat of course is not consumed in Iran since the Islamic

revolution

Iranians usually serve meat as part of

a dish rather than by itself A famous

traditional dish common in almost

every Iranian household is the

Khoresh (version of koresh pictured161) sometimes pronounced

ldquokhoreshtrdquo in which the meat is

cooked in a stew together with fried

(sauteacuteed) onionsgarlic veggies and

herbs The version of this dish popular

today in Iran has developed over hundreds of years during which

Central Asian cuisines melded with

different Persian ingredients

According to travellersrsquo testimonies it

was served in dinners during the era of the Safavid dynasty of Iran (in the 18th century) There are at least 13 different types of Khoresh as recorded in texts

161 Author Rka11111 Image obtained from Wikimedia Commons available at

httpscommonswikimediaorgwikiFileKhoresh_Bademjanjpg Copyright copy

Figure 30 Koresh - a popular Iranian

meat and vegetable stew copy



83 | P a g e

from the Safavid court That number has since increased as new ingredients

became available in Iran162

Offer

Historically Iranrsquos meat production has faced considerable challenges

Livestock companies typically operate at 20ndash30 per cent of production capacity and animals delivered to slaughterhouses are often underweight and

fail to meet international standards Moreover International sanctions and

inflated feed grain prices have negatively affected meat production in the

country over the past few years163

According to the Statistical Centre of Iran about 476000 tons of red meat

was produced in official slaughterhouses across the country during the fiscal

year 2015-2016 indicating a 12 per cent rise compared to the previous year Production of lamb meet has risen by 11 per cent goat meat 1 per cent beef

and veal 14 per cent bison 5 per cent and camel meat 21 per cent As of 2016

Iranrsquos meat production is still not self-sufficient According to the Association

of Cattle Breeders Iranrsquos total annual red meat production is over 820

thousand tons while consumption is about 880 thousand tons164

In poultry however Iran is a net exporter Poultry exports reached 120000

tons already in 2014 These exports increased by 28 per cent CAGR to reach 109 million USD (97 million EUR) between 2010 and 2014 resulting in net

exports of 75 million USD (67 million EUR) in 2014165 Iranrsquos halal poultry is

being exported to a number of countries and the government aims to become

a net poultry exporter in the Middle East and North Africa (MENA) region by

2022166 Obtaining a Halal Food Standard is currently not obligatory in Iran Yet according to the Halal World Institute more than 1000 famous Iranian

industrial food products obtained the Halal Food Standard label as a

promotional measure This label is approved in 57 Islamic countries

4321 Import

As evidenced in the table below exports of fresh meat from the EU to Iran are

quite limited In 2016 the total value of exports from the EU to Iran was 115

million USD (1025 million EUR) which constitute less than 03 per cent of

162 The Unmanly Chef ldquoFood With a Backstory Persian Foodrdquo Available at

httptheunmanlychefcomhistory-of-food-in-iranfood-back-story-persian-food 163 Global Islamic Economic Gateway ldquoOverviewmdashHalal food opportunities in Iranrsquos $61 billion FampB

marketrdquo April 2016 available at

httpwwwsalaamgatewaycomenfoodstoryoverviewhalal_food_opportunities_in_irans_61_billion_fb_

market-SALAAM12042016112326 164 Financial Tribune ldquoRed Meat Production Rises 12rdquo August 2016 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets47704red-meat-production-rises-12 165 Global Islamic Economic Gateway ldquoOverviewmdashHalal food opportunities in Iranrsquos $61 billion FampB



market-SALAAM12042016112326 166 Italian Trade Agency ldquoMarket Overview of Iranrsquos Agricultural Food Sectorrdquo ICE January 2016



84 | P a g e

Iranrsquos total imports in this category The major part of EU exports (valued EUR

932 thousand) is from Denmark Other EU countries exporting fresh meat to

Iran are Poland Germany and France The leading exporter of fresh meat to

Iran is Brazil (about 89 per cent of Iranrsquos imported value) followed with a large

gap by India (76 per cent) and Armenia (23 per cent)

Figure 31 Iranrsquos imports of fresh meat167 (value in euro thousands 2016)


However trade is expected to grow following the opening of the Iranian

market and it may be an opportunity to advance trade agreements with Iran

For instance in February 2017 New Zealand signed an agreement with Iran to

resume the exports of chilled and frozen sheep and beef to the Islamic Republic169 Before the sanctions against Iran took effect EU countries were

important trade partners of Iran Italy in particular was among Iranrsquos top

trading partners with estimated trade valued at around 7 billion USD (62

billion EUR)170 Challenges to imports of meat into Iran may be raised by local

livestock breeders The association of Cattle Breeders claims that contrary to certain publications there is no shortage of meat in the market but rather

imports exceed domestic demand by about 40 thousand tons

167 Export and import data are for products under HS chapter 02 Meat and edible meat offal 168 Trade Map International Trade Centre wwwtrademaporg 169 Global Islamic Economic Gateway ldquoIran New Zealand sign agreement on resumption of meat traderdquo

March 2017 available at

httpwwwsalaamgatewaycomenfoodstoryiran_new_zealand_sign_agreement_on_resumption_of_mea

t_trade-salaam01032017034343 170 Global Islamic Economic Gateway ldquoOverviewmdashHalal food opportunities in Iranrsquos $61 billion FampB



market-SALAAM12042016112326

1

10

100

1000

10000

100000

1000000

Va

lue

EU

R 0

00

s



85 | P a g e

4322 Export

Although Iranrsquos growth in exported value of fresh meat in the period 2012-

2016 has been negative (minus 3 per cent per annum) from 2015 to 2016 the

exported value grew by 136 per cent as seen from the figure below The EU

accounted for 3956 per cent of Iranrsquos exports of fresh meat These exports

however only include the meat category of offal animal fats and other meats During the past five years no bovine meat sheep meat pork meat or poultry

meat has been imported from Iran to Europe mainly because of the SPS

requirements and the trade embargo171

France was the export destination which attracted the highest value of Iranian

meat (offal animal fats and other meat only) exports in 2016 followed closely

by Senegal Other EU countries importing from Iran are Spain Slovakia and

Luxembourg

The growth in meat exports of poultry in particular has been facilitated by

the establishment in 2007 of the Iran Chamber of Commercersquos affiliate Halal World Institute which is approved as a halal food certifying body by Malaysiarsquos

JAKIM (Department of Islamic Advancement of Malaysia) It is the only

recognized international halal certification authority in Iran Iran aims to triple

the amount of poultry it currently supplies to Oman in 2016mdashan estimated

increase of 15000 tons Iran also continues to export poultry to Saudi Arabia and Iraq and is targeting exports of 1 million tons of poultry in the near future

However currently Iran remains a small player in the global halal food

market172

171 European Commisson DG AGRI ldquoAgri-food Trade Statistical Factsheetrdquo February 2017 available at

httpseceuropaeuagriculturesitesagriculturefilestrade-analysisstatisticsoutside-eucountriesagrifood-

iran_enpdf 172 Global Islamic Economic Gateway ldquoOverviewmdashHalal food opportunities in Iranrsquos $61 billion FampB






86 | P a g e

Figure 32 Iranrsquos exports of fresh meat (value in euro thousands 2016)


4323 Main Competitors

Agricultural production in Iran including cattle breeding is mainly carried out by independent small-scale farmers Suppliers play a key role by sourcing the

produce from several farmers and supplying to retailers distributors

wholesalers and food processing companies Leading local distribution

companies are Solico Food Industries and Alin Meats Leading retailers in the

agriculture sector are Refah supermarkets Majid Al Futtaim hypermarkets and

Shahrvand supermarkets

4324 Specific customs and SPS requirements for import needed documents

Like all other imports of animals or animal products meat imports to Iran

require a health certificate from the country of origin The Iranian Veterinary Organization (IVO) affiliated with the Iranian Ministry of Agriculture is the

responsible authority controlling the health requirements for food and animal

products including unprocessed meat The body responsible for the

examination of meat products at the border is the Iranian Quarantine and

Inspection Service (IQIS) who works closely with other Iranian government agencies such as the Iranian Customs the border guards the police and the

Ministry of Health Along with the health certificate documents required by the

authorities at the border include organoleptic and laboratory test results which

comply with IVO standards174

Meat and poultry product imports also require a Halal certificate and a

certificate for veterinary products which assures that the products are free

173 Trade Map International Trade Centre wwwtrademaporg 174 Bundesministerium fur Ernahrung und Landwirtschaft ldquoThe Food Market in Iran rdquo [Der



ebensmittel_Iran_COMMIT_Dezember2016_-_Internetdateipdf

1

10

100

1000

10000

Va

lue

EU

R 0

00

s



87 | P a g e

from disease and toxicity175 In addition poultry products require an import

permit which must observe general regulations and also submission of health

and usability certificate from the country of origin

Distribution

Like other agricultural products distribution of meat produce is largely done through agents or wholesale distributors Local distributors supply to modern

and traditional retail outlets They also hold a key role in distribution of export

and import products The majority of meat products are sold through

traditional retail channels such as independent family-owned grocery stores

and bazaars However sales through Modern retail formats such as

supermarkets and hypermarkets are growing rapidly176

In 2015 the Iranian government invested 47 million USD (4183 million EUR) in loans to encourage production of red meat by nomads In 2016 yearly

production of meat by nomads amounted to 175 thousand tons which

constituted about 25 per cent of the total red meat production in Iran Nomads

reportedly own nearly 4 per cent of the countryrsquos total livestock and 28 per

cent of poultry The first market to offer red meat products from nomadic tribes officially opened in Tehran in July 2016 The market offers quality meat

products including organic produce at reduced prices According to the Iran

Nomadic Affairs Organization other similar markets are expected to be opened

across the country177

Summary

While traditional Persian cuisine include many meat dishes especially lamb

meat in recent years increasing prices and decreasing purchasing power of

the Iranian population has led to decreases in the consumption of fresh meat

Poultry meat which is cheaper than red meat is the main type of fresh meat

currently consumed in Iran As of 2016 production of red meat in Iran is still not sufficient to supply the local demand Yet in Poultry meat Iran is a net

exporter Moreover the Iranian government is aiming to increase poultry meat

exports especially Halal poultry meat exports to MENA countries

175 Islamic Republic of Iran Ministry of Industry Mine and Trade ldquoExport-Import Regulations 2016rdquo Trade


httpengtpoirindexaspxsiteid=5ampfkeyid=ampsiteid=5amppageid=24256 176 Italian Trade Agency ldquoMarket Overview of Iranrsquos Agricultural Food Sectorrdquo ICE January 2016 177 Financial Tribune ldquoRed Meat Production Rises 12rdquo August 2016 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets47704red-meat-production-rises-12


Market snapshots Processed meat

88 | P a g e

Processed meat

Consumption

Iranian processed meat and seafood experienced fairly rapid growth in 2016

in terms of value and variety This development reflects the ongoing

urbanisation and change in consumer lifestyle in Iran The number of working women has experienced major growth which means less time for preparation

of traditional Iranian meals at home Likewise Iran has witnessed a significant

increase in the number of university students who are looking for inexpensive

food that requires little preparation Moreover a more varied and improved

product range combined with more advanced marketing strategies by key

suppliers has led to significant increase in sales under this category178 This

trend is expected to continue over the coming years

178 SATPR News ldquoProcessed Meat and Seafood Market in Iranrdquo June 2017 available at

httpwwwsatprnewscom20170621processed-meat-and-seafood-market-in-iran

Strengths

bull Products such as sausages and kielbasa are deeply embeded in Iranian culinary culture

Weaknesses

bull The market is dominated by domestic companies which have strong distribution networks

bullProhibition on non-Halal products

Opportunities

bull Changing lifesyles and urbanisation process leads to growing demand for processed meat products among Iranians

Threats

bull Foreign companies allying with local players might develop over dependency impeding their sales in the long term



89 | P a g e

In 2016 consumption of meat in Iran amounted to nearly 28 million tons a

34 per cent increase from the previous year Iranrsquos share of global meat

consumption in 2016 was 139 per cent


Particularly popular processed meat products in Iran both in homes and in fast

food outlets are hamburgers sausages and kalbases (like Poish kielbasa but

instead of posrk meat itrsquos made of beef or turkey) These products especially

sausages and kalbas have a long history in Iran They are considered as the most affordable products that can be used in a single serving Many small

grocery retailers and supermarkets offer prepared kalbas sandwiches

Iranian cuisine shares many similarities with other Central Asian and

Mediterranean cuisines Pork is not available in

Iran due to Halal restrictions However it used to

be part of the Persian cuisine in the past before

Islam came to the country Historically eating processed sandwich meats was a status symbol

Yet in the 1960s it became popular among Iranian

teenagers The trend remained after the Islamic

revolution only with pork products being replaced

by non-pork substitutes The popular Jujeh kabob (pictured179) made of chicken breast was not

common in Iran until after the Persian diaspora

popularized it in the West In Iran Jujeh kabob was

primarily done with Cornish hens180 Household expenditure in Iran indicates

preference of fresh meat over processed meat However lower income

households tend to spend more on processed meat than on fresh meat

179 Author Coffeetalkh Image taken from Wikimedia Commons available at

httpscommonswikimediaorgwikiFileJuje_kababjpg Copyright copy 180 The Unmanly Chef ldquoFood With a Backstory Persian Foodrdquo Available at

httptheunmanlychefcomhistory-of-food-in-iranfood-back-story-persian-food

Figure 33 Jujeh kabob - came back to Iran after becoming popular in the

West copy



90 | P a g e

Figure 34 Figure 4 Household expenditure on meat by income level (1st to 10th decile181)

Statistical Centre of Iran182

Offer

4421 Domestic offer

In 2015 production of meat in Iran amounted to 26 million tons a 38 per

cent increase from the previous year FAO projection for 2016 was an

additional increase of 12 percent Iranrsquos share of global meat production in

2015 was 186 percent almost equal to the share of the Iranian population in

world population (about 1 percent) In sheep and poultry meat Iranrsquos share of

world production is a bit higher (207 per cent and 186 per cent respectively)

181 The 1st decile refers to the lowest income households and the 10th decile to the highest 182Household expenditure by income level Statistical Centre of Iran available at

httpswwwamarorgirenglishStatistics-by-TopicHousehold-Expenditure-and-Income287686-

statistical-surveyb

000

500

1000

1500

2000

2500

3000

Total 1stdecile

2nddecile

3rddecile

4thdecile

5thdecile

6thdecile

7thdecile

8thdecile

9thdecile

10thdecile

Processed meat

Fresh meat



91 | P a g e

Figure 35 Meat production in Iran 2011-2016 (in 1000 tons)

copy United Nations Food and Agricule Organisation183

4422 Import

Exports of processed meat from the EU to Iran amounted in 2016 to a value

of 704 thousand USD (626 thousand EUR) which constitutes about 25 per

cent of total imports of fresh meat by Iran that year EU exports to Iran

originated in 2016 mainly from Spain and Germany with beef and beef-related

products as the main products being imported to Iran Main exporters of

processed meat to Iran in 2016 were Indonesia and Thailand followed by Turkey and Kuwait Growth in the overall imported value of processed meat

by Iran between 2015 and 2016 was about 2 thousand USD (178 thousand

EUR) which is an improvement compared to the negative growth in imported

value in the period 2012-2015 (about minus 20 thousand EUR per annum)

183 Source Food and Agriculture Organisation of the United Nations 2017 FAOSTAT Livestock Primary

httpwwwfaoorgfaostatendataQL Reproduced with permission

2654

2235

2556 25952694 2726

2011 2012 2013 2014 2015 2016

Pro

du

ctio

n 1

00

0 t

on

s



92 | P a g e

Figure 36 Iranrsquos imports of processed meat184 (value in euro thousands 2016)


4423 Export

As seen from the table below Iranrsquos exports of processed meat recorded a

negative annual value growth of minus 24 thousand USD (minus 2139

thousand EUR) over the period 2012-2016 Decline in value was even sharper

between 2015 and 2016 reaching minus 41 thousand USD (minus 3649

thousand EUR) In 2016 exports to the EU accounted for 3634 per cent of

Iranrsquos total exports in this category as in the case of fresh meat the EU only imports offal animal fats and other meats Main importers of processed meat

from Iran that year were Hong Kong and Oman followed by the United

Kingdom and Spain Other EU importers (offal animal fats and other meats)

were Italy Luxembourg Belgium Germany France the Czech Republic and to

a smaller extent the Netherlands

184 Export and import data are for products under HS chapter 16 Preparations of meat of fish or of

crustaceans molluscs or other aquatic invertebrates 185 Trade Map International Trade Centre wwwtrademaporg

0

500

1000

1500

2000

2500V

alu

e EU

R 0

00

s



93 | P a g e

Figure 37 Iranrsquos exports of processed meat (value in euro thousands 2016)

ITC Trade Map186


Processed meat and seafood is dominated

by domestic companies The presence of

international players remains weak or even non-existent which is mainly the result of a

lack of international investments in this

sector Local produce has been long known

to be of high quality and Iran is strong in the

production of fish red meat and poultry It is therefore unlikely that local players be

threatened by imported products An

example of a prominent meat producer is

Solico Group which based on vast local

market experience and special consideration

to vertical integration as a means to business expansion has established itself as

a main player in Iran and the Middle-East

Tehran Meat Products Co (falling under

Solico) established in 1977 with a daily

production of 192 hamburger patties has now grown to a producer of over 100 tonnes

per day of various meat products187 Another

186 Trade Map International Trade Centre wwwtrademaporg 187 Solico Production Group ldquoThe Biography of GholamAli Soleimani The CEO of the Solico Production

Grouprdquo Available at httpwwwsolicoirabout-founderphp

0

200

400

600

800

1000

1200

1400

1600

1800

2000V

alu

e E

UR

00

0s

Figure 38) Fresh Red Meat Products on Offer in Iranian Hypermarket



94 | P a g e

example would be Alin Meat Co a 40-year old family business It has been

operating mainly in Tehran and is now one of the major red meat distributors

supplying products to over 200 butchers and retail sellers

4425 Challenges for EU Products Expert testimonials

A main challenge to foreign companies in Iran is the prolonged period of

inflation resulting in low spending as many middle-income shoppers opt for

essentials over more indulgent items That creates an advantage to local

providers over foreign ones since locally-produced goods are cheaper A European firm which has been exploring opportunities to enter the Iranian

market is the French poultry firm processor Doux The company exports to

markets across the Middle East and used to be present in Iran between 1975

and 2010 until the trade embargo was put in place With the lifting of the

trade embargo it seeks to retain its position Familiarity with Douxrsquos brand

among the older generation in Iran may be an advantage188


Import of products containing blood and meat of animals banned by Islamic

Halal regime is prohibited in Iran This includes products under HS headings 16024100 to 16024900 Import of chicken meat products is subject to the

discretion of the Ministry of Health Treatment and Medical Education189

According to a study published by the German Federal Ministry of Food and

Agriculture processed meat products190 may be subject at Iranian customs to

an extended Investigation process including a microbial characteristics test191

Distribution

The Iranian market is dominated by traditional grocery retailers In recent

years modern retailers including supermarkets and hypermarkets have

gradually increased their share of the retail value to the disadvantage of

traditional grocery retailers including independent family-owned grocery stores and bazaars as well as Food drink and tobacco specialists Key players

in the processed meat market use common marketing methods such as in-

store advertisements including leaflets posters and sampling sessions as well

as billboards192

188 Just Food ldquoHow attractive could Iran be for food majorsrdquo August 2015 available at httpswwwjust-

foodcomanalysishow-attractive-could-iran-be-for-food-majors_id130842aspx 189 Islamic Republic of Iran Ministry of Industry Mine and Trade ldquoExport-Import Regulations 2016rdquo Trade


httpengtpoirindexaspxsiteid=5ampfkeyid=ampsiteid=5amppageid=24256 190 Products under HS codes 16010000 16025031 and 16042000 191 Bundesministerium fur Ernahrung und Landwirtschaft ldquoThe Food Market in Iran rdquo [Der



ebensmittel_Iran_COMMIT_Dezember2016_-_Internetdateipdf 192 Italian Trade Agency ldquoMarket Overview of Iranrsquos Agricultural Food Sectorrdquo ICE January 2016



95 | P a g e

4431 Challenges to EU products

According to an AT Kearney expert on consumer industries and retail practice

for the EMEA region in order to establish their brands in the Iranian market

foreign companies should in parallel ally with local distribuners and act to

develop their own distribution system On the one hand local distribuners may

be essential in the beginning to reach the popular bazaars markets and small mom-and-pop storesrdquo On the other hand in the longer term dependency on

such local partners might hamper sales in otherwise high-growth markets193

Summary

Although currently the EUrsquos trade with Iran in the processed meat sector is

quite limited the Iranian market offers several opportunities to foreign

companies Changes in Iranian society such as more working women and more students are reflected in increasing demand for processed meat

products Low purchasing power which in other sectors is a disadvantage may

constitute an opportunity in this sector since processed meat products are

consumed as a cheaper alternative to fresh meat On the other hand domestic

actors dominate the market and their production capabilities and variety of offer has improved over the past few years While foreign companies may be

able to operate in the market through allying with local players in order to

maximise opportunities in the longer term and gain significant market share

there is a need to invest more in the sector for example by developing

independent distribution capabilities


foodcomanalysishow-attractive-could-iran-be-for-food-majors_id130842aspx


Market snapshots Olive Oil

96 | P a g e

Olive Oil

Consumption

Olive oil consumption among Iranians in recent years has been relatively low

Per-capita consumption reported in 2016 was between 140-200 grams while

the global average is 430 grams194 For the period 201011 to 201516 the average total consumption of olive oil in Iran was about 10 thousand tons per

year while the average for the Middle East region for the same period was

around 47 thousand tons per year195

194 Central Bank of the Islamic Republic of Iran ldquoHousehold Budget Surveyrdquo March 21st 2015 ndash March 19th

2016 Report October 2015 available at httpwwwcbiirsimplelist1421aspx 195 Ibid

Strengths

bullOlives have important role in Iranian culture

bullIncreasing awarness of health issues is expected to increase consumption

Weaknesses

bull Low consumption mainly due to high price of olive oil

Opportunities

bullProduction is not self sufficient creating demand for imports of products and knowledge

Threats

bull Consumers negative experience with low quality olive oil affects perception of the product

bullHigh taxation on bottles of olive oil



97 | P a g e

Figure 39 Consumption of olive oil in Middle Eastern countries 201011-201516

(1000 tons per annum)

IOC196

According to the Central Bank of Iran average annual household expenditure

on olive oil in 2016 was 1918433 IRR (about 52 EUR) ndash 05 per cent of the

total household expenditure In a survey conducted in 2016 less than half of

the respondents said they have used olive oil in the past year Of those using

olive oil 27 per cent said they use it once a day or a couple of times in a week Around 34 per cent use it once a week or 2 to 3 times in a month while the

other 34 per cent only sometimes or occasionally use olive oil197

196 International Olive Council httpwwwinternationaloliveoilorg 197Badkobeh ldquoThe History of Olive in Iranrdquo December 2016 available at

httpbadkoobehcomenBlogDetailhistory-of-olive-in-iran

0

20

40

60

80

100

120

140

160



98 | P a g e

Figure 40 Frequency of using olive oil among Iranian households

Badkoobeh

However according to the International Olive Council in 201415 Iran recorded a 33 per cent increase in olive oil consumption - the highest increase

that year globally The growth in consumption was projected to continue in

201516 and 201617198

Figure 41 Irans olive oil consumption 201011-201617 (in 1000 tons)

IOC199

198 International Olive Oil Council ldquoInternational Olive Oil Council Market Newsletterrdquo November 2016

available at httpwwwinternationaloliveoilorgnewsview686-year-2016-news797-market-newsletter-

november-2016 199 International Olive Council httpwwwinternationaloliveoilorg

not at all51

once a day or 2 times a week

14

once a week or 2 -3 times a month

18

sometime or occasionally

17

0

2

4

6

8

10

12

14

201011 201112 201213 201314 201415 201516(prediction)

201617(prediction)



99 | P a g e


With growing awareness of health considerations consumption of olive oil is

expected to grow relatively fast in the

coming years In 2010 Iran was marked as

one of the Middle Eastern countries with the

strongest growth rates (7 per cent volume growth) alongside South Africa and Algeria

The same year olive oil recorded the fastest

value growth within the oils and fats

category in Iran (19 per cent increase) Yet

it constituted only an 8 per cent share of

total oils and fats value sales in the country

Two main factors have negatively affected the consumption of olive oil in Iran in recent

years First it is its high price compared to

other oils In 2010 the unit price of olive oil

was 124USD (about 11 EUR) ndash the third

highest in the Middle East region after Saudi

Arabia and Egypt Yet the lifting of sanctions and the growing competition from

hypermarkets and supermarkets in the

country may bring down unit prices and thus

encourage consumption The second factor

is that in the past the olive oil which was available in Iran of both domestic producers

and importers (principally Turkey and Italy)

was of low quality This has created a negative perception of the product

among Iranian consumers This however is likely to change with the

availability of higher quality products200

Offer

4521 Domestic offer

Iranrsquos olive oil production in 2016 was close to 5700 tons Although production

has increased in recent years it still only provides for about a half of the local

demand and export is almost non-existent Iranrsquos geographical characteristics

make it a potential leading producer of olive oil like other Mediterranean

countries such as Spain Italy Greece Turkey Syria and Tunisia Olives are a part of the Persian history and culture They are mentioned in ancient Iranian

religious hymns dating back 2000 years and some say the origins of the olive

tree is in Iran Most of the regions in Iran are sub-tropical This allows olive

trees which grow there to be exposed to direct sunlight for a prolonged period

of time which is considered a comparative advantage However the

200 All About Olive Oil ldquoOlive Oil Retail Performance in Middle East and Africardquo November 2013

available at httpwwwallaboutoliveoilcomolive-oil-worldolive_oil_in_the_middle_east_and_africaphp

Figure 42 Olive Oil Sold in Tehran Supermarkets



100 | P a g e

productivity of Iranian olive cultivation is considerably lower than those of

other Mediterranean countries According to Ahmad Bolandnazar the head of

Iranrsquos National Olive Council the average yield of Irans olive farms is 1 ton

per hectare while the figure for Spain and Italy for example is between 3

and 7 tons per hectare Bolandnazar has estimated that Iran would not be able to export olives in the next ten years201 As described by Mahmoud Emami

head of the Expansion and Improvement of Olive Orchards Group in Iranrsquos

Ministry of Agriculture ldquoAmong the impediments in the way of production is

that our farmers lack the latest knowhow in olive cultivation Poor farming

methods decrease production Out of the 84000 hectares of olive cultivars in Iran 60 per cent have fruit bearing treesrdquo Emami said that the ministry is

engaged in continuous educational courses for farmers on methods of

watering pruning grafting and fighting pests and on efficient use of resources

such as water and soil Yet he explained there is a problem in communication

between the authorities and farmers and owners of oil extraction factories given that the latter have no well organised and disciplined union or

association202

Figure 43 Irans olive oil production 201011-201617 (in 1000 tons)

International Olive Council

4522 Import

Iranrsquos imports of olive oil from the EU amounted in 2016 to a value of about

82 million USD (73 million EUR) accounting for 11 per cent of the total EU

201 Islamic Republic News Agency ldquoIranrsquos olive consumption meagrerdquo September 2016 available at

httpwwwirnairenNews2739087 202 Financial Tribune ldquoIran a Major Olive Producerrdquo March 2017 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy61196iran-a-major-olive-producer

0

1

2

3

4

5

6

7

8

201011 201112 201213 201314 201415 201516(prediction)

201617(prediction)



101 | P a g e

agriculture exports that year and a 333 per cent increase from 2015203 Over

the past 5 years Iranrsquos imports of olive oil from the EU almost doubled in value

ndash from 4 million EUR in 2012 to 72 million EUR in 2016 as evidenced in the

table below

Figure 44 Irans imports of olive oil 2012-2016 (value in EUR millions)

copy UN Comtrade204

EU exports of olive oil to Iran accounted in 2016 for 69 per cent of the countryrsquos total value of imports from the world that year (114 million USD or 102 million

EUR) The vast majority of these EU exports came from Spain and Italy An

important competing exporter of olive oil is Turkey which accounted for 27

per cent of Iranrsquos imports under this category in 2016 as evidenced in the

figure below

203 European Commission ldquoAgri-Food Trade Statistical Factsheet European Union ndash Iranrdquo Directorate

General for Agriculture and Trade Development February 2017 available at


iran_enpdf 204 United Nations International Trade Statistics Database Department of Economic and Social


0

5

10

15

20

25

30

35

2012 2013 2014 2015 2016

Total

EU



102 | P a g e

Figure 45 Main exporters of olive oil to Iran in 2016 ( of total imported value)

copy UN Comtrade205

4523 Export

As mentioned above Iranrsquos exports of olive oil are almost non-existent The

value of its total exports to the world in 2016 was 62 thousand USD (55

thousand EUR) The only EU country which imported olive oil from Iran in 2016

was Germany with the value of 14 thousand USD (12 thousand EUR) ndash about 22 per cent of Iranrsquos total exports Germany was the main importer of olive oil

from Iran between 2013 and 2015 In 2016 it was surpassed by Switzerland

whose imported value was 23 thousand USD (2 thousand EUR) A peak in EU

imports from Iran under this category was recorded in 2013 when Germany

and Spain imported olive oil with the value of 81 and 66 thousand USD (72 and 59 thousand EUR) respectively constituting 98 per cent of Iranrsquos imported

value that year



Spain 5270

Turkey 27

Italy 1540

Kuwait 390 Others 100



103 | P a g e

Figure 46 Irans exports of olive oil 2012-2016 (value in thousand EUR)

copy UN Comtrade206


Iran does not have significant exports in olive oil

and its local production is insufficient to supply

local consumption Domestic producers of

vegetable oils including olive oil are dependent on import of raw materials Therefore

competition from local producers may be

considered relatively low On the other hand

leading local companies have established

efficient distribution networks For instance Behshahr Industrial a leader in vegetable and

seed oil has a wide distribution network carried

out by Bahpakhsh Its distribution was further

strengthened through its joint venture with

Savola Another dominant company in the oils

category is Khorramshar Extraction Oil Co which is holding about one third of the olive oil market

European olive oils (especially olive oil from Italy

and Greece) as quality olive oil products have also been introduced to Iranian

market Examples include Felippo Berio (Italy) and Monini (Italy)

206 Ibid

0

10

20

30

40

50

60

70

2012 2013 2014 2015 2016

Total

EU

Figure 47 European Olive Oil Sold in Tehran Supermarkets



104 | P a g e

4525 Taxation and customs

In order to protect its manufacturing sector Iran has a high taxation rate on

olive oil in bottles (60 per cent) as compared to olive oil in bulk (20 percent)

It is therefore recommended for foreign companies looking to import olive oil

to Iran to consider using local packaging in cooperation with their partners in

the country207

Distribution

Like in other sectors distribution is still predominantly done through

independent groceries However the role of hypermarkets and supermarkets

is growing In 2010 the latter accounted for a 12 per cent share of retail value

sales of oils and fats an increase of three percentage points over 2004 made

largely at the expense of independent small grocers208 The first Western-style hypermarket ndash Hyperstar - was opened in Tehran in August 2009 through a

joint venture between Majid Al Futtaim Group and the French retail company

Carrefour The chain has since expanded to branches in Esfahan and Shiraz209

Carrefour has since become a successful hypermarket chain in Iran

Summary

Iran is a net importer of Olive oil Despite the historic role of olives in the

country consumption is low relatively to other countries in general and

particularly in comparison with other Middle Eastern countries The main

reasons are high unit price and negative experience of consumers with low-

quality olive oil imported to the country in the past However demand is likely to increase with the growing awareness of health considerations among

consumers Production of olive oil in the country is only sufficient for about a

half of the local demand and is dependent on import of raw materials Export

of olive oil by Iran is almost non-existent (total value in 2016 was less than 20

thousand EUR) The EU is the leading exporter of olive oil to Iran (69 per cent of Iranrsquos imported value under this category in 2016) followed by Turkey (27

per cent) EU exports to the country are mainly from Spain and Italy Foreign

companies are advised to establish partnerships with local players who are

able to reach all parts of the country Although the role of supermarkets and

hypermarkets has been growing in recent years independent small groceries

are still the main distribution channel for olive oil as is the case for other products In addition foreign companies are advised to consider local

packaging since the tax on bottled olive oil (60 per cent) is considerably higher

than that on olive oil imported in bulks (20 per cent)

207 Be the First in Iran ldquoAbout Iran Be the First in Iranrdquo July 2017 available at

httpbethefirstinirancomabout-iran 208 All About Olive Oil ldquoOlive Oil Retail Performance in Middle East and Africardquo November 2013

available at httpwwwallaboutoliveoilcomolive-oil-worldolive_oil_in_the_middle_east_and_africaphp 209 Bourse and Bazaar ldquoFor Irans Supermarkets Bigger May Not Be Betterrdquo November 2016 available at

httpwwwbourseandbazaarcomarticles20161128building-supermarkets-in-iran


Market snapshots Fresh Fruit and Vegetables

105 | P a g e

Fresh Fruit and Vegetables

Iran is a global powerhouse in the production of fresh fruits and vegetables

The diversity of climate and geography in Iran allows for production of a wide

range of fruits vegetables and nuts According to 2015 FAO data Iran

produces about 12 million tons of fresh fruits and 23 million tons of vegetables

yearly ranking as the eighth and fifth world producer respectively210 Iran is a top producing country of dates figs pomegranate melons grapes apples

fresh vegetables and olives It is also the leading global producer of pistachios

and saffron two very high-value crops211 Much of the fresh produce that is

produced in Iran is consumed domestically however a significant share is

exported to neighbouring countries as well as globally According to the

Agriculture Jihad Ministry Iran exports over 287 billion USD (25 billion EUR) to over 100 countries around the world212 Domestic companies have a distinct

210 Italian Trade Agency ldquoIran Fruits and Vegetables Marketrdquo ICE 2016 available at

httpwwwmacfrutcompublicallegatinews10991099_iran_fruits___vegetable_market_l_1_143pdf 211 Ministry of Foreign Affairs of Denmark ldquoThe agriculture and food market in Iranrdquo March 2017 available


osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da 212 Payvand ldquoIran is the ninth largest fruit producer in the world Agriculture Ministryrdquo October 2012

available at httpwwwpayvandcomnews12oct1126html

Strengths

bullFresh fruits and vegetables are a big part of the local diet

bullLifting of sanctions expected to increase income and food spending

bullEuropean premium products (juice organic) will be in demand due to higher disposable incomes

Weaknesses

bullFew foreign players in the sector due to prevailing self-sufficiency

bullAbundance of local fruit and vegetables

Opportunities

bullWater shortage will increase demand for imports

bullHypermarket growth creating demand for exotic imported fruits and vegetables

bullSoft drink industry (incl fruit juices) forecasted to grow rapidly

Threats

bullInflation remains persistently high

bullGovernment could impose stricter regulations on imports to project local producers from foreign competition



106 | P a g e

advantage in the sale of fresh fruit and vegetables market in Iran The local

government has prioritized self-sufficiency in agriculture since the revolution

in 1979 in order to achieve food security and decrease dependence on foreign

countries Currently Iran is self-sufficient in fresh vegetables and mostly

sufficient in fruit213 That being said a combination of factors is likely to challenge Iranrsquos prevailing independence in fresh produce including the recent

lifting of sanctions and the serious shortage of available water for Iranian

farmers The resulting effect is a growing economy with consumers

demanding more and greater varieties of fruits and vegetables while at the

same time Iran will be increasingly unable to meet these demands domestically due to environmental constraints Consequently imports are likely to increase

in the coming years presenting a market opportunity for European producers

Consumption

The recent lifting of sanctions in early 2016 in Iran is positively impacting the

local economy GDP growth increased from a paltry 09 per cent in 2015 (before sanctions were removed) to 46 per cent in 2016 The Economist

Intelligence Unit expects this trend to continue with GDP growth reaching 54

per cent in 2017 and 59 per cent in 2018214 These developments will

inevitably increase demand in the food sector especially for non-essential and

premium food items that were not affordable to consumers in recent years

Per capita yearly consumption of fruit and vegetables in 2010 was 173kg and 186kg respectively Iranians eat two times more fruits and vegetables than

people in other developing countries which is largely attribuned to a traditional

diet that preferences fruit and vegetables intake


The sanctions affected purchasing habits of fresh fruits and vegetables by

consumers in Iran Fresh fruits and vegetables have traditionally been a staple

component in most meals fresh fruit is common on most tables and dishes of

vegetables and herbs are standard sides to most meals Iranians eat two times more fruits and vegetables than people in other developing countries215

Recently however a lower level of consumption for fresh fruit and vegetables

has been observed due to the poor economy and price inflation Between March

and July of 2012 the price of fruits and vegetables increased by 79 per cent

and 86 per cent respectively216 Lower and middle income families simply shifted consumption habits towards cheaper less nutritious foods Obesity

rates jumped during this period as many Iranians consumed larger quantities



osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da 214 Ibid 215 Financial Tribune ldquoEat fruit be happyrdquo July 2016 available at

httpsfinancialtribunecomarticlespeople45416eat-fruit-be-happy 216 Future Directions ldquoIranrsquos Food Securityrdquo August 2014 available at

httpwwwfuturedirectionsorgaupublicationiran-s-food-security



107 | P a g e

of sugar fat and oils217 These dietary changes by large parts of the population

were made out of necessity not preference Therefore as the economy grows

we can expect a return to eating habits based on Iranrsquos traditional diet

including greater consumption of fresh fruits and vegetables

Iranrsquos consumers have an enduring

preference for fresh

ingredients

(including fruit and

vegetables) over packaged and

processed

counterparts This

can be traced to

traditional eating habits where

Iranians have a long

history of consuming

a wide variety of fresh fruits vegetables and herbs Onions and garlic

pomegranate and sabzijat (various green herbs) are regular ingredients in many Persian dishes Eggplant is also a very common and often used in place

of a potato in many Iranian dishes as is the case in stews such as Khoresh

Bademja Other stews such as Dizi and Khoresh Fesenjan (Pomegranate

Walnut Stew) also incorporate a variety of vegetables beans and specialty

fruits such as pomegranate A main dish is typically accompanied by various

fresh vegetables including tomatoes cucumbers and scallions as well as fresh green salad

Rice dishes such as Bogoli Pulao are also very common in Iran and incorporate

all kinds of vegetables that are seasonally available such as pumpkin spinach

green beans broad beans zucchini and various kinds of squashes

Traditional diets are still prevalent in Iran but its growing base of young urban and educated people are looking to experiment with new products

including foreign food and beverage brands from Europe Polls indicate that

local consumers overwhelmingly think importing more foreign-made goods is

a positive and expressed a preference for European and American goods

which are perceived to be higher-quality218 That being said EU producers will encounter difficulty competing with local players for standard food items that

Iranians consume with high frequency Due to protectionist policies enacted

after the Iranian revolution in 1979 local food producers have built-up brand

loyalty and wide distribution networks for their offerings 95 of Iranrsquos food

market has been ldquocapturedrdquo by local companies It is recommended that EU

217 Future Directions ldquoIranrsquos Food Securityrdquo August 2014 available at

httpwwwfuturedirectionsorgaupublicationiran-s-food-security 218 Lens Culture ldquoIranrsquos Booming Consuming Culturerdquo June 2014 available at

httpswwwlensculturecomprojects40183-iran-s-booming-consumer-culture

Figure 48 Fruits and Vegetables Sold at Traditional Bazaar



108 | P a g e

producers focus their product offerings on new areas and product lines that

were previously not available in Iran

In the fresh fruit and vegetables category soft drinks and fruit juices present

a potential market opportunity for EU producers Iranrsquos retail value for soft

drinks is the second largest of all Middle Eastern markets and as disposable incomes increase due to the lifting of sanctions and improving economy

consumers will gravitate towards premium fresh juice offerings EU beverage

producers can attract young urban consumers with clever marketing and

packaging of their products


The Constitution of the Islamic Republic of Iran mandates that the official

religion of Iran is Shia Islam and most Iranians subscribe to this religion

However the level of devoutness greatly varies from person to person in their private lives The younger generation that live in big cities tend to be more

open-minded and experimental towards new products making them an

important target market for EU product exports

As mentioned Iranians prefer fresh foods over processed varieties based on

their traditional dietary habits It is customary for local households to have a variety of fruits on offer which are often grown in the backyard As a guest in

a localrsquos home it is common to be offered fruit which is typically peeled by

the host as a sign of respect Fresh fruit is frequently mentioned in Persian

mythology figs are used as offerings to God and Halva a candy made from

ground sesame seeds is mixed with dates and given to the poor when a relative dies

4613 Challenges for EU Products

The fresh fruit and vegetables market in Iran is dominated by local players and the long-standing protectionist environment has made it challenging for

EU producers to gain significant market share outside of a few niche products

Consumers are price-sensitive when it comes to standard grocery purchases

and Iranian companies have an edge over international rivals because of their

knowledge of Iranian consumers and their habits219 It is unlikely that EU

producers will be able to challenge local players in product categories where the market has already been captured

Offer

4621 Domestic offer

Iran is the largest producer of fresh fruit and vegetables in the Middle East according to 2015 FAO data it produces 12 million tons of fresh fruits and 23

million tons of vegetables ranking it eighth and fifth in the world

respectively220 It ranks near the top globally in the production of a number of

219 ldquoIranrsquos Food Sectorrdquo SGPM Economic and Business Consultancy October 2016 220 Italian Trade Agency ldquoIran Fruits and Vegetables Marketrdquo ICE 2016 available at

httpwwwmacfrutcompublicallegatinews10991099_iran_fruits___vegetable_market_l_1_143pdf



109 | P a g e

high-value fruits and vegetables including apricots cherries sour cherries

cucumbers and gherkins dates eggplants figs pistachios quinces walnuts

and watermelons The table below is adapted from a report prepared by the

Italian Trade Agency based on data from the Ministry of Agricultural Jihad It

indicates Iranrsquos global ranking in a range of fruit and vegetable products

Table 13 Iran global rankings of fresh produce

Commodity World Ranking Commodity World Ranking

Pistachio 1st Date 2nd

Saffron 1st Apricot 2nd

Pomegranate 1st Almond 3rd

Walnut 3rd Kiwi 3rd

Cherry 3rd Quince 4th

Apple 4th Hazelnut 4th

Fig 5th Sour Cherry 5th

Plum 5th Peach amp

Nectarine

6th

Lemon 6th Orange 7th

Grapes 11th Tangerine 12th

Grapefruit 15th Pear 20th

Strawberry 24th Tomato 5th

Watermelon 3rd Onion 5th

Eggplant 3rd Pumpkin amp

Gourd

4th

Cucumber 3rd Cucurbita 5th

Adapted from Italian Trade Agency report

The majority of fruit and vegetables produced in Iran are consumed locally

but a large share of few high-value crops such as saffron pistachios and dates

are exported221

The agricultural sector in Iran is heavily regulated and protectionist policies were established in to project local farmers The lack of competition and

isolation from international markets has led to inefficiencies in the sector due

to a lack of investment and modernisation Furthermore agriculture in Iran

faces a major threat from water shortage and soil erosion Limited rainfall

combined with overconsumption of water resources by the agricultural sector has greatly depleted Iranrsquos water supplies It is estimated that Iran is exploiting

97 per cent of surface waters and 70 per cent of its ground water supplies





110 | P a g e

The agricultural sector is responsible for more than half of total water use

despite only contributing 11 per cent to Iranrsquos GDP222

The government recognizes the seriousness of the water shortage threat and

has prioritized in its 6th Five Year Economic Development Plan funding and

incentives for mechanization of the sector as well as better water management programs223 This presents a major market opportunity for EU

companies selling equipment and expertise in agriculture production

According to a report commissioned by the Ministry of Foreign Affairs of

Demark Danish companies have a major opportunity to supply Iran with

machinery technology and expertise224 Furthermore greenhouse farming is experiencing growth in Iran as a means of addressing the water shortage and

many EU companies (particularly from Spain and the Netherlands) are

investing in new projects in Iran

4622 Import

Few fresh fruit and vegetables are imported into Iran In recent years this has

primarily been attribuned to the sanctions and protectionist policies enacted

by the government Furthermore as of 2012 legislation was established that

banned the imports of fresh fruits and vegetables except for those products that do not compete directly with local farmers As a result only banana

coconut pineapple and mango as well as a few exotic fruits like papaya were

allowed to enter Iran225 This is reflected in figure 6 where imports beyond

these four types of fruit are almost non-existent However due to natural

resource constraints Iranian food production is expected to decrease and it will be forced to import increasing quantities of fruit and vegetables that are

water-intensive to grow226

222 Ministry of Foreign Affairs of Denmark ldquoThe agriculture and food market in Iranrdquo March 2017


osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da 223 Information provided by Sayeh Gostar Pars Managers ldquoIranrsquos Food Sectorrdquo SGPM Economic and

Business Consultancy October 2016 224 Ministry of Foreign Affairs of Denmark ldquoThe agriculture and food market in Iranrdquo March 2017 available


osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da 225 Italian Trade Agency ldquoIran Fruits and Vegetables Marketrdquo ICE 2016 available at






111 | P a g e

Figure 49 Imports of fresh fruit and vegetables (2012-2015) unit

Euro millions


4623 Export

Due to the sanctions that were previously in place limited export opportunities

were available for Iranrsquos sizeable fresh fruit and vegetables industry In recent years exports of fresh produce has been mainly focused on neighboring

countries Russia China and some African countries such as South Africa227

According to data income derived from exports of fresh fruit and vegetables in

2015 amounted to over 23 billion euros However this figure also includes

nuts as pistachios are a major source of export revenue accounting for about 40 per cent of the total value

In the 6th Five Year Economic Development Plan (beginning in 2016) the

government has prioritized increasing the export of dried and fresh fruit228

Exports to the EU are expected to increase significantly following the lifting of

sanctions particularly for specialty fresh and dried fruit and nuts


httpwwwmacfrutcompublicallegatinews10991099_iran_fruits___vegetable_market_l_1_143pdf 228 ldquoIranrsquos Agriculture Machinery and Internal Combustion Engine Market Studyrdquo SGPM Economic and

Business Consultancy October 2016

0

50

100

150

200

250

300

350

400

450

500

Bananas Coconut Pineapple Mango Other FreshFruit and

Vegetables

2012

2013

2014

2015



112 | P a g e

Table 14 Total exports of fresh fruit and vegetables (incl nuts) from 2012-2015

2012 2013 2014 2015 Fru

its

(n

o

nu

ts)

$1316569482

(euro1144843028)

$953109704

(euro 828791047)

$1109620866

(euro 964887710)

$861965515

(euro 749535230)

Veg

eta

ble

s

$711570489

(euro 618756947)

$484545293

(euro 421343733)

$818264285

(euro 711534161)

$683361778

(euro 594227633)

Nu

ts $1158578088

(euro 1007459207)

$1029098880

(euro 894868591)

$1668882856

(euro 1451202483)

$1111863632

(euro 966837941)

TOTAL

$3186718059

(euro 2771059182)

$2466753877

(euro 2145003371)

$3596768007

(euro 3127624354)

$2657190925

(euro 2310600804)



The market for fresh fruit and vegetables in Iran is dominated by local players

Due to market entry barriers and strong local competition locally produced fruit and vegetables are generally cheaper Local companies also have an

advantage over international rivals because of their understanding of local

habits229

Farmers producing fresh fruits and vegetables are predominantly small scale

operations small private farmers perform 93 per cent of cultivation activities Given their size they rely on warehouses and other distribution channels to

get their produce to market230 Fruit and vegetables in Iran typically pass

through several distributors before reaching the consumer

In the fruit juice sector Alifard Co was the leading domestic player in 2014 Its

Sunich brand offers a variety of 100 per cent fresh fruit juices that are popular

with local consumers The product lines cater to local tastes with uniquely Iranian flavours such as sour cherry Alifard has been active in Iran for many

years benefitting from the high quality image of its products and its strong

distribution network

229 ldquoIranrsquos Food Sectorrdquo SGPM Economic and Business Consultancy October 2016 230 ldquoIranrsquos Agriculture Machinery and Internal Combustion Engine Market Studyrdquo SGPM Economic and




113 | P a g e


The lifting of sanctions has officially opened Iran up for business however there are an array of market entry and other challenges facing prospective EU

exporters in the fruit and vegetables sector Iran is still a heavily regulated

economy and currently ranks 120 out of 190 countries in the World Bankrsquos

Ease of Doing Business survey231 Custom duties are high on most food

products entering Iran and there is an outright import ban on many fresh fruit

and vegetables that are produced domestically232

There is also a high level of uncertainty concerning the direction of

macroeconomic policy in Iran A failure to follow through on needed structural

reforms could reduce prospects for economic growth and lead to a return of

high food price inflation If this happens demand for premium products that

are exported by EU producers will be greatly reduced

In 6th Five Year Economic Plan explicitly states that Iran wants to reduce

imports of essential agricultural products from abroad233 This is a clear

indication that Iran will resist opening its domestic market to foreign producers

of fresh fruit and vegetables ndash besides some exotic fruits that cannot be

produced locally

4626 EU GI Products and Organics

Iran has potential to become a major exporter of several high-value organic crops such as Saffron Pistachios and Pomegranate National guidelines for

organic farming were first prepared by The Institute of Standards and

Industrial Research of Iran (ISIRI) in 2009 with further updates as recently

as 2014234 No official certified label has been published as of today


The Food and Drug Department operates within the Ministry of Health and

Medical Education in Iran It is mandated with food and health products regulation licensing registration marketing authorization and labelling235

Importantly it is responsible for the issuance of health certificates for imported

food products A health certificate is required for imports of all fresh fruit and

vegetable products236

231 World Bank 2015 Doing business 2016 Washington DC World Bank Group

httpwwwdoingbusinessorg~mediaWBGDoingBusinessDocumentsAnnual-ReportsEnglishDB16-

Full-Reportpdf 232 Italian Trade Agency ldquoIran Fruits and Vegetables Marketrdquo ICE 2016 available at


Business Consultancy October 2016 234 International Society of Organic Agriculture Research ldquoCountry report Iranrdquo Available at

httpwwwisofarorgisofarindexphp2-uncategorised120-country-report-iran 235 ldquoIranrsquos Food Sectorrdquo SGPM Economic and Business Consultancy October 2016 236 Ministry of Foreign Affairs of Denmark ldquoThe agriculture and food market in Iranrdquo March 2017 available

athttpwwwlfdk~medialffor-medlemmervirksomhedsmedlem-hos-




114 | P a g e

The Institute of Standard and Industrial Research in Iran develops official

standards for products which exist for all processed fruit and vegetables It is

strongly advised that labels including instructions and description of imported

goods be produced in Farsi

Of particular relevance to the fresh fruit and vegetables sector the Ministry of Jihad Agriculture is in charge of food security Policies aimed at protecting

Iranrsquos local producers originate from this governmental department

Distribution

The modernisation of the food retail sector in Iran has accelerated in recent

years However

small grocery

stores and outlets still

represent 90 of

the food and

beverage

sales237 Indeed sales of fresh

fruit and

vegetables are

dominated by

small-scale and traditional retail

outlets

Producers of

fresh fruit and

vegetables in Iran are mostly small private farmers that do not have direct

access to the retail market Most depend on a complex network of distribution channels and traders and fresh produce often passes through many layers of

distributors before reaching the retailer238 Inefficiencies in this system causes

considerable food wastage Inefficiencies in the local distribution system for

fresh produce results in considerable food wastage Given the seriousness of

the water shortage in Iran improving the distribution system is a major priority of the government The government has prioritized this issue with the creation

and expansion of the Agricultural Commodities Exchange as part of the 6th Five

Year Economic Development Plan239

237 The Business Year ldquoFocus Iranian Food Industryrdquo 2016 available at

httpswwwthebusinessyearcomiran-2016surgery-now-openreview 238 Ministry of Foreign Affairs of Denmark ldquoThe agriculture and food market in Iranrdquo March 2017 available


osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da 239 ldquoIran Agriculture Machinery and Internal Combustion Engine Market Studyrdquo SGPM Economic and


Figure 50 Vegetables Sold at Iran Bazaar



115 | P a g e

In terms of modern retailing the four biggest modern retail brands in Iran in

terms of sales value in 2016 were Etka (478 stores in Iran) Koorosh

Hyperstar and Refah240 Sales at modern retailers are experiencing strong

demand from young educated city-dwellers However it is unlikely that

European companies will be able to penetrate the market for fresh produce at modern supermarkets due to the affordability of local choices and consumer

preference for fruit and vegetables that are not neatly sorted and packaged

Even at Hyperstar considered the most international hypermarket that

operating in Iran fruits and vegetables are sold in unsorted and unpacked

form241 EU producers will find better market opportunities selling premium products at modern retail outlets that are not currently available in Iran In

the fresh fruit and vegetables sector this includes exotic fruit premium fruit

juices and certified organic products

Summary

Iran is a leading global producer and exporter of fresh fruit and vegetables

Prospective EU exporters of fresh produce will encounter a challenging market

landscape in Iran due to strong domestic competition and protectionist policies

designed to protect local farmers It is expected that demand for fresh fruit

and vegetables will grow due to improving economic prospects and a strong preference of local consumers for fresh produce based on traditional diets New

opportunities could emerge as it becomes increasingly clear that Iran cannot

meet its growing domestic demand with local production due to environmental

constraints resulting from water shortages and soil erosion Furthermore Iran

has few varieties of food products and there is big potential for producers to market premium products to Iranrsquos educated and experimental consumers

The growth of modern grocery retailers presents an opportunity for EU

products in this category such as premium juices and organic foods to

penetrate the local market

240 Bourse and Bazaar ldquoFor Irans Supermarkets Bigger May Not Be Betterrdquo November 2016 available

at httpwwwbourseandbazaarcomarticles20161128building-supermarkets-in-iran 241 Italian Trade Agency ldquoIran Fruits and Vegetables Marketrdquo ICE 2016 available at



Market snapshots Processed Fruits and Vegetables

116 | P a g e

Processed Fruits and Vegetables

The lifting of sanctions in January 2016 marks the beginning of a period of re-

entry for Iran into the global economy The outlook is indeed significantly more

positive than in recent years and it is expected that both domestic and

international brands in the processed fruit and vegetables category will have

strong growth prospects Presently there is a very low base of foreign players

and product lines for processed fruit and vegetables in Iran most of Iranrsquos

food market is dominated by local companies Virtually all of the major brands

in this category including industry leaders such as Dasht Morghab Group (1+1

tobrand) are Iranian companies that benefitted from the protectionist

environment during the sanctions period The brands produce high-quality and

affordable offerings of canned and frozen fruit and vegetables but there is

limited product diversity and few specialized offerings242 The young and

242 The Ministry of Foreign Affairs of DenmarkldquoThe agriculture and food market in Iran Opportunities and

challenges for Danish companiesrdquo March 2017

Strengths

bullIncreasingly busy lifestyles bolstering demand for processed fruits and vegetables and ready-made meals

bullLower inflation and opening of sanctions creating favorable economic conditions

bullFavorable demographics will increase demand and consumption for food products

Weaknesses

bullMost Iranians still prefer fresh home-cooked meals

bullHigh import duties on processed foods including fruit and vegetables

bullLocal manufacturers dominate the processed fruit and vegetables sector

Opportunities

bullExpansion of modern grocery retailers strongly benefits frozen fruit and vegetables

bullSales base is very low early movers can establish market presence and build brand loyalty

bullCurrently very little product diversity growth in demand for specialized products in in this category expected

Threats

bullTight supervision by the government on prices

bullContinued protectionism and strict regulation of the food sector



117 | P a g e

growing population in Iran is generally educated and interested in trying new

products that they previously didnrsquot have access to

One of the fastest growing sectors is frozen processed vegetables and

potatoes where sales have nearly doubled since 2011 The sector will also

benefit from socio-cultural trends such as greater urbanisation and more hectic

lifestyles will cause a shift from fresh fruit and vegetables towards processed

varieties as well as ready-made meal solutions Finally an expansion of

modern retailers and hypermarkets will also bolster demand for processed fruit

and vegetables (especially frozen) and provide an entry point for EU producers

looking to get their products on the store shelves in Iran243 Conducting

business in Iran will continue to be challenging due to heavy regulation and

protectionism high inflation and a banking system with few connections to

international markets EU producers of processed fruit and vegetables that

successfully penetrate the market with strong product innovations and savvy

marketing will be rewarded with early mover advantages carving out

significant market share and building brand loyalty that will pay off in the

longer term

Consumption Overall demand for processed fruit and vegetables grew modestly in recent

years Inflation has slowed significantly since last year average unit prices

only increased by approximately 8 per cent in 2016244 Greater parity between

the volume and value growth is therefore expected in the coming years

Frozen vegetables and potatoes are the fastest growing types of processed

fruit and vegetables due to the emergence and expansion of hypermarkets and

supermarkets This growth is likely to accelerate since the removal of

sanctions

Going forward frozen vegetables and potatoes will continue to be the most

dynamic area in this space albeit starting from a low sales base


Several factors are expected to cause food consumption in Iran to increase

significantly in years to come including for processed fruit and vegetables

Immediately prior to the removal of sanctions disposable income was falling

and economic growth was a paltry 09 percent245 Economic growth is expected

to continue at a stable level of 45 over the next few years while real GDP

244Trading Economics ldquoIran Food Inflationrdquo accessed 21 August 2017 via

httpstradingeconomicscomiranfood-inflation 245 Ministry of Foreign Affairs of Denmark ldquoThe agriculture and food market in Iran Opportunities and




118 | P a g e

growth is expected to increase to 66246 This acceleration will lead to higher

levels of disposable income and consumption of food The food market is

projected to grow by 60 billion USD (5260 billion EUR) per year

The demographic outlook for Iran is very promising Iran has a young and

growing population of 80 million people that is also increasingly urbanised

Almost half of Iranrsquos population is below 25 years old247 Key for processed

fruit and vegetables is that this growing segment of the population is

consuming less traditional products such as unpackaged rice breads oils and

cheese and instead purchasing more processed and packaged items This is

primarily attribuned to urbanisation and the more hectic lifestyles that come

with it On top of this there are greater numbers of working women in Iran

which is also generating demand for processed fruit and vegetables as well as

ready-made meal solutions which contain some

element of processed fruit and vegetables such

as frozen pizzas Irish frozen foods producer

Green Isle Foods is expanding into Iran with

plans to offer a range of frozen pizzas and other

frozen foods at grocery retailers Recently more

Irish companies have discovered Iran as a

potential market This is partly to be explained by

Iranrsquos continued economic development which

sees the rise of a growing middle class with a

taste for premium European food and beverage

products As European products are often known

for their high quality high safety standards as

well as sustainably produced248

Food consumption habits in Iran are still heavily

influenced by traditions This poses a set of

challenges for exporters of processed fruit and

vegetables as growth will be limited by the

popularity and availability of fresh products and

a persisting preference for homemade

traditional-style meals Furthermore Iran has its

own range of local canned and preserved

products that complement its local cuisine For

246 Financial Tribune ldquoIran economic outlook stocks performance 2017-2018rdquo available via

httpsfinancialtribunecomarticlesdomestic-economy61337iran-economic-outlook-stocks-performance-

2017-2018 247 The World Factbook ldquoIranrdquo accessed 21 August 2017 via httpswwwciagovlibrarypublicationsthe-

world-factbookgeosirhtml 248 Financial Tribune ldquoIreland to consider reopening Iran embassyrdquo May 2016 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy40732ireland-to-consider-reopening-

iran-embassy

Figure 51 Processed Fruits and Vegetables Sold in Tehran

Supermarket



119 | P a g e

instance torshi (derived from ldquotorshrdquo in Farsi ndash meaning sour) are the pickled

vegetables that can be made from a range of ingredients including garlic

celery cauliflower carrots beets shallots cabbage aubergines (eggplant)

and other vegetables There are hundreds of varieties popularized in different

regions of the country and it is considered a staple for many households249 It

is sold to consumers at most traditional grocery stores in Iran

Traditional stews such as Fesenjan (Pomegranate Walnut Stew) Bademjan

(Eggplant And Tomato Stew) and Gormeh Sabzi (Green Herb Stew) use a

range of locally produced processed fruit and vegetables including

pomegranate molasses canned beans and tomato paste250

Compared to many other countries in the Middle East Iranrsquos traditional diet is

relatively healthy It is a leading producer of many varieties of fruits such as

melons tangerines citrus fruits kiwifruits dates cherries pomegranate

peaches oranges and raisins251 A bowl of fresh fruit is common on most

Persian tables and salads and herbs like parsley sage rosemary and thyme

are standard sides to most meals Iranians tend to consume twice as many

fruits and vegetables than people in other developing countries and

consequently there is no need to influence tastes through public campaigns for

the sake of consumer health252

In large cities increased consumer demand for brands and packaged food was

bolstered by the rise of modern grocery retailers such as supermarkets and

hypermarkets The pace of this growth has notably accelerated since the lifting

of sanctions in 2016 This trend is contributing to increased sales for processed

fruit and vegetables ndash especially in the frozen category Traditional retailers

that dominate food sales in Iran are rarely equipped with big freezers and

equipment that are needed to sell frozen foods Furthermore the removal of

sanctions has the potential to create new opportunities for these modern

supermarkets to import products directly from abroad EU producers looking

to reach consumers in Iran should consider seeking partnerships with local

retailers wishing to source products directly


Most Iranians are officially Shirsquoite Muslims but it is not necessarily the case

that all are strongly devout Political and public life in Iran are characterized

by high levels of religious orthodoxy however many Iranians are more

moderate in their private lives There is also a large cultural gulf between

249 The Persian Fusion ldquoSpicy Persian pickles (Torshi Bandari)rdquo September 2016 available at

httpwwwthepersianfusioncomspicy-persian-pickles-torshi-bandari 250 SHAFIA Louisa ldquoPersian Food Primer 10 Essential Iranian Dishesrdquo October 2014 available at

httpwwwfoodrepubliccom20141029persian-food-primer-10-essential-iranian-dishes 251 Financial Tribune ldquoEat Fruit Be Happyrdquo July 2016 available at

httpsfinancialtribunecomarticlespeople45416eat-fruit-be-happy 252 Ibid



120 | P a g e

different demographics in Iran Young urbanites tend to be more open-minded

and experimental towards new products making them an important target

market for EU product exports

Another feature of households in Iran is that they tend to be male-dominated

reflecting the countryrsquos fairly conservative society This has significant

consequences for the consumer market since men are largely responsible for

major household purchases This means that male-driven consumer sectors

such as cars and houses will tend to perform well compared to other product

categories

Within more traditional segments of the population cooking from scratch with

fresh ingredients is still preferred to processed and ready-made products This

is a hindrance on the growth of the processed fruit and vegetables category

since many Iranians are unwilling to alter their consumer habits in the near-

term


Many consumers in Iran still have a strong attachment to their traditional food

habits which focus on fresh ingredients as opposed to processed and packaged

options Furthermore the ingredients in these foods are predominantly from

local producers and purchased in traditional retail outlets This ecosystem for

local foods precludes much involvement from foreign producers of processed

fruit and vegetables The local market is also very competitive and consumers

are price-sensitive when it comes to standard grocery purchases Fierce

competition in the processed fruit and vegetables space meant that companies

were investing heavily in in-store promotions and advertising The affordability

and built-up brand loyalty that local producers have worked to develop will

make it difficult for EU producers to compete in similar product categories

Therefore it is recommended that EU producers focus their product offerings

on new areas and product lines that were previously not available in Iran

There is a shortage of premium products that experimental Iranian consumers

would be willing to pay-up for

Offer

4721 Domestic offer

A major policy objective of the government since 1979 has been to achieve

virtual self-sufficiency in foodstuffs including fruits and vegetables This was

achieved through a range of policies such as government subsidies targeted

assistance to farmers in the form of loans and tax credits and prohibitively

high import duties for strategic products in the agricultural sector In effect

Iran currently has a self-sufficiency rate of 96 for essential food amp beverage

products253 The government has also prioritized the establishment of the agro-

253 ldquoFood Security Index at 96rdquo available at

httpswebarchiveorgweb20091001021913httpwwwiran-dailycom13873323htmleconomyhtm



121 | P a g e

processing industry to meet local needs for products such as canned fruits and

vegetables

Iran is the number one producer of fruit in the Middle East and North Africa

and ranks in the top 10 globally Roughly 27 million hectares in Iran are

cultivated for fruit production specifically these orchards produce up to 165

million tons of fruit per year254 It is also a major producer of a range of

vegetables including tomatoes onions and cucumbers and a range of spices

and herbs The fruit and vegetables processing industry primarily uses inputs

derived from local produce

The Iranian food market provides relatively few varieties within processed

foods leaving big potential for modernization of the sector and specialized

products to be imported from abroad255

4722 Import

Imports of most categories of processed fruit and vegetables were very low

from 2012-2016 It was only frozen vegetables that experienced any import

activity as indicated in figure below This is a result of the sanctions that were

imposed during this period on Iran as well as political goals aimed at achieving

self-sufficiency in food production and processing It should be noted that the

official data will likely not capture all trade activity due to the prevalence of

black markets during the sanctions period According to the formal data total

imports of frozen vegetables in 2016 were 12066 tonnes From 2012-2016

the total volume of imports grew by 17 percent and the top five import sources

were Thailand Hungary China and India256

Table 15 Imports of processed fruit and vegetables in Iran (2016) unit tonnes

Product Total

Canned Fruit 0

Canned Vegetables 2

Frozen Fruit 1



4723 Export

According to ITC Trade Map Iran exported a negligible quantity of processed

fruit and vegetables in 2016 as was also the case from 2012-2015 Iran

254 Financial Tribune ldquoEat Fruit Be Happyrdquo July 2016 available at

httpsfinancialtribunecomarticlespeople45416eat-fruit-be-happy 255 The Ministry of Foreign Affairs of DenmarkldquoThe agriculture and food market in Iran Opportunities and

challenges for Danish companiesrdquo March 2017 256 Trade Map International Trade Centre wwwtrademaporg 257 Trade Map International Trade Centre wwwtrademaporg



122 | P a g e

primarily exports fresh and fried varieties of fruits such as dried fruit as well

as nuts such as pistachios

Figure 52 Exports of processed fruit and vegetables in Iran (2016) unit tonnes



Policies aimed at making Iran self-sufficient in food production and processing

as well the extended period of sanctions resulted in an environment where

domestic manufacturers of processed fruit and vegetables dominated the local

market In effect many supermarkets and small retailers in Iran have mostly

locally produced products for sale Dasht Morghab Group (under its flagship

brand ldquo1amp1rdquo) is the unrivalled leader in this food category with a 32 per cent

value share in 2016 1amp1 brand has a long history and reputation for quality

and affordability with the local population259 It also has a strong distribution

network for its canned products allowing for sales in remote areas of Iran In

the frozen processed fruit and vegetables category Domestic producers are

expected to continue dominating the local market due to their affordability and

reasonable quality Given the steep competition in the processed fruit and

vegetables category many of the leading brands are trying to lure customers

with new product launches and savvy marketing campaigns In-store

advertising is the most common marketing channel for canned products while

newer frozen food brands are using modern communications medium such as

television and online marketing to increase their exposure


Despite the lifting of sanctions Iran still presents a challenging business

environment for potential EU exporters of processed fruit and vegetables Iran

currently ranks 120 out of 190 countries in the World Bankrsquos Ease of Doing

258 Ibid 259 For more information have a look at http1and1groupcomnewenentriessection=8

0

50

100

150

200

250

300

2016

Canned Fruit

Canned Vegetables

Frozen Fruit

Frozen Vegetables



123 | P a g e

Business survey260 Furthermore although inflation has receded it remains a

persisting threat the average price increase for processed fruit and vegetables

in 2016 was 8 percent Import duties on food products are high and this is

especially true for the processed food sector Food products that are imported

into Iran as raw materials (ie fresh fruit) have substantially lower duties than

their processed or packaged counterparts For instance the import duty for

frozen vegetable products was 55 per cent in 2016261 Therefore it is advisable

for EU producers in the processed fruit and vegetables sector to consider

partnering with a local processing company or to set up a local subsidiary in

order to process and package their products



Medical Education in Iran It is mandated with control and supervision of

production including the issuance of health certificates for imported food

products A health certificate is required for imports of all processed fruit and

vegetable products


standards for products which exist for all processed fruit and vegetables The

list of standards can be viewed at httpwwwisiriorgENFileENSaderatpdf

It is strongly advised that labels including instructions and description of

imported goods be produced in Farsi262

Iran has potential to become a major exporter of several high-value organic

crops such as Saffron Pistachios and Pomegranate National guidelines for




260 The World Bank ldquoDoing Business 2016 measuring regulatory quality and efficiencyrdquo 2016 available

at httpwwwdoingbusinessorg~mediaWBGDoingBusinessDocumentsAnnual-

ReportsEnglishDB16-Full-Reportpdf 261 The Ministry of Foreign Affairs of DenmarkldquoThe agriculture and food market in Iran Opportunities and

challenges for Danish companiesrdquo March 2017 262 Ibid 263 ARDAKANI M Reza ldquoCountry report Iranrdquo accessed 22 August 2017 through




124 | P a g e

Distribution The food retail environment in Iran is still heavily dominated by traditional

grocery stores currently most of food and beverage sales are conducted

through traditional small grocery outlets

and local bakeries However many

observers are convinced that this will

change dramatically in years to come The

entry of Majid Al Futtaim Hypermarkets

LCC ndash operating under the name ldquoHyper

Starrdquo ndash has seen a dramatic shift in the

country many Iranian shoppers have

embraced ease of buying a wide variety of

products through one centralised place As

recent as 2014 small grocery outlets have

converted to supermarkets offering a

wider range of products while remaining

their indepdent status264 This is an

especially positive development for frozen

fruit and vegetables which require the

proper freezers and storage equipment

Some of the biggest modern retail brands

in Iran in terms of sales value were Etka

Koorosh Hyperstar and Refah265 Sales at

modern retailers are experiencing strong

demand from young educated city-

dwellers The main pricing strategy of modern retailers in Iran is to offer two

types of food goods competitively-priced domestic products that are mass-

consumed and premium imported products This presents a significant

market opportunity for EU producers of processed fruit and vegetables who

should be focused on creating new and innovative product lines as opposed to

competing with local producers in the same space There is a significant portion

of Iranrsquos population that wants to experiment and try new products that were

previously not on offer EU producers in processed fruit and vegetables are

advised to consider cooperating with modern retailers that are interested in

stocking their products

264 Financial Tribune ldquoRetailing in Iran slow shift to modernizationrdquo September 2015 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy25475retailing-in-iran-slow-shift-to-

modernization 265 Financial Tribune ldquoWhy grocery stores outnumber any other shop in Tehranrdquo June 2015 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets19404why-grocery-stores-outnumber-

any-other-shop-in-tehran

Figure 53 Organic Processed Fruits

and Vegetables Sold in Tehran Supermarket



125 | P a g e

Summary The market for processed fruit and vegetables in Iran is promising but also

full of challenges for EU exporters The lifting of sanctions at the beginning of

2016 threw open the doors for international brands to a market that has

promising growth potential combined with strong demographics including a

young and increasingly urban population Consumers in Iran are

experimenting with Western products and modern supermarkets and

hypermarkets are expanding quickly offering a range of new premium

products including frozen fruit and vegetables which could not be sold in

traditional grocery outlets before due to a lack of freezing capacity Importantly

to EU producers of processed fruit and vegetables Iran has few varieties of

processed foods meaning that Iran is ripe for new and innovative product

lines Certain challenges do exist including the high duties on packaged and

processed foods entering into Iran Furthermore local manufacturers and

small traditional retailers continue to dominate in Iranrsquos food landscape

Finally uncertainties concerning inflation and the direction of economic policy

are real EU producers of processed fruit and vegetables should take a longer-

term approach to the market understanding that it will require time to

penetrate and generate brand awareness and loyalty


Market snapshots Dairy Products

126 | P a g e

Dairy Products

The lifting of sanctions from Iran by the west is expected to open up the Iranian

market and create many opportunities for European and other international

companies On top of opening the market for foreign companies the lifting of

sanctions would enable producers in Iran to purchase advanced machinery and

modernise the production of dairy products As a result trade barriers are

expected to be reduced in upcoming years and growth in the sector is expected

to improve with a high compound annual growth rate (CAGR) of around 22

per cent forecasted for the period 2016-2021266 However the political

landscape is still highly unstable Monetary policies of the Iranian government

have been reflected in continued declining trend of inflation rate resulting in

diminishing value growth and low growth in unit prices across most of the

products categories Purchasing power of the population is still low and most

Iranians cannot afford imported dairy products

266 Financial Tribune ldquoIranian dairy market offers strong growth prospectsrdquo December 2016 available at

httpsfinancialtribunecomarticlesdomestic-economy55665iranian-dairy-market-offers-strong-growth-

prospects

Strengths

bull Tenth largest growing dairy market globally

Weaknesses

bull Political instability

bull Very low unit price compared to multinational brands

Opportunities

bull The lifting of sanctions by the west is opening up the market

Threats

bull Demand for products which are perceived to contain preservative may decrease due to growing awareness to health considerations



127 | P a g e

Consumption As indicated in the table below Iranrsquos per-capita consumption of dairy products

in 2016 was 2979 kg comprising of 2348 kg of fresh milk (7882 per cent)

317 kg of butter (1064 per cent) and 314 kg of cheese (1054 per cent)

While consumption of dairy products dropped between 2011 and 2014 it has

since gradually but steadily increased and the trend is expected to continue

over the next 5 years

Figure 54 Consumption of dairy products in Iran 2011-2016 and prospects for 2017-2021 (kg per capita)

OECD-FAO

Figure 55 Consumption of dairy products in Iran by category 2016

OECD-FAO

During 2011-2015 the Iranian dairy products market experienced high

demand for value-added dairy products such as butter and margarine cheese

yogurt ice cream etc across the country In order to address this demand

a large number of domestic as well as international dairy manufacturers

operating in Iran are offering high-quality products without adulteration With

market growth expected to increase over 20 in the next five years dairy

28

285

29

295

30

305

31

315

32

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Fresh dairy products 7882

Butter 1064

Cheese 1054



128 | P a g e

collection and cooling centers in both urban and rural areas are expected to

become more commonplace Irish delegates in the dairy sector for example

have already visited the country in April 2016 to scope the future potential of

this market267 This is part of a trend of international dairy brands expected to

enter Iran in coming years

Figure 56 OECD-FAO Data on Dairy Consumption in Iran 1997-2016 in tonnes (thousands)

OECD-FAO

Figure 57 OECD-FAO Data on Dairy Consumption in Iran with forecast 2017-2021 in tonnes (thousands)

OECD-FAO

Dairy consumption in Iran fluctuated substantially in recent years with a

general increase through 1997-2016 period ending at 50921 tonnes in

2016268 Consumption in 2015 consisted mainly of butter and margarine as the

main dairy products as well as milk to a lesser extent Cheese consumption

has been growing due to new tastes developed by a growing middle class



prospects 268 ldquoOECD-FAO Agricultural Outlook 2016-2025rdquo available at httpsknoemacomOECDAO2017oecd-

fao-agricultural-outlook-2016-2025

0

100

200

300

400

500

600

522648

535878

523532

503284

509214516247

522462528255

533525 53865

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021



129 | P a g e

Similarly yoghurt consumption has been steadily growing mainly due to an

increased consumption of ldquodooghrdquo ndash a local yoghurt-based beverage269


While traditionally products such as rice

bread yoghurt and cheese were

consumed mostly looseunpackaged in

recent years consumption of packaged

items has been growing especially in

key urban areas This trend is mainly

due to two reasons firstly a large part

of Iranrsquos population is aged between 15-

34 years old This group is more

conscious about health and sanitary

concerns and in effect is more inclined

to purchase new packaged food items

Additionally an increase in the number

of malnutrition cases in the country has

led to higher awareness among people

regarding consumption of packaged milk

and other packaged dairy products

Furthermore dairy products originating

from Europe or the US not available for

domesting consumers prior to the lifting

of sanctions offer attractive alternatives

for Iranian consumers270

On the other hand growing awareness about health considerations has been

reflected in decreasing demand for products such as shelf stable drinking milk

which many young consumers consider to be unhealthy due to the common

perception that it contains preservatives

4812 Cheese

Unlike other Middle Eastern countries Iranrsquos absolute value growth for cheese

products declined during the period 2011-2016 This reflects a general trend

for the Iranian economy as inflation rates continued to decline in light of

government initiated monetary policies271 Cheese recorded 7 per cent retail

value growth in 2016 This is much lower than the 18 per cent value CAGR for



prospects 270 Iran Daily ldquoIranrsquos dairy products market to growrdquo November 2016 available at httpwwwiran-

dailycomNews172971html 271 The World Bank ldquoThe World Bank In Islamic Republic of Iranrdquo accessed 21 August 2017 through

httpwwwworldbankorgencountryiranoverview

Figure 58) Refrigerated Dairy Shelf in Iranian Hypermarket



130 | P a g e

the period 2011-2016 mainly due to low unit price growth in 2016 compared

to previous years

Figure 59 OECD-FAO Data on Cheese Consumption in Iran in tonnes (thousands)272

OECD-FAO

As displayed in the graph

above 2016 saw the first

increase in cheese

consumption in Iran following

a declining trend for the

period 2011 -2015

A higher consumption of

yogurt and sour milk can

similarly be expected in Iran

mainly due to a preference

for these products over

freshpasteurised milk Similarly the markets for fat and butter products in

Iran have already been targeted by international companies for expansion273

Innovative manufacturers like Kalleh Dairy have introduced the market to a

wide variety of cheeses in effect stimulating a growing number of products

gaining popularity in Iran This includes cream cheese processed cheese

Edam Gouda and Parmesan This has allowed for a continued growth of the

cheese sector throughout 2016 ndash mainly focussed in urbanised areas across

the country

4813 Drinking milk products

Iran has one of the lowest per capita consumptions of milk in the region

according to the Iranian Ministry of Health and Hygiene Growing health

concerns have been evident in an increase in the popularity of fresh milk over

272ldquoOECD-FAO Agricultural Outlook 2016-2025rdquo available at httpsknoemacomOECDAO2017oecd-

fao-agricultural-outlook-2016-2025 273 The Italian Trade Agency ldquoMarket Overview of Iranrsquos Agricultural Food Sectorrdquo January 2016

272415268527

259214255522

250001 251535

2011 2012 2013 2014 2015 2016

Figure 60 Variety of Cheese Available in Tehran Supermarkets



131 | P a g e

shelf stable milk ndash as this is commonly connotated with the preservatives it

contains Yet at the same time this perception is gradually changing as nearly

all items in this category now carry a ldquoNo additives or preservativesldquo label and

the availability of shelf stable milk products is growing274 Likewise as health

awareness increases so does demand for low fatlactose milk as well as soy-

based drinks and soy milk Iranian consumers are slowly getting familiar with

the taste of these kind of products as lactose-free reduced fat or reduced

cholesterol diets become more common

Figure 61 OECD-FAO Data on milk production in Iran in tonnes (thousands) with forecast 2017-2021

OECD-FAO

As illustrated in the graph above milk production in Iran increased from 4895

tonnes in 1997 to 793431 tonnes in 2016 growing at an average annual rate

of 269 per cent Forecasts for the period 2016-2021 envision a significant

annual increase in unit prices by 2021 when measured at constant 2016

prices275 Iran currently has roughly 9 million head of cattle 1 million of which

are of the dairy-specific Holstein breed and produces on average 32 kg of milk

per day276 This type of livestock is concentrated around urban centres

throughout Iran As such Iran is self-sufficien in its production of cheese

butter and milk powder

Implementation of the next phase of the subsidies cut-off programme is

expected during this period during which the price for milk could be affected

Yet at the end of 2016 the Iranian governmentrsquos official policy on this matter

was still extremely unpredictable

274 Iran Daily ldquoNew nutrition labels to hit market soonrdquo April 2015 available at httpwwwiran-

dailycomNews115398html 275 ldquoOECD-FAO Agricultural Outlook 2016-2025rdquo available at httpsknoemacomOECDAO2017oecd-

fao-agricultural-outlook-2016-2025 276 Financial Tribune ldquoIranian dairy market offers strong growth prospectsrdquo December 2016 available at


prospects

769757 761

7778

793807

821835

85864

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021



132 | P a g e

Additionally the growing popularity of flavoured milk drinks is likely to

continue New product launches including various flavoured milk drinks as

well as fortified milk and products low in lactose may expect to benefit from

increasing popularity albeit at a slow pace

4814 Yogurt and sour milk products

Iran consumes a significant amount of yoghurt Traditionally yoghurt is

considered a healthy food which is often served alongside main dishes at lunch

and dinner A type of yoghurt known as mast in the Farsi language is

prepared at home from milk and plain yogurt Likewise A traditional Iranian

sour milk drink known as doogh in Farsi is also prepared simply by adding

salt and water to yoghurt and is used as a drink in place of carbonates or non-

alcoholic beer Consumption of yoghurt and yoghurt like deserts is expected

to continue increasing ndash albeit slowly ndash and is among other dependent on public

policy developments for these kind of products specifically

Offer Iranrsquos production of liquid milk in 2015 was 7800 million tons Given the

relatively low local consumption ndash 27 million tons in the same year ndash Iran is

self-sufficient in milk production277 Leading revenue generators regions in the

dairy sector in Iran are Tehran and Tabriz The Iranian government is

increasingly investing and initiating new programs in the sector as part of a

larger trend shifting the economy towards greater diversification into non-oil

sectors

Some of the countries most prominent dairy companies include Pegah Dairy

Company Kalleh Dairy Company Mihan Dairy Group Teen Dairy Products

Company and Pak Dairy Company among others offering a wide variety of

products to domestic consumers

4821 Import

Iranrsquos imports of dairy products from the EU in 2016 amounted to a value of

2683 million EUR which constitutes 234 per cent of Iranrsquos total imports of

dairy products While value growth over the period of 2012-2016 has been

negative between 2015 and 2016 it has significantly increased278 Germany

and Ireland lead in dairy exports to Iran both among EU countries and globally

(constituting respectively 72 and 5 per cent of total imports of dairy products

by Iran) These are only surpassed by New Zeeland which is the primary

exporter of dairy products to the country with a value of 884 million USD

(7915 million EUR) constituting 693 per cent of imports by Iran

Figure 62 Irans imports of dairy products from the EU 2016 (value in euro millions)

277The Italian Trade Agency ldquoMarket Overview of Iranrsquos Agricultural Food Sectorrdquo January 2016 278 Trade Map International Trade Centre wwwtrademaporg



133 | P a g e


Figure 63 value growth in Irans imports of dairy products from leading EU countries ( pa)


Export According to ITC Trade Map statistics Iranrsquos total exports of dairy products in

2016 amounted to a value of 5 million EUR The main target of Iranian exports

in this category is the Russian federation whose importsrsquo value in 2016

amounted to 13 million USD (116 million EUR) 228 per cent of the total

exports by Iran in this sector Iranrsquos trade balance with its main EU trade

279 Trade Map International Trade Centre wwwtrademaporg 280 Ibid

0

5

10

15

20

25

30

-200

0

200

400

600

800

1000

1200

2012-2016

2015-2016



134 | P a g e

partners France and Ireland was in 2016 about minus 3 million and minus 6

million EUR respectively

Figure 64 Irans exports of dairy products to the EU (2016 value in euro thousands)


Figure 65 OECD-FAO Data on Exports of Cheese in Iran 2011-2016 Unit thousands of tonnes

OECD-FAO

Exports of cheese in Iran increased from 004 tonnes (thousands) in 1997 to

4843 tonnes (thousands) in 2016 growing at an average annual rate of

14067249 per cent Rising demand for packaged cheese is forecasted in the

next few years in Iran

281 Trade Map International Trade Centre wwwtrademaporg

0

20

40

60

80

100

120

140

160

180

200

France Luxembourg Spain Ireland

2011 2012 2013 2014 2015 2016

2257 2264

34083825

454843



135 | P a g e


The key players In Iran dairy products market are Iran Dairy Industries Co

(Pegah) Kalleh Dairy Company Mihan Dairy Group Sahar Dairy Damdaran

Holding Teen Dairy Products Company and Pak Dairy Company However the

top brands in dairy as announced by the Trade Promotion Organization of Iran

for the year ending 20 March 2017 are Pegah Kalleh and Mihan Listed on the

Tehran Stock Exchange are Pak Dairy Kalber Dairy Isfahan Pegah Dairy

Khorasan Pegah Dairy and West Azarbaijan Pegah282 These leading companies

offer a wide variety of dairy products through a well-established distribution

network

Pegah Dairy283 is a state-owned company with nationwide coverage and the

largest share of Iranrsquos dairy market ndash at roughly 21 of the market284 It leads

in the drinking milk products category and also has several factories across

the country including in Pegah Khorasan Pegah Gilan and other areas which

supply all urban and rural areas with fresh dairy products It has recently

opened the biggest milk powder factory in the country located in Lorestan

Province and at the same time has over 2000 head of cattle in its Aligudarz

Animal Husbandry Complex alone285 The bestselling cheese in Iran is

considered to be ldquoPegah Shabnamrdquo a brand by Pegah Dairy It is a very simple

soft cheese packaged in salted water

As one of the leading companies in the dairy sector Kalleh Dairy has a strong

profile for yoghurt sour milk drinks as well as cheese and currently has

roughly 21 market share286 It is a part of Solicio food Industries one of the

largest food processing companies in Iran who manufacture a large variety of

products including milk yoghurt ice cream and sour milk Kalleh Dairyrsquos

range of main products includes milk (variety of low fat milk high fat vitamin

low-lactose and flavoured with chocolate flavour bananas dates chocolate)

cheese (more than 100 types of cheese such as white cream Cheddar

processing cumin Lyqvan etchellip) natural cheeses (eight kinds of natural

cheese such as Gvda Bluecheese Kmmbr parmesan which in Iran only are

produced in Kalleh Co) yogurt (variety of fat yogurt low fat cream Shallot

Fruity) buttermilk (types of simple buttermilk flavoured sparkling

282 Trade Map International Trade Centre wwwtrademaporg 283 For more information please visit httppegahdairycomen 284 Financial Tribune ldquoIranrsquos dairy industry booming as exports expandrdquo August 2017 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy70617iran-s-dairy-industry-booming-as-

exports-expand 285 Ibid 286 Financial Tribune ldquoIranrsquos dairy industry booming as exports expandrdquo August 2017 available at


exports-expand



136 | P a g e

probiotic) powder (cheese powder milk powder dry powders and other types

of industrial powders) and dessert (pudding desserts in different flavours)287

Mihan Dairy Group holds strong positions in shelf stable milk and flavoured

milk drinks and also has very effective distribution network and advertising

campaigns Teen Dairy has recorded a strong increase in value share over the

year 2016 mainly due to the improved availability and visibility of its

Damdaran brand which has managed to be listed among the most important

and greatest fresh milk production units in the country288 Saina Food Part

provides the most popular soy milk in Iran Its Manda soy brand takes the

greatest share of soy beverages in the country289


The Iranian dairy sector is characterised by

domestic manufacturers Unit prices of domestic

products are very low compared to multinational

brands which make imports unreasonable In

cheese for instance The French Bel Group

multinational is very active in Iran It has joint

production with Sahar Dairy Co for its Kiri (known

as Kibi in Iran) and Laughing Cow brands Under its

agreement with Sahar Dairy Bel Group has 70 per

cent of the joint venture290 Going forward the

group intends to introduce its own products

Similarly the only active multinational in the

drinking milk category is Danone Group which has

joint production of its flavoured milk drink

(Danette) with Sahar Dairy Industrials291


Like all other imports of food products plants animals or animal products

dairy products imports to Iran require a health certificate from the country of

origin Special requirements apply for products for feeding infants such

products are subject to the discretion of the Ministry of Health Treatment and

Medical Education Powdered milk for the consumption of infants is subject to

a reduced import duty of 5 per cent292

287 For more information please visit httpwwwfooddirectoriescomgoldsupplierKallehDairy 288 For more information on Damdaran brand please visit httpdamdaranirenarticlespage1pagesize30 289 For more information on Saina Food Part please visit httpwwwmandasoycomenabout-us 290 Retail Business Review ldquoBel to form Iranian JVrdquo June 2007 available at httpwwwretail-business-

reviewcomnewsbel-to-form-iranian-jv 291 Financial Tribune ldquoIranrsquos dairy industry booming as exports expandrdquo August 2017 available at


exports-expand 292 ldquoExport - Import Regulations 2016rdquo Available at

httpfarsitpoiruploadsmogarrarat1395_1_ok_16238pdf section I chapter 4

Figure 66 Kibi Promotion Campaign



137 | P a g e

Distribution The main distribution channel for both drinking milk products and cheese in

Iran is independent small grocers In small cities and rural areas it is common

to purchase unpackaged milk from special outlets known as labaniati in Farsi

Local companies hold a

strong advantage over

foreign companies The

strength of domestic

brands is partly caused by

the international sanctions

imposed upon Iran by the

EU and the US previously

this has meant that Iran

was unable to develop its

position in international

trade and in effect its

government looked for alternative ways to keep its economy afloat Self-

suffiency was prioritised which meant that national companies were nurtured

through policies of import substitution or by imposing high on imports of

foreign goods293

Common advertisement approaches used by all key players are national

television and radio and strong point-of-sale displays in various distribution

channels especially in supermarkets and hypermarkets Leading companies

use different strategies to target new groups of consumers and raising product

awareness in order to gain competitive advantage294

Summary Although trade in dairy products by Iran is low in global terms the lifting of

the sanctions by the west may constitute an opportunity for EU exporters

Sales of dairy products in recent years and forecasts for the upcoming years

indicate a positive trend towards growing local demand Iran is going through

a process of modernisation and urbanisation Combined with growing

awareness to health issues this process is altering consumersrsquo preferences

although slowly A greater variety of products become available in the country

and consumers gradually get accustomed to new tastes The market is

currently dominated by local providers The very few international companies

293 ELMJOUIE Yara ldquoHeinz or Delpazir the state of Irans homegrown industriesrdquo The Guardian February

2016 available at httpswwwtheguardiancomworldiran-blog2016feb02western-brands-competition-

market-iran-poll-tehranbureau 294 M and M Global ldquoA guide to Iranrsquos marketing opportunities lsquostylishrsquo consumers and burgeoning media

scenerdquo September 2016 available at httpmandmglobalcoma-guide-to-irans-market-opportunities-

stylish-consumers-and-burgeoning-media-scene

Figure 67 European Cheese Sold in Tehran Supermarkets



138 | P a g e

active in the sector have joint operations with local players Yet ongoing

reforms by the government and the opening up of the market may change the

competitiveness of the market and make it more attractive to foreign

investments



139 | P a g e

Processed Cereals

Although the market for European processed cereals in Iran faces a few

challenges such as a slow-growing interest and taste for these food products

and strict government oversight which includes protectionist tendencies a new

window of opportunity has opened following the lifting of sanctions and an

interest in Western products

Consumption Boasting a diverse and deep-rooted culinary culture Iranian cuisine is

primarily based on two staples rice and bread These two cereals are highly

important in the Iranian diet and food consumption The local flat bread known

in English as lsquopitarsquo is subsidised by the central government

Other cereals for example barley are used mainly for malt-based products

Breakfast cereals are generally considered to be a childrenrsquos meal However

this conception is slowly changing as younger generations have begun to

Strengths

bullHigh dependancy on imported products

bullLift of sanctions will create opportunities for EU companies

Weaknesses

bullIncreasing food prices are affecting consumers

bullIranians have not included breakfast cereals as part of their diet

Opportunities

bullShift of dietary choices towards Western products will create opportunities in Iran

Threats

bullGovernment has put in place strict regulations and holds a monopoly over imports



140 | P a g e

adopt Western food habits In effect cereals as a food category in Iran has

been well established295

Next to barley wheat also is a prominent crop cultivated in Iran and often

included in cereals Toegether these two crops account for almost 34th of

domestic cereal production296 Wheat makes up an essential portion of the

Iranian economy as it is the base for producing flour also used to cook bread

which is a staple in the Iranian diet

Iranacutes wheat production in 20152016 reached 135 million tonnes297

However increasing demand from the growing population and urbanisation

has led the country to rely heavily on substantial wheat imports In addition

Iran may rely heavily on imports especially during droughts as the current

agricultural technology may not be able to sustain the steady demand in

intense dry periods Modernized machinery and climate resistant seeds will

drastically change production levels of wheat in Iran Expected production for

cereals in Iran currently reaches over 20 million tons ndash an estimated increase

of nearly 1 from the production level of 2016298

Wheat domestic production and imports are controlled by the Government

Trading Corporation of Iran (GTC)

295 Financial Tribune Kellogg relaunches cereals pringles in Iran December 2016 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy55595kellogg-relaunches-cereals-

pringles-in-iran 296 Source Food and Agriculture Organisation of the United Nations 2017 GIEWS Country Brief - Iran

(Islamic Republic of) httpwwwfaoorggiewscountrybriefcountryjspcode=IRN Reproduced with

permission 297 Ibid 298 Financial Tribune ldquoFAO Iran to produce 20m tons of cereals in 2017rdquo June 2017 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy66653fao-iran-to-produce-20m-tons-of-

cereals-in-2017



141 | P a g e

Figure 68 Main cereal importers into Iran (Products of the milling industry malt starches inulin wheat gluten) by value imported 2016

copy ITC TradeMap299

Barley is used in Iran for producing malt which in turn is used in various food

production including malt vinegar confections flavoured drinks baked goods

as well as non-alcoholic beer A high-protein form of malted barley is often

used as an ingredient in blended flours typically used in the manufacturing of

yeast breads and other baked goods

Even though alcohol consumption and production is banned in Iran several

brewing companies produce non-alcoholic beer which is a popular beverage

consumed in Iran as well as in other Muslim-majority countries throughout

the region 300 Barley is imported by companies including state-owned and

leading manufacturer Behnoush Company to produce malt extract and malt

products

299 Trade Map International Trade Centre wwwtrademaporg 300 Financial Tribune ldquoOpportunities in Barley Malt Industryrdquo May 2015 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets16684opportunities-in-barley-malt-

industry

India40

Netherlands20

Belgium10

Germany6

Thailand6

France5

Italy5

Georgia4

Malaysia4



142 | P a g e

Figure 69 Barley imports value into Iran


4911 Consumer Profiles and Trends

As Western high-end products gain popularity in Iran the demand for food

products and cereals from the West also increase A traditional Iranian

breakfast often consists of flatbread which can be topped with butter or jam

and paired with an omelet and tea It can also include sheep porridge or

(lentil) soup

Although traditional breakfasts remain a staple Breakfast Cereals are also

gaining popularity in Iran with some national companies and a few

international companies gaining more ground (Please refer to section

1123rdquo Main Competitorsrdquo) in this chapter


While there is growing awareness among the Iranian population regarding

processed cereals as a food option there is still potentially not enough popular

knowledge about EU products to gain a significant market share in the country

within the near future This factor combined with the perception that breakfast

cereals processed cereals consist of a luxury item may contribune to a slow

demand growth among lower-income consumer groups

In addition distribution may be an issue in the Iranian market In order to

encourage take-up wide distribution must take place which would increase

awareness and consequently demand for products In Iran the distribution

landscape is currently highly fragmented with a large percentage of products

including processed cereals being sold in independent small grocers While

consumers are shifting to purchasing in Hypermarkets and Supermarkets


Kazakhstan43

Russian Federation29

Germany18

France6

Estonia4



143 | P a g e

these small independents are likely to continue to have a large market share

in the near future It may therefore be difficult to distribune country-wide given

that arrangements will potentially need to be made with various independents

rather than a processed cereal EU exporter who is able to sign distribution

agreements through a small number of large nationwide

SupermarketsHypermarkets capturing a large percentage of the market

Finally while there is presence of multinational brands in the country in the

processed cereals category a national dominance exists (raw materials for

processed cereals are also in abundance in the country302) which may prove

a barrier to overcome Alternatively Iranian consumersrsquo interest in Western

lifestyles and eating habits may soften this to a certain extent

Offer Iran has a large production of wheat barley rice and other which totalled

19930 tons in 2016 with an anticipated 20110 tons according to FAO

statistics as apparent in the table below The forecasted production for 2017

shows a possible change of 3 per cent and no change for the wheat and other

categories

Table 16 National average cereal production for Iran from 2012-2016 forecasted amount for 2017 in tonnes and the anticipated change percentage for 2017

2012-2016

average 2016

2017

forecast

Change

20172016

000 tonnes percent

Wheat 10774 13500 13500 0

Barley 2776 3000 3100 3

Rice

(paddy) 2405 2520 2600 3

Others 1486 910 910 0

Total 17410 19930 20110 1

copy United Nations Food and Agricultural Organisation303

There are currently no processed cereal products registered under any

Geographic Indication protection (Please see Annex 1 GIs in Iran for further

302 Financial Tribune ldquoAn Overview of Breakfast Cereals Marketrdquo May 2015 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets17814an-overview-of-breakfast-

cereals-market 303 Source Food and Agriculture Organisation of the United Nations 2017 GIEWS Country Brief - Iran


permission



144 | P a g e

information) Therefore the cereals market does not currently have any GI

products in this country at this time

Export Since 2012 as apparent in the graph below Iran has experienced an upward

trend in trade value and trade weight of exports of processed cereals to

international markets

Figure 70 Export from Iran of prepared foods obtained by swelling roasting of cereals

or cereal products (eg corn flakes) cereals other than maize (corn) in grain form pre-cooked or otherwise prepared copy

copy UN Comtrade304

Over this time period Iran has received an increasingly higher price per kg for

processed cereals on international markets The price per kg in 2016 was 198

per cent higher than in 2012 according to UN Comtrade statistics

Table 17 Price per kg of exports from Iran of Prepared foods obtained by swelling

roasting of cereals or cereal products (eg corn flakes) cereals other than maize (corn) in grain form pre-cooked or otherwise prepared

2012 2013 2014 2015 2016

Price per kg

(USD)

098 (EUR

085)

127 (EUR

101)

188 (EUR

164)

204 (EUR

178)

194

(169)

copy UN Comtrade305

Iranrsquos main trade partners are concentrated in a relativly small number of

countries with respect to processed cereals

Figure 71 Export from Iran of Prepared foods obtained by swelling roasting of cereals or cereal products (eg corn flakes) cereals other than maize (corn) in grain form


AffairsStatistics Division available at httpscomtradeunorg 305 Ibid

0

50000

100000

150000

200000

250000

300000

$0

$100000

$200000

$300000

$400000

$500000

$600000

2012 2013 2014 2015 2016

Net

wei

ght

(kg)

Trad

e V

alu

e (U

S$)

Trade Value (US$) Netweight (kg)



145 | P a g e

pre-cooked or otherwise prepared by partner country share (2012-2016 total trade val

copy UN Comtrade306

4931 Import

Following a drop in worldwide processed cereals exports to Iran in 2013 a

constant upward growth in trade value for this category has taken place over

the past few years which can be seen in the graph below

Figure 72 Import to Iran of Prepared foods obtained by swelling roasting of cereals


copy UN Comtrade307



UAE 2172

Jordan 2018

Poland 1410

Germany 1079

Other 1046

Sweden 688

Armenia 760

Bahrain 262

Canada 206Azerbaijan 205 Oman 152

0

200000

400000

600000

800000

1000000

1200000

$0

$500000

$1000000

$1500000

$2000000

$2500000

$3000000

$3500000

2012 2013 2014 2015 2016

Net

wei

ght

(kg)

Trad

e V

alu

e (U

S$)




146 | P a g e

Interestingly importers to Iran in 2013 also saw a drop in the price per kg

they were receiving from this category from which they have now recovered

The current price levels are above those experienced in 2012

Table 18 Price per kg of imports to Iran of Prepared foods obtained by swelling roasting of cereals or cereal products (eg corn flakes) cereals other than maize (corn) in grain form pre-cooked or otherwise prepared

2012 2013 2014 2015 2016

Price per kg

(USD)

279 (EUR

243)

211 (EUR

184)

212 (EUR

185)

251 (EUR

219)

291

(EUR

254)

copyUN Comtrade308

The main exports of processed cereals to Iran come from partners who are

with the exception of the United Arab Emirates and Turkey outside of Iranrsquos

regional proximity


or cereal products (eg corn flakes) cereals other than maize (corn) in grain form pre-cooked or otherwise prepared by partner country share (2012-2016 total trade value USD)

copy UN Comtrade309



Switzerland 1919

France 1225

UAE 1143

Turkey 1088Italy 1021

Germany 956

Poland 571

Spain 955

Malaysia 464

Other 376 China 282



147 | P a g e


The main international competitors in the processed breakfast cereals market

for Iran include Nestle and Kelloggrsquos310 Tak Macaron is one of the leading

processed food companies in Iran Among other products it produces

processed cereal flakes Elphy is also a large Iranian processed foods company

which also includes several varieties of breakfast cereal

In recent years there seems to be a general trend of consolidation in the

market as fewer brands start to take up a larger percentage of the market

To note here also is the presence of Kellogg Co with its Kelloggrsquos Special K

brand which is popular amongst the affluent urban population distribution of

Kellogg products in Iran is through local distributor Tehran Bouran311


For any foreign business to gain the right to import products and make them

available in the market it is mandatory for the applicant to first register with

the Ministry of Commerce and follow the local packaging requirements312

310 Iran Times ldquoSnap Crackle and Pop back in Iranrdquo December 2016 available at httpiran-

timescomsnap-crackle-pop-back-in-iran 311Financial Tribune ldquoKellogg relaunches cereals Pringles in Iranrdquo December 2016 available at


pringles-in-iran 312 The Ministry of Foreign Affairs of DenmarkldquoThe agriculture and food market in Iran Opportunities and




148 | P a g e

Import duties may be charged on Processed Cereal

products (For the complete list of specific products

along with the tariffs please see the Iranian ldquoExport-

Import Regulations 2016 Section IV Chapter 19rdquo)313

Distribution The Iranian food retail market is still quite traditional

and is comprised mostly of small independent food

shops which will support local communities In 2015

there were 300 000 traditional trade store with only 85

per cent of the sold goods going through large retailers

such as supermarkets 314 This can pose a significant

distribution challenge for foreign companies entering

the country

In order to overcome language barriers and to facilitate

the market entry parties wishing to import food

products into Iran mostly adopt one of the following

strategies Connecting with an agent opening an office

directly in Iran or starting a joint venture with a local

partner 315

On another note restaurants especially fast food

restaurants have become more and more popular in

recent years with an increase in fast food spending from

2005-2012 of 120 per cent316 This is primarily due to the emergence of more

Western chains now available in the capital Tehran This new trend may also

provide an opportunity for European producers

Summary Consumption Consumption in the Processed Cereals category has grown in

the recent past and is expected to continue this trajectory in the near future Childrenrsquos Breakfast cereals are growing in popularity and are expected to

continue to do so

Competition The competitive landscape for the category is currently rather

fragmented A large percentage of the market is made up of small sellers Of

the identified brands on the market currently domestic brands remain very

313 Iran Trade Promotion Organization ldquoImport-Export regulations 2016rdquo Section IV Chapter 19 available

at httpengtpoirindexaspxsiteid=5ampfkeyid=ampsiteid=5amppageid=24256 314 Financial Tribune ldquoFMCGs and Typical Retailingrdquo June 2016 available at

httpsfinancialtribunecomarticlesdomestic-economy44423fmcgs-and-typical-retailing 315 The Ministry of Foreign Affairs of DenmarkldquoThe agriculture and food market in Iran Opportunities and

challenges for Danish companiesrdquo March 2017 316Financial Tribune ldquoFast Food Industry in Iranrdquo July 2017 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets45173fast-food-industry-in-iran

Figure 74 Processed Cereals Sold in Tehran

Supermarket



149 | P a g e

popular in Iran though there are well known multinational players who in the

last few years have been gaining market share this trend is expected to

continue

Distribution Distribution as with competition is fragmented This is the

picture with retail in Iran in general and is not specific to Processed Cereals

Currently a large percentage of the market goes through independent small grocers Recently supermarket and hypermarkets more modern forms of

retail have been gaining ground and should continue to do so in the future

Challenges Awareness amongst the general population of Processed Cereals

as a food option is growing though may not be at high enough levels to support

new market entrants Given the fragmented nature of distribution in Iran there

may be difficulties achieving national distribution throughout the country In

addition there is domestic competition which could make the entry of EU

companies potentially difficult

Opportunities There is a growing trend for the Iranian consumer to purchase through Hypermarkets and supermarkets an easier channel to gain country-

wide distribution through There is interest amongst the consumer population

for EU Western products and the Processed Cereals category is no exception

Increased awareness of the health aspects of the food is a fact which can be

used to increase demand


Market snapshots Baked Goods

150 | P a g e

Baked Goods

The sector of baked goods in Iran is generally fairly mature and sizeable The

positive common development of the west lifting sanctions on exports to Iran

opens up opportunities for European exports It is expected that the traditional

artisan bread culture will slowly lose ground to industrial bread production

although the latterrsquos market share is still significantly smaller than the

formerrsquos Nevertheless with potential deriving from change in consumersrsquo

attitudes towards the bread diet European exporters may look into better

prospects offering authentic European products to a newly opened market

Consumption


The baked goods sector is of significant importance in Iran in terms of

consumption Iranians love bread and baked goods In fact Iranians find

themselves on the second place of biggest consumers per capita globally with

160 kg of bread per person per year 317 This is six times more than the global

317 Financial Tribune ldquoIran bread consumption six times global averagerdquo June 2017 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy65968iran-bread-consumption-six-times-

global average

Strengths

bull Growing middle class increasing preference for European style breads

Weaknesses

bull Mature market with established domestic producers delivering goods through fragmented distribution channels

Opportunities

bull Lifting of sanctions by the west is opening up the market

bull Removal of local subsidies by Iranian government

Threats

bullDomestic brands attempt to produce their own European style breads

bullUncertain economic growth prospects



151 | P a g e

average per capita consumption and only topped by Turkey for which the

figure is 199 kilograms per person To put this in perspective French and

German consumption reaches merely 56 and 70 kilograms of bread per person

per year respectively

Together with rice bread is one of the core components to any Iranian meal

Iranian consumers preferred their meals to be hot and fresh-out-the-oven

styled breads fit perfectly

with this318 Due this high

consumption and

importance of bread the

Iranian government has for

many years installed large

subsidy schemes leading to

products such as artisanal

bread being sold at much

lower amounts than the

actual costs per piece The

artificially low unit prices

have strongly impacted

Iranian consumersrsquo

behaviour In fact a large

number of Iranian families see bread as such a staple food that they are

unwilling to consume anything but the best and freshest breads ndash throwing

away large quantities of older yet unspoiled bread

Against the significance of the size of the baked goods sector in Iran growth

rates have shown a slowdown A number of contributing factors are mentioned

by Market Research World one of them being the expansion of supply of other

ready-made products such as pasta which are substitutes to bread as a staple

part of the Iranian menu319 Another contributing factor is the maturity of the

category and gradual change of Iranian consumersrsquo eating habits traditional

Iranian meals accompanied by a large quantity of bread or rice have shown to

lose ground to modern fast food meal options Finally the Iranian government

is also making efforts in the area of removing subsidies from key products such

as bread

318 Market Research World lsquolsquoBakery Retail Performance In The Middle East And Africarsquorsquo November 2010

available at httpmarketresearchworldnetcontentview357977 319 Financial Tribune ldquoStory of macaroni industry in Iranrdquo April 2015 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy13827story-of-macaroni-industry-in-iran

Figure 75 Baked Products Sold in Tehran Supermarket



152 | P a g e

A major change in consumer attitudes is furthermore expected in particular

the per capita consumption of unpackaged and artisanal bread which is likely

to decline strongly320


The most important development for EU producers is the gradual loosening of

sanctions which will ease doing business for exporters At the same time

Iranian government is making efforts to reduce subsidies on in particular bread

products However Iran is still facing uncertain economic times and the

strength of changing attitudes towards foreign baked goods in the light of this

uncertainty associated with disposable income is still questionable This comes

in addition to the observation that the average import tariff applied by Iran for

foreign baked goods is still significant 351 per cent321

Offer

41021 Import

According to Trade Map statistics322 Iran imported a total of 829 million

EURrsquos worth of baked goods from European Union countries in 2016 This is

just over one third (339 per cent) of their total imports in this sector (2444

million EUR) Only looking at EU countries most of the baked goods come

directly from Italy (301 million EUR which is 123 per cent of total imports

and only second to Turkey) Belgium (179) and Germany (159)

Figure 76 Iranrsquos imports of baked goods from EU countries (2016 value in EUR million)



available at httpmarketresearchworldnetcontentview357977 321 Trade Map International Trade Centre wwwtrademaporg 322 Ibid 323 Ibid

301

179159

086049

023 011 009 006 004



153 | P a g e

Looking at the import developments Iranrsquos import grew in the period 2012-

2016 by 51 per cent annually in retail value (48 per cent in quantity)324 In the

period 2015-2016 this growth rate was even higher at 123 per cent showing

the effects of the lifting of export sanctions to Iran by a number of western

countries Almost all of the EU countries exporting to Iran followed this general

trend with the largest growth proportionally in the latter period achieved by

Spain at 610 per cent The Netherlands Italy and Germany also experienced

a strong growth in this regard with 223 per cent 179 per cent and 126 per

cent respectively Only Bulgaria saw the loss of a considerable share with 64

per cent decrease in exports to Iran

Figure 77 Value growth in Iranrsquos imports of baked goods from EU countries ( pa)


41022 Export

Iranrsquos export of baked goods to the EU in 2016 amounted to 676000 EUR

significantly less than its import326 The EU countries together imported

approximately 239 per cent of Iranrsquos total exports of baked goods (28 million

EUR) On the level of individual countries Germany is the largest importer of

Iranian baked goods for a retail value of 288000 EUR This is a share of 102

per cent only slightly above the next biggest importers Kuwait Canada and

Australia Other relatively large importers among EU countries are Sweden

(retail value share of all Iranian exports 62 per cent) the United Kingdom

(35 per cent) and the Netherlands (28 per cent)

Figure 78 Iranrsquos exports of baked goods to the EU (2016 value in EUR thousand)

324 Ibid 325 Trade Map International Trade Centre wwwtrademaporg 326 Ibid

-1000

100200300400500600700

2012-2016

2015-2016



154 | P a g e



Iran itself produces 15 million tons of bread every year328 This happens in a

modern industrial mode (the large-scale bread industry where most of the

production work is done by machines) but also according to the traditional

way (baked manually in traditional ovens) Twenty per cent of the produced

bread comes from the industrial bread bakeries the rest belongs to traditional

bread bakers Comparatively industrial bread is targeted for exports as only

twelve per cent of actual domestic bread consumption is industrial bread

Iranrsquos stark preference for traditional bakeries becomes apparent if we look at

the division between traditional and industrial bakeries For flour allocated

among all bakeries in Iran only two per cent is accounted for by industrial

bakery while the rest is distribuned to traditional bakeries Additionally

important to know is that eighty per cent of the flour distribuned across Iran

is subsidised while only twenty per cent of the supply is against real market

rates329 The Iranian government thus supports its local bakery business

aiming to reduce imports and promotes the self-reliance of the country

It is predicted for the coming years that Iran will experience a shift from

unpackaged artisanal bread to more modernized packaged industrially-

produced bread330

327 Trade Map International Trade Centre wwwtrademaporg 328 Financial Tribune ldquoIran bread consumption six times global averagerdquo June 2017 available at


global-average 329 Ibid 330 Financial Tribune ldquoIndustrial bread makes more economic senserdquo March 2016 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets38073industrial-bread-makes-more-

economic-sense

288

175

9979

285 1 1



155 | P a g e

The recent reform efforts (since 2010) of the Iranian government of its subsidy

programme on key staples ndash which include bread - has resulted in moderate

improvement in the efficiency of expenditures and economic activities

There are many different suppliers of baked goods in Iran and it should be

kept in mind that the retail market is generally very fragmented Examples of

some of the players on the market among the industrial bread producers

include Nanavaran Nami-Nik-Nahad food industries and Dorna food industrial

group Nanavaran literally meaning lsquobreadwinnerrsquo produces bread and

pastries complying to high quality standards In particular they produce

different types of pastry products (strudels donuts brownies) and bread

(brand product Lavash and diet bread brand Pronan)

Nami-Nik-Nahad food industries is better known under its brand name Cenan

Bakery This manufacturer established in 2008 produces mainly bread

products a quantity amounting to 50 tonnes per day Another supplier Dorna

food industrial group has grown from the foundation of its first cake factory in

1965 and currently produces over 80 types of different cakes cookies biscuits

and powdered products such as cake powder331 It distribunes and sells its

products through its company Erike Dorna


An important challenge for EU products in Iran would still be the traditionally

low local unit price due to the subsidies on Iranian bread The Iranian

government originally implemented these to ensure that this key part of the

Iranian diet is affordable to all In effect it has also meant that local bakeries

are forced to comply to set pricing restrinctions Some bakeries have found

creative solutions to circumvent these restrictions especially in light of an

increasing trend to more European style products preferred by a growing

middle class These new inventions are not subject to government price

controls as they fall outside the traditional lsquopitarsquo or lsquonaanrsquo categories This

strategy however is not always successful Iranian wheat flour does not lend

itself well for western-style bread making


As all imports of food products plants animals or animal products baked

goods imports to Iran too require a health certificate from the country of origin

Furthermore baked goods may need a Free Sale Certificate which should

state that the sold commodities are in free circulation in the exporting country

Distribution The baking industry in Iran is still mainly distributing its products through small

artisanal bakeries there are thousands of small bakeries across the country

331 Dorna food industrial group accessed 18 August 08 through httpendorna-cocomv-

1DAA9DB8CDAA9



156 | P a g e

open from early morning to late night332 Therefore in this food category the

distribution landscape is fairly fragmented which would constitute a challenge

for international players

Summary With the Iranian market opening since the lifting of the sanctions by a number

of western countries and the rollback of subsidy schemes for local producers

in the baked goods industries prospects for foreign products are certainly on

the rise Further decreasing the competitive gap are the slowly changing

preferences of the growing middle-class consumers tending to become more

interested in European style baked products However Iranrsquos domestic

producers have already made attempts to follow this latter trend by developing

such products be it with varying success due to the nature of the base wheat-

flour ingredient It remains to be seen to what extent the removal of subsidies

will stimulate the development of efficient economic activity by the domestic

producers and whether this will be in time to limit the opportunities for foreign

companies entering the market effectively

332 Financial Tribune ldquoIndustrial bread makes more economic senserdquo March 2016 available at


economic-sense


Market snapshots Chocolate

157 | P a g e

Chocolate

The common development of the west lifting sanctions on exports to Iran

opening up opportunities for European exports also applies for prospects in

the chocolate products sector and some countries have seen significant

increases in their exports to Iran the last year Domestic demand for chocolate

is low compared to western countries however increasing due to a growing

middle class having stronger preferences for luxury goods Nevertheless

remains to be seen whether this development could be hampered by uncertain

general economic outlooks

Consumption


In comparison with other countries chocolate does not yet have high

popularity among Iranian consumers The per capita consumption of chocolate

in Iran is significantly lower than that of Europe and the US each Iranian eats

3 kilograms of chocolate annually whereas the figure for the same indicator in

the latter two is near 10 kilograms333 In total an estimated 15 million tons

333 Financial Tribune lsquolsquoSweet Creamy Investmentrsquorsquo 2015 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets25578sweet-creamy-investment

Strengths

bull Consumers increasing preference for higher quality products associated with foreign brands

Weaknesses

bull Existing competitive environment among domestic brands with lower unit prices

Opportunities


Threats

bullDomestic brands growth developments and opportunities due to easier access to raw materials and machinery imports




158 | P a g e

of domestically-made chocolate were consumed in the country during March

2014 to March 2015 Nevertheless consumption in the country is on the rise

Concerning Iranrsquos urban society research by the Center of Developing

Economy Advisers shows that nearly half of the population of Tehran consumes

chocolate (48 per cent) which is the highest share in comparison with other

cities Significantly lower figures are shown in Mashhad Isfahan Tabriz Ahvaz

and Rasht where only 14 11 8 6 and 4 per cent of the local respondents

respectively indicated to consume chocolate334

The research also revealed that education level has an inverse relation to

chocolate consumption at least when looking at Iranian chocolate brands For

instance 39 per cent of Iranians with only a high school diploma appeared to

consume chocolate while 9 per cent college graduates and 51 per cent of

postgraduates did so However those who have higher education and higher

income tend to consume foreign brand chocolates

Looking at age groups another inverse relation to chocolate consumption

shows according to the same study Of the age group 15-24 year olds 31 per

cent consumes chocolate whereas age categories 25-34 35-44 45-54 and

above 55 the numbers are 25 19 13 and 12 per cent respectively (urban

society)335

In terms of different types of chocolate products a report of the Iran Economy

Online shows that among those Iranians who like chocolate individually

portioned chocolates are most popular (55 per cent) before chocolate bags

(35 per cent) and bar chocolates (25 per cent)336


The important development of 2016 is the gradual loosening of sanctions

which will ease doing business for importers with lower prices for their quality

products that would more appeal to the Iranian consumer Nevertheless the

uncertainty of the economic development in Iran may be one of the main

challenges EU exporters will face Despite openings in relationships between

Iran and the West forecasts of the economy are not unambiguously optimistic

leading to a likelihood that many consumers will have to spend their money on

necessity products (eg bread) This could have a negative effect on the

growth of more luxury product sectors like chocolate products

334 Parmida accessed on 17 August 2017 through httpwwwparmidachocolatecomennews13Chocolate-

consumption-percentage-in-cities-of-Irandefaultaspx 335 Ibid 336 Financial Tribune lsquolsquoSweet Creamy Investmentrsquo 2015 available from




159 | P a g e

Offer

41121 Import

In 2016 as apparent in the graph below Iran imported a total of 1549 million

EURrsquos worth of chocolate products from European Union countries which is

just over half of their total imports in this sector (503 per cent) Most of the

products come directly from Germany (647 million EUR only second to

Turkey) the Netherlands (351) and Poland (304)337

Figure 79 Iranrsquos imports of chocolate products from EU countries (value in EUR million)


Looking at the import developments on balance growth in the period 2015-

2016 goes at a higher rate than in the period 2012-2016 as a whole The

largest growth proportionally in the former period among EU exporting

countries is shown by Italy and Romania


647

351 304

169

030 018 014 009 004 002 000



160 | P a g e

Figure 80 Value growth in Iranrsquos imports of chocolate products from EU countries ( pa)


It should be noted that an estimated figure of almost 80 per cent of imported

sweets and chocolates sold to Iranian customers reach the market through

illegal ways340

Export Iranrsquos export of chocolate products to the EU is significantly less than its import

(67 thousand EUR versus 1549 million EUR) The country exported a total

value of 461 thousand EUR of Iranian chocolate products meaning the share

of exports going to the EU is only 145 per cent of the total While the main

destinations are Oman Russia China and Bahrain the fifth largest share in

this regard is held by Luxembourg (31 thousand EUR) Estonia (23) Germany

(6) France (5) and Romania (2) each also import relatively modest amounts

of chocolate products from Iran341

339 Trade Map International Trade Centre wwwtrademaporg 340Financial Tribune lsquolsquoChocolate Boxes Deceptiversquorsquo 2015 available at

httpsfinancialtribunecomarticlespeople12068chocolate-boxes-deceptive 341 Trade Map International Trade Centre wwwtrademaporg

-200

0

200

400

600

800

1000

1200

1400

1600

1800

2012-2016

2015-2016



161 | P a g e

Figure 81 Iranrsquos exports of chocolate products to the EU (2016 value in EUR thousands)


These exports are expected to increase in the coming years With the regional

countries being Iranrsquos original export priority a shift is happening to European

markets due to instability as well as wars343 The average Iranian chocolate

export price is 3 USD (26 EUR) per kilogram Between March 2016 and March

2017 the total exports from Iran in sweets and chocolates increased in value

(13 per cent) and volume (3 per cent)


Iran has a number of well established local chocolate producers the industry

in Iran itself dating back some sixty years344 According to the registration

statistics of the Association of Iranian Confectionery Manufacturing

Companies Iran counts 400 chocolate producing companies Most of these

are located in Tabriz East Azarbaijan Province (also known as the chocolate

capital of the country) Some of the bigger players among the domestic

suppliers include Parand Chocolate Dadash Baradar Co and Rezvan Chocolate

Co which offer wide ranges of products against relatively low prices

The biggest supplier in the chocolate products market is Parand Chocolate ndash

with a daily capacity of 160 tons345 It was established in 1994 with a wide

variety of products from tablets and boxed assortments to chocolate cards

chocolate chips and cocoa cream Parand Chocolate markets these products

under the Farmand Trademark a brand which is sold in Iran itself as well as

342 Trade Map International Trade Centre wwwtrademaporg 343 Financial Tribune lsquolsquoIranrsquos Sweets Chocolate Industry Hitting Big Timersquorsquo 2017 available at

httpsfinancialtribunecomarticlesdomestic-economy65276iran-s-sweets-chocolate-industry-hitting-big-

time 344Financial Tribune lsquolsquoSweet Creamy Investmentrsquorsquo 2015 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets25578sweet-creamy-investment 345 Global Companies ldquoParand Chocolate Co Farmandrdquo accessed 17 August 2017 through

httpwwwcompaniesscomparand_chocoalte_co_farmand_info752545html

31

23

6 52

Luxembourg Estonia Germany France Romania



162 | P a g e

across the borders Farmand products are exported to over 14 countries in the

Commonwealth of Independent States the Middle East Asia and Africa

Another supplier is Dadash Baradar (Food Industrial) Co established in 1944

and operates under the AIDIN brand name It has over 300 different products

among which a lot of variety in chocolate products In addition to its targeting

the domestic market Dadash Baradar exports

35 per cent of its production to neighbouring

countries the Persian Gulf District Eastern

Asia and Europe

A third important player in the chocolate

products market is Rezvan Chocolate Co with

its brand name Baraka Chocolate offering over

40 different types of products These include

for example boxed assortments tablets and

cocoa cream and are apart from the domestic

market also produced for export purposes

Other domestic brands that are popular in Iran

are Nani Chichak Anata Shirin Asal Shoniz

Aysuda and Parmida In terms of popularity

a report by Iran Economy Online shows that

Aidin chocolates have the largest share of

Iranrsquos chocolate market 27 per cent of the

chocolate consumers purchase this brand with Shirin Asal having the second

place (17 per cent) Farmand and Anata each have 14 per cent Shokopars 13

per cent Chichak 10 per cent and Aysuda and Minoo each 9 per cent346

Domestic manufacturers are developing ways to improve quality and

packaging for increased market visibility for specific target markets347

Chocolate products are frequently advertised through TV for example around

childrenrsquos programmes where a large number of commercials focus on food

products


An important challenge for EU products in Iran would be pricing The

international brands present in Iran and relatively popular are Milka Merci

Twix Toblerone Ritter sport ELIT LINDT SNICKERS BOUNTY Mars

CADBURY MampM KITKAT Galaxy Kinder Quality Street and Nutella

However they are considerably expensive compared to the local brands (the

average import tariff for chocolate products being 717 percent348) for the

346 Financial Tribune lsquolsquoSweet Creamy Investmentrsquorsquo 2015 httpsfinancialtribunecomarticleseconomy-

business-and-markets25578sweet-creamy-investment 347 Ibid 348 Trade Map International Trade Centre wwwtrademaporg

Figure 82 Nutella Chocolate Promoted in Tehran Supermarket



163 | P a g e

Iranian consumer Nevertheless the significant amount of smuggled foreign

chocolate products into the country shows a higher popularity than the official

records would conclude

It remains to be seen to what extent the opening of the market due to the

lifting of sanctions against Iran will balance in foreign playersrsquo favour As the

CEO of Iranian manufacturer Rezvan Chocolote Co remarked that even though

production levels and sales conditions have reinforced each other one major

problem remains equipment With often old malfunctioning and out-dated

machinery Iranian chocolate producers find it difficult to compete in

international markets Now the lifting of sanctions has arrived updating and

upgrading of machinery becomes feasible for some349 This signifies that

different competitive advantages are developing on both sides and the

domestic producers have also made efforts in recent years to overcome the

quality gap with their international competitors


All imports of food products plants animals or animal products chocolate

product imports to Iran too require a health

certificate from the country of origin Any chocolate

products that contain saccharin furthermore

require pre-approval for importing from the

Ministry of Health

Distribution Currently over 90 per cent of food and beverage

sales including chocolate products are conducted

through traditional small grocery outlets and local

bakeries350 Modern hypermarkets in Iran which

have increased in number as well as size ever since

before the revolution only have a domestic

market share of four percent in Iranrsquos grocery

market However it should also be noted that in

Tehran this share is nearly fifteen percent351

Summary Some of the EU countries have in 2016 shown

promising growth rates exporting their products to

Iran which follows a general trend of growth in

349 SOHRABI Zeinab lsquolsquoA Sweet Return for Confectionery Industryrsquorsquo Financial Tribune September 2016

available at httpsfinancialtribunecomarticleseconomy-business-and-markets49831a-sweet-return-for-

confectionery-industry 350 Financial Tribune ldquoWhy grocery stores outnumber any other shop in Tehranrdquo June 2015 available at


any-other-shop-in-tehran 351 Ibid

Figure 83 European Chocolate Sold in Tehran

Supermarket



164 | P a g e

chocolate product sales Traditionally there are a lot of domestic alternative

suppliers for chocolate It will therefore be challenging for EU exporters to

firmly establish themselves in the Iranian market especially due to the still

significant difference in unit prices However preferences of the local

consumers may slowly change towards foreign higher quality chocolate

products although the national brands are making efforts to improve

themselves in this regard as well


Market snapshots Confectionery

165 | P a g e

Confectionery

Consumption Confectionery production and consumption in Iran is a long-established

tradition and the country is a destination for unique and renowned sweets

Iran has both a deep market of traditional artisanal production as well as a

large domestic production of more industrial-scale confectionery products

There is a relatively high rate of sugar consumption per capita in Iran above

several regional comparators and on par with the EU average352 This is

reflective of the important presence of confectionery products in Iranrsquos culinary

tradition

At the same time consumption of sugar in confectionery products has

fluctuated in recent years In line with other countries with high-sugar intake

there is increasing pressure from the government to reduce confectionery and

sugar consumption through awareness-raising of the associated health and

nutritional risks including obesity diabetes and other non-communicable

diseases

Nonetheless confectionery consumption remains entrenched in Iranian culture

and culinary habits through its strong association with holidays and

352 Helgi Library ldquoSugar Consumption Per Capita in Iranrdquo 2017 available at

httpwwwhelgilibrarycomindicatorssugar-consumption-per-capitairan

Strengths

bullconfectionery has strong association with holidays

bullconfectionery consumption is projected to grow

Weaknesses

bull European products have relatively high tariffs making the products noy affordable to wider range of consumers

Opportunities

bull with stable economic growth in Iran Iranian consumers may buy more European products as European products are associated with high quality

Threats

bull slowly rising health awareness could limit market growth in the long run



166 | P a g e

celebrations Annual consumption of sugar-derived products In Iran is more

than 2 million tonnes with growth forecasted to be around 205 per cent into

2018 Continued demand for confectionery products will be driven by Iranrsquos

large youth consumer segment with over 40 of the population under the

age of 24 and almost one-quarter under the age of 14353 Confectionery

consumption in Iran is projected to grow ahead of other major markets in the

near term As illustrated in Figure 90 for example sugar consumption in Iran

for 2015-2024 is expected to increase by 239 per cent whereas the

commensurate figure for the EU is a contraction in market size of -015 per

cent

Figure 84 Comparative Rates of Per Capita Sugar Consumption and Projected Growth

Organisation for Economic Cooperation and Development354


Consumption of confectionery products in Iran has been increasing in recent

years from an already high and stable rate This trend is partly driven by

population growth but also reflected in growing per capita consumption of

confectionery High confectionery consumption in Iran is cross-sectional For

example the market has the highest rate of chewing gum consumption as well

353 The World Factbook ldquoIranrdquo accessed on 17 August 2017 via

httpswwwciagovlibrarypublicationsthe-world-factbookgeosirhtml 354 OECD ldquoA 122 Sugar Projections Consumption Per Capitardquo 2015 available at httpwwwoecd-

ilibraryorgagriculture-and-foodoecd-fao-agricultural-outlook-2015sugar-projections-consumption-per-

capita_agr_outlook-2015-table135-en

0 10 20 30 40 50

EU

Iran

Asia-Pacific Region

Per Capita Consumption in KG

2024 Projection

2012-2014 Average



167 | P a g e

as an overall per capita sugar consumption more than 6 times greater than

the global average355

In fact confectionery products are extremely prevalent in Iranian culture A

commonplace practice for example is to return chewing gum candy or other

sweets in lieu of change following a cash transaction This reinforces regular

routine consumption habits product familiarity and loyalty

Gums and other confectionery products are also associated with certain health

or homeopathic qualities Some consumers report consuming chewing gums

or confectionery products to benefit from perceived stress relief properties as

well as a range of other characteristics ranging from treating symptoms of

acute and chronic illnesses memory insomnia and others This consumer

segment typically seeks out confectionery products emphasising a composition

of natural ingredients including herbs sugars and fruit essences356 In-line

with comparable markets health-consciousness is anticipated to become an

increasingly important driver defining confectionery sales in Iran into the

medium-term Public programmes and awareness campaigns to reduce sugar

consumption are expected to gradually drive preference for natural low- or

zero- sugar confectionery products

Increasing health-orientation of confectionery products and consumption in

Iran is however likely to struggle to find balance with the strongly entrenched

traditional perception of these products in Iran There are more than 28 public

holidays in Iran several of which entail feasting and engaging in celebration

in social and family settings Sweets and confectionery are an integral part of

many of these celebrations including the Nowruz Persian New Year in March

and Eid-e-Fitr at the end of Ramadan In these settings sugar confectionery

products are not only in demand by younger attendees but also figure

prominently into habitual Iranian practices such as tea drinking and

socialising357 Confectionery products are frequently offered as gifts to

welcome guests in business and home settings or are otherwise exchanged

when conducting a visit This underscores the social and shared-consumption

nature of the product

Whereas many types of confectionery products are ubiquitous and exchanged

freely in Iran EU products are well-positioned to perform in higher value

market segments Despite a suite of public measures to stimulate domestic

production of confectionery products in Iran quality concerns remain and are

355 Canadian Vending Magazine ldquoHighest Chewing Gum Consumption Worldwide Revealedrdquo August

2012 Available at httpswwwcanadianvendingcomconsumer-behaviourhighest-chewing-gum-

consumption-worldwide-revealed-3057 356 Iran Daily ldquoIran Produces Gum for Reducing Stressrdquo October 2014 Available at httpwwwiran-

dailycomNews13458html 357 Iran Unveiled ldquoIranian Culture 101 Persian Food (Desserts) May 2016 available at

httpsiranunveiledwordpresscom20160528iranian-culture-101-persian-food-desserts



168 | P a g e

recognised by consumers for several brands To the extent that output is

increasing in Iran this is still dependent in large part on imports of capital

goods from the EU358 EU confectionery products are recognised for their

quality and originality and are therefore sought after by Iranian consumers

seeking to share new experiences with their family and friends during special

occasions

The total volume of consumption was 180000 tonnes in 2015 with expected

demand growth above 6 per cent until 2020 Domestic production continues

to grow in-step but imported products will become increasingly important in

helping to fulfil Iranian confectionery demand - particularly across novelty and

premium segments359

41212 Cultural Sensitivities

Whereas sugar confectionery consumption is overshadowed by similar

categories such as chocolates and baked goods it is nonetheless expected to

present high growth potential in the near-to-medium term Iranian consumers

are receptive to European confectionery products but the market is also highly

competitive due to interest in and the presence of products from other Asian

markets - particularly those that are seen as Islamic and aligned with Iran -

as well as increasing domestic output Note that Iranian consumers are far

more accustomed to unpackaged confectionery products which allows some

domestic producers to compete primarily on the basis of price 360 These

products are produced and purchased by the end consumer in bulk

Confectionery products containing prohibited ingredients notably alcoholic or

pork-derived components are not eligible for import and sale in Iran At the

same time Iranian consumers tend to be more predisposed towards

confectionery products incorporating spices herbs and fruit essences that may

not be on common offer in other markets These include for example saffron

cardamom and other unique ingredients This trait may advantage certain EU

confectionery products considered unique and prepared with ingredients

unique to Europe

Offer

41221 Domestic Offer

Increasing sugar consumption in Iran is in large part indicative of the growing

presence of refining and manufacturing industries In-line with high anticipated

358 SOHRABI Zeinab ldquoA Sweet Return for Confectionery Industryrdquo Financial Tribune September 2016


confectionery-industry 359 FRITSCHE Vera ldquoGerman Federal Ministry for Economic Affairs Supports Official German Pavilionrdquo

Bundesbeteiligung 2017 available at httpwwwiran-foodbevteccomiran-food-bev-tec-german-pavhtml 360 SOHRABI Zeinab ldquoA Sweet Return for Confectionery Industryrdquo Financial Tribune September 2016


confectionery-industry



169 | P a g e

demand for confectionery products investment and development of new

production facilities in Iran is significant361

This is in part due to greater access to capital at the same time as traditional

methods of production become increasingly integrated in industrial-scale

modern production operations It is estimated for example that around 70 per

cent of Iranrsquos rock-candy production is through traditional means This share

is expected to decrease as industrialised production creates greater price

competition through achieving economies of scale Still traditional production

is likely to continue to fill an important niche in Iran catering to both localised

markets as well as demand for unique and new flavors as well as packaging362

Figure 85 Historical Domestic Sugar Production and Consumption Trend in Iran

Statistical Centre of Iran

The confectionery industry is now estimated to employ more than 100000

people directly with secondary employment created in the packaging

agriculture logistics and distribution sectors Leading confectionery brands in

Iran include Shirin Asal Aydin Anata Baraka and Chichak363 Despite

subsidisation and public measures to facilitate the growth of the industry a

significant share of confectionery production in Iran remains dependent on

imported ingredients

361 Financial Tribune ldquoInvestment Opportunities Series Rock Candy Production February 2016rdquo available

at httpsfinancialtribunecomarticleseconomy-business-and-markets35505investment-opportunities-

series-rock-candy-production 362 Ibid 363 Iran Project ldquoIran Brings Sweet Treat to 100 Countriesrdquo May 2015 available at

httptheiranprojectcomblog20150528iran-brings-sweet-treat-to-100-countries

22

23

24

25

26

27

28

29

30

31

0

02

04

06

08

1

12

14

16

18

2002 2003 2004 2005 2006

Per

Cap

ita

Suga

r C

on

sum

pti

on

in K

G

Gro

ss D

om

esti

c O

utp

ut

of

Suga

r in

To

nn

es

Mill

ion

s

Sugar Production

Per Capita Consumption



170 | P a g e

Import Figure 86 Imports of Raw and Processed Sugar Confectionery in Iran

copy ITC Trade Map364 and World Bank

The overall value of imported sugar in the Iranian market has decreased by

nearly half since 2011 This trend is observed despite relatively stable sugar

prices reflecting the increasing difficulty of reaching the Iranian market in

recent years Nonetheless the domestic market is incapable of producing to

meet growing demand for raw and eventually processed sugar confectionery

products let alone meet the countryrsquos growing export ambitions

Reliable import flow data is relatively lacking in the case of the confectionery

industry in Iran however the trade is defined by a few notable partners

including EU Member States The largest country of origin for imported sugar

and confectionery products into Iran is reported as the United Arab Emirates

however this more reflects the latterrsquos importance as a regional logistics and

transhipment hub rather than a significant original producer Bilateral trade

flows with unique partners have historically been subject to considerable year-

on-year fluctuations

Brazil has traditionally been the largest originating market for exports of raw

sugar products to Iran whereas European markets have accounted for a larger

share of processed sugar confectionery products These include leading export

markets such as Germany France and the Netherlands as well as other

markets such as Switzerland365


0

01

02

03

04

05

06

0

50

100

150

200

250

300

350

400

450

500

2011 2012 2013 2014 2015 2016A

nn

ual

Su

gar

Pri

ce in

Eu

ro p

er K

G

Imp

ort

ed V

alu

e in

Eu

ro

Mill

ion

s

Cane and Beat Sugar

Processed Sugar Confectionary

Annualised Sugar Price



171 | P a g e

Figure 87 Iran Import Flows for Confectionery Products by Partner


The import outlook for confectionery products in Iran is positive as the

administration continues to take steps to streamline international economic

transactions and integrate with value chains At the same time reduction of

external economic pressure on Iran will increase spending power and currency

exchange rate to improve the trade balance in the coming years


0

100

200

300

400

500

600

700

2004 2005 2006 2007 2008 2009 2010 2011

Imp

ort

ed V

alu

e in

Eu

ro

Mill

ion

s

United Arab Emirates Switzerland Brazil

Germany Turkey China

France Netherlands Viet Nam

Spain India Thailand

Belgium Colombia Korea Republic of

Denmark Austria Canada

Italy Hong Kong China Greece

Indonesia Australia Bahrain

Armenia Bulgaria Finland

Hungary Iraq Ireland

Kuwait Lithuania Luxembourg

Malaysia New Zealand Pakistan

Romania Russian Federation Saudi Arabia



172 | P a g e

41231 Export

Iran has the ambition to become a major exporter of confectionery products

and has been developing a domestic output capacity that is outsized compared

to the local demand market At the same time Iranian producers have been

active in promotional activities to expand the scope and market reach of

domestically manufactured confectionery products These include dispatching

the equivalent of large trade missions in the form of candy-laden trucks to

nearby markets Heavy investment in advanced manufacturing technologies

and facilities has been recorded in the industry in recent years367

Iran exported EUR 1168 million worth of sugar and confectionery products in

2010 the latest year for which data is available Iranrsquos largest export markets

were regional partners Iraq Afghanistan Tajikistan Turkmenistan

Kyrgyzstan and Azerbaijan Exports to several western markets such as the

United Kingdom Canada Sweden and the Netherlands were significant prior

to 2006 however have not recovered in terms of performance in recent

years368 Iranian confectionery exports are in part driven by the scope of the

countryrsquos expatriate community in many markets


Competition in this sector can be mainly attribuned to the growing trend in

Iran to import from Asian markets elsewhere as active encouragement of

domestic production These markets often offer highly competitive prices and

economies of production and distribution that are able to compete at the same

segment as local products The increasing variety and innovation-driven nature

of the market can make it difficult to achieve profitable sales particularly in

early stages of market entry Nonetheless volume growth is expected to grow

whereas higher value per unit may remain difficult to achieve This outlook will

depend in part on political and macroeconomic factors such as currency

performance and its effect on purchasing power

Currently there are a wide variety of companies and brands in the market

which remains relatively fragmented There are a few large producers such as

Shirin Asal Aydin Anata Baraka and Chichak At the same time the majority

of confectionery output in Iran remains concentrated in the collective segment

of artisanal and localised producers Rather than producing standardised and

packaged products this latter segment tends to drive innovation in the sector

and outputs bulk unpackaged products Artisanal producers tend to directly

market their product to a local clientele where convenience and loyalty are

significant and overhead costs kept to a minimum However these producers

are increasingly under pressure from top-level initiatives to promote

367 Financial Tribune ldquoInvestment Opportunities Series Rock Candy Productionrdquo February 2016 available


series-rock-candy-production 368 Trade Map International Trade Centre wwwtrademaporg



173 | P a g e

industrialised confectionery production at the same time as Iran becomes

increasingly open to international markets369


The relative absence of most EU and international confectionery products will

be a significant barrier to entry as brands initially build up trust and consumer

interest At the same time EU exporters of confectionery products will need to

balance the potential of the Iranian market with susceptibility to political and

other vulnerabilities EU producers in the region have in the past been targeted

for consumer boycotts or exclusion from market access as a reflection of

diplomatic developments

Specific to the confectionery market EU producers will compete with a well-

established and highly price competitive market There is a general association

between EU confectionery products quality authenticity and exoticism

however exporters will need to leverage sound understanding of key markets

in Iran and savvy engagement strategies in order to convince first-time

consumers of the added value of consuming EU products over lower-price local

and regional imports

41234 Product Import Requirements

The necessary regulations and requirements should be followed when

exporting to Iran A list of requirements can be accessed through the EU

Market Access Database available here 370

In addition to general product import requirements the following are

necessary to import sugar confectionery products into Iran

Agent Contract

Imports by the Government Trading Corporation

Registration of Foodstuff Manufacturers

Registration of Foodstuffs

Approval to Import Foodstuffs

Authorisation of Foreign Foodstuffs Manufacturers

Marking Authorisation for Foodstuffs

Verification of Conformity



series-rock-candy-production 370 European Commission Market Access Database ldquoProcedures and Formalities Sugar and Confectionery

Productsrdquo available through

httpmadbeuropaeumadbdatasetPreviewIFpublihtmcountries=IRamphscode=1701



174 | P a g e

Certificate of Analysis

Declaration of Conformity

Free Sale Certificate

Certificate of Good Manufacturing Practice

Distribution One of the main commercial figures to enter the Iranian market is the agent

The selection process of the agent is very important and must be carried out

with rigor since this can determine to a large extent the success in this market

It is also necessary to take into account the

legal difficulties that could be reached in

case of conflict since it is a considerably

different legal system than most originating

markets in the EU Once the agent is

chosen a fluid interrelation with support

and frequent trips to the country is

necessary

The retail sector has been continuously

modernising and this expansion has allowed

the food sector to grow considerably

Virtually all confectionery sales in Iran take

place off-trade A proliferation of retailing

outlets including the increasing prevalence

of convenience-oriented distributors

increasing the accessibility to consumers for

confectionery food items At the same time

as the retail sector overall expands it

remains highly fragmented with more than

100000 grocery outlets being serviced by

over 500 local distributors ndash a number which

has steadily increased over the past few

years

Banking and foreign investment remain restricted in Iran even as the market

becomes increasingly open to imported products This affects the efficacy of

distribution channels The most prevalent distribution outlets in Iran are Etka

and Refah followed by Shahrvand Qods and Yas chain stores among others

However the generally low value per unit of confectionery products coupled

with long shelf life renders it well-suited for widespread distribution including

Figure 88 European Confectionery Sold in Tehran Supermarket



175 | P a g e

through the large collective of independent grocers and retailers who together

account for the majority of market share and sales in Iran371

41241 Challenges to EU Products

In the near-to-medium term EU exports of confectionery products will remain

highly reliant on the cooperation and knowledge of local partners to help

connect with targeted consumer segments The easiest distribution level to

penetrate may be large chain retailers however the highly fragmented nature

of the market disproportionately affects EU exporters who may have greater

difficulty achieving diffused market reach particularly outside of large urban

markets

Summary The EU is recognised as a quality supplier of confectionery products in Iran and

will be important in meeting growing demand in the market EU confectionery

products are best-adapted for premium novelty-seeking consumer segments

- particularly in the early stages of market entry Conversely the Iranian

confectionery market is characterised by substantial and increasing domestic

production of fairly ubiquitous products sold at low quality and price

EU confectionery exports are best-positioned to cater to Iranrsquos growing middle

class with increasing purchasing power and receptiveness to foreign products

There is strong potential for complementarity between EU confectionery

products and Iranian cultural traditions such as confectionery consumption

during holidays and with tea drinking Building trust and loyalty among middle-

and upper- income consumers will allow EU suppliers to establish a presence

in the market as it continues to mature from which they can then realise wider

distribution chains

371 Financial Tribune ldquoWhy grocery stores outnumber any other shop in Tehranrdquo June 2015 available at




Market snapshots Honey Products

176 | P a g e

Honey Products

Consumption Honey consumpertion per capita in Iran equals roughly 1 kg compared to the

global annual average of more or less 250 to 300 grams372 This is partially to

be explained due to the important role honey plays for Persian traditional

medicine Honey is described in the Quran as a source of healing and is also

mentioned as one of the foods of Paradise Therefore it has an important role

in the Islamic culture in medical use as well as religious ceremonies

Among those who have historically reaffirmed the healing qualities of honey

was the Persian philosopher and scientist Avicenna (b 980 AD ndash d 1037 AD)

Through his most famous works ndash the Book of Healing and the Canon of

Medicine ndash he has detailed the correlation between onersquos diet and onersquos health

Not only was honey used as the basis to prevent minor ailments like bacterial

and fungal infection it was also believed to prevent tuberculosis as well as

speed up the healing abilities of the skin during wound treatment373 If

372Post Online Media ldquoHoney Production Increases in Iranrdquo June 2017 available at

httpwwwpoandpocomagrifishhoney-production-increases-in-iran-2062017839 373 Iran Daily ldquo10 benefits of honeyrdquo July 15 available at httpwwwiran-dailycomNews122477html

Strengths

bullConsumption of honey products is especially high in Iran

bullHoney has an important role in the Islamic culture

Weaknesses

bull Decresing value of imports from several EU countries

Opportunities

bull Openess to new trade agreements in the sector following the lifting of sanctions by the West

Threats

bull Competition from leading manufacturers like China



177 | P a g e

consumer on a regular basis it would simultaneously contribune to onersquos life

expectancy detoxification and improve movability during old age Even more

so honey was believed to contribune to a better skin better hair and an

improved physique in general It therefore is a core component of oxymel ndash

also known as Sekanjabin in Persian a syrup containing water and vinegar

alongside honey ndash which beside to being consumed for its medicinal purposes

is also a sweet tasting beverage374

Offer

41321 Domestic offer

Iran has consistently ranked within the top 10 largest producers of honey in

the world375 which also includes China Turkey and the US among others The

Iranian honey is known for its high quality Official documentation on the

beekeeping industry indicates 75000 active people and 67 million colonies in

the country Throughout March 2016 to March 2017 total production of honey

in Iran reached 81500 tonnes This constitutes a 91 per cent increase since

2014 levels According to Iranrsquos deputy agriculture minister production is

expected to further rise 55 per cent this year to reach 86000 tons in a further

attempt to boost domestic production of honey376 Fifth of the honey

production in Iran is done in Ardabil province where 7000 tonnes of honey

are produced every year It is the third largest producer in Iran after East and

West Azarbaijan provinces But it is the countrys top distributor of honey

Beekeeping is deeply rooted in Iranrsquos society and economy It has traditionally

been part of the countryrsquos farming system predating many other farming

systems Beekeeping is a very long-standing practice in the rural communities

of the country plays a significant role in the subsistence smallholder farmers

Beekeeping products include on top of honey bee wax queen and bee

colonies pollen royal jelly bee venom and propolis in cosmetics and

medicine

41322 Import

In 2016 the total value of imports of honey products377 by Iran was around

20 million EUR about half of which originated from the EU The main EU

exporter of honey products to Iran was Germany which accounted for about

4 million EUR of Iranrsquos imported value under this category in 2016 making it

the second largest exporter of honey products to Iran after China Other

374 Fig amp Quince Kahoo va Sharbat lsquoe Sekanjabin accessed August 16 2017 via

httpsfigandquincecom20140804sekanjabin-sharbat-honey-mint-persian-syrup-drink-lettuce-dip 375 The Financial Tribune ldquoIran 7th biggest honey producerrdquo May 2016 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy41392iran-7th-biggest-honey-producer 376Post Online Media ldquoHoney Production Increases in Iranrdquo June 2017 Available At

httpwwwpoandpocomagrifishhoney-production-increases-in-iran-2062017839 377 Refers to exports under HS Chapter 13 Lac gums resins and other vegetable saps and extracts



178 | P a g e

important competitors in this sector are India South Korea Switzerland and

Chile

Figure 89 Irans imports of honey products from the EU 2016 (value in EUR millions)

ITC Trade Map378

Figure 90 main exporters of honey products to Iran (share of imported value 2016)

ITC Trade Map379


0

5

10

15

20

25

China23

Germany20

India14

Italy12

France6

Korea Republic of4

Switzerland4

Denmark3

Chile3

Netherlands3

Spain2

Belgium2

Philippines2

Other2



179 | P a g e

Growth in imported value from the EU to Iran under this category is very

different between EU member states as apparent by ITC Trade Map statistics

in the table below While importsrsquo value from some EU countries such as

France Spain Ireland and Austria dropped by 9 to 77 per cent between 2015

and 2016 imported value from other EU countries grew significantly that year

The largest increase was recorded by the Netherlands - more than 70 times

the imported value of 2015 (an increase of 7722 per cent) Other significant

growth in imported value was recorded from Denmark (146 per cent) the UK

(113 per cent) Italy (70 per cent) and Germany (40 per cent)

Table 19 Irans imports of honey products from EU countries value growth 2015-2016

Exporter Growth in Iranrsquos imported value 2015-

2016 ()

Netherlands 7722

Denmark 146

United Kingdom 113

Italy 70

Germany 40

Belgium 3

Spain -9

France -16

Austria -60

Ireland -77

ITC Trade Map380

Other EU countries are looking to enter the Iranian honey market in the near

future Bulgaria for example has signed an agreement with the Islamic

republic to start exporting honey to the country as announced during the

Bulgarian agriculture ministerrsquos visit in Iran in 2016381

Export Iranrsquos export of honey products represents 05 per cent of world exports for

this category according to ITC Trade Map statistics382 This makes Iran the 13th

largest exporter globally Iranrsquos strong position among the worldrsquos producers

and exporters of honey products allowed it to continue exporting large quantity

of honey even under the Western sanctions Between March 2014 and March

2015 Iran has exported 900 tonnes of honey to countries such as Malaysia

380 Trade Map International Trade Centre wwwtrademaporg 381 Novinite ndash Sofia News Agency ldquoBulgaria to Export Honey to Iranrdquo July 2016 available at

httpwwwnovinitecomarticles175404Bulgaria+to+Export+Honey+to+Iran 382 ldquoITC Trade Maprdquo available at

httpwwwtrademaporgIndexaspxAspxAutoDetectCookieSupport=1



180 | P a g e

Indonesia Brunei Saudi Arabia Iraq and Yemen383 In 2016 the total value

of exports of honey products by Iran was around 32 million EUR which

constitute a 5 per cent increase in exported value from 2015 Around 28 million

EUR of this value (88 per cent) came from exports to the EU The main EU

country importing products under this category from Iran is Germany which

imported in 2016 about 23 million EUR worth of honey products Together with

France the UK the Netherlands and Italy EU countries represent 5 of the 10

top destinations for Iranian exports under this category In the specific

category of natural honey only Germany and Austria have had imports from

Iran with a total value of around 188 thousand EUR

Figure 91 Irans exports of honey products to the EU 2016 (value in EUR millions)

ITC Trade Map384

The impact of the lifting of the sanctions against Iran was reflected in the

exported value under this category from Iran to the EU While since 2012 the

value of exports to the EU remained relatively flat between 2015 and 2016 it

has increased by over 33 percent representing a 6 per cent share in EU total

agriculture imports in 2016385 Yet Iranrsquos share in EUrsquos imports of honey is

currently not significant The main suppliers of honey to the EU in the first half

of 2016 were China and Ukraine followed by south and Central American

countries

383 Iran Daily ldquoHoney Export at 900 Tonsrdquo March 2015 available at httpwwwiran-

dailycomNews113662html 384 Trade Map International Trade Centre wwwtrademaporg 385 The European Commission ldquoAgri-Food Trade Statistical Factsheet European Union ndash Iranrdquo February

2017 available at httpseceuropaeuagriculturesitesagriculturefilestrade-analysisstatisticsoutside-

eucountriesagrifood-iran_enpdf

0

5

10

15

20

25

30

35



181 | P a g e

Figure 92 Exports of honey products from Iran to the EU evolution 2012-2016 (value in EUR millions)

EU Commission DG Agri

Figure 93 EU imports of honey by origin Jan-Jun 2016 1000 tons



Several Iranian companies are engaged in exports including Noosh Exir

Saba Sab Saman Rojan Company LTD Delkhah Food Ind and Quran amp

Etrat Economic Cooperation 386

Distribution Iran has a number of Honey production hotspots from where distribution of

the product originates This would include for example Ardebil province in the

north west of the country387 Another hub is Khoy in West Azerbaijan here

386 List of bee honey companies in Iran available at httpwwwlistofcompaniesincomiranbee-honey 387 Iran Daily ldquoIran exports 5000 tons of Honey in 12 monthsrdquo April 2015 available at httpwwwiran-

dailycomNews116630html

0

5

10

15

20

25

30

2012 2013 2014 2015 2016

0

5

10

15

20

25

30

35

40

45

50

China Ukraine Argentina Mexico Chile Cuba Brazil Thailand Others



182 | P a g e

there is around 6000 tons of honey produced every year making it one of the

top producers in Iran the city is home to 1400 beekeepers388

From these hubs Honey products are distribuned out to the rest of the country

The majority of agricultural products in Iran are distribuned through agents or

wholesale distributors These intermediaries deliver to local stores and bazars

and are an important part of the distribution process389

The distribution network in Iran for the Food amp Beverage sector as a whole is

highly fragmented this is no less the case with honey distribution in the

country There are over 100000 grocery outlets in the country which are

distribuned through a large network distributors Most honey products in Iran

go through these outlets in addition to local bakeries

This makes distribution of honey product in Iran in addition to other Food amp

Beverage products highly complicated EU honey exporters will want to

partner up with knowledgeable distributors and buyers in the country who will

have better understanding of the market and will be able to form relationships

with what is a large patchwork of sellers

It is known that the retail market is modernising itself in Iran there is a move

to supermarkets and hypermarkets as an increasingly important point of sale

Whilst the process is rather slow should this gain momentum (Carrefour for

example launched in 2008) this would ease distribution of Honey and other

FampB products in the country390

Summary Iran is one of the leading producers and exporters of honey globally Honey

and honey products have an important role in Iranian society with significance

not only in nutrition but also in medicine and in the Islamic culture The EU is

one of Iranrsquos important trade partners in this sector accounting for about 88

per cent of its exported value and 50 per cent of its imported value Like in

other sectors the lifting of sanctions by the West created an opportunity for

new trade arrangements with Iran and has been reflected in significant growth

of imports and exportsrsquo value between 2015 and 2016

388The Financial Tribune ldquoKhoy Iranrsquos top honey producerrdquo February 2016 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy36665khoy-iran-s-top-honey-producer 389 Italian Trade Agency ldquoMarket Overview of Iranrsquos Agricultural Food Sectorrdquo January 2016 accessible

through

httpwebcachegoogleusercontentcomsearchq=cachep4TeoQTT1ksJiranexporthubitwp-

contentpluginsdownload-

attachmentsincludesdownloadphp3Fid3D286+ampcd=1amphl=nlampct=clnkampgl=jp 390 Iran Daily ldquoIran retailers feel cornered by foreign brandsrdquo March 2017 available at httpwwwiran-



Market snapshots Cotton Plants

183 | P a g e

Cotton Plants

Consumption In 2016 Iranrsquos cotton consumption was about 134 thousand tonnes This

constitutes a growth of about 2 per cent from the previous year as apparent

in the graph below Although this growth rate is still moderate it is a positive

indication considering the stagnation in the level of consumption in the

previous 3 years Consumption is projected to keep growing gradually over the

coming 5 years to reach close to 150 thousand tonnes by 2021

Figure 94 Irans cotton consumption 2012-2021 (in 1000 tons)

OECD-FAO

Strengths

bullIran is heavily relying on imports to provide for its local demand

Weaknesses

bullStrong competition from Asian countries

bullSpecial SPS requirements

Opportunities

bullGrowth in the textile industry in Iran which relies on cotton as raw material

Threats

bull Local Industry pressure for government subsides on Cotton

0

20

40

60

80

100

120

140

160

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021



184 | P a g e


The textile industry for which cotton is a prominent raw material currently

accounts for 11 per cent of all licensed industrial entities in Iran 9818

industrial units provide 90000 direct jobs accounting for 13 per cent of all

industrial jobs in the country391 In 2015 the Iranian Ministry of Industries

Mining and Trade published its ldquoStrategic Planrdquo ndash a long term plan for the

industrial sector in the country 15 years ahead In this plan the government

expressed its intention to invest in the textile industry with the aim of

increasing textile production by 50 per cent over 10 years Following the

publication of the plan Iranian cotton industry advocated for restoring

subsides on cotton to support the expected growth in textile production392

According to projections of the Cotton Research Institute in Iran done in 2014

consumption of the cotton fabric could grow up to 250 tonnes (2 kg per person)

over a period of 10 to 15 years393

Offer


Historically cotton has been an important agriculture production sector in Iran

After the Islamic revolution in 1979 production level fell from a pick of over 1

million bales per year in 1974 to less than 300 thousand bales in 1980 While

during the 1990s production started increasing again since the early 2000s it

once more dropped In effect for the past 5 years production level has been

stagnating to around 300 thousand bales per year394 The Deputy Agriculture

Minister Abbas Keshavarz has recently announced the intention to dedicate

130 hectares of farms to the cultivation of cotton in the in Iran in the current

Iranian year (started March 21) This is part of a wider plan of the Iranian

government to increase domestic production levels ndash including innovative

production methods that decrease water consumption on cotton farms for

example395

Figure 95 Irans cotton production 2012-2017 (in 1000 480 lb Bales)

391 The Financial Tribune ldquo13 of Industrial Jobs Generated by Textile Industryrdquo July 2017 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets6778513-of-industrial-jobs-

generated-by-textile-industry 392 The Financial Tribune ldquoTextile Future Hinges on Cottonrdquo September 2015 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets25481textile-future-hinges-on-cotton 393 The International Cotton Advisory Committee ldquoCotton Roadmap in Iranrdquo June 2014 available at

httpswwwicacorggetattachmenttechRegional-NetworksAsian-Cotton-R-D-Network-6th-

MeetingCotton-Roadmap-in-Iranpdf 394 US Department of Agriculture Foreign Agricultural Service ldquoWorld Agricultural Productionrdquo August

2017 p 30 available at httpsappsfasusdagovpsdonlinecircularsproductionpdf 395Eghtesad ldquo1st Cotton Seedling Cultivation in Iranrdquo June 2017 available at

httpwwweneghtesadonlinecomSection-economy-416496-st-cotton-seedling-cultivation-in-iran



185 | P a g e

US Department of Agriculture

Mohammad Hossein Kaviani CEO of Iranrsquos Cotton Fund Company has detailed

the decreasing cultivation of cotton in the country in his interview to the Iranian

Financial Tribune He explained the decline in Cotton area cultivation which

reached 80000 hectares in March 2017 (end of the Iranian year) is due to the

high cost of advanced machinery leading to low productivity and in effect to

farmers turning to traditional methods of production or other agriculture

sectors altogether

Kaviani continues that Iran is heavily dependent on imports to meet the

domestic cotton demand and refers to the historical comparison saying that

in the past Golestan Province alone exported about 100 tonnes of cotton

However the cultivated area for cotton in the country is expected to increase

to about 90000 hectares in the coming year as a result of imports of high

quality seeds and supplies of fertilizers and pesticides to farmers along with

government subsidies396 As a sector that is starving for innovative solutions

to common problems European producers that have been able to deal with

these problems for decades will find a ready market in Iran

According to the Cotton Research Institute of Iran the ratio between benefits

and costs of production in cotton is 13 percent which is considered rather low

compared to the benefit to cost ratio in other corps such as wheat (35 percent)

soybean (33 percent) rapeseed (30 percent) rice (30 percent) and corn (21

percent)397 A main reason for the low profitability is lack of planning and

advanced knowledge in the sector In the early 2000s the Iranian government

396 The Financial Tribune ldquoIran Cotton Industry Risks Losing Viabilityrdquo August 2015 available at

httpsfinancialtribunecomarticleseconomy-business-and-markets64860iran-cotton-industry-risks-

losing-viability 397 The International Cotton Advisory Committee ldquoCotton Roadmap in Iranrdquo June 2014 available at


MeetingCotton-Roadmap-in-Iranpdf

250

260

270

280

290

300

310

320

330

2012 2013 2014 2015 2016 2017



186 | P a g e

halted its plan for cotton sustainable design meaning that crops resistant to

certain type of weather conditions are not commonly used in Iran Other

issues such as the Iranian governmentrsquos aim for self-sufficiency in wheat

were prioritised on the expanse of the cotton sector Yet 18 of the provinces

in the country (see map below) have cotton production with the potential to

grow given the appropriate research investment in more advanced and

efficient cultivation methods and tools Several factors contribune to Iranrsquos

potential in cotton production

Low pest and disease population

Different suitable agro-ecological zones for cotton production in the

country

Improved varieties (high yielding good quality early mature and

compact genotypes)

Large number of dependent industries including 3800 spinning in the

textile industry 113 ginning factories and 35 oil refining factories 398

41422 Import

According to UN Comtrade statistics outlined in the graph below Iranrsquos imports

of cotton grew in recent years from a value of 100 million EUR in 2012 to

almost 240 million in 2016 However EU share in Iranrsquos imports have remained

insignificant accounting for imported value of 063 million EUR that year -

about 026 per cent of Iranrsquos total imports The main exporters of cotton to

Iran are China which accounted for 42 per cent of Iranrsquos imported value in

2016 followed by Turkey (22 percent) the United Arab Emirates (22 percent)

and India (13 percent)

398 The International Cotton Advisory Committee ldquoCotton Roadmap in Iranrdquo June 2014 available at





187 | P a g e

Figure 96 Irans imports of cotton 2012-2016 (value in million EUR)

copy UN Comtrade399

Figure 97 Top exporters of cotton to Iran (share in Iranrsquos imports 2016)

copy UN Comtrade400

41423 Export

Iranrsquos total exports of cotton dropped sharply in recent years falling from an

exported value of about 195 million EUR in 2012 to around 477 thousand EUR

in 2016 which is outlined in the graph below The most significant decrease in

exported value has been between 2012 and 2014 Exports to the EU have also

dropped during that period although the share of the EU in Iranrsquos total exports

considerably increased in the past couple of years from 29 per cent in 2014



000

5000

10000

15000

20000

25000

30000

2012 2013 2014 2015 2016

World

EU

United Arab

Emirates22

China42

Turkey22

India13

Other1



188 | P a g e

to 247 and 281 per cent in 2015 and 2016 respectively The main export

destination of Iranian cotton in 2016 was China accounting for 51 per cent of

Iranrsquos exported value followed by France (21 percent) and Germany (7

percent) Cotton products including flax hemp and plaiting materials

constituted 02 per cent of EUrsquos total Agri-food imports in 2016401

Figure 98 Irans exports of cotton 2012-2016 (value in million EUR)

copy UN Comtrade402

Figure 99 Top importers of cotton from Iran (share in Iranrsquos exported value 2016)

copy UN Comtrade403

401 The European Commission ldquoAgri-Food Trade Statistical Factsheet European Union ndash Iranrdquo February


eucountriesagrifood-iran_enpdf 402 United Nations International Trade Statistics Database Department of Economic and Social


0

1

10

100

1000

2012 2013 2014 2015 2016

World

EU

China51

France21

Germany7

Sri Lanka5

Armenia5

Kazakhstan4

Turkey4

Georgia1

Other2



189 | P a g e


About 30-40 local companies in Iran are involved in the production distribution

and processing of cotton according to different local business directories404

Iran Cotton Fund is particularly important in terms of investments in the sector

It is one of the major stakeholders of Iran agriculture Investment Company

alongside large companies and institutions such as the Agriculture Bank of Iran

and the Central Union of Rural and Agricultural Cooperative of Iran


As detailed in Iranrsquos Plant Quarantine Regulations all plants and plant parts

entering the country must obtain phytosanitary and treatment certificates from

the country of origin Article 9 of the Plant Protection Implementing Regulation

list Cotton as one of the corps for which a phytosanitary certificate cannot be

issued However the same article has an exception for imports deemed

necessary by the government for nutritional or industrial purposes In such

cases the governmentrsquos Plant Protection Organization would issue a decree to

remove the ban In addition article 17 of the regulation specifies that on top

of the phytosanitary certificate and treatment certificate sound double

wrappers are required for all cotton products and seeds405

Distribution Like other agriculture products distribution of cotton in Iran is largely done

through agents or wholesale distributors Local distributors and wholesalers

supply the products to the local manufacturers stores and bazars Wholesalers

play a particularly important role in more rural areas where they form the

backbone of distribution channels in Iran They also hold a key role in

distribution of export and import products Therefore for any company wishing

to succeed in Iran having a stable distribution network in place is fundamental

for success406

Summary Iran may be seen as a growing market for Cotton given its textile industry

which is reliant on cotton as raw material and the relatively low local

production Current plans to increase textile production in the country are likely

to lead to an increased demand for cotton Likewise demand is likely to

increase for advanced machinery to improve the efficiency of local production

404 See for example httpwwwlistofcompaniesincomirancotton 405 The International Plan Protection Convention ldquoPlant Protection Implementing Regulation (Iran)rdquo

November 2016 available at

httpswwwippcintstaticmediafilespublicationen201611Iran_plant_protection_act_and_implementin

g_regulationpdf 406 Italian Trade Agency ldquoMarket Overview of Iranrsquos Agricultural Food Sectorrdquo January 2016 accessible

through



attachmentsincludesdownloadphp3Fid3D286+ampcd=1amphl=nlampct=clnkampgl=jp



190 | P a g e

However the Iranian government is currently investing in increasing the plant

cultivation area and is under pressure from local industry to further support

the sector through investment in research as well as through subsides

Furthermore imports of cotton require a special decree from the Iranian Plant

Protection Organization and must be have sound double wrapping in addition

to the Phytosanitary certificate and treatment certificate required from all

plants and plants products entering the country The majority of Iranrsquos imports

of the plant come from countries in Asia and the Middle East particularly China

the United Arab Emirates Turkey and India EU share in the countryrsquos imports

is marginal (less than 1 per cent) The EU role as an export destination for

Iranian cotton however has grown in recent years despite overall decrease in

Iranrsquos exports in the sector


Communication Advertising in Iran

191 | P a g e

Communication

Advertising in Iran

The Iranian advertising market has only recently opened up to Western

companies wishing to promote their brands in the country as sanctions against

Iran were lifted in early 2016 Since it is a new market with some considerable

entry barriers and strict regulations it is best that European companies wishing

to market their products in Iran work together with local marketing agencies

Companies wishing to market their products in Iran need to understand the

local media landscape as well as their target audience Experts say there are

some lsquocomplexitiesrsquo to the Iranian market which advertisers will need to

understand before investing millions in marketing campaigns The main issue

is of course the distinctions between Persian and Arabic language and culture

Repurposing marketing strategies used in other Middle-Eastern countries

however might not be the best approach to get footing in Iran marketing

experts warn ndash Iranian consumers will likely reject this407

Another thing to bear in mind is that Iran itself is also not a homogenous

market as the experts explain that in Iran European companies are

communicating with one of the most diverse audiences in the world With a

population of 80 million diversity is one of its core characteristics408 Iranian

ethnic composition is very diverse consisting of Persians (51 per cent) Azeris

(24 per cent) Gilaki and Mazandaranis (8 per cent) Kurds (7 per cent) Arabs

(3 per cent) and other ethnic groups who all have their different cultures and

preferences in terms of food and beverage products and how these products

are communicated to them409 Persian is the official language of the country

but it has several dialects that could in some cases influence marketing

campaigns Furthermore Arabic is also spoken in the country and

approximately 28 per cent of the population speaks various dialects of

Turkish410

According to Dr Damoon Mir CCO of ZIGMA8 | 360ordm Creative

Communications for the past 30 years the National TV channels were the main

avenue for advertising and branding in Iran and outdoor media was second

followed by newspapers and magazines In the last eight years however the

407 BROWNSELL Alex ldquoIs Iran the next big market for advertisers and media companiesrdquo MandMGlobal

September 2015 available at httpmandmglobalcomis-iran-the-next-big-market-for-advertisers-and-

media-companies 408 M and M Global ldquoAn interview on MampM Global with our CCO Dr Damoon Mir about Advertising and

Marketing in Iranrdquo accessed 2017 available at httpszigma8comon-the-mediaadvertising-and-

marketing-in-iranhtml 409 The World Factbook ldquoIranrdquoaccessed 15 August 2017 available at

httpswwwciagovlibrarypublicationsthe-world-factbookgeosirhtml 410 Ibid



192 | P a g e

national TV channels started to lose audiences to digital media411 Even though

it is losing popularity TV is still the biggest source of information for Iranians

as Iranrsquos terrestrial TV This channel of communications is run by the Islamic

Republic of Iran Broadcasting ndash the IRIB ndash which is state-controlled but

simultaneously has one of the widest reaches in Iran in terms of advertising

It contains 12 national television channels 4 international news television

channels 6 satellite television channels available for international audiences

as well as 30 local television channels available throughout the country which

specifically target audience in local dialects or accents412

Similar to TV radio is another major source for information in Iran Like

television IRIB is also prominently represented among radio broadcasts in

Iran IRIBrsquos most popular national stations include the Sarasary which

frequently airs news and talk shows As it simultaneously functions as the main

state radio station it is more commonly known as Radio Iran Javan is a more

youth-orientated station that mainly focusses on broadcastsing Iranian music

The broadcasting channel Payam on the other hand combines both news and

music programming and specifically targets an urban demographic specifically

in Tehran Finally Maaref a more conservative radio station is based in the

city of Qom specifically and its content focusses mainly on religious content413

The majority of these radio channels are also open to advertising

In Iranrsquos media landscape printed media also plays a huge role in

disseminating information to Iranrsquos consumers especially in the countryside

With over 50 daily publication Iranrsquos press landscape is considered to be very

competitive However as most of these are state-ioerated that are

simultaneously rather conservative414 Below is an overview of the major daily

newspapers in Iran that also accept advertisements All of these newspapers

also have online presence

411 Zigma8 ldquoAn interview on MampM Global with our CCO Dr Damoon Mir about Advertising and


marketing-in-iranhtml 412 MCGILL Bobby ldquoBranding in Iran A Conversation with PGt Advertisingrsquos Sam Cordier from Tehranrdquo

Branding in Asia April 2017 available at httpsbrandinginasiacombranding-in-iran-sam-cordier 413 Chronicle Fanack ldquoIranrsquos Media Landscape An Overviewrdquo 2017 available at

httpschroniclefanackcomiransociety-media-culturemedia 414 Ibid



193 | P a g e

Table 20) Overview of the Press in Iran

Overview of the Press in Iran

Kayha Founded in 1943 and is

considered one of the more

conservative papers Preferred

over some of its competitiors by

the Iranian judiciary and security

branches Kayhan is considered

one of the most influential

newspapers of the country

Resalat

Founded in 1985 Resalat is

owned by the conservative

Resalat Foundation It focusses

on political cultural and social

news-items presented through a

traditionalist or religious lense

Shargh

Shargh can be considered one of

the most well-received reformist

newspapers in the country Ever

since its founding in 2003 the

newspaper has clashed with

existing press regulation ndash

leading to it being closed four

times in the first decade since its

founding It has since taken up

a more neutral tone

Tehran Times

An English-language daily

publication ever since 1979 the

Tehran times has brought a

more international appeal

without losing sight of a

conservative foundation As

such it invites contributions

from foreign writers that stay

within bounds of its own views

Chronicle415

415 Chronicle Fanack ldquoIranrsquos Media Landscape An Overviewrdquo 2017 available at

httpschroniclefanackcomiransociety-media-culturemedia



194 | P a g e

Even though traditional advertising channels have the widest reach in terms

of engaging different customer bases online media is by far the preferred

media outlet for advertising to majority of the companies Currently Iran

boasts the highest number of internet users in the Middle East at 468 million

compared with the next highest Saudi Arabia at 183 million When brought

into the context of Iranrsquos population online advertisement has the chance to

reach about 572 per cent of Iranrsquos population A significant part of internet

users are youth (15-30) living in urban areas with Tehran having the highest

rate of internet users416

Sam Cordier Managing Director at PGt Advertising states that many large

international brands are focussing their marketing budgets on the digital

marketing realm alone while using physical marketing elements as mere side-

components417 Online marketing is also considered to be the fastest growing

advertising sector in Iran which is increasingly becoming profitable as

according to Adro an Iranian ad exchange platform the digital ad spending in

Iran is speculated to be more than 53 million USD (464 million EUR)418

In Iran the digital media space is quite diverse raging from traditional online

publications to online e-commerce platforms and social media platforms Below

are the main online publications platforms

Table 21) Major Online Publications in Iran

Online Publications in Iran

Islamic Republic News Agency

(IRNA)

First founded in 1934 IRNA is

considered to be Iranrsquos official

news agency and has initiated its

online activity since 1997 It

publishes in eight different

languages

Fars News Agency Founded in 2003 Fars News

Agency is a semi-official state news

agency While it offers content in

Farsi Arabic English and Turkish

416 MCGILL Bobby ldquoBranding in Iran A Conversation with PGt Advertisingrsquos Sam Cordier from Tehranrdquo

Branding in Asia April 2017 available at httpsbrandinginasiacombranding-in-iran-sam-cordier 417 Ibid 418 JAFARI Hamed ldquoDigital Ad Spending in Iran Accounts for More Than $53Mrdquo Tech RASA January

2017 available at httptechrasacom20170129digital-ad-spending-iran-accounts-53m



195 | P a g e

it is known for a more conservative

and often hardline editorial stance

Chronicle419

Rapidly increasing in popularity among the general population of Iran the e-

commerce industry has become a commong tool to acquire a wide variety of

goods offered online420 Though the main Western e-commerce sites are

blocked in Iran there are some successful local e-commerce platforms Below

are the main e-commerce sites in Iran where companies can also advertise

their products

Table 22) E-commerce Platforms in Iran

E-commerce Platforms in Iran

Digikala

As one of the more popular internet

based companies in the country

Digikala has gained a dominating

position in Iranrsquos online market

One of the first to explore the

country e-opportunities Digikala

has since paved the way for

newcomers Taking up roughly 85

per cent of the market its networth

is estimated to be over 300 million

USD (2627 million EUR) Even

more so with over 850 thousand

visitors per day Digikala is

considered the biggest online shop

in the Middle East

Bamilo

Bamilo has followed Digikalarsquos

footsteps and is currently the

second largest e-commerce


httpschroniclefanackcomiransociety-media-culturemedia 420 JAFARI Hamed ldquo8 Popular E-Commerce Websites in Iranrdquo Tech RASA April 2016 available at

httptechrasacom201604068-popular-e-commerce-websites-in-iran



196 | P a g e

platform in Iran However it should

be noted that the difference in

market-share between these two

rivals is quite large and Bamilorsquos

main appeal is its more competitive

pricing This in combination with the

wide variety of goods its sells its

seasonal sales and discounts as well

as financial support to boost its

growth from the MTN group has

solidified Bamilorsquos position in Iranrsquos

e-commerce landscape

Techrasa421

A great deal of advertising also happens on social media which is mostly

consumed by urban youth In Iran Twitter and Facebook are blocked and

consumer prefer alternative social media tools like Instagram and Telegram

Although Instagram has added advertising to its platform this marketing tool

is still in its infancy in Iran Most Iranian companies prefer in stead to

collaborate with Instagram influencers and local celebrities to spread brand

awareness422

Telegram is another popular social media outlet in Iran Originally foundes as

a messaging app Telegram has rapidly taken up the general characteristics of

Iranrsquos main social media platform Through groups and channels providing a

qide variety of selected content ndash and consumers interested in this content ndash

companies have been able to create marketing value through Telegram It is

predicted that Telegram channels have generated 233 million USD (195

million EUR) in revenue in 2016 alone423

Advertising in Iran is however strictly regulated even though since the 2013

election of President Hassan Rouhani Although country experts assure that

the media environment has become less restrictive at the same time

censorship and online surveillance have remained pervasive while media

outlets are closed down on a regular basis if deemed to have crossed media-

related red lines424

421 JAFARI Hamed ldquo8 Popular E-Commerce Websites in Iranrdquo April 2016 available at

httptechrasacom201604068-popular-e-commerce-websites-in-iran 422 JAFARI Hamed ldquoDigital Ad Spending in Iran Accounts for More Than $53Mrdquo Tech RASA January

2017 available at httptechrasacom20170129digital-ad-spending-iran-accounts-53m 423 Ibid 424 Chronicle Fanack ldquoIranrsquos Media Landscape An Overviewrdquo 2017 available at




197 | P a g e

According to Sam Cordier all local creative work officially published and

viewed by the public regardless whether on TV on radio on out-door

billboards or print must obtain prior approval from the national Ministry of

Islamic Guidance and Cultural Affairs known in Iran as Ershad The

organization is particularly strict when it comes to TV radio and out-door

billboard advertising but is known to be more lenient in terms of print or online

advertising425

It goes also without saying that all advertising in Iran must follow the Islamic

values laid out by the Islamic Republic of Iran and this leads to agencies

having to do some very creative thinking when it comes to certain brands or

products as for example it is restricted to use luxury visual or verbal elements

in creating the advertisements426 Experts also say that some brands will also

find it easier than others to launch in Iran Similarly certain products are

restricted in Iran ndash like energy drinks for example ndash and other types of foods

or industrial goods are regulated tougher than others to protect local

producers427

European companies should keep in mind that in Iran all businesses have a

legal responsibility to ensure that their advertisements do not provide

deceiving information or break the law in any way At the same time keep in

mind the regulations set by formal organizations such as the Ministry of

Commerce Ministry of Islamic Guidance the advertising organization or the

Management and Planning Organization among other which all have

established specific criteria and regulations for TV commercials billboards

internet advertising etc specifically428

According to advertisement agencies there are a few common rules to follow

though this list is by no means exhaustive Companies are suggested to

1 Not publish atheistic articles or issues which are prejudicial to Islamic

codes or in any other way bring forward topics which might harm the

core beliefs and values of the Islamic Republic of Iran

2 Not spread obscene or religiously forbidden acts nor publish indecent

pictures or issues openly violating public decency


Branding in Asia April 2017 available at httpsbrandinginasiacombranding-in-iran-sam-cordier 426 Zigma8 ldquoChallenges of Branding and Advertising in Iranrdquo 2016 available at

httpwwwzigma8comon-the-mediachallenges-of-branding-and-advertising-in-iranhtml 427 BROWNSELL Alex ldquoIs Iran the next big market for advertisers and media companiesrdquo M and M

Global September 2015 available at httpmandmglobalcomis-iran-the-next-big-market-for-advertisers-

and-media-companies 428 MAAT Agency ldquoFirst step to invest in Iran is to know about the lawsrdquo 2016 available at

httpmaatirenfirst-step-to-invest-in-iran-is-to-know-about-the-laws


Communication Presenting a Product in Iran

198 | P a g e

3 Not encourage or instigate its subjects ndash either in singularity or as a

group ndash to unify against the security interests of the Islamic Republic

of Iran both domestically and abroad

4 Not insult Islam its rituals holly places recognised senior religious

authorities or attack the Leader of the Revolution

5 To ensure that all subjects displayed through advertising ndash in

particular women ndash to comply with the Islamic hijab as specified in the

Iranian constitution Although to a lesser extent men should also

comply with the guidelines provided

6 To bear in mind that advertising is only allowed if the products and

services have been officially verified through one of the recognized

research centers in the country prior to the advertisementrsquos recording

As such all products and services comply with the provisions of the

article ndash and its related paragraphs ndash of the regulations covering the

establishment and supervision of the methods that advertising

organizations would operate

7 It is also worth remembering that suppliers of advertising on e-

commerce platforms are obliged to provide accurate correct complete

and non-deceptive information of the products or services to its

consumer-base This includes the name and identity of the benefitting

person or firm from the advertisement in question429

Presenting a Product in Iran

Muslims in Iran spent an estimated USD 61 billion (EUR 2320 billion) on food

and beverages in 2015 With the lifting of sanctions against the country a

substantial growth in food demand is expected which will consequently result

in an increase in demands for investments and modernisations of the Iranian

food industry and the agricultural sector ndash areas that have suffered from a

backlog during the sanction period

In order to understand how it would be best to approach the Iranian FampB

market in the advertising sector it is necessary to assess the consumption

patterns and the consumersrsquo profiles as well as their cultural and ideological

backgrounds In places where cultural factors largely determine the way

various phenomena are perceived communicating and presenting a product

becomes more difficult because it involves considerations of cultural

conventions and expectations and application of the most appropriate

translation techniques For instance English advertisements are mostly

translated into Farsi based on Iranian translatorsrsquo cultural filters in order to

429 MAAT Agency ldquoFirst step to invest in Iran is to know about the lawsrdquo 2016 available at




199 | P a g e

have impacts that are more impressive and effective on the religious

consumers of a specific culture in Iran

Another important element that must be taken into consideration in Iran is the

profound dichotomy of a country that has been isolated over decades and lives

under its own rules has its own deeply rooted habits but is at the same time

ready to surf the waves of modernity and open up to westernized social and

cultural concepts

Television and radio commercials and even advertising in social media enjoy

freedom of expression provided that Islamic principles or the civil code are not

violated Many laws regulate this field however the most important laws that

all kind of ads are obliged to observe in Iran include the prohibition to publish

atheistic articles or issues which negatively affect the Islamic codes promote

obscene and religiously forbidden acts encourage and instigate individuals or

groups to damage or diminish the security dignity and interests of the country

Iran both domestically or abroad Moreover in all kind of advertising men and

women in particular women are expected to comply with the Islamic hijab as

defined and specified in the Iranian constitution Finally before advertising a

product or service should have its qualities formally verified by one of the

officially recognised research centres in Iran430

Target Audience Iran is the second-most-populous country in the Middle East behind only

Egypt Irans profile as a key player in the region renders it an important

market for EU FampB producers with agro-export related ambitions it therefore

has the potential to function as a gateway to the wider region431 With a

population that amounts to roughly 80 million the country is host to a large

group of young people This group shows a great interest and desire for

imported goods and following the lifting of sanctions Iran is a country that

shows tremendous buying potential

However European SMEs should not forget that the market is currently already

conquered by its wide variety of domestic brands This is likely to remain the

same especially for the low-to-mid segments of society with EU food and

beverage exports likely to compete on quality not price Nonetheless EU FampB

products are likely to appeal to a middle-class or more affluent consumers in

Iran

Despite a rising interest in premium-segment products from the EU it is vital

to approach the Iranian market as one that is shaped by frictions between


httpmaatirenfirst-step-to-invest-in-iran-is-to-know-about-the-laws 431The Financial Tribune ldquoIreland Sums Up Option in Iran Food Marketrdquo June 2016 available at

httpsfinancialtribunecomarticleseconomy-domestic-economy43259ireland-sums-up-options-in-iran-

food-market



200 | P a g e

conservatism and a hunger for foreign and innovative products Whereas some

EU FampB products could be integrated with Iranian cuisine based on quality

others are better suited for direct consumption by a demographic that is

predominantly young high income urban professional and convenience-

oriented

Within the Iranian market there are regional variations in terms of consumer

types and market segments A profound understanding of these regional

differences and disparities in the consumer base will facilitate the development

of a balanced strategy to enter the market

The Support Services Directory included with this Handbook can help you

establish contact with knowledgeable experts established in the market to

better understand how to reach the audience best-suited for your product

Communications Campaigns in Iran Entering a market of nearly 80 million consumers is by no means a walk in the

park A sound communication strategy combined with targeted advertising can

be quintessential in establishing onersquos name and to gain momentum in a

complex market that is opening up A particularly attractive sector for

international FampB companies is the young local population ndash about 65 per cent

is under 35 years old

Food and agricultural fairs and exhibitions held in Iran during 2017 include

The 24th Agricultural Food and Related Industries Trade Fair432

The 16th Iran International Confectionery FairThe 8th Intrsquol Exhibition

Of Dairy Beverage Tea Coffee amp Related Industries433

The 11th International Flour and Bakery Industry Exhibition

The 16th International Exhibition of Poultry Livestock Dairy and

Related Industries in December 2017

Promoting your Product As already stressed Iranrsquos opening up to the world presents great

opportunities and has an increasingly high potential for foreign investors but

defining the scopes and objectives of a market expansion strategy is crucial to

getting strong internal support in Iran

A sustainable market entry strategy should encompass differentiation from the

competition and a sustainable medium- to long-term approach A key factor

towards becoming successful in the Iranian market is localization ndash copy-

pasting one company business model into a foreign market like Iran not only

432 For more information please view wwwiranagrofoodfaircom 433 For more information please view wwwiranianacmcom



201 | P a g e

will not be useful but also harmful if there is not deep market insight and

cultural understanding

One strategy to establish a first point of contact is to conduct promotional

campaigns participate in tasting sessions with local distributors but also

taking part in trade fairs and other related activities before embarking upon

any implementation phase Secondly carefully monitoring of progress is of

paramount importance in a dynamic market like Iran where business

adjustments might be needed and new opportunities might arise very quickly

This is probably one of the most important challenges for foreign companies

that are used to operating in saturated predictable and regulated markets As

in Iran things change at a rapid pace some might see this as a threat the

country poses However for those entrepreneurs with a watchful eye and foot

on the ground this could also provide immense opportunities434

It should be noted that most food export to Iran must pass lengthy health and

quality control procedures at the Ministry of Health and the Ministry of

Agricultural Jihad In order to obtain the necessary license it might be

beneficial to set up a direct presence locally by finding the right local partners

through in-person due diligence

Multiple TV channels in Iran host TV-shows dedicated to food and cooking One

study found that during one week culinary TV-shows made up 13 hours of

programming across 8 different TV channels435 In addition although not legal

almost every modern Iranian household has access to satellite TV which

means access to a large number of banned content produced outside of Iran

Examples of such channels are the Persian Music Channel (UAE) and Manoto

TV (UK) One of the most popular Manoto programs is a culinary show called

ldquoWelcome to Dinnerrdquo

435 httpwwwtabnakirfanews621941تلویزیون-آشپزی-های-برنامه-از-جالب-آمار


DOs AND DONrsquoTs DO

202 | P a g e

DOs AND DONrsquoTs

To avoid cultural misunderstandings it is advisable to take into account the

following information436

DO

Take time to know your colleagues and business associates on a

personal level this is a key area for doing business in Iran

Greet associates using a formal handshake Men should wait for a

woman to extend her hand before making the gesture A simple

nod of the head and smile will suffice if not offered

Address colleagues using the correct terms For males lsquoagharsquo

followed by their surname For females lsquoKhanoomrsquo followed by their

surname

Arrive on time to create a good impression although be prepared

for delays

Do consider tarsquoarof when accepting hospitality Tarsquoarof is an offer

out of politeness best not to accept right away though do agree if

they insist

436 Information for this section comes from three main sources

httpwwwkwintessentialcoukresourcesguidesguide-to-iran-etiquette-customs-culture-business

httpwwwcommisceo-globalcomcountry-guidesiran-guide and semi-formal interviews conducted with

industry stakeholders


DOs AND DONrsquoTs DONrsquoT

203 | P a g e

DONrsquoT

Instigate conversations regarding politics or Islam It is also best to

avoid asking about relatives of any colleagues

Criticise your Iranian counterparts in front of other colleagues as

this may cause a loss of face

Give the lsquothumbs uprsquo sign while in Iranian as this is considered to

be an offensive gesture

Display affectionate behaviour to people of the opposite gender

However it is not rare to see two men holding hands or kissing each

other on the cheeks

Confuse Iranian culture or ethnicity (especially language) with Arab

culture This is a common mistake and one Iranians are most

offended by


DOs AND DONrsquoTs Quick Facts

204 | P a g e

Quick Facts

The People

Islam is practised by the majority of Iranians and influences both their social

and business lives Tarsquoarof is a core element of this social culture it is a system

of politeness where Iranians protest compliments and belittle themselves to

appear humble In Iran a great respect is shown for elders and extended

family this has shaped how business is conducted today You will find no

business deal will be conducted without an important level of trust and

friendship between the two partners With a population of 80 million

increasing every year and over 70 per cent of this number living in urban

areas the FampB market is a sector of growing demand in Iran

Meeting and Greeting

The universal Islamic phrase when greeting people is salaam

Address your Iranian associates by their title and their surname

Age is highly respected in society you are expected to greet the oldest

people first

A handshake is the usual greeting gesture in a business setting It is

polite to wait for the eldest in the room to extend their hand However

bear in mind physical contact between opposite sexes should be avoided

It is common practice to introduce the younger person to the older

person not the other way round

In an informal setting Iranians kiss three times on each cheek

You should arrive at meetings on time although it is an accepted custom

to keep foreigners waiting

If possible avoid arranging meetings during Ramadan as the need to fast

would negate any associates from offering hospitality

The first business meeting is often about getting to know your

associates The business discussions will begin in the following meetings

Language

The official language of Iran is Persian (Farsi in Iranian) However in

business English is widely spoken throughout

Although many Iranians will speak English in business it is polite to

arrange for your own interpreter to make business easier

Body Language



205 | P a g e

It is considered polite to stand up when someone enters the room

especially someone of importance and an older person

A downward gaze is seen as a sign of respect rather than looking

disinterested

It is considered rude to look at your watch during business and social

meetings

If a handshake is declined a simple smile and nod of the head will suffice

Corporate Culture

Appointments are necessary and should be made 3-4 weeks in advance

There is a large emphasis placed on relationships and connections

therefore business can occur at a slower pace It is prudent to wait for

your associate to change the discussions to business matters

Business hours are usually 800 am to 1600 pm with the six day working

week running from Saturday to Thursday Some offices may close on

Thursday or work reduced hours

Patience is important in Iran pressuring or rushing the business process

wonrsquot be welcome

Business cards are usually only exchanged between senior level people

If you are going to exchange business cards ensure one side is translated

in Farsi and it has your current position

During the holy month of Ramadan Muslims are only permitted to work

6 hours a day

Nepotism is common in the business environment due the value placed

on trust and friendships

Banking Systems

Although most financial sanctions on Iran were lifted in 2016 there are

certain sanctions which remain in place and it is important to review the

personentity before doing business

Banking relations with EU banks are slowly resuming in Iran although

some may be hesitant about performing transactions because of US

sanctions which are still imposed

Internet and mobile banking is common with the main Iranian banks

(Bank Melli Bank Tejarat Pasargad and Bank Mellat)

Although the main currency in Iran is Rials in practice most people speak

in Tomans which is 10 Rials



206 | P a g e

Discussions are ongoing in an attempt to unite the countryrsquos official and

open market exchange rates currently they can differ by up to 18 per

cent

Dining and Entertainment

It is considered rude to leave food on your plate The best way to avoid

causing offence is to try a little from all the dishes if communally served

or ensure you do not order too much

A general rule is that the person who organises the meal will pay for the

meal

When a guest at a local house you should wait for the host to serve you

the food

Meals are considered to be formal in Iran you are best to wait to be told

where to sit

Business Holidays

The main holiday is Norooz (Persian New Year) starting on March 21st

until March 24th Many offices usually close for 2-3 weeks over this

period

There are 22 other national holidays which are observed throughout the

year

Dress

Business attire for men consists of a suit although ties are not

necessary In a social setting it best to avoid wearing shorts

Women are required to wear conservative clothing that covers their

arms legs and hair The clothing should also be loose fitting

Dark conservative colours should be worn

Gifts

When greeting associates for the first time it is traditional to exchange

gifts Apologise for inadequacy of your gifts abiding by tarsquoarof

In general gifts are not to be opened when received

Helpful Hints

During Ramadan although expatriates donrsquot have to fast they must not

eat drink smoke or chew gum in public

In adherence with tarsquoarof if you are offered hospitality first decline it to

appear humble you can accept when they insist again


Synopsis SWOT and 4P analysis

207 | P a g e

Synopsis

SWOT and 4P analysis

This section gives a concluding overview of the FampB market in Iran through

SWOT and 4P analysis It also offers some tips and recommendations for

European FampB producers about how to successfully export their products to

Iran

SWOT analysis

Strengths

There is a relatively large and

growing Food and Beverage

market in the country

attractive for FampB exporters

looking to enter a new

market Of all Muslim

countries Iran ranks 6th in

terms of the FampB market in

2015 it was estimated to be

roughly USD 59 billion (EUR

5146 billion)

The country is fairly easily

accessible As well as a

number of land borders with

neighbouring countries it also

has two coastal borders to

the north is the Caspian Sea

and to the South the Persian

Gulf and Gulf of Oman This

will be useful for logistics

operations of FampB market

entrants

Food and Beverage is an

important part of household

expenditure in Iran In 2015-

2016 it was estimated that

around 2360 per cent of

Weaknesses

The Iranian economy is

currently rather dependant on

oil Exports here account for

around 80 per cent of total

export earnings and make up

roughly 40-50 per cent of the

government budget


market in Iran is rather

heavily regulated as well as a

number of other sectors This

makes entry for EU FampB

exporters difficult especially

if no prior knowledge of the

market exists Reliance on

partners knowledgeable about

the market is necessary

Iranian rules on preparation

of foods may prove difficult

for EU FampB exporters to

comply with at first and will

need to be looked at closely

Important to take account of

is that food needs to be Halal

meeting Islamic dietary

guidelines from the Quran



208 | P a g e

gross expenditure per

household went to this

category

There are a number of

European brands including

with GI present in the

country already This makes

entry for new EU players

easier

The country is party to the

Lisbon Agreement for the

Protection of Appellations of

Origin and their International

Registration offering

protection to EU products with

GI Status

Infrastructure within the

country is rather weak

compared to others in the

region This will make

movement of FampB products

within the country potentially

tricky

Distribution in focused on

independent outlets 98 per

cent of FampB goes through this

channel This makes

nationwide distribution

difficult due to a patchwork of

distribution arrangements

Starting and running a

business in Iran is difficult

compared to other countries

and no less so in the FampB

sector The country ranked

120190 in lsquoease of

businesses

Opportunities

Iranrsquos geographic location

lends itself well to trade with

other countries in the region

Entry here would allow for

potential further future

expansion to neighbouring

economies the country

shares a land border with

Turkey Armenia Azerbaijan

Turkmenistan Afghanistan

and Pakistan

Threats

There is a strong clerical and

religious hierarchy with a

Council of Guardians which

must approve all legislation

coming from the Parliament

This concentrates important

decisions for all including FampB

market participants in the

hands of a relatively small

collective



209 | P a g e

GDP per capita over time in

Iran has been on the

increase In the period 2005

to 2014 this increased from

13012 USD (EUR 11349) to

17388 (EUR 15165) This

ongoing increase is likely to

affect demand across all

sectors including for FampB

There are a number of areas

in which imports to Iran are

high due to domestic

production being low These

include red meat butter fish

fruit and wheat See

individual market snapshots

for further information

Domestic production in a

number of FampB categories is

rather low in variation This

creates space for EU FampB

exporters to enter and

provide wider varieties of

products to satisfy domestic

demand

A shift to more modern forms

of shopping in Supermarkets

and Hypermarkets should

increase possibilities for EU

FampB exporters to get their

products in front of target

markets in the country

Increased purchasing in

online channels also presents

its opportunities

Iran has a sensitive

relationship with the West

Most recently international

sanctions were lifted in

January 2016 following

agreement on the limiting of

the countryrsquos nuclear

programme Whilst the future

is generally positive there is

still some uncertainty

The last decade has seen a

continual weakening of the

Iranian Rial against other

currencies making imports

relatively more expensive

therefore likely dampening

demand

The Iranian government is

keen to make the Iranian

Food and Beverage market as

self-sufficient as possible

particularly from Western

countries This could prove

problematic for EU FampB

exporters in the future

Iran already has a number of

important trade partners in

FampB which are non EU Brazil

India Russia and Malaysia

Increased trade from here will

lower EU exporter

opportunities


Synopsis 4P Analysis

210 | P a g e

A consumer base which has in

the past been rather shielded

from international markets is

keen for Western style Food

and Beverage Cultural shifts

in the country mean that

consumers are increasingly

eager for Western lifestyles

and the products that come

with it

Western products are

perceived by the consumer in

Iran as higher quality

allowing for EU FampB exporters

to capture parts of the market

that domestic players may not

be able to

4P Analysis

Key criteria of success 4P analysis

Product

Iranians are increasingly

looking to buy Western style

products This is also the case

in the FampB sector Therefore

highlighting this fact should

help demand for products

Many Iranian consumers are

keen on buying luxury items

which are seen as a status

symbol this extends to Food

and Beverage Therefore

Promotion

Given the importance of

variety it is likely that in

promotional materials

showing ranges of products

will attract more consumers

to the product

Regional trade shows and

exhibitions are an important

starting point for companies

looking to enter the Iranian

market Here EU FampB



211 | P a g e

focusing on these aspects will

influence product take-up

Generally especially with

younger generations there is

a desire for easily prepared

and convenient meals

Products which focus on this

should do well

Variety in Iran in the FampB

sector in certain outlets is

wanting Products or lines of

products which offer variety

to the consumer will likely be

taken up with gusto by sellers

in the country

exporters will gain visibility in

the market

Given that the Iranian

population is highly religious

and follows dietary

requirements laid down by

the Quran it is likely that

products emphasising

compliance do better in this

market

Working with local players

who understand the Iranian

consumer will be an important

factor in the success of FampB

products entering the market

The Iranian market is not

homogenous within the

country there is a wide

variety of cultures This will

need to be taken into account

as a lsquoone size fits allrsquo

marketing strategy will likely

fail in Iran

Whilst national television has

traditionally been and still is

the most important place to

promote products more and

more social media (Instagram

and Telegram) is gaining in

importance Radio is another

major source of information

for Iranians


Synopsis Conclusion

212 | P a g e

Placement

Key market when first

entering the market are

Tehran Mashhad Isfahan

Shiraz and Ahvaz

EU FampB products are likely to

do well in the growing number

of supermarkets and

hypermarkets in the country

This should also ease

distribution efforts

The large number of

independent outlets in the

country should not be ignored

as an important distribution

point Local partners may be

able to help setting up

arrangements here

There is a growing tendency

in Iran to buy products online

FampB exporters looking to gain

visibility in the country would

do well to sell here also

Price

Iranians are quite price

sensitive though are willing

to pay more for items which

are advertised as luxury and

Western

Protection by the Iranian

government of domestic

industry including that of

FampB means that in some

cases tariffs will be high

increasing difficulties for EU

FampB exporters

Price promotions of products

which are new to the Iranian

consumer and recently on the

market will likely increase

initial take-up and demand

allowing EU FampB exporters to

get their foot in the door in

Iran

Conclusion

Iran due primarily to sanctions which have only recently been lifted by the

West can be considered a relatively sheltered market when compared to other

countries in terms of international penetration This is a double edged sword

as whilst it means that entry for EU FampB exporters is likely to be relatively

difficult when compared to other potential markets of interest there is a large

and growing population within the country which is keen to experience Western

lifestyles including a demand for Food and Beverage products from Europe


Synopsis Conclusion

213 | P a g e

The country is relatively easily accessible via land and maritime channels

important for EU FampB exporters to think about Within the country itself

transport infrastructure is sub-par which will make movement of goods trickier

than in other countries though there is a focus of the Iranian government of

improvement of this situation Another question apart from how to transport

is where to transport to currently the FampB market is characterised as highly

fragmented in terms of distribution There are a large number of independent

outlets which make up the majority of the market complicating matters for

new market entrants

The market is rather difficult to navigate As mentioned various times in this

handbook there is a need for collaboration with local partners in order to ensure

full understanding of the market Religion in the country is one of the factors

which complicates the situation given the need for compliance guidance laid

down in the Quran The fact that in the Food amp Beverage sector the Iranian

government looks to protect national players means that EU exporters in this

sector will likely face obstacles to entry including often complicated forms for

rather simple procedures

The Iranian FampB market does have opportunities that EU exporters can look to

exploit A growing population with more and more disposable income amongst

them will mean that demand for products should only increase and consumers

will often look for new products from new markets which have in the past been

lacking More modern forms of shopping in Supermarkets and Hypermarkets

but also online play well to EU FampB exporters given that these forms should

make entry to the market easier than in the past Overall even given the

evident obstacles to entry to this market it can be said that the future for EU

FampB exporters looking to Iran is rather positive especially when compared to

historical expectations on the market


Support Service Directory Relevant Business Associations in Europe

214 | P a g e

Support Service Directory

Relevant Business Associations in Europe

Association Organisation Contact details

Iran Netherlands Chamber of

Commerce and Trade

infoincctnl

Stichting The Netherlands-Iran

Chamber of Commerce

Industries Mines and

Agriculture

infoniccimacom

niccimacom

+31 20 2400 794

Deutsch-Iranische

Handelskammer eV

infodihkevde

dihkevde

+49 40 44 08 47

The British Iranian Chamber of

Commerce

adminbiccorguk

biccorguk

+44 20 7233 4441

Italy-Iran Chamber of

Commerce and Industry

infocciiit

cciiit

+39 06 59 26 206

Netherlands Enterprise Agency englishrvonl

+31 70 379 80 00

Scandinavian Iranian Chamber

of Commerce

infoscan-irancom

scan-irancom

+46 8 559 140 20

Nordic Iranian Chamber of

Commerce ndash Copenhagen

infoniccceu

niccceu

+45 3694 4444


Support Service Directory Directory of EU member State Embassies

215 | P a g e

Directory of EU member State Embassies

EU Member

State

Representation Contact

Austria Embassy of Austria in Tehran Iran Bahonarstr

Moghaddasistr Zamanistr Mirvali 11 Teheran

teheran-obbmeiagvat

bmeiagvatteheran

+98 21 22 75 00-38 +98 21 22 75 00-40 +98 21 22

75 00-42

Belgium Embassy of Belgium in Iran No 4 Shirin Dead End

Agha Bozorgi St ShFayazi AveVali Asr Ave Tehran

countriesdiplomatiebelgiumbeenIran

+98 21 22 39 87 80 +98 21 22 39 19 06 +98 21 22

24 73 13 +98 21 22 23 91 160

Bulgaria Bulgarian Embassy in Tehran Vali-e Asr Ave Tavanir

Str Nezami-ye Ganjavi Str No 16-18

bulgrtehrnedanet

+98 21 88 77 5662 +98 21 88 77 5037

Croatia Embassy of the Republic of Croatia in Tehran Behestan

25 Ave Pasdaran Tehran

vrhteheranmvpeihr

+98 21 258 9923 +98 21 258 7039

Cyprus Embassy of the Republic of Cyprus in Tehran Iran 328

Shahid Karimi (ex Bou Ali) Dezashib Tajrish

1834844681 Tehran

cyprusparsonlinenet

mfagovcyembassytehran

+98 21 22 21 98 42 +98 21 22 01 240

Czech

Republic

Embassy of the Czech Republic in Islamic Republic of

Iran Farmaniyeh Lavasani Str No 199 (between Yas

and Sonbol)

tehranembassymzvcz



216 | P a g e

mzvcztehran

+98 21 22 28 81 49 +98 22 28 81 53

Denmark Royal Danish Embassy in Tehran Iran Dr Shariati Ave

Elahiyeh Ave Dashti Str 10 Tehran 19148

thrambumdk

ambteheranumdk

+ 98 21 22 60 13 63 + 98 21 22 60 70 20

Estonia Estonian Honorary Consulate in Tehran Iran

Armen Mootafian Honorary Consul

N Kheradmand Ave 18th Str No 4 Tehran

armenmootafianmfaee

+98 21 88 82 95 51 +98 21 88 82 95 28

Finland Embassy of Finland in Tehran Shariati Ave Soheil

Hadadian Ave POBox 19395-1733

sanomattehforminfi

finlandorgir

+98 21 23 51 20 00

France Embassy of France in Tehran 85 avenue Neauphle-le-

Chateau - Tehran

contactambafrance-irorg

ambafrance-irorg

+98 21 64 09 4000

Germany Embassy of the Federal Republic of Germany in Teheran

Ferdowsi Ave No 320-324

infoteherandiplode

teherandiplode

+98 21 39 99 00 00

Greece Embassy of Greece in Tehran Africa Express Way 43

Esfandiar Ave POBox 11365-8151



217 | P a g e

embgreece1safinehnet

+98 21 20 50 533 +98 21 20 53 784

Hungary Embassy of Hungary in Teheran Darrous Hedayat

Square Shadloo Street No 15 Teheran

POB636319395

+98 21 25 50 452

Ireland Tehran Honorary Consul Mr Alireza Feizollahi

SJ Assadabadi Avenue Corner of 50th Street No 26

First Floor

feizollahiarfconsultcom

+98 21 8804 1925

Italy Embassy of Italy in Teheran Iran 81 Ave Neuphle le

Chateau

segreteriateheranesteriit

ambteheranesteriit

+98 21 672 6955

Latvia Represented by Embassy of Hungary

Lithuania Embassy Of The Republic Of Lithuania To The Republic

Of Turkey To The Islamic Republic Of Pakistan And To

Islamic Republic Of Iran

Mahatma Gandi cad No38 06700 GOP Ankara

TURKEY

ambtrurmlt

trmfalt

+90 312 447 07 66

Luxembourg Represented by Embassy of the Netherlands

Malta Maltese Honorary Consulate in Tehran Iran

Ms Faezeh Tabatabaei Honorary Consul

Flat 21 4th Floor No 4 Khosravi Street Vaziripour Ave

Mother Square Mirdamad Avenue



218 | P a g e

ftabatabaeitabalegalcom

+98 21 2640 5277 8

Netherlands Netherlands Embassy in Tehran No 60 West Arghavan

street Dibaji North street Farmanieh

tehminbuzanl

+98 212 366 0000

Poland Embassy of Poland in Iran Africa Expressway Pirouz str

1-3 19-174

teheranambsekretariatmszgovpl

teheranpolembnet

+98 21 8878 7262

Portugal Embassy of Portugal in Tehran Iran Darrous Ave

Hedaiat Rouzbeh Street 13

portugalsrcoir

+98 21 254 3237

Romania Embassy of Romania in Tehran Iran 12 Fakhrabad Str

Baharestan Ave

ambrotehranparsonlinenet

+98 21 77 53 90 41 +98 21 77 64 75 70

Slovakia Slovak Republic Embassy Iran No 38 Sarlashgar

Fallahi Street PO Box 11365-4451 19887

embtehranmzvsk

mzvskTehran

+98 21 22 41 11 64

Slovenia Consulate of Slovenia in Iran 7th Street No10 Khaled

Eslamboli Ave PO Box 15175-159

vtemzz-dkpsigovsi

+98 21 87 16 873 +98 21 87 16 661



219 | P a g e

Spain Embassy of Spain in Iran Darrous Boulevard Shahrzad

Shadi Street First East Lane n 10

embteheranmaeces

+98 21 225 68 681 682 683 684

Sweden Embassy of Sweden in Tehran Iran 2 Nastaran Street

Pasdaran Avenue (North of Dr Lavasani) Tehran Iran

ambassadenteheranforeignministryse

swedenabroadcomtehran

+98 21 2371 2200 +98 21 2371 2200

UK British Embassy in Tehran 198 Ferdowsi Avenue

Tehran

+98 21 6405 2000


Support Service Directory Useful Organisations and Service Providers in Iran

220 | P a g e

Useful Organisations and Service Providers in Iran

Organisation

Associations

Contact details

Beverage amp Foodstuff

Importers Association

infofoodimportersir

foodimportersir

Daarvag International

(advertising)

daarvagcom

Felesh Advertising Agency feleshco

Iran and Greece Joint

Business Council

pzarrinigccmir

igccmir

+981 21 66949103

Iran-Spain Business

Council

infoisbcir

isbcir

+98 21 88 38 1350

Iran Belgium amp

Luxembourg Chamber of


blccaorg

+98 21 88 50 08 91

Isfahan Union of

Restaurant Owners

etefoodcom

Mashhad Association of

Restaurants Chelo-kabab

Chelo-khoresh Taverns

etehadiehrmcomstatic-1html

Shiraz Association of

Traditional Restaurants

and Taverns

ghazakhorishirazirfastart

Tehran Food Sellers

Association

aghziehirShowNews1797و-انبارها-جامع-سامانه-

كالا-نگهداري-مراكز

Trade Promotion

Organisation of Iran

engtpoir


Support Service Directory Calendar of Trade Events in Iran

221 | P a g e

Zigma8 360deg Creative

Communication

zigma8com

Calendar of Trade Events in Iran

Attending trade events can help promote your product in Iran as well as

forge relationships with industry figures and useful business contacts

Subject Date Organiser

The 8th

International

Exhibition of Dairy

Beverage Tea

Coffee amp Related

Industries

15 ndash 18 September

2017

Mr Rabyi

+98 21 21 91 26 51

The 16th Iran

International

Confectionery Fair


2017

Mandegar Tejarat Shirin

Co - +98 21 88 55 80

66

iranicfcom

The 2nd

International

Exhibition of Halal

protein products and

related industries

13 ndash 16 November

2017

Iran Meat Exhibition

(MeatEx)

+98 21 21 91 29 60

+98 21 22 66 26 90

The 11th

International Flour amp

Bakery Industry

Exhibition (Ibex

2017)


2017

Info amp Trade Group

Ibexir

+98 21 88 07 08 33

+98 21 88 07 06 93

The 16th

International

Exhibition of Poultry

Livestock Dairy and

Related Industries

4 ndash 7 December 2017 Milad Mobtaker Shargh

Co

Abolghasem Salar

Rezayee

CEOmiladgroupnet

+98 21 44 44 8216

Information from iranfaircom


Annex I - EU Products Registered as GIs in Iran Calendar of Trade Events in Iran

222 | P a g e

Annex I - EU Products Registered as GIs in Iran

Iran currently has a functioning system on GI protection that the Government

is planning to make more effective The country however is currently not party

to the Trade Related Aspects of Intellectual Property Rights (TRIPS)

agreement which would grant world-wide protection to its GI products The

GI products are currently protected through domestic laws and through some

international laws The Act for Protection of Geographical Indications (2005)


status and there are already quite a lot of Iranian products registered as GIs

however there are yet no European products registered as GIs in Iran



Agreement was specifically concluded in response to the need for an

international system that would facilitate the protection of a special category



procedure for a minimum of formalities and expense437

According to the Lisbon Agreement Iran has committed itself to protecting the

following Geographical Indications (that are also registered in the EU

databases) registered with the WIPO by the European Union Member Statesrsquo

GI Associations

Name of the GI Country Food Category

Bacirclgarsko Rozovo

Maslo

Bulgaria Rose essence

Karlovarskyacute Suchar Czech Republic Butter

Karlovarskeacute Oplatky Czech Republic Wafers

Karlovarskeacute

Trojhraacutenky

Czech Republic Waffles

Pardubickyacute Perniacutek Czech Republic Spice Bread

Mariaacutenskolaacutezeňskeacute

Oplatky

Czech Republic Wafers

Bleu des Causses France Cheese

Cantal France Cheese

437 Lisbon Agreement (httpwwwwipointedocspubdocsengeographical942wipo_pub_942pdf)



223 | P a g e

Fromage Bleu Du Haut

Jura Gex - Septmoncel

France Cheese

Comteacute France Cheese

Maroilles France Cheese

Reblochon France Cheese

Roquefort France Cheese

Saint-Nectaire France Cheese

Salers Haute-

Montagne

France Cheese

Chasselas De Moissac France Fruits and Vegetables

Noix de Grenoble France Walnuts

Volaille de Bresse France Meat

Beaufort France Cheese

Munster France Cheese

Neufchacirctel France Cheese

Chaource France Cheese

Pouligny-Saint-Pierre France Cheese

Fourme DrsquoAmbert France Cheese

Pont-Leacutevecircque France Cheese

Olives de Nyons France Fruits and Vegetables

Huile Dolives De

Nyons

France Olive Oil

Laguiole France Cheese

Pintadeaux De La

Drocircme

France Meat

Munster-Geacuteromeacute France Cheese

Bleu Dauvergne France Cheese

Selles-Sur-Cher France Cheese



224 | P a g e

Livarot France Cheese

Crottin De Chavignol France Cheese

Dinde Fermiegravere De

Bresse

France Cheese

Beurre Des Charentes France Butter

Beurre Charentes-

Poitou

France Butter

Beurre Des Deux-

Segravevres

France Butter

Ossau Iraty France Cheese

Brie de Meaux France Cheese

Brie de Melun France Cheese

Mont dOr ou

Vacherin du Haut-

Doubs

France Cheese

Beurre dIsigny France Butter

Cregraveme dIsigny France Milk Cream

Picodon de la Drocircme

Picodon de lArdegraveche

ou

France Cheese

Camembert de

Normandie

France Cheese

Abondance France Cheese

Brocciu Corse Ou

Brocciu

France Cheese

Taureau De Camargue France Meat

Huile Dolive De La

Valleacutee Des Baux De

Provence

France Olive Oil

Miel De Sapin Des

Vosges

France Honey



225 | P a g e

Miel De Corse - Mele

Di Corsica

France Honey

Pomme De Terre De

Licircle De Reacute

France Fruits and Vegetables

Chabichou Du Poitou France Cheese

Langres France Cheese

Rocamadour France Cheese

Sainte-Maure De

Touraine

France Cheese

Fourme De

Montbrison

France Cheese

Coco De Paimpol France Fruits and Vegetables

Olives Noires De La


Provence


Muscat Du Ventoux France Fruits and Vegetables

Kalocsa Kalocsaer

Kalocsai

Hungary Fruits and Vegetables

Szeged Szegediner

Szegedi


Fontina Italy Cheese

Grana Padano Italy Cheese

Parmigiano-Regiano Italy Cheese

Provolone Valpadana Italy Cheese

Aceto Balsamico Di

Modena

Italy Balsamic Vinegar

Taleggio Italy Cheese

Quartirolo Lombardo Italy Cheese

Asiago Italy Cheese

Cotechino Modena Italy Meat Products



226 | P a g e

Gorgonzola Italy Cheese

Mela Alto Adige

Suumldtiroler Apfel

Italy Fruits and Vegetables

Montasio Italy Cheese

Mortadella Bologna Italy Meat Products

Mozzarella Di Bufala

Campana

Italy Cheese

Nocciola Del Piemonte

Nocciola Piemonte


Pecorino Romano Italy Cheese

Pecorino Toscano Italy Cheese

Piave Italy Cheese

Pomodoro S Marzano

Dellrsquoagro Sarnese-

Nocerino


Val Di Mazara Italy Olive Oil

Clementine di Calabria Italy Fruits and Vegetables

Valtellina Casera Italy Cheese

Agnello Di Sardegna Italy Meat

Cipolla Rossa Di

Tropea Calabria


Vitellone Bianco

Dellrsquoappennino

Centrale

Italy Meat

Melannurca Campana Italy Fruits and Vegetables

Sopregravessa Vicentina Italy Meat Products

Formai De Mut

Dellrsquoalta Val

Brembana

Italy Cheese

Basilico Genovese Italy Fruits and Vegetables



227 | P a g e

Limone Di Siracusa Italy Fruits and Vegetables

Umbria Italy Olive Oil

Arancia Di Ribera Italy Fruits and Vegetables

Nocciola Di Giffoni Italy Nuts

Ragusano Italy Cheese

Aglio Bianco Polesano Italy Fruits and Vegetables

Bitto Italy Cheese

Slovenskyacute Oštiepok Slovakia Cheese


Annex II - Professionals Contact Database Major Retailers

228 | P a g e

Annex II - Professionals Contact Database

Major Retailers

Name Type Contact

Etka Supermarkets Supermarket 228 stores

nationwide

etkastoresir

Hyperstar 4 Hypermarkets (Tehran

Shiraz Isfahan) 5

Supermarkets (Tehran

Lavasan)

hyperstarirancom

Refah

Supermarkets

218 supermarkets across the

country

refahir

Shahrvand

Supermarkets

Hypermarket (34 stores across

Tehran) + online shop

shahrvandtehranir

All the above offer procurement directly or through a distributor

Convenience stores

Name Type Procurement Contact

Bametehra

n

Supermarket

foreign

products

Distributors bametehran_yahoocom

+982122123050

Family

Market

Supermarket (2

branches)

specialised in

international

products

ImportersDistr

ibutors

+98 21 2611 7399

instagramcomfamilymark

etco

Sepah

Consumers

Cooperativ

e

Supermarket

chain (18

stores)

DirectDistribut

ors

infosepah-cocom

+982143487

Restaurants and Hotels

Restaurant Type of Food Contact

information


Annex II - Professionals Contact Database Importers and Distributors

229 | P a g e

Aydin Casual Cafeacute Sandwiches +98219301214005

Boof Popular Fast Food Chain +982144212199

Espinas Hotels Hotel +982188996658

Ferdowsi

International Grand

Hotel

Hotel +982166727026

Pelak Fusion chain restaurant

serving Chinese Thai

Italian Pizza and finger

food

+982122254535

+982122252124

Persian Azadi Hotel Hotel +982122344458

Persian Esteghlal

International Hotel

Hotel +982122660011

Shandiz Traditional

BarbecueGrillKabab

+98212043

Tehran Grand Hotel Hotel +982188719610

Importers and Distributors

Name Type Contact

Bahar 82 Import (malt beer) +982166635005

DTP

Trading

Import (olive oil) infodtptradingco

+ 9821- 88879507

Farzan

Rad

Consultin

g Co

ImportDistributionLogisticsMarketing

infofarzanradcom

enfarzanradcom

+982188339015

Nixan

Trading

Co LLC

ImportDistributionLogisticsMarketing infonixancocom

nixancoir

+98 21 4459 0790


Annex II - Professionals Contact Database Media

230 | P a g e

Paktab

Food

Import (instant coffee) +982126507903

+9126207645

Part

LabanPal

com

Import (animal-based fats) +9821441120516

PIMCO ImportDistributionLogisticsMarketing

(bakery confectionery beverages

condiments and oils)

pim-coir

+98 21 22630689-90

Zareen

Group

Import (olive oil balsamic vinegar) zareengroupcom

+982188702036

+982188702038

Media

Name of Media Contact info

Food Press (Food Industry

News Agency)

Chief Editor Mani Jamshidi Larijani

rfoodpressgmailcom

manijamshidiyahoocom

foodpressir

+989192056998 +9821 22379499

Hamshahri Daily Newspaper infoagahihamshahricom

hamshahrionlineir

Advertising +982129482100

IRIB News Agency siteiribnewsir

+98212781

IRINN News Agency infoirinnir

irinnir

+982127866000

Jam-e-Jam Newspaper infojjoir

PR +982122262142


Annex II - Professionals Contact Database Bloggers

231 | P a g e

Chief Editor +982123004316

Mehr News Agency Infomehrnewscom (PR)

+982143051000

Shahrvand Newspaper httpshahrvand-newspaperir

+982144956101-7

Tabnak (Professional News

Site)

tabnakir

Tasnim News Agency Englishtasnimnewscom

tasnimnewscom

+982142139961 (PR)

Tehran Times (in English) tehrantimescom

MD

infotehrantimescom

+98 (21)43051000

Editorial Dept

+98 (21) 43051601

Advertisements Department

adstehrantimescom

Bloggers

Bloggers name Info

Chef Zolfi (Shahram Zolfi) chefzolfiyahoocom

shefblogfacom

Colourful Cooking (Mansooreh

Ketabi)

ashpazieranginblogfacom

Cooking Group groohashpaziblogfacompost-

6060aspx


Annex II - Professionals Contact Database VIP Chefs

232 | P a g e

Dr Dorosty (Ahmadreza

Dorosty)

drdorostyblogfacomcat-6aspx

Fast Food instagramcomfaast_food

Ladanrsquos Food Journal ladansfoodjournalblogfacom

Science amp Food Industry

(Mohammadsadegh Arab)

arab_msyahoocom

arabomidblogfacom

Shirin Tahanan (Persian Food

Tour)

instagramcomshirin_tahanan

Sofrehkhune instagramcomsofrehkhune

+989392575396

VIP Chefs

Saman Golriz Famous TV Chef star of the show Bahooneh (in English lsquoAn

Excusersquo)

Master Chef Ranjbar Famous TV Chef amp instructor

Contact

infosamangolrizir

samangolrizir

instagramcomchefsamangolriz

+989128885154

Contact

inforanjbarchefcom

ranjbarchefcom

instagramcomranjbar_chefhl=en

+982188799474


Company Profile

233 | P a g e

Annex III Case Study Choosing the Right Local Partner is the Key to Success in Iran

This case study is based on the interview questionnaire with the

Export Area Manager of Monini SpA

Company Profile

Monini SpA is an Italian company established in 1920 and its

core business is the production bottling and distribution of

superior quality extra virgin olive oil The company exports olive oil all over

the world and it has established branches in the USA and Poland Besides olive

oil the company is also producing PGI Balsamic vinegar of Modena and distributing grapeseed oil rice bran oil pesto sauces dressings and lemon

juice The company is also well-known for producing and distributing extra

virgin olive oils with geographical indication including PDO Umbria PDO Sicily-

Val di Mazara PDO Dauno Gargano and PGI Toscano

Iran is considered as one of the important markets to Monini and the company

has been exporting extra virgin olive oil and olive oil to Iran for more than 10

years As Olive oil is in relatively high demand amongst Iranian consumers and the company believes that there are several market opportunities in Iran for

the olive oil sector

Distribution Channels and Customer Base

In Iran Monini SpA is working with an exclusive importer HTCO Homayoun

Trading Company (HTCO in further references) that helps Monini to reach its

main consumer base With the help of HTCO the company is able to reach the

widest possible consumer base as its products are distributed

not only in supermarket chains

where most of foreign products

get marketed but also in

bazaars and other traditional trade outlets frequented by the majority of Iranian consumers The company

is also able to reach the hotel restaurant and catering (HoReCa) sector

thanks to its importer

Challenges in Iran

Iran has been negatively affected by the recent international sanctions that

are currently being lifted but still affect doing business in the country

According to the Export Area Manager of Monini SpA ldquothese sanctions at the

end reduced drastically the consumerrsquos average income and increased considerably the complexity of exporting goods and payments processrdquo He

further explains that ldquoin this period the country risk had increased very much

IRANIAN CONSUMERS ARE READY TO TRY INNOVATIVE PROPOSALS FROM EUROPE


Annex III Case Study Choosing the Right Local Partner is the Key to Success in

Iran Marketing Strategy and Key to Success

234 | P a g e

and many international brands reduced their presence and commitment in the

Iranian marketrdquo However Iran has been an important market to Monini and thanks to the efforts of their importer HTCO the company has been able to

overcome the difficulties

Furthermore doing business in Iran is expected to become easier as a

substantial amount of sanctions have been lifted and further sanctions are

being lifted as the country cooperates on the international arena

Marketing Strategy and Key to Success

According to the Export Area Manager of Monini SpA the company owes its

success in Iran to the excellent quality of their products consistent presence

in Iranrsquos market and to the efforts of their importer as he further explains that ldquothanks to the generous efforts and commitment of our Iranian partner HTCO

we have been able to establish the brand as leader in the marketrdquo He explains

that in the case of Iran it is very important to make a personal visit to the

country and spend enough time finding the best local partner who would be

instrumental in helping the company to reach the desired

consumer base as the right

partner definitely makes the

difference for business success

in Iran

According to the Monini SpA at least in trade in olive oil cultural differences

are not a big issue in Iran as ldquoPersian consumers have an extraordinary food culture which is close to the Mediterranean one and they are looking for quality

productsrdquo from Europe or the West Furthermore European products are

generally perceived positively and consumers are ldquoready to try innovative

proposalsrdquo from European producers In regards to the olive oil according to

the company Iranian consumers are well aware of the health benefits of olive

oil and use it a lot in their cuisine even though they might sometimes not be

entirely accustomed to the taste of it

PDO and PGI products are not yet popular amongst Iranian consumers with

the exception of some products like PGI Balsamic Vinegar of Modena as

Iranian consumers are not yet very informed about the value of PDI and PGI

products

In terms of marketing their olive oil products in Iran Monini SpA is thus

relying on marketing strategy focused on communicating to the end-

consumers about the productsrsquo quality and health benefits The company is

also organizing in-store tastings and other promotional activities to attract customers The Export Area Manager of Monini adds that the consistency in

the availability of products is one of the key points to successfully market

products in Iran

CHOOSING THE RIGHT LOCAL PARTNER DEFINITELY MARKS THE DIFFERENCE FOR THE SUCCESS OF YOUR BUSINESS IN IRAN


Table of figures Marketing Strategy and Key to Success

235 | P a g e

Table of figures

Reproduced with the kind permission of the author(s)

Figure 1 Map of Iran 10 Figure 2 Hassan Rouhani President of Iran 11 Figure 3 Exports to Iran of Food amp Beverage categories 20 Figure 4 Percentage of total selected Food amp Beverage exports to Iran

of top 20 exporters (2016) 22 Figure 5 Percentage of top seven selected Food amp Beverage categories

attibutable to partner countries (imports to Iran) 23 Figure 6) Logistics Performance Index 2016 25 Figure 7) Main road networks of Iran 26 Figure 8 Airports of Iran 28 Figure 9 Ports of Iran 29 Figure 10 Railroads of Iran 30 Figure 11 Chelo Kabab 34 Figure 12 Value (EUR) of exports of Food and Beverage from EU-28 to

Iran over time by sub-category 39 Figure 13 Tehran (capital) 42 Figure 14 Mashhad capital of Khorasan-e-Razavi Iran 43 Figure 15 Isfahan capital of Esfahan 44 Figure 16 Iranian provinces reference map 45 Figure 17 Import process for Meat Processed Foods Fruits amp

Vegetables Dairy Products ConfectioneryChocolate 47 Figure 18 Exports from ECO members and EU-28 over time of Food amp

Beverage to Iran 54 Figure 19 Energy Drinks and Carbonated Drinks in Tehran

Supermarket 58 Figure 20 Juice - of value of imports to Iran in 2016 by country of origin 59 Figure 21 Juice - value exported to Iran in 2016 by country of origin

60 Figure 22 European GI Products Sold in Tehran Supermarket 65 Figure 23 Pomegranate of Saveh 68 Figure 24 Iranian Saffron from Khorasan 69 Figure 25 Grana Podano Being Sold in Tehran Supermarket 73 Figure 26 EU Organic Products Sold in Tehran Supermarket 74 Figure 27 Consumption of meat in Iran by category 2016 81 Figure 28 Consumption of meat in Iran 2011-2016 and prospects for

2017-2021 (kg per capita) 81 Figure 29 Koresh - a popular Iranian meat and vegetable stew 82 Figure 30 Iranrsquos imports of fresh meat (value in euro thousands 2016)

84 Figure 31 Iranrsquos exports of fresh meat (value in euro thousands 2016)

86 Figure 32 Jujeh kabob - came back to Iran after becoming popular in

the West 89



236 | P a g e

Figure 33 Figure 4 Household expenditure on meat by income level

(1st to 10th decile) 90 Figure 34 Meat production in Iran 2011-2016 (in 1000 tons) 91 Figure 35 Iranrsquos imports of processed meat (value in euro thousands

2016) 92 Figure 36 Iranrsquos exports of processed meat (value in euro thousands

2016) 93 Figure 37 Consumption of olive oil in Middle Eastern countries

201011-201516 (1000 tons per annum) 97 Figure 38 Frequency of using olive oil among Iranian households 98 Figure 39 Irans olive oil consumption 201011-201617 (in 1000

tons) 98 Figure 40 Olive Oil Sold in Tehran Supermarkets 99 Figure 41 Irans olive oil production 201011-201617 (in 1000

tons) 100 Figure 42 Irans imports of olive oil 2012-2016 (value in EUR millions)

101 Figure 43 Main exporters of olive oil to Iran in 2016 ( of total

imported value) 102 Figure 44 Irans exports of olive oil 2012-2016 (value in thousand EUR) 103 Figure 45 European Olive Oil Sold in Tehran Supermarkets 103 Figure 46 Fruits and Vegetables Sold at Traditional Bazaar 107 Figure 47 Imports of fresh fruit and vegetables (2012-2015) unit

Euro millions 111 Figure 48 Vegetables Sold at Iran Bazaar 114 Figure 49 Processed Fruits and Vegetables Sold in Tehran

Supermarket 118 Figure 50 Exports of processed fruit and vegetables in Iran (2016)

unit tonnes 122 Figure 51 Organic Processed Fruits and Vegetables Sold in Tehran Supermarket 124 Figure 52 Consumption of dairy products in Iran 2011-2016 and

prospects for 2017-2021 (kg per capita) 127 Figure 53 Consumption of dairy products in Iran by category 2016

127 Figure 54 OECD-FAO Data on Dairy Consumption in Iran 1997-2016 in

tonnes (thousands) 128 Figure 55 OECD-FAO Data on Dairy Consumption in Iran with forecast

2017-2021 in tonnes (thousands) 128 Figure 56 OECD-FAO Data on Cheese Consumption in Iran in tonnes

(thousands) 130 Figure 57 Variety of Cheese Available in Tehran Supermarkets 130 Figure 58 OECD-FAO Data on milk production in Iran in tonnes

(thousands) with forecast 2017-2021 131 Figure 59 Irans imports of dairy products from the EU 2016 (value in

euro millions) 132



237 | P a g e

Figure 60 value growth in Irans imports of dairy products from

leading EU countries ( pa) 133 Figure 61 Irans exports of dairy products to the EU (2016 value in euro

thousands) 134 Figure 62 OECD-FAO Data on Exports of Cheese in Iran 2011-2016 Unit thousands of tonnes 134 Figure 63 Kibi Promotion Campaign 136 Figure 64 European Cheese Sold in Tehran Supermarkets 137 Figure 65 Main cereal importers into Iran (Products of the milling

industry malt starches inulin wheat gluten) by value imported 2016 141 Figure 66 Barley imports value into Iran 142 Figure 67 Export from Iran of prepared foods obtained by swelling

roasting of cereals or cereal products (eg corn flakes) cereals other

than maize (corn) in grain form pre-cooked or otherwise prepared 144 Figure 68 Export from Iran of Prepared foods obtained by swelling


than maize (corn) in grain form pre-cooked or otherwise prepared

by partner country share (2012-2016 total trade val 144 Figure 69 Import to Iran of Prepared foods obtained by swelling



145 Figure 70 Import to Iran of Prepared foods obtained by swelling


by partner country share (2012-2016 total trade value USD) 146 Figure 71 Processed Cereals Sold in Tehran Supermarket 148 Figure 72 Baked Products Sold in Tehran Supermarket 151 Figure 73 Iranrsquos imports of baked goods from EU countries (2016 value in EUR million) 152 Figure 74 Value growth in Iranrsquos imports of baked goods from EU

countries ( pa) 153 Figure 75 Iranrsquos exports of baked goods to the EU (2016 value in EUR

thousand) 153 Figure 76 Iranrsquos imports of chocolate products from EU countries

(value in EUR million) 159 Figure 77 Value growth in Iranrsquos imports of chocolate products from

EU countries ( pa) 160 Figure 78 Iranrsquos exports of chocolate products to the EU (2016 value

in EUR thousands) 161 Figure 79 Nutella Chocolate Promoted in Tehran Supermarket 162 Figure 80 European Chocolate Sold in Tehran Supermarket 163 Figure 81 Comparative Rates of Per Capita Sugar Consumption and

Projected Growth 166



238 | P a g e

Figure 82 Historical Domestic Sugar Production and Consumption

Trend in Iran 169 Figure 83 Imports of Raw and Processed Sugar Confectionery in Iran

170 Figure 84 Iran Import Flows for Confectionery Products by Partner 171 Figure 85 European Confectionery Sold in Tehran Supermarket 174 Figure 86 Irans imports of honey products from the EU 2016 (value

in EUR millions) 178 Figure 87 main exporters of honey products to Iran (share of imported value 2016) 178 Figure 88 Irans exports of honey products to the EU 2016 (value in

EUR millions) 180 Figure 89 Exports of honey products from Iran to the EU evolution

2012-2016 (value in EUR millions) 181 Figure 90 EU imports of honey by origin Jan-Jun 2016 1000 tons

181 Figure 91 Irans cotton consumption 2012-2021 (in 1000 tons) 183 Figure 92 Irans cotton production 2012-2017 (in 1000 480 lb Bales)

184 Figure 93 Irans imports of cotton 2012-2016 (value in million EUR)

187 Figure 94 Top exporters of cotton to Iran (share in Iranrsquos imports

2016) 187 Figure 95 Irans exports of cotton 2012-2016 (value in million EUR)

188 Figure 96 Top importers of cotton from Iran (share in Iranrsquos exported

value 2016) 188


List of tables Marketing Strategy and Key to Success

239 | P a g e

List of tables

Table 1 Country factsheet 12 Table 2 Top Food amp Beverage markets by Muslim country 18 Table 3 Top domestic companies in Food amp Beverage sector in Iran

by sales 2015 19 Table 4 Imports of selected Food amp Beverage categories to Iran 2016

21 Table 5 Travel time from capital city to major towns in Iran road 26 Table 6 Travel times from capital city to major towns in Iran rail 31 Table 7 Iran ease of doing business rank (no190 other countries) 33 Table 9 Selection of Iranian banks with presence or correspondence in the EU and vice versa 41 Table 10 Import duties for selected products in 2016 Iran 49 Table 11 Selected SPS requirements for Iranian market 51 Table 12 Labelling requirements for Foodstuffs in Iran 53 Table 13) National Legal Framework for the Protection of GIs in Iran 71 Table 15 Iran global rankings of fresh produce 109 Table 16 Total exports of fresh fruit and vegetables (incl nuts) from

2012-2015 112 Table 17 Imports of processed fruit and vegetables in Iran (2016) unit tonnes 121 Table 18 National average cereal production for Iran from 2012-2016

forecasted amount for 2017 in tonnes and the anticipated change

percentage for 2017 143 Table 19 Price per kg of exports from Iran of Prepared foods obtained

by swelling roasting of cereals or cereal products (eg corn flakes) cereals other than maize (corn) in grain form pre-cooked or

otherwise prepared 144 Table 20 Price per kg of imports to Iran of Prepared foods obtained

by swelling roasting of cereals or cereal products (eg corn flakes)

cereals other than maize (corn) in grain form pre-cooked or otherwise prepared 146 Table 21 Irans imports of honey products from EU countries value

growth 2015-2016 179 Table 22) Overview of the Press in Iran 193 Table 23) Major Online Publications in Iran 194 Table 24) E-commerce Platforms in Iran 195

1 The Exporterrsquos Handbook Iran

11 How to use this Handbook

2 Country Overview

21 Iran at a glance

22 The Iranian Food and Beverage market

23 Operating in the Iranian market

231 Logistics services and infrastructure

232 Distribution

233 Business environment

234 Consumer profile

3 Market Access and Entry

31 SWOT analysis

32 Market information


322 Market size market share growth drivers and trends

323 Market access and market entry strategy

324 Key Markets by Geography

33 Legislation Regulations and Administrative Information

331 Import ndash Export rules

332 GI and IP protection

333 Customs SPS requirements and Labelling

34 Iranrsquos relationships with the GCC 6 and other regional bodies

4 Market snapshots

41 Beverages

411 Consumption


4112 Bottled Water


4114 Fruit Juice

4115 Energy Drinks


412 Offer

4121 Domestic Offer

4122 Imports


413 Distribution



4133 Fruit Juice


414 Summary

42 Products with Geographical Indications

421 Consumption




422 Offer

4221 Domestic offer

4222 Import

4223 Export


42241 Organic Label



423 Distribution




424 Summary

43 Fresh meat

431 Consumption


432 Offer

4321 Import

4322 Export



433 Distribution

434 Summary

44 Processed meat

441 Consumption


442 Offer

4421 Domestic offer

4422 Import

4423 Export




443 Distribution


444 Summary

45 Olive Oil

451 Consumption


452 Offer

4521 Domestic offer

4522 Import

4523 Export



453 Distribution

454 Summary

46 Fresh Fruit and Vegetables

461 Consumption




462 Offer

4621 Domestic offer

4622 Import

4623 Export





463 Distribution

464 Summary


471 Consumption




472 Offer

4721 Domestic offer

4722 Import

4723 Export




473 Distribution

474 Summary

48 Dairy Products

481 Consumption


4812 Cheese



482 Offer

4821 Import

483 Export




484 Distribution

485 Summary

491 Consumption



492 Offer

493 Export

4931 Import



494 Distribution

495 Summary

410 Baked Goods

4101 Consumption



4102 Offer

41021 Import

41022 Export




4103 Distribution

4104 Summary

411 Chocolate

4111 Consumption



4112 Offer

41121 Import

4113 Export




4114 Distribution

4115 Summary

412 Confectionery

4121 Consumption



4122 Offer


4123 Import

41231 Export




4124 Distribution


4125 Summary

413 Honey Products

4131 Consumption

4132 Offer


41322 Import

4133 Export


4134 Distribution

4135 Summary

414 Cotton Plants

4141 Consumption


4142 Offer


41422 Import

41423 Export



4143 Distribution

4144 Summary

5 Communication

51 Advertising in Iran

52 Presenting a Product in Iran

521 Target Audience

522 Communications Campaigns in Iran

523 Promoting your Product

6 DOs AND DONrsquoTs

61 DO

62 DONrsquoT

63 Quick Facts

7 Synopsis

71 SWOT and 4P analysis

72 4P Analysis

73 Conclusion

8 Support Service Directory

81 Relevant Business Associations in Europe

82 Directory of EU member State Embassies

83 Useful Organisations and Service Providers in Iran

84 Calendar of Trade Events in Iran

9 Annex I - EU Products Registered as GIs in Iran

10 Annex II - Professionals Contact Database

101 Major Retailers

103 Restaurants and Hotels

104 Importers and Distributors

105 Media

106 Bloggers

107 VIP Chefs

11 Annex III Case Study Choosing the Right Local Partner is the Key to Success in Iran

111 Company Profile

112 Distribution Channels and Customer Base

113 Challenges in Iran

114 Marketing Strategy and Key to Success

Table of figures

List of tables



1 | P a g e

EUROPEAN COMMISSION

Consumers Health Agriculture and Food Executive Agency

Promotion of Agricultural Products Unit

E-mail Chafea-agri-eventseceuropaec



2 | P a g e











Freephone number ()

00 800 6 7 8 9 10 11





3 | P a g e

Table of Contents



Country Overview 10

Iran at a glance 10




Distribution 31


Consumer profile 34


SWOT analysis 37











Market snapshots 55

Beverages 55

Consumption 55

Offer 59

Distribution 61

Summary 62


Consumption 64

Offer 68

Distribution 76

Summary 79



4 | P a g e

Fresh meat 80

Consumption 81

Offer 83

Distribution 87

Summary 87

Processed meat 88

Consumption 88

Offer 90

Distribution 94

Summary 95

Olive Oil 96

Consumption 96

Offer 99

Distribution 104

Summary 104


Consumption 106

Offer 108

Distribution 114

Summary 115


Consumption 117

Offer 120

Distribution 124

Summary 125

Dairy Products 126

Consumption 127

Offer 132

Export 133

Distribution 137

Summary 137


Consumption 139

Offer 143

Export 144



5 | P a g e

Distribution 148

Summary 148

Baked Goods 150

Consumption 150

Offer 152

Distribution 155

Summary 156

Chocolate 157

Consumption 157

Offer 159

Export 160

Distribution 163

Summary 163

Confectionery 165

Consumption 165

Offer 168

Import 170

Distribution 174

Summary 175

Honey Products 176

Consumption 176

Offer 177

Export 179

Distribution 181

Summary 182

Cotton Plants 183

Consumption 183

Offer 184

Distribution 189

Summary 189

Communication 191



Target Audience 199




6 | P a g e



DO 202

DONrsquoT 203

Quick Facts 204

Synopsis 207


4P Analysis 210

Conclusion 212








Major Retailers 228



Media 230

Bloggers 231

VIP Chefs 232


Success in Iran 233

Company Profile 233





List of tables 239



7 | P a g e

List of Acronyms










IRR Iranian Rial


Research of Iran







Rights Agreement





8 | P a g e









Iranian market













1 Beverages


3 Fresh Meat




8 Dairy Products

9 Processed Cereals


12 Confectionery









9 | P a g e



entry













10 | P a g e

Country Overview

Iran at a glance




South






11 | P a g e








vote4


































12 | P a g e


of its economy8


Iran


Eslami-ye Iran)




Capital Tehran

Flag



Balochi and Arabic

GDP PPP

- Per capita PPP

- Trend




latest 14397 EUR)










13 | P a g e

Currency


Iranian Rial (IRR)





to 30915 in 2016


$)


$)

12000

13000

14000

15000

16000

17000

18000

19000

900

950

1000

1050

1100

1150

1200

1250

1300

1350

1400

GD

P p

er c

ap

ita

PP

P (

curr

ent

inte

rna

tio

na

l $)

GD

P P

PP

(b

illio

n c

urr

ent

inte

rna

tio

na

l $)



14 | P a g e

Major cities


- Province

Tehran (Capital)

- 84 million

- Tehran

Mashhad

- 3 million

- Razavi Khorasan

Esfahan

- 188 million

- Isfahan

Karaj

- 181 million

- Alborz

Shiraz

- 166 million

- Fars

Tabriz

- 157 million

- East Azerbaijan



15 | P a g e

Population density


Population

- Median age

- Trend

- Age by cohort

79926270 (2016)

- 2940



grew at 660 from 2008-2011

and at 636 from 2011-2016



16 | P a g e




sector


over

2640 million




- 1270

5 4 3 2 1 0 1 2 3 4 5

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80-84

90-94

100 and over


Ag

e


Country Overview

17 | P a g e

Provinces




Overview





106 114

327 1327

077 278

070 129 127

086 328

143 176

160 071

471 643

195 316

058 178 174 187

253 485

512 391

095 116 127

271

ZanjanYazd



SemnanQom


MazandaranMarkazi

LorestanKordestan



KermanIlam


GilanFars





18 | P a g e


that time9







Egypt 78 (68 EUR)


Iran 59 (5145 EUR)




























19 | P a g e


567) billion13















(IDICC)

4954 (EUR 4321)


Production Group)

3897 (EUR 3399)















20 | P a g e












copy UN Comtrade19










000

100

200

300

400

500

600

700

800

900

2012 2013 2014 2015 2016

Exp

ort

s to

Iran

USD

bill

ion

World

EU-28



21 | P a g e


Category


value

Cereals 4457



waxes

1464





invertebrates 372




included

271


of plants 199



cooks products 113








wares 000

copy UN Comtrade21


billion EUR)






22 | P a g e








exporters (2016)22

copy UN Comtrade23







051

059

061

063

065

077

081

082

134

210

243

301

343

371

380

554

694

919

1705

3176

Ecuador

Australia

Romania

Rep of Korea

USA

Spain

Philippines

France

Indonesia

New Zealand

Argentina

Kazakhstan

Turkey

Sri Lanka

China

Germany

Malaysia

Russian Federation

India

Brazil



23 | P a g e



copy UN Comtrade24





Brazil

Brazil

BrazilBrazil

India

India

India

India

Russia

Russia

Malaysia

Mal

aysi

a

Ge

rman

y

Germany

Ch

ina

Ch

ina

China

Sri Lanka

Turkey

Turkey

Turkey

Kazakhstan

Argentina

Other

Other

Other OtherOther

Other

Other

0

10

20

30

40

50

60

70

80

90

100




waxes

Meat andedible meat

offal

Coffee teamate and

spices

Sugars andsugar

confectionery


Miscellaneousedible

preparations



24 | P a g e




markets
























25 | P a g e


World Bank28



Road







0

1

2

3

4

5Customs

Infrastructure




Timeliness




26 | P a g e









Bandar

Abbas

16h 22h 11h 8h 17h 16h 10h







27 | P a g e

Bandar

Anzali

(Rasht)

5h 7h 10h 16h 14h 6h 13h

Bandar Imam

(Port

close to Ahvaz)

13h 16h 11h 7h 20h 10h 12h


Air














28 | P a g e



Maritime Shipping


















29 | P a g e







Rail












30 | P a g e







and Asalouyeh39













31 | P a g e









Abbas

Bandar Imam

Khomeini

Khosravi



Mashhad 12 16h - 15h 21h 18h

Bandar

Abbas 17h 21h 15h - 12h 18h

Bandar Imam

Khomeini

15h 15h 21h 12h - 10h





Distribution








in 201641









32 | P a g e
































33 | P a g e


Overall 120



Permits 27



Getting Credit 101


Paying Taxes 100




World Bank
























34 | P a g e






Consumer profile

































35 | P a g e




























hypermarkets54








36 | P a g e




















37 | P a g e

SWOT analysis

Strengths



Weaknesses



Opportunities



Threats






38 | P a g e

Market information




























studied







39 | P a g e


by sub-category

Eurostat60



category
















euro 0

euro 100000000

euro 200000000

euro 300000000

euro 400000000

euro 500000000

euro 600000000

euro 700000000

euro 800000000

euro 900000000

euro 1000000000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Va

lue

in E

UR







40 | P a g e


sector62




the economy as well













will not be so 64











November 2017








41 | P a g e



























Raffeisen (Austria)

BCP (Switzerland)








42 | P a g e



Tehran























Khorasan-e-Razavi














43 | P a g e


railroad



city the name

means lsquothe

burial place of a

martyrrsquo and


the holy Shrine

of Imam Reza

every year


primarily

focused on the

tourism trade


900 km East



Esfahan













44 | P a g e












network and the








Fars










Khuzestan










45 | P a g e





entire country












Copyright copy



46 | P a g e









to
















market






47 | P a g e














here


2017 available at






agencies)




48 | P a g e





































49 | P a g e



















Customs







Beef 5-15


Fish 5-40









50 | P a g e

Prepared fish 40-55


500 gr or less 55


more than 500 gr 20

Cheese 55


Wheat 10








website








SPS requirements








2017 available at




51 | P a g e


Area Details


Origin





Affairs


Pest Risk Analysis

(PRA)





Organisation

Plants and

Plant

Products










Organisation


Foodstuffs








52 | P a g e








market















the goods


Labelling





2017 available at




bodies

53 | P a g e



Product and brand

nametrademark







manufacturer



allowed


applicable



Islamic rules













states90



httpwwwecointin2htm



bodies

54 | P a g e














copy UN Comtrade92


2017 available at



$0

$200000000

$400000000

$600000000

$800000000

$1000000000

$1200000000

$1400000000

$1600000000

2012 2013 2014 2015 2016

Trad

e v

alu

e (

USD

)

EU-28

ECO



55 | P a g e

Market snapshots

Beverages

Consumption












Strengths




Weaknesses



Opportunities



Threats






56 | P a g e




in Iran94























4112 Bottled Water








iran-meager





57 | P a g e



























4114 Fruit Juice














58 | P a g e









4115 Energy Drinks



young energy drinks




sugar and caffeine


the energy drinks

market


campaigns to seduce
















59 | P a g e




consumers102

Offer

4121 Domestic Offer






4122 Imports










Thailand34

Spain15Kuwait

13

Brazil12

Oman8

United Kingdom8

Italy3

Netherlands3

Germany2

Ireland2



60 | P a g e






Health






States and EU















34

2011

7

7

5

4

43

3 2

Russian Federation

Germany

Austria

Turkey

Kuwait

Korea Republic of

Netherlands

Japan

Malaysia

India

Canada



61 | P a g e







Distribution











younger Iranians
















62 | P a g e

4133 Fruit Juice



Iran



















Summary











63 | P a g e





64 | P a g e


Consumption











Strengths



Weaknesses




Opportunities



Threats





65 | P a g e








































66 | P a g e









begin with
































67 | P a g e











exported into Iran





























68 | P a g e










Offer



Iranrsquos market

4221 Domestic offer








Agreement124
















of Saveh copy



69 | P a g e


















annually 130

4222 Import






4223 Export







available at








70 | P a g e


































71 | P a g e



Relevant Regulatory

Framework




conditions


Agreement



Type of

Protection



Scope of

Legislation



are excluded


website here


National Law


Article I





Article III







Article 1(A)



72 | P a g e

Article V








Article VII








Article VIII









Article IX






conditions






73 | P a g e



















WIPO138






















74 | P a g e




see Annex I






42241 Organic Label





























75 | P a g e


















GI status




















76 | P a g e


















Distribution



Western products
















77 | P a g e







retail outlets
















few wholesalers154
















78 | P a g e




















this157




company158















79 | P a g e



Summary













superior products



80 | P a g e

Fresh meat












Strengths


Weaknesses



Opportunities


Threats




81 | P a g e

Consumption





OECD ndash FAO







OECD ndash FAO



poultry 7880

beef amp veal 1008

sheep 1112

27

28

29

30

31

32

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Co

nsu

mp

tio

n k

g p

r ca

pit

a



82 | P a g e



















revolution





















83 | P a g e



Offer





















4321 Import















84 | P a g e
























1

10

100

1000

10000

100000

1000000

Va

lue

EU

R 0

00

s



85 | P a g e

4322 Export











Luxembourg








market172









86 | P a g e


























1

10

100

1000

10000

Va

lue

EU

R 0

00

s



87 | P a g e




Distribution















Summary














88 | P a g e

Processed meat

Consumption












Strengths


Weaknesses



Opportunities


Threats




89 | P a g e




























West copy



90 | P a g e



Offer

4421 Domestic offer









statistical-surveyb

000

500

1000

1500

2000

2500

3000

Total 1stdecile

2nddecile

3rddecile

4thdecile

5thdecile

6thdecile

7thdecile

8thdecile

9thdecile

10thdecile

Processed meat

Fresh meat



91 | P a g e



4422 Import












2654

2235

2556 25952694 2726

2011 2012 2013 2014 2015 2016

Pro

du

ctio

n 1

00

0 t

on

s



92 | P a g e



4423 Export













0

500

1000

1500

2000

2500V

alu

e EU

R 0

00

s



93 | P a g e


ITC Trade Map186





















0

200

400

600

800

1000

1200

1400

1600

1800

2000V

alu

e E

UR

00

0s




94 | P a g e





















Distribution







as billboards192










95 | P a g e








Summary
















96 | P a g e

Olive Oil

Consumption








Strengths



Weaknesses


Opportunities


Threats





97 | P a g e



IOC196









0

20

40

60

80

100

120

140

160



98 | P a g e


Badkoobeh



201516 and 201617198


IOC199




not at all51


14


18


17

0

2

4

6

8

10

12

14

201011 201112 201213 201314 201415 201516(prediction)

201617(prediction)



99 | P a g e


























Offer

4521 Domestic offer















100 | P a g e














association202



4522 Import






0

1

2

3

4

5

6

7

8

201011 201112 201213 201314 201415 201516(prediction)

201617(prediction)



101 | P a g e




table below


copy UN Comtrade204





figure below






0

5

10

15

20

25

30

35

2012 2013 2014 2015 2016

Total

EU



102 | P a g e


copy UN Comtrade205

4523 Export









value that year



Spain 5270

Turkey 27

Italy 1540




103 | P a g e


copy UN Comtrade206


















206 Ibid

0

10

20

30

40

50

60

70

2012 2013 2014 2015 2016

Total

EU




104 | P a g e






the country207

Distribution









Summary























105 | P a g e

















Strengths




Weaknesses



Opportunities




Threats





106 | P a g e











Consumption



























107 | P a g e







ingredients



processed

counterparts This

can be traced to





























108 | P a g e




























Offer

4621 Domestic offer








109 | P a g e











Walnut 3rd Kiwi 3rd




Plum 5th Peach amp

Nectarine

6th







Gourd

4th





are exported221











110 | P a g e












4622 Import





















111 | P a g e


Euro millions


4623 Export














0

50

100

150

200

250

300

350

400

450

500


Vegetables

2012

2013

2014

2015



112 | P a g e


2012 2013 2014 2015 Fru

its

(n

o

nu

ts)

$1316569482

(euro1144843028)

$953109704

(euro 828791047)

$1109620866

(euro 964887710)

$861965515

(euro 749535230)

Veg

eta

ble

s

$711570489

(euro 618756947)

$484545293

(euro 421343733)

$818264285

(euro 711534161)

$683361778

(euro 594227633)

Nu

ts $1158578088

(euro 1007459207)

$1029098880

(euro 894868591)

$1668882856

(euro 1451202483)

$1111863632

(euro 966837941)

TOTAL

$3186718059

(euro 2771059182)

$2466753877

(euro 2145003371)

$3596768007

(euro 3127624354)

$2657190925

(euro 2310600804)






habits229














113 | P a g e

















produced locally






















114 | P a g e







Distribution


years However

small grocery


represent 90 of

the food and

beverage


fruit and

vegetables are

dominated by


outlets

Producers of

fresh fruit and

















115 | P a g e












Summary


















116 | P a g e
















Strengths




Weaknesses




Opportunities




Threats





117 | P a g e

















longer term








sanctions














118 | P a g e









































iran-embassy


Supermarket



119 | P a g e










































120 | P a g e









categories





term

















Offer

4721 Domestic offer












121 | P a g e


vegetables











4722 Import












Product Total

Canned Fruit 0

Canned Vegetables 2

Frozen Fruit 1



4723 Export








122 | P a g e




























0

50

100

150

200

250

300

2016

Canned Fruit

Canned Vegetables

Frozen Fruit

Frozen Vegetables



123 | P a g e
















vegetable products


















124 | P a g e












































125 | P a g e





















126 | P a g e

Dairy Products
















prospects

Strengths


Weaknesses



Opportunities


Threats




127 | P a g e








OECD-FAO


OECD-FAO







28

285

29

295

30

305

31

315

32

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021


Butter 1064

Cheese 1054



128 | P a g e







OECD-FAO


OECD-FAO










0

100

200

300

400

500

600

522648

535878

523532

503284

509214516247

522462528255

533525 53865

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021



129 | P a g e






























4812 Cheese














130 | P a g e


to previous years


OECD-FAO



increase in cheese



period 2011 -2015













the country







272415268527

259214255522

250001 251535

2011 2012 2013 2014 2015 2016




131 | P a g e










OECD-FAO


















prospects

769757 761

7778

793807

821835

85864

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021



132 | P a g e





















sectors





4821 Import














133 | P a g e










0

5

10

15

20

25

30

-200

0

200

400

600

800

1000

1200

2012-2016

2015-2016



134 | P a g e






OECD-FAO






0

20

40

60

80

100

120

140

160

180

200


2011 2012 2013 2014 2015 2016

2257 2264

34083825

454843



135 | P a g e










network



























exports-expand



136 | P a g e










































137 | P a g e



















foreign goods293























138 | P a g e




investments



139 | P a g e

Processed Cereals













Strengths



Weaknesses



Opportunities


Threats




140 | P a g e

























cereals-in-2017



141 | P a g e













products



industry

India40

Netherlands20

Belgium10

Germany6

Thailand6

France5

Italy5

Georgia4

Malaysia4



142 | P a g e








(lentil) soup



















Kazakhstan43


Germany18

France6

Estonia4



143 | P a g e
















categories


2012-2016

average 2016

2017

forecast

Change

20172016

000 tonnes percent

Wheat 10774 13500 13500 0

Barley 2776 3000 3100 3

Rice

(paddy) 2405 2520 2600 3

Others 1486 910 910 0

Total 17410 19930 20110 1








permission



144 | P a g e








copy UN Comtrade304






2012 2013 2014 2015 2016

Price per kg

(USD)

098 (EUR

085)

127 (EUR

101)

188 (EUR

164)

204 (EUR

178)

194

(169)

copy UN Comtrade305






0

50000

100000

150000

200000

250000

300000

$0

$100000

$200000

$300000

$400000

$500000

$600000

2012 2013 2014 2015 2016

Net

wei

ght

(kg)

Trad

e V

alu

e (U

S$)




145 | P a g e


copy UN Comtrade306

4931 Import






copy UN Comtrade307



UAE 2172

Jordan 2018

Poland 1410

Germany 1079

Other 1046

Sweden 688

Armenia 760

Bahrain 262


0

200000

400000

600000

800000

1000000

1200000

$0

$500000

$1000000

$1500000

$2000000

$2500000

$3000000

$3500000

2012 2013 2014 2015 2016

Net

wei

ght

(kg)

Trad

e V

alu

e (U

S$)




146 | P a g e





2012 2013 2014 2015 2016

Price per kg

(USD)

279 (EUR

243)

211 (EUR

184)

212 (EUR

185)

251 (EUR

219)

291

(EUR

254)

copyUN Comtrade308



regional proximity



copy UN Comtrade309



Switzerland 1919

France 1225

UAE 1143


Germany 956

Poland 571

Spain 955

Malaysia 464

Other 376 China 282



147 | P a g e























148 | P a g e












the country






partner 315









continue to do so










Supermarket



149 | P a g e



continue


















150 | P a g e

Baked Goods









Consumption








global average

Strengths


Weaknesses


Opportunities



Threats





151 | P a g e









consumption and

























as bread







152 | P a g e













Offer

41021 Import











301

179159

086049

023 011 009 006 004



153 | P a g e













41022 Export












-1000

100200300400500600700

2012-2016

2015-2016



154 | P a g e




















produced bread330





economic-sense

288

175

9979

285 1 1



155 | P a g e







































1DAA9DB8CDAA9



156 | P a g e


















economic-sense



157 | P a g e

Chocolate









Consumption









Strengths


Weaknesses


Opportunities


Threats





158 | P a g e



















society)335




















159 | P a g e

Offer

41121 Import













647

351 304

169

030 018 014 009 004 002 000



160 | P a g e





illegal ways340











-200

0

200

400

600

800

1000

1200

1400

1600

1800

2012-2016

2015-2016



161 | P a g e




























31

23

6 52




162 | P a g e









Asia and Europe





















products













163 | P a g e





















Ministry of Health



















Supermarket



164 | P a g e










165 | P a g e

Confectionery








tradition






diseases





Strengths



Weaknesses


Opportunities


Threats




166 | P a g e










cent













0 10 20 30 40 50

EU

Iran

Asia-Pacific Region


2024 Projection

2012-2014 Average



167 | P a g e











































168 | P a g e






occasions





premium segments359



















unique to Europe

Offer












169 | P a g e
























22

23

24

25

26

27

28

29

30

31

0

02

04

06

08

1

12

14

16

18

2002 2003 2004 2005 2006

Per

Cap

ita

Suga

r C

on

sum

pti

on

in K

G

Gro

ss D

om

esti

c O

utp

ut

of

Suga

r in

To

nn

es

Mill

ion

s

Sugar Production




170 | P a g e























0

01

02

03

04

05

06

0

50

100

150

200

250

300

350

400

450

500

2011 2012 2013 2014 2015 2016A

nn

ual

Su

gar

Pri

ce in

Eu

ro p

er K

G

Imp

ort

ed V

alu

e in

Eu

ro

Mill

ion

s

Cane and Beat Sugar





171 | P a g e









0

100

200

300

400

500

600

700

2004 2005 2006 2007 2008 2009 2010 2011

Imp

ort

ed V

alu

e in

Eu

ro

Mill

ion

s
















172 | P a g e

41231 Export











































173 | P a g e
























Agent Contract















174 | P a g e















necessary















years










175 | P a g e










markets














distribution chains






176 | P a g e

Honey Products
















Strengths



Weaknesses


Opportunities


Threats




177 | P a g e








Offer




















medicine

41322 Import












178 | P a g e


Chile


ITC Trade Map378


ITC Trade Map379


0

5

10

15

20

25

China23

Germany20

India14

Italy12

France6

Korea Republic of4

Switzerland4

Denmark3

Chile3

Netherlands3

Spain2

Belgium2

Philippines2

Other2



179 | P a g e












2016 ()

Netherlands 7722

Denmark 146

United Kingdom 113

Italy 70

Germany 40

Belgium 3

Spain -9

France -16

Austria -60

Ireland -77

ITC Trade Map380
















180 | P a g e












ITC Trade Map384








countries





0

5

10

15

20

25

30

35



181 | P a g e














0

5

10

15

20

25

30

2012 2013 2014 2015 2016

0

5

10

15

20

25

30

35

40

45

50




182 | P a g e
































through







183 | P a g e

Cotton Plants








OECD-FAO

Strengths


Weaknesses



Opportunities


Threats


0

20

40

60

80

100

120

140

160

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021



184 | P a g e















Offer













example395












185 | P a g e








sectors altogether





















250

260

270

280

290

300

310

320

330

2012 2013 2014 2015 2016 2017



186 | P a g e











country


compact genotypes)



41422 Import














187 | P a g e


copy UN Comtrade399


copy UN Comtrade400

41423 Export









000

5000

10000

15000

20000

25000

30000

2012 2013 2014 2015 2016

World

EU

United Arab

Emirates22

China42

Turkey22

India13

Other1



188 | P a g e







copy UN Comtrade402


copy UN Comtrade403





0

1

10

100

1000

2012 2013 2014 2015 2016

World

EU

China51

France21

Germany7

Sri Lanka5

Armenia5

Kazakhstan4

Turkey4

Georgia1

Other2



189 | P a g e


























for success406










through






190 | P a g e















191 | P a g e

Communication

Advertising in Iran


























Turkish410













192 | P a g e



































193 | P a g e











Resalat







Shargh










a more neutral tone

Tehran Times










Chronicle415





194 | P a g e























(IRNA)






languages










195 | P a g e



Chronicle419






their products



Digikala















in the Middle East

Bamilo









196 | P a g e













Techrasa421







awareness422




















197 | P a g e







advertising425









producers427
























198 | P a g e










































199 | P a g e







cultural concepts


























Iran






food-market



200 | P a g e





oriented
































201 | P a g e






























202 | P a g e

DOs AND DONrsquoTs



DO








surname


for delays



they insist







203 | P a g e

DONrsquoT









other on the cheeks



offended by



204 | P a g e

Quick Facts

The People














people first













Language





Body Language



205 | P a g e




disinterested


meetings


Corporate Culture














6 hours a day



Banking Systems













206 | P a g e



cent






meal


the food


where to sit

Business Holidays



period


year

Dress






Gifts




Helpful Hints







207 | P a g e

Synopsis





Iran

SWOT analysis

Strengths











5146 billion)











entrants






Weaknesses







government budget






















208 | P a g e



category






easier







GI Status







tricky




channel This makes










businesses

Opportunities











and Pakistan

Threats










collective



209 | P a g e





13012 USD (EUR 11349) to

17388 (EUR 15165) This









fruit and wheat See










demand










its opportunities

















demand














lower EU exporter

opportunities



210 | P a g e










with it







be able to

4P Analysis


Product












Promotion






to the product








211 | P a g e








should do well







in the country


the market



and follows dietary





market













fail in Iran









for Iranians


Synopsis Conclusion

212 | P a g e

Placement




Shiraz and Ahvaz



of supermarkets and




The large number of






arrangements here






Price





Western







FampB exporters








Iran

Conclusion









Synopsis Conclusion

213 | P a g e









new market entrants





















214 | P a g e





Commerce and Trade

infoincctnl


Chamber of Commerce


Agriculture

infoniccimacom

niccimacom

+31 20 2400 794

Deutsch-Iranische

Handelskammer eV

infodihkevde

dihkevde

+49 40 44 08 47


Commerce

adminbiccorguk

biccorguk

+44 20 7233 4441



infocciiit

cciiit

+39 06 59 26 206


+31 70 379 80 00


of Commerce

infoscan-irancom

scan-irancom

+46 8 559 140 20



infoniccceu

niccceu

+45 3694 4444



215 | P a g e


EU Member

State




teheran-obbmeiagvat

bmeiagvatteheran

+98 21 22 75 00-38 +98 21 22 75 00-40 +98 21 22

75 00-42




+98 21 22 39 87 80 +98 21 22 39 19 06 +98 21 22

24 73 13 +98 21 22 23 91 160



bulgrtehrnedanet

+98 21 88 77 5662 +98 21 88 77 5037



vrhteheranmvpeihr

+98 21 258 9923 +98 21 258 7039



1834844681 Tehran

cyprusparsonlinenet


+98 21 22 21 98 42 +98 21 22 01 240

Czech

Republic



and Sonbol)

tehranembassymzvcz



216 | P a g e

mzvcztehran

+98 21 22 28 81 49 +98 22 28 81 53



thrambumdk

ambteheranumdk

+ 98 21 22 60 13 63 + 98 21 22 60 70 20




armenmootafianmfaee

+98 21 88 82 95 51 +98 21 88 82 95 28



sanomattehforminfi

finlandorgir

+98 21 23 51 20 00


Chateau - Tehran


ambafrance-irorg

+98 21 64 09 4000



infoteherandiplode

teherandiplode

+98 21 39 99 00 00





217 | P a g e


+98 21 20 50 533 +98 21 20 53 784



POB636319395

+98 21 25 50 452



First Floor


+98 21 8804 1925


Chateau


ambteheranesteriit

+98 21 672 6955






TURKEY

ambtrurmlt

trmfalt

+90 312 447 07 66








218 | P a g e


+98 21 2640 5277 8



tehminbuzanl

+98 212 366 0000


1-3 19-174


teheranpolembnet

+98 21 8878 7262



portugalsrcoir

+98 21 254 3237


Baharestan Ave


+98 21 77 53 90 41 +98 21 77 64 75 70



embtehranmzvsk

mzvskTehran

+98 21 22 41 11 64



vtemzz-dkpsigovsi

+98 21 87 16 873 +98 21 87 16 661



219 | P a g e



embteheranmaeces

+98 21 225 68 681 682 683 684





+98 21 2371 2200 +98 21 2371 2200


Tehran

+98 21 6405 2000



220 | P a g e


Organisation

Associations

Contact details



infofoodimportersir

foodimportersir


(advertising)

daarvagcom



Business Council

pzarrinigccmir

igccmir

+981 21 66949103

Iran-Spain Business

Council

infoisbcir

isbcir

+98 21 88 38 1350

Iran Belgium amp



blccaorg

+98 21 88 50 08 91

Isfahan Union of

Restaurant Owners

etefoodcom







and Taverns


Tehran Food Sellers

Association



Trade Promotion


engtpoir



221 | P a g e


Communication

zigma8com





The 8th

International

Exhibition of Dairy

Beverage Tea

Coffee amp Related

Industries


2017

Mr Rabyi

+98 21 21 91 26 51

The 16th Iran

International

Confectionery Fair


2017


Co - +98 21 88 55 80

66

iranicfcom

The 2nd

International

Exhibition of Halal


related industries


2017


(MeatEx)

+98 21 21 91 29 60

+98 21 22 66 26 90

The 11th


Bakery Industry

Exhibition (Ibex

2017)


2017


Ibexir

+98 21 88 07 08 33

+98 21 88 07 06 93

The 16th

International


Livestock Dairy and

Related Industries


Co

Abolghasem Salar

Rezayee

CEOmiladgroupnet

+98 21 44 44 8216




222 | P a g e





















GI Associations



Maslo




Karlovarskeacute

Trojhraacutenky




Oplatky







223 | P a g e



France Cheese






Salers Haute-

Montagne

France Cheese












Huile Dolives De

Nyons

France Olive Oil


Pintadeaux De La

Drocircme

France Meat






224 | P a g e




Bresse

France Cheese


Beurre Charentes-

Poitou

France Butter

Beurre Des Deux-

Segravevres

France Butter




Mont dOr ou

Vacherin du Haut-

Doubs

France Cheese





ou

France Cheese

Camembert de

Normandie

France Cheese


Brocciu Corse Ou

Brocciu

France Cheese


Huile Dolive De La


Provence

France Olive Oil

Miel De Sapin Des

Vosges

France Honey



225 | P a g e


Di Corsica

France Honey

Pomme De Terre De

Licircle De Reacute





Sainte-Maure De

Touraine

France Cheese

Fourme De

Montbrison

France Cheese


Olives Noires De La


Provence



Kalocsa Kalocsaer

Kalocsai


Szeged Szegediner

Szegedi






Aceto Balsamico Di

Modena




Asiago Italy Cheese




226 | P a g e


Mela Alto Adige

Suumldtiroler Apfel





Campana

Italy Cheese


Nocciola Piemonte




Piave Italy Cheese

Pomodoro S Marzano


Nocerino






Cipolla Rossa Di

Tropea Calabria


Vitellone Bianco

Dellrsquoappennino

Centrale

Italy Meat



Formai De Mut

Dellrsquoalta Val

Brembana

Italy Cheese




227 | P a g e







Bitto Italy Cheese




228 | P a g e


Major Retailers

Name Type Contact


nationwide

etkastoresir


Shiraz Isfahan) 5


Lavasan)

hyperstarirancom

Refah

Supermarkets


country

refahir

Shahrvand

Supermarkets



shahrvandtehranir


Convenience stores


Bametehra

n

Supermarket

foreign

products


+982122123050

Family

Market

Supermarket (2

branches)

specialised in

international

products

ImportersDistr

ibutors

+98 21 2611 7399


etco

Sepah

Consumers

Cooperativ

e

Supermarket

chain (18

stores)

DirectDistribut

ors

infosepah-cocom

+982143487



information



229 | P a g e




Ferdowsi

International Grand

Hotel

Hotel +982166727026




food

+982122254535

+982122252124


Persian Esteghlal

International Hotel

Hotel +982122660011

Shandiz Traditional

BarbecueGrillKabab

+98212043



Name Type Contact


DTP

Trading


+ 9821- 88879507

Farzan

Rad

Consultin

g Co


infofarzanradcom

enfarzanradcom

+982188339015

Nixan

Trading

Co LLC


nixancoir

+98 21 4459 0790



230 | P a g e

Paktab

Food


+9126207645

Part

LabanPal

com





pim-coir

+98 21 22630689-90

Zareen

Group


+982188702036

+982188702038

Media



News Agency)


rfoodpressgmailcom


foodpressir

+989192056998 +9821 22379499


hamshahrionlineir



+98212781


irinnir

+982127866000


PR +982122262142



231 | P a g e



+982143051000


+982144956101-7


Site)

tabnakir


tasnimnewscom

+982142139961 (PR)


MD

infotehrantimescom

+98 (21)43051000

Editorial Dept

+98 (21) 43051601


adstehrantimescom

Bloggers

Bloggers name Info


shefblogfacom


Ketabi)



6060aspx



232 | P a g e


Dorosty)






arab_msyahoocom

arabomidblogfacom


Tour)



+989392575396

VIP Chefs


Excusersquo)


Contact

infosamangolrizir

samangolrizir


+989128885154

Contact

inforanjbarchefcom

ranjbarchefcom


+982188799474


Company Profile

233 | P a g e




Company Profile
























Challenges in Iran










234 | P a g e


















in Iran












products






products in Iran




235 | P a g e

Table of figures













the West 89



236 | P a g e



















euro millions) 132



237 | P a g e























238 | P a g e












value 2016) 188



239 | P a g e

List of tables














2 Country Overview

21 Iran at a glance




232 Distribution




31 SWOT analysis











4 Market snapshots

41 Beverages

411 Consumption


4112 Bottled Water


4114 Fruit Juice

4115 Energy Drinks


412 Offer

4121 Domestic Offer

4122 Imports


413 Distribution



4133 Fruit Juice


414 Summary


421 Consumption




422 Offer

4221 Domestic offer

4222 Import

4223 Export


42241 Organic Label



423 Distribution




424 Summary

43 Fresh meat

431 Consumption


432 Offer

4321 Import

4322 Export



433 Distribution

434 Summary

44 Processed meat

441 Consumption


442 Offer

4421 Domestic offer

4422 Import

4423 Export




443 Distribution


444 Summary

45 Olive Oil

451 Consumption


452 Offer

4521 Domestic offer

4522 Import

4523 Export



453 Distribution

454 Summary


461 Consumption




462 Offer

4621 Domestic offer

4622 Import

4623 Export





463 Distribution

464 Summary


471 Consumption




472 Offer

4721 Domestic offer

4722 Import

4723 Export




473 Distribution

474 Summary

48 Dairy Products

481 Consumption


4812 Cheese



482 Offer

4821 Import

483 Export




484 Distribution

485 Summary

491 Consumption



492 Offer

493 Export

4931 Import



494 Distribution

495 Summary

410 Baked Goods

4101 Consumption



4102 Offer

41021 Import

41022 Export




4103 Distribution

4104 Summary

411 Chocolate

4111 Consumption



4112 Offer

41121 Import

4113 Export




4114 Distribution

4115 Summary

412 Confectionery

4121 Consumption



4122 Offer


4123 Import

41231 Export




4124 Distribution


4125 Summary

413 Honey Products

4131 Consumption

4132 Offer


41322 Import

4133 Export


4134 Distribution

4135 Summary

414 Cotton Plants

4141 Consumption


4142 Offer


41422 Import

41423 Export



4143 Distribution

4144 Summary

5 Communication



521 Target Audience




61 DO

62 DONrsquoT

63 Quick Facts

7 Synopsis


72 4P Analysis

73 Conclusion








101 Major Retailers



105 Media

106 Bloggers

107 VIP Chefs


111 Company Profile




Table of figures

List of tables



2 | P a g e











Freephone number ()

00 800 6 7 8 9 10 11





3 | P a g e

Table of Contents



Country Overview 10

Iran at a glance 10




Distribution 31


Consumer profile 34


SWOT analysis 37











Market snapshots 55

Beverages 55

Consumption 55

Offer 59

Distribution 61

Summary 62


Consumption 64

Offer 68

Distribution 76

Summary 79



4 | P a g e

Fresh meat 80

Consumption 81

Offer 83

Distribution 87

Summary 87

Processed meat 88

Consumption 88

Offer 90

Distribution 94

Summary 95

Olive Oil 96

Consumption 96

Offer 99

Distribution 104

Summary 104


Consumption 106

Offer 108

Distribution 114

Summary 115


Consumption 117

Offer 120

Distribution 124

Summary 125

Dairy Products 126

Consumption 127

Offer 132

Export 133

Distribution 137

Summary 137


Consumption 139

Offer 143

Export 144



5 | P a g e

Distribution 148

Summary 148

Baked Goods 150

Consumption 150

Offer 152

Distribution 155

Summary 156

Chocolate 157

Consumption 157

Offer 159

Export 160

Distribution 163

Summary 163

Confectionery 165

Consumption 165

Offer 168

Import 170

Distribution 174

Summary 175

Honey Products 176

Consumption 176

Offer 177

Export 179

Distribution 181

Summary 182

Cotton Plants 183

Consumption 183

Offer 184

Distribution 189

Summary 189

Communication 191



Target Audience 199




6 | P a g e



DO 202

DONrsquoT 203

Quick Facts 204

Synopsis 207


4P Analysis 210

Conclusion 212








Major Retailers 228



Media 230

Bloggers 231

VIP Chefs 232


Success in Iran 233

Company Profile 233





List of tables 239



7 | P a g e

List of Acronyms










IRR Iranian Rial


Research of Iran







Rights Agreement





8 | P a g e









Iranian market













1 Beverages


3 Fresh Meat




8 Dairy Products

9 Processed Cereals


12 Confectionery









9 | P a g e



entry













10 | P a g e

Country Overview

Iran at a glance




South






11 | P a g e








vote4


































12 | P a g e


of its economy8


Iran


Eslami-ye Iran)




Capital Tehran

Flag



Balochi and Arabic

GDP PPP

- Per capita PPP

- Trend




latest 14397 EUR)










13 | P a g e

Currency


Iranian Rial (IRR)





to 30915 in 2016


$)


$)

12000

13000

14000

15000

16000

17000

18000

19000

900

950

1000

1050

1100

1150

1200

1250

1300

1350

1400

GD

P p

er c

ap

ita

PP

P (

curr

ent

inte

rna

tio

na

l $)

GD

P P

PP

(b

illio

n c

urr

ent

inte

rna

tio

na

l $)



14 | P a g e

Major cities


- Province

Tehran (Capital)

- 84 million

- Tehran

Mashhad

- 3 million

- Razavi Khorasan

Esfahan

- 188 million

- Isfahan

Karaj

- 181 million

- Alborz

Shiraz

- 166 million

- Fars

Tabriz

- 157 million

- East Azerbaijan



15 | P a g e

Population density


Population

- Median age

- Trend

- Age by cohort

79926270 (2016)

- 2940



grew at 660 from 2008-2011

and at 636 from 2011-2016



16 | P a g e




sector


over

2640 million




- 1270

5 4 3 2 1 0 1 2 3 4 5

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80-84

90-94

100 and over


Ag

e


Country Overview

17 | P a g e

Provinces




Overview





106 114

327 1327

077 278

070 129 127

086 328

143 176

160 071

471 643

195 316

058 178 174 187

253 485

512 391

095 116 127

271

ZanjanYazd



SemnanQom


MazandaranMarkazi

LorestanKordestan



KermanIlam


GilanFars





18 | P a g e


that time9







Egypt 78 (68 EUR)


Iran 59 (5145 EUR)




























19 | P a g e


567) billion13















(IDICC)

4954 (EUR 4321)


Production Group)

3897 (EUR 3399)















20 | P a g e












copy UN Comtrade19










000

100

200

300

400

500

600

700

800

900

2012 2013 2014 2015 2016

Exp

ort

s to

Iran

USD

bill

ion

World

EU-28



21 | P a g e


Category


value

Cereals 4457



waxes

1464





invertebrates 372




included

271


of plants 199



cooks products 113








wares 000

copy UN Comtrade21


billion EUR)






22 | P a g e








exporters (2016)22

copy UN Comtrade23







051

059

061

063

065

077

081

082

134

210

243

301

343

371

380

554

694

919

1705

3176

Ecuador

Australia

Romania

Rep of Korea

USA

Spain

Philippines

France

Indonesia

New Zealand

Argentina

Kazakhstan

Turkey

Sri Lanka

China

Germany

Malaysia

Russian Federation

India

Brazil



23 | P a g e



copy UN Comtrade24





Brazil

Brazil

BrazilBrazil

India

India

India

India

Russia

Russia

Malaysia

Mal

aysi

a

Ge

rman

y

Germany

Ch

ina

Ch

ina

China

Sri Lanka

Turkey

Turkey

Turkey

Kazakhstan

Argentina

Other

Other

Other OtherOther

Other

Other

0

10

20

30

40

50

60

70

80

90

100




waxes

Meat andedible meat

offal

Coffee teamate and

spices

Sugars andsugar

confectionery


Miscellaneousedible

preparations



24 | P a g e




markets
























25 | P a g e


World Bank28



Road







0

1

2

3

4

5Customs

Infrastructure




Timeliness




26 | P a g e









Bandar

Abbas

16h 22h 11h 8h 17h 16h 10h







27 | P a g e

Bandar

Anzali

(Rasht)

5h 7h 10h 16h 14h 6h 13h

Bandar Imam

(Port

close to Ahvaz)

13h 16h 11h 7h 20h 10h 12h


Air














28 | P a g e



Maritime Shipping


















29 | P a g e







Rail












30 | P a g e







and Asalouyeh39













31 | P a g e









Abbas

Bandar Imam

Khomeini

Khosravi



Mashhad 12 16h - 15h 21h 18h

Bandar

Abbas 17h 21h 15h - 12h 18h

Bandar Imam

Khomeini

15h 15h 21h 12h - 10h





Distribution








in 201641









32 | P a g e
































33 | P a g e


Overall 120



Permits 27



Getting Credit 101


Paying Taxes 100




World Bank
























34 | P a g e






Consumer profile

































35 | P a g e




























hypermarkets54








36 | P a g e




















37 | P a g e

SWOT analysis

Strengths



Weaknesses



Opportunities



Threats






38 | P a g e

Market information




























studied







39 | P a g e


by sub-category

Eurostat60



category
















euro 0

euro 100000000

euro 200000000

euro 300000000

euro 400000000

euro 500000000

euro 600000000

euro 700000000

euro 800000000

euro 900000000

euro 1000000000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Va

lue

in E

UR







40 | P a g e


sector62




the economy as well













will not be so 64











November 2017








41 | P a g e



























Raffeisen (Austria)

BCP (Switzerland)








42 | P a g e



Tehran























Khorasan-e-Razavi














43 | P a g e


railroad



city the name

means lsquothe

burial place of a

martyrrsquo and


the holy Shrine

of Imam Reza

every year


primarily

focused on the

tourism trade


900 km East



Esfahan













44 | P a g e












network and the








Fars










Khuzestan










45 | P a g e





entire country












Copyright copy



46 | P a g e









to
















market






47 | P a g e














here


2017 available at






agencies)




48 | P a g e





































49 | P a g e



















Customs







Beef 5-15


Fish 5-40









50 | P a g e

Prepared fish 40-55


500 gr or less 55


more than 500 gr 20

Cheese 55


Wheat 10








website








SPS requirements








2017 available at




51 | P a g e


Area Details


Origin





Affairs


Pest Risk Analysis

(PRA)





Organisation

Plants and

Plant

Products










Organisation


Foodstuffs








52 | P a g e








market















the goods


Labelling





2017 available at




bodies

53 | P a g e



Product and brand

nametrademark







manufacturer



allowed


applicable



Islamic rules













states90



httpwwwecointin2htm



bodies

54 | P a g e














copy UN Comtrade92


2017 available at



$0

$200000000

$400000000

$600000000

$800000000

$1000000000

$1200000000

$1400000000

$1600000000

2012 2013 2014 2015 2016

Trad

e v

alu

e (

USD

)

EU-28

ECO



55 | P a g e

Market snapshots

Beverages

Consumption












Strengths




Weaknesses



Opportunities



Threats






56 | P a g e




in Iran94























4112 Bottled Water








iran-meager





57 | P a g e



























4114 Fruit Juice














58 | P a g e









4115 Energy Drinks



young energy drinks




sugar and caffeine


the energy drinks

market


campaigns to seduce
















59 | P a g e




consumers102

Offer

4121 Domestic Offer






4122 Imports










Thailand34

Spain15Kuwait

13

Brazil12

Oman8

United Kingdom8

Italy3

Netherlands3

Germany2

Ireland2



60 | P a g e






Health






States and EU















34

2011

7

7

5

4

43

3 2

Russian Federation

Germany

Austria

Turkey

Kuwait

Korea Republic of

Netherlands

Japan

Malaysia

India

Canada



61 | P a g e







Distribution











younger Iranians
















62 | P a g e

4133 Fruit Juice



Iran



















Summary











63 | P a g e





64 | P a g e


Consumption











Strengths



Weaknesses




Opportunities



Threats





65 | P a g e








































66 | P a g e









begin with
































67 | P a g e











exported into Iran





























68 | P a g e










Offer



Iranrsquos market

4221 Domestic offer








Agreement124
















of Saveh copy



69 | P a g e


















annually 130

4222 Import






4223 Export







available at








70 | P a g e


































71 | P a g e



Relevant Regulatory

Framework




conditions


Agreement



Type of

Protection



Scope of

Legislation



are excluded


website here


National Law


Article I





Article III







Article 1(A)



72 | P a g e

Article V








Article VII








Article VIII









Article IX






conditions






73 | P a g e



















WIPO138






















74 | P a g e




see Annex I






42241 Organic Label





























75 | P a g e


















GI status




















76 | P a g e


















Distribution



Western products
















77 | P a g e







retail outlets
















few wholesalers154
















78 | P a g e




















this157




company158















79 | P a g e



Summary













superior products



80 | P a g e

Fresh meat












Strengths


Weaknesses



Opportunities


Threats




81 | P a g e

Consumption





OECD ndash FAO







OECD ndash FAO



poultry 7880

beef amp veal 1008

sheep 1112

27

28

29

30

31

32

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Co

nsu

mp

tio

n k

g p

r ca

pit

a



82 | P a g e



















revolution





















83 | P a g e



Offer





















4321 Import















84 | P a g e
























1

10

100

1000

10000

100000

1000000

Va

lue

EU

R 0

00

s



85 | P a g e

4322 Export











Luxembourg








market172









86 | P a g e


























1

10

100

1000

10000

Va

lue

EU

R 0

00

s



87 | P a g e




Distribution















Summary














88 | P a g e

Processed meat

Consumption












Strengths


Weaknesses



Opportunities


Threats




89 | P a g e




























West copy



90 | P a g e



Offer

4421 Domestic offer









statistical-surveyb

000

500

1000

1500

2000

2500

3000

Total 1stdecile

2nddecile

3rddecile

4thdecile

5thdecile

6thdecile

7thdecile

8thdecile

9thdecile

10thdecile

Processed meat

Fresh meat



91 | P a g e



4422 Import












2654

2235

2556 25952694 2726

2011 2012 2013 2014 2015 2016

Pro

du

ctio

n 1

00

0 t

on

s



92 | P a g e



4423 Export













0

500

1000

1500

2000

2500V

alu

e EU

R 0

00

s



93 | P a g e


ITC Trade Map186





















0

200

400

600

800

1000

1200

1400

1600

1800

2000V

alu

e E

UR

00

0s




94 | P a g e





















Distribution







as billboards192










95 | P a g e








Summary
















96 | P a g e

Olive Oil

Consumption








Strengths



Weaknesses


Opportunities


Threats





97 | P a g e



IOC196









0

20

40

60

80

100

120

140

160



98 | P a g e


Badkoobeh



201516 and 201617198


IOC199




not at all51


14


18


17

0

2

4

6

8

10

12

14

201011 201112 201213 201314 201415 201516(prediction)

201617(prediction)



99 | P a g e


























Offer

4521 Domestic offer















100 | P a g e














association202



4522 Import






0

1

2

3

4

5

6

7

8

201011 201112 201213 201314 201415 201516(prediction)

201617(prediction)



101 | P a g e




table below


copy UN Comtrade204





figure below






0

5

10

15

20

25

30

35

2012 2013 2014 2015 2016

Total

EU



102 | P a g e


copy UN Comtrade205

4523 Export









value that year



Spain 5270

Turkey 27

Italy 1540




103 | P a g e


copy UN Comtrade206


















206 Ibid

0

10

20

30

40

50

60

70

2012 2013 2014 2015 2016

Total

EU




104 | P a g e






the country207

Distribution









Summary























105 | P a g e

















Strengths




Weaknesses



Opportunities




Threats





106 | P a g e











Consumption



























107 | P a g e







ingredients



processed

counterparts This

can be traced to





























108 | P a g e




























Offer

4621 Domestic offer








109 | P a g e











Walnut 3rd Kiwi 3rd




Plum 5th Peach amp

Nectarine

6th







Gourd

4th





are exported221











110 | P a g e












4622 Import





















111 | P a g e


Euro millions


4623 Export














0

50

100

150

200

250

300

350

400

450

500


Vegetables

2012

2013

2014

2015



112 | P a g e


2012 2013 2014 2015 Fru

its

(n

o

nu

ts)

$1316569482

(euro1144843028)

$953109704

(euro 828791047)

$1109620866

(euro 964887710)

$861965515

(euro 749535230)

Veg

eta

ble

s

$711570489

(euro 618756947)

$484545293

(euro 421343733)

$818264285

(euro 711534161)

$683361778

(euro 594227633)

Nu

ts $1158578088

(euro 1007459207)

$1029098880

(euro 894868591)

$1668882856

(euro 1451202483)

$1111863632

(euro 966837941)

TOTAL

$3186718059

(euro 2771059182)

$2466753877

(euro 2145003371)

$3596768007

(euro 3127624354)

$2657190925

(euro 2310600804)






habits229














113 | P a g e

















produced locally






















114 | P a g e







Distribution


years However

small grocery


represent 90 of

the food and

beverage


fruit and

vegetables are

dominated by


outlets

Producers of

fresh fruit and

















115 | P a g e












Summary


















116 | P a g e
















Strengths




Weaknesses




Opportunities




Threats





117 | P a g e

















longer term








sanctions














118 | P a g e









































iran-embassy


Supermarket



119 | P a g e










































120 | P a g e









categories





term

















Offer

4721 Domestic offer












121 | P a g e


vegetables











4722 Import












Product Total

Canned Fruit 0

Canned Vegetables 2

Frozen Fruit 1



4723 Export








122 | P a g e




























0

50

100

150

200

250

300

2016

Canned Fruit

Canned Vegetables

Frozen Fruit

Frozen Vegetables



123 | P a g e
















vegetable products


















124 | P a g e












































125 | P a g e





















126 | P a g e

Dairy Products
















prospects

Strengths


Weaknesses



Opportunities


Threats




127 | P a g e








OECD-FAO


OECD-FAO







28

285

29

295

30

305

31

315

32

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021


Butter 1064

Cheese 1054



128 | P a g e







OECD-FAO


OECD-FAO










0

100

200

300

400

500

600

522648

535878

523532

503284

509214516247

522462528255

533525 53865

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021



129 | P a g e






























4812 Cheese














130 | P a g e


to previous years


OECD-FAO



increase in cheese



period 2011 -2015













the country







272415268527

259214255522

250001 251535

2011 2012 2013 2014 2015 2016




131 | P a g e










OECD-FAO


















prospects

769757 761

7778

793807

821835

85864

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021



132 | P a g e





















sectors





4821 Import














133 | P a g e










0

5

10

15

20

25

30

-200

0

200

400

600

800

1000

1200

2012-2016

2015-2016



134 | P a g e






OECD-FAO






0

20

40

60

80

100

120

140

160

180

200


2011 2012 2013 2014 2015 2016

2257 2264

34083825

454843



135 | P a g e










network



























exports-expand



136 | P a g e










































137 | P a g e



















foreign goods293























138 | P a g e




investments



139 | P a g e

Processed Cereals













Strengths



Weaknesses



Opportunities


Threats




140 | P a g e

























cereals-in-2017



141 | P a g e













products



industry

India40

Netherlands20

Belgium10

Germany6

Thailand6

France5

Italy5

Georgia4

Malaysia4



142 | P a g e








(lentil) soup



















Kazakhstan43


Germany18

France6

Estonia4



143 | P a g e
















categories


2012-2016

average 2016

2017

forecast

Change

20172016

000 tonnes percent

Wheat 10774 13500 13500 0

Barley 2776 3000 3100 3

Rice

(paddy) 2405 2520 2600 3

Others 1486 910 910 0

Total 17410 19930 20110 1








permission



144 | P a g e








copy UN Comtrade304






2012 2013 2014 2015 2016

Price per kg

(USD)

098 (EUR

085)

127 (EUR

101)

188 (EUR

164)

204 (EUR

178)

194

(169)

copy UN Comtrade305






0

50000

100000

150000

200000

250000

300000

$0

$100000

$200000

$300000

$400000

$500000

$600000

2012 2013 2014 2015 2016

Net

wei

ght

(kg)

Trad

e V

alu

e (U

S$)




145 | P a g e


copy UN Comtrade306

4931 Import






copy UN Comtrade307



UAE 2172

Jordan 2018

Poland 1410

Germany 1079

Other 1046

Sweden 688

Armenia 760

Bahrain 262


0

200000

400000

600000

800000

1000000

1200000

$0

$500000

$1000000

$1500000

$2000000

$2500000

$3000000

$3500000

2012 2013 2014 2015 2016

Net

wei

ght

(kg)

Trad

e V

alu

e (U

S$)




146 | P a g e





2012 2013 2014 2015 2016

Price per kg

(USD)

279 (EUR

243)

211 (EUR

184)

212 (EUR

185)

251 (EUR

219)

291

(EUR

254)

copyUN Comtrade308



regional proximity



copy UN Comtrade309



Switzerland 1919

France 1225

UAE 1143


Germany 956

Poland 571

Spain 955

Malaysia 464

Other 376 China 282



147 | P a g e























148 | P a g e












the country






partner 315









continue to do so










Supermarket



149 | P a g e



continue


















150 | P a g e

Baked Goods









Consumption








global average

Strengths


Weaknesses


Opportunities



Threats





151 | P a g e









consumption and

























as bread







152 | P a g e













Offer

41021 Import











301

179159

086049

023 011 009 006 004



153 | P a g e













41022 Export












-1000

100200300400500600700

2012-2016

2015-2016



154 | P a g e




















produced bread330





economic-sense

288

175

9979

285 1 1



155 | P a g e







































1DAA9DB8CDAA9



156 | P a g e


















economic-sense



157 | P a g e

Chocolate









Consumption









Strengths


Weaknesses


Opportunities


Threats





158 | P a g e



















society)335




















159 | P a g e

Offer

41121 Import













647

351 304

169

030 018 014 009 004 002 000



160 | P a g e





illegal ways340











-200

0

200

400

600

800

1000

1200

1400

1600

1800

2012-2016

2015-2016



161 | P a g e




























31

23

6 52




162 | P a g e









Asia and Europe





















products













163 | P a g e





















Ministry of Health



















Supermarket



164 | P a g e










165 | P a g e

Confectionery








tradition






diseases





Strengths



Weaknesses


Opportunities


Threats




166 | P a g e










cent













0 10 20 30 40 50

EU

Iran

Asia-Pacific Region


2024 Projection

2012-2014 Average



167 | P a g e











































168 | P a g e






occasions





premium segments359



















unique to Europe

Offer












169 | P a g e
























22

23

24

25

26

27

28

29

30

31

0

02

04

06

08

1

12

14

16

18

2002 2003 2004 2005 2006

Per

Cap

ita

Suga

r C

on

sum

pti

on

in K

G

Gro

ss D

om

esti

c O

utp

ut

of

Suga

r in

To

nn

es

Mill

ion

s

Sugar Production




170 | P a g e























0

01

02

03

04

05

06

0

50

100

150

200

250

300

350

400

450

500

2011 2012 2013 2014 2015 2016A

nn

ual

Su

gar

Pri

ce in

Eu

ro p

er K

G

Imp

ort

ed V

alu

e in

Eu

ro

Mill

ion

s

Cane and Beat Sugar





171 | P a g e









0

100

200

300

400

500

600

700

2004 2005 2006 2007 2008 2009 2010 2011

Imp

ort

ed V

alu

e in

Eu

ro

Mill

ion

s
















172 | P a g e

41231 Export











































173 | P a g e
























Agent Contract















174 | P a g e















necessary















years










175 | P a g e










markets














distribution chains






176 | P a g e

Honey Products
















Strengths



Weaknesses


Opportunities


Threats




177 | P a g e








Offer




















medicine

41322 Import












178 | P a g e


Chile


ITC Trade Map378


ITC Trade Map379


0

5

10

15

20

25

China23

Germany20

India14

Italy12

France6

Korea Republic of4

Switzerland4

Denmark3

Chile3

Netherlands3

Spain2

Belgium2

Philippines2

Other2



179 | P a g e












2016 ()

Netherlands 7722

Denmark 146

United Kingdom 113

Italy 70

Germany 40

Belgium 3

Spain -9

France -16

Austria -60

Ireland -77

ITC Trade Map380
















180 | P a g e












ITC Trade Map384








countries





0

5

10

15

20

25

30

35



181 | P a g e














0

5

10

15

20

25

30

2012 2013 2014 2015 2016

0

5

10

15

20

25

30

35

40

45

50




182 | P a g e
































through







183 | P a g e

Cotton Plants








OECD-FAO

Strengths


Weaknesses



Opportunities


Threats


0

20

40

60

80

100

120

140

160

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021



184 | P a g e















Offer













example395












185 | P a g e








sectors altogether





















250

260

270

280

290

300

310

320

330

2012 2013 2014 2015 2016 2017



186 | P a g e











country


compact genotypes)



41422 Import














187 | P a g e


copy UN Comtrade399


copy UN Comtrade400

41423 Export









000

5000

10000

15000

20000

25000

30000

2012 2013 2014 2015 2016

World

EU

United Arab

Emirates22

China42

Turkey22

India13

Other1



188 | P a g e







copy UN Comtrade402


copy UN Comtrade403





0

1

10

100

1000

2012 2013 2014 2015 2016

World

EU

China51

France21

Germany7

Sri Lanka5

Armenia5

Kazakhstan4

Turkey4

Georgia1

Other2



189 | P a g e


























for success406










through






190 | P a g e















191 | P a g e

Communication

Advertising in Iran


























Turkish410













192 | P a g e



































193 | P a g e











Resalat







Shargh










a more neutral tone

Tehran Times










Chronicle415





194 | P a g e























(IRNA)






languages










195 | P a g e



Chronicle419






their products



Digikala















in the Middle East

Bamilo









196 | P a g e













Techrasa421







awareness422




















197 | P a g e







advertising425









producers427
























198 | P a g e










































199 | P a g e







cultural concepts


























Iran






food-market



200 | P a g e





oriented
































201 | P a g e






























202 | P a g e

DOs AND DONrsquoTs



DO








surname


for delays



they insist







203 | P a g e

DONrsquoT









other on the cheeks



offended by



204 | P a g e

Quick Facts

The People














people first













Language





Body Language



205 | P a g e




disinterested


meetings


Corporate Culture














6 hours a day



Banking Systems













206 | P a g e



cent






meal


the food


where to sit

Business Holidays



period


year

Dress






Gifts




Helpful Hints







207 | P a g e

Synopsis





Iran

SWOT analysis

Strengths











5146 billion)











entrants






Weaknesses







government budget






















208 | P a g e



category






easier







GI Status







tricky




channel This makes










businesses

Opportunities











and Pakistan

Threats










collective



209 | P a g e





13012 USD (EUR 11349) to

17388 (EUR 15165) This









fruit and wheat See










demand










its opportunities

















demand














lower EU exporter

opportunities



210 | P a g e










with it







be able to

4P Analysis


Product












Promotion






to the product








211 | P a g e








should do well







in the country


the market



and follows dietary





market













fail in Iran









for Iranians


Synopsis Conclusion

212 | P a g e

Placement




Shiraz and Ahvaz



of supermarkets and




The large number of






arrangements here






Price





Western







FampB exporters








Iran

Conclusion









Synopsis Conclusion

213 | P a g e









new market entrants





















214 | P a g e





Commerce and Trade

infoincctnl


Chamber of Commerce


Agriculture

infoniccimacom

niccimacom

+31 20 2400 794

Deutsch-Iranische

Handelskammer eV

infodihkevde

dihkevde

+49 40 44 08 47


Commerce

adminbiccorguk

biccorguk

+44 20 7233 4441



infocciiit

cciiit

+39 06 59 26 206


+31 70 379 80 00


of Commerce

infoscan-irancom

scan-irancom

+46 8 559 140 20



infoniccceu

niccceu

+45 3694 4444



215 | P a g e


EU Member

State




teheran-obbmeiagvat

bmeiagvatteheran

+98 21 22 75 00-38 +98 21 22 75 00-40 +98 21 22

75 00-42




+98 21 22 39 87 80 +98 21 22 39 19 06 +98 21 22

24 73 13 +98 21 22 23 91 160



bulgrtehrnedanet

+98 21 88 77 5662 +98 21 88 77 5037



vrhteheranmvpeihr

+98 21 258 9923 +98 21 258 7039



1834844681 Tehran

cyprusparsonlinenet


+98 21 22 21 98 42 +98 21 22 01 240

Czech

Republic



and Sonbol)

tehranembassymzvcz



216 | P a g e

mzvcztehran

+98 21 22 28 81 49 +98 22 28 81 53



thrambumdk

ambteheranumdk

+ 98 21 22 60 13 63 + 98 21 22 60 70 20




armenmootafianmfaee

+98 21 88 82 95 51 +98 21 88 82 95 28



sanomattehforminfi

finlandorgir

+98 21 23 51 20 00


Chateau - Tehran


ambafrance-irorg

+98 21 64 09 4000



infoteherandiplode

teherandiplode

+98 21 39 99 00 00





217 | P a g e


+98 21 20 50 533 +98 21 20 53 784



POB636319395

+98 21 25 50 452



First Floor


+98 21 8804 1925


Chateau


ambteheranesteriit

+98 21 672 6955






TURKEY

ambtrurmlt

trmfalt

+90 312 447 07 66








218 | P a g e


+98 21 2640 5277 8



tehminbuzanl

+98 212 366 0000


1-3 19-174


teheranpolembnet

+98 21 8878 7262



portugalsrcoir

+98 21 254 3237


Baharestan Ave


+98 21 77 53 90 41 +98 21 77 64 75 70



embtehranmzvsk

mzvskTehran

+98 21 22 41 11 64



vtemzz-dkpsigovsi

+98 21 87 16 873 +98 21 87 16 661



219 | P a g e



embteheranmaeces

+98 21 225 68 681 682 683 684





+98 21 2371 2200 +98 21 2371 2200


Tehran

+98 21 6405 2000



220 | P a g e


Organisation

Associations

Contact details



infofoodimportersir

foodimportersir


(advertising)

daarvagcom



Business Council

pzarrinigccmir

igccmir

+981 21 66949103

Iran-Spain Business

Council

infoisbcir

isbcir

+98 21 88 38 1350

Iran Belgium amp



blccaorg

+98 21 88 50 08 91

Isfahan Union of

Restaurant Owners

etefoodcom







and Taverns


Tehran Food Sellers

Association



Trade Promotion


engtpoir



221 | P a g e


Communication

zigma8com





The 8th

International

Exhibition of Dairy

Beverage Tea

Coffee amp Related

Industries


2017

Mr Rabyi

+98 21 21 91 26 51

The 16th Iran

International

Confectionery Fair


2017


Co - +98 21 88 55 80

66

iranicfcom

The 2nd

International

Exhibition of Halal


related industries


2017


(MeatEx)

+98 21 21 91 29 60

+98 21 22 66 26 90

The 11th


Bakery Industry

Exhibition (Ibex

2017)


2017


Ibexir

+98 21 88 07 08 33

+98 21 88 07 06 93

The 16th

International


Livestock Dairy and

Related Industries


Co

Abolghasem Salar

Rezayee

CEOmiladgroupnet

+98 21 44 44 8216




222 | P a g e





















GI Associations



Maslo




Karlovarskeacute

Trojhraacutenky




Oplatky







223 | P a g e



France Cheese






Salers Haute-

Montagne

France Cheese












Huile Dolives De

Nyons

France Olive Oil


Pintadeaux De La

Drocircme

France Meat






224 | P a g e




Bresse

France Cheese


Beurre Charentes-

Poitou

France Butter

Beurre Des Deux-

Segravevres

France Butter




Mont dOr ou

Vacherin du Haut-

Doubs

France Cheese





ou

France Cheese

Camembert de

Normandie

France Cheese


Brocciu Corse Ou

Brocciu

France Cheese


Huile Dolive De La


Provence

France Olive Oil

Miel De Sapin Des

Vosges

France Honey



225 | P a g e


Di Corsica

France Honey

Pomme De Terre De

Licircle De Reacute





Sainte-Maure De

Touraine

France Cheese

Fourme De

Montbrison

France Cheese


Olives Noires De La


Provence



Kalocsa Kalocsaer

Kalocsai


Szeged Szegediner

Szegedi






Aceto Balsamico Di

Modena




Asiago Italy Cheese




226 | P a g e


Mela Alto Adige

Suumldtiroler Apfel





Campana

Italy Cheese


Nocciola Piemonte




Piave Italy Cheese

Pomodoro S Marzano


Nocerino






Cipolla Rossa Di

Tropea Calabria


Vitellone Bianco

Dellrsquoappennino

Centrale

Italy Meat



Formai De Mut

Dellrsquoalta Val

Brembana

Italy Cheese




227 | P a g e







Bitto Italy Cheese




228 | P a g e


Major Retailers

Name Type Contact


nationwide

etkastoresir


Shiraz Isfahan) 5


Lavasan)

hyperstarirancom

Refah

Supermarkets


country

refahir

Shahrvand

Supermarkets



shahrvandtehranir


Convenience stores


Bametehra

n

Supermarket

foreign

products


+982122123050

Family

Market

Supermarket (2

branches)

specialised in

international

products

ImportersDistr

ibutors

+98 21 2611 7399


etco

Sepah

Consumers

Cooperativ

e

Supermarket

chain (18

stores)

DirectDistribut

ors

infosepah-cocom

+982143487



information



229 | P a g e




Ferdowsi

International Grand

Hotel

Hotel +982166727026




food

+982122254535

+982122252124


Persian Esteghlal

International Hotel

Hotel +982122660011

Shandiz Traditional

BarbecueGrillKabab

+98212043



Name Type Contact


DTP

Trading


+ 9821- 88879507

Farzan

Rad

Consultin

g Co


infofarzanradcom

enfarzanradcom

+982188339015

Nixan

Trading

Co LLC


nixancoir

+98 21 4459 0790



230 | P a g e

Paktab

Food


+9126207645

Part

LabanPal

com





pim-coir

+98 21 22630689-90

Zareen

Group


+982188702036

+982188702038

Media



News Agency)


rfoodpressgmailcom


foodpressir

+989192056998 +9821 22379499


hamshahrionlineir



+98212781


irinnir

+982127866000


PR +982122262142



231 | P a g e



+982143051000


+982144956101-7


Site)

tabnakir


tasnimnewscom

+982142139961 (PR)


MD

infotehrantimescom

+98 (21)43051000

Editorial Dept

+98 (21) 43051601


adstehrantimescom

Bloggers

Bloggers name Info


shefblogfacom


Ketabi)



6060aspx



232 | P a g e


Dorosty)






arab_msyahoocom

arabomidblogfacom


Tour)



+989392575396

VIP Chefs


Excusersquo)


Contact

infosamangolrizir

samangolrizir


+989128885154

Contact

inforanjbarchefcom

ranjbarchefcom


+982188799474


Company Profile

233 | P a g e




Company Profile
























Challenges in Iran










234 | P a g e


















in Iran












products






products in Iran




235 | P a g e

Table of figures













the West 89



236 | P a g e



















euro millions) 132



237 | P a g e























238 | P a g e












value 2016) 188



239 | P a g e

List of tables














2 Country Overview

21 Iran at a glance




232 Distribution




31 SWOT analysis











4 Market snapshots

41 Beverages

411 Consumption


4112 Bottled Water


4114 Fruit Juice

4115 Energy Drinks


412 Offer

4121 Domestic Offer

4122 Imports


413 Distribution



4133 Fruit Juice


414 Summary


421 Consumption




422 Offer

4221 Domestic offer

4222 Import

4223 Export


42241 Organic Label



423 Distribution




424 Summary

43 Fresh meat

431 Consumption


432 Offer

4321 Import

4322 Export



433 Distribution

434 Summary

44 Processed meat

441 Consumption


442 Offer

4421 Domestic offer

4422 Import

4423 Export




443 Distribution


444 Summary

45 Olive Oil

451 Consumption


452 Offer

4521 Domestic offer

4522 Import

4523 Export



453 Distribution

454 Summary


461 Consumption




462 Offer

4621 Domestic offer

4622 Import

4623 Export





463 Distribution

464 Summary


471 Consumption




472 Offer

4721 Domestic offer

4722 Import

4723 Export




473 Distribution

474 Summary

48 Dairy Products

481 Consumption


4812 Cheese



482 Offer

4821 Import

483 Export




484 Distribution

485 Summary

491 Consumption



492 Offer

493 Export

4931 Import



494 Distribution

495 Summary

410 Baked Goods

4101 Consumption



4102 Offer

41021 Import

41022 Export




4103 Distribution

4104 Summary

411 Chocolate

4111 Consumption



4112 Offer

41121 Import

4113 Export




4114 Distribution

4115 Summary

412 Confectionery

4121 Consumption



4122 Offer


4123 Import

41231 Export




4124 Distribution


4125 Summary

413 Honey Products

4131 Consumption

4132 Offer


41322 Import

4133 Export


4134 Distribution

4135 Summary

414 Cotton Plants

4141 Consumption


4142 Offer


41422 Import

41423 Export



4143 Distribution

4144 Summary

5 Communication



521 Target Audience




61 DO

62 DONrsquoT

63 Quick Facts

7 Synopsis


72 4P Analysis

73 Conclusion








101 Major Retailers



105 Media

106 Bloggers

107 VIP Chefs


111 Company Profile




Table of figures

List of tables



3 | P a g e

Table of Contents



Country Overview 10

Iran at a glance 10




Distribution 31


Consumer profile 34


SWOT analysis 37











Market snapshots 55

Beverages 55

Consumption 55

Offer 59

Distribution 61

Summary 62


Consumption 64

Offer 68

Distribution 76

Summary 79



4 | P a g e

Fresh meat 80

Consumption 81

Offer 83

Distribution 87

Summary 87

Processed meat 88

Consumption 88

Offer 90

Distribution 94

Summary 95

Olive Oil 96

Consumption 96

Offer 99

Distribution 104

Summary 104


Consumption 106

Offer 108

Distribution 114

Summary 115


Consumption 117

Offer 120

Distribution 124

Summary 125

Dairy Products 126

Consumption 127

Offer 132

Export 133

Distribution 137

Summary 137


Consumption 139

Offer 143

Export 144



5 | P a g e

Distribution 148

Summary 148

Baked Goods 150

Consumption 150

Offer 152

Distribution 155

Summary 156

Chocolate 157

Consumption 157

Offer 159

Export 160

Distribution 163

Summary 163

Confectionery 165

Consumption 165

Offer 168

Import 170

Distribution 174

Summary 175

Honey Products 176

Consumption 176

Offer 177

Export 179

Distribution 181

Summary 182

Cotton Plants 183

Consumption 183

Offer 184

Distribution 189

Summary 189

Communication 191



Target Audience 199




6 | P a g e



DO 202

DONrsquoT 203

Quick Facts 204

Synopsis 207


4P Analysis 210

Conclusion 212








Major Retailers 228



Media 230

Bloggers 231

VIP Chefs 232


Success in Iran 233

Company Profile 233





List of tables 239



7 | P a g e

List of Acronyms










IRR Iranian Rial


Research of Iran







Rights Agreement





8 | P a g e









Iranian market













1 Beverages


3 Fresh Meat




8 Dairy Products

9 Processed Cereals


12 Confectionery









9 | P a g e



entry













10 | P a g e

Country Overview

Iran at a glance




South






11 | P a g e








vote4


































12 | P a g e


of its economy8


Iran


Eslami-ye Iran)




Capital Tehran

Flag



Balochi and Arabic

GDP PPP

- Per capita PPP

- Trend




latest 14397 EUR)










13 | P a g e

Currency


Iranian Rial (IRR)





to 30915 in 2016


$)


$)

12000

13000

14000

15000

16000

17000

18000

19000

900

950

1000

1050

1100

1150

1200

1250

1300

1350

1400

GD

P p

er c

ap

ita

PP

P (

curr

ent

inte

rna

tio

na

l $)

GD

P P

PP

(b

illio

n c

urr

ent

inte

rna

tio

na

l $)



14 | P a g e

Major cities


- Province

Tehran (Capital)

- 84 million

- Tehran

Mashhad

- 3 million

- Razavi Khorasan

Esfahan

- 188 million

- Isfahan

Karaj

- 181 million

- Alborz

Shiraz

- 166 million

- Fars

Tabriz

- 157 million

- East Azerbaijan



15 | P a g e

Population density


Population

- Median age

- Trend

- Age by cohort

79926270 (2016)

- 2940



grew at 660 from 2008-2011

and at 636 from 2011-2016



16 | P a g e




sector


over

2640 million




- 1270

5 4 3 2 1 0 1 2 3 4 5

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80-84

90-94

100 and over


Ag

e


Country Overview

17 | P a g e

Provinces




Overview





106 114

327 1327

077 278

070 129 127

086 328

143 176

160 071

471 643

195 316

058 178 174 187

253 485

512 391

095 116 127

271

ZanjanYazd



SemnanQom


MazandaranMarkazi

LorestanKordestan



KermanIlam


GilanFars





18 | P a g e


that time9







Egypt 78 (68 EUR)


Iran 59 (5145 EUR)




























19 | P a g e


567) billion13















(IDICC)

4954 (EUR 4321)


Production Group)

3897 (EUR 3399)















20 | P a g e












copy UN Comtrade19










000

100

200

300

400

500

600

700

800

900

2012 2013 2014 2015 2016

Exp

ort

s to

Iran

USD

bill

ion

World

EU-28



21 | P a g e


Category


value

Cereals 4457



waxes

1464





invertebrates 372




included

271


of plants 199



cooks products 113








wares 000

copy UN Comtrade21


billion EUR)






22 | P a g e








exporters (2016)22

copy UN Comtrade23







051

059

061

063

065

077

081

082

134

210

243

301

343

371

380

554

694

919

1705

3176

Ecuador

Australia

Romania

Rep of Korea

USA

Spain

Philippines

France

Indonesia

New Zealand

Argentina

Kazakhstan

Turkey

Sri Lanka

China

Germany

Malaysia

Russian Federation

India

Brazil



23 | P a g e



copy UN Comtrade24





Brazil

Brazil

BrazilBrazil

India

India

India

India

Russia

Russia

Malaysia

Mal

aysi

a

Ge

rman

y

Germany

Ch

ina

Ch

ina

China

Sri Lanka

Turkey

Turkey

Turkey

Kazakhstan

Argentina

Other

Other

Other OtherOther

Other

Other

0

10

20

30

40

50

60

70

80

90

100




waxes

Meat andedible meat

offal

Coffee teamate and

spices

Sugars andsugar

confectionery


Miscellaneousedible

preparations



24 | P a g e




markets
























25 | P a g e


World Bank28



Road







0

1

2

3

4

5Customs

Infrastructure




Timeliness




26 | P a g e









Bandar

Abbas

16h 22h 11h 8h 17h 16h 10h







27 | P a g e

Bandar

Anzali

(Rasht)

5h 7h 10h 16h 14h 6h 13h

Bandar Imam

(Port

close to Ahvaz)

13h 16h 11h 7h 20h 10h 12h


Air














28 | P a g e



Maritime Shipping


















29 | P a g e







Rail












30 | P a g e







and Asalouyeh39













31 | P a g e









Abbas

Bandar Imam

Khomeini

Khosravi



Mashhad 12 16h - 15h 21h 18h

Bandar

Abbas 17h 21h 15h - 12h 18h

Bandar Imam

Khomeini

15h 15h 21h 12h - 10h





Distribution








in 201641









32 | P a g e
































33 | P a g e


Overall 120



Permits 27



Getting Credit 101


Paying Taxes 100




World Bank
























34 | P a g e






Consumer profile

































35 | P a g e




























hypermarkets54








36 | P a g e




















37 | P a g e

SWOT analysis

Strengths



Weaknesses



Opportunities



Threats






38 | P a g e

Market information




























studied







39 | P a g e


by sub-category

Eurostat60



category
















euro 0

euro 100000000

euro 200000000

euro 300000000

euro 400000000

euro 500000000

euro 600000000

euro 700000000

euro 800000000

euro 900000000

euro 1000000000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Va

lue

in E

UR







40 | P a g e


sector62




the economy as well













will not be so 64











November 2017








41 | P a g e



























Raffeisen (Austria)

BCP (Switzerland)








42 | P a g e



Tehran























Khorasan-e-Razavi














43 | P a g e


railroad



city the name

means lsquothe

burial place of a

martyrrsquo and


the holy Shrine

of Imam Reza

every year


primarily

focused on the

tourism trade


900 km East



Esfahan













44 | P a g e












network and the








Fars










Khuzestan










45 | P a g e





entire country












Copyright copy



46 | P a g e









to
















market






47 | P a g e














here


2017 available at






agencies)




48 | P a g e





































49 | P a g e



















Customs







Beef 5-15


Fish 5-40









50 | P a g e

Prepared fish 40-55


500 gr or less 55


more than 500 gr 20

Cheese 55


Wheat 10








website








SPS requirements








2017 available at




51 | P a g e


Area Details


Origin





Affairs


Pest Risk Analysis

(PRA)





Organisation

Plants and

Plant

Products










Organisation


Foodstuffs








52 | P a g e








market















the goods


Labelling





2017 available at




bodies

53 | P a g e



Product and brand

nametrademark







manufacturer



allowed


applicable



Islamic rules













states90



httpwwwecointin2htm



bodies

54 | P a g e














copy UN Comtrade92


2017 available at



$0

$200000000

$400000000

$600000000

$800000000

$1000000000

$1200000000

$1400000000

$1600000000

2012 2013 2014 2015 2016

Trad

e v

alu

e (

USD

)

EU-28

ECO



55 | P a g e

Market snapshots

Beverages

Consumption












Strengths




Weaknesses



Opportunities



Threats






56 | P a g e




in Iran94























4112 Bottled Water








iran-meager





57 | P a g e



























4114 Fruit Juice














58 | P a g e









4115 Energy Drinks



young energy drinks




sugar and caffeine


the energy drinks

market


campaigns to seduce
















59 | P a g e




consumers102

Offer

4121 Domestic Offer






4122 Imports










Thailand34

Spain15Kuwait

13

Brazil12

Oman8

United Kingdom8

Italy3

Netherlands3

Germany2

Ireland2



60 | P a g e






Health






States and EU















34

2011

7

7

5

4

43

3 2

Russian Federation

Germany

Austria

Turkey

Kuwait

Korea Republic of

Netherlands

Japan

Malaysia

India

Canada



61 | P a g e







Distribution











younger Iranians
















62 | P a g e

4133 Fruit Juice



Iran



















Summary











63 | P a g e





64 | P a g e


Consumption











Strengths



Weaknesses




Opportunities



Threats





65 | P a g e








































66 | P a g e









begin with
































67 | P a g e











exported into Iran





























68 | P a g e










Offer



Iranrsquos market

4221 Domestic offer








Agreement124
















of Saveh copy



69 | P a g e


















annually 130

4222 Import






4223 Export







available at








70 | P a g e


































71 | P a g e



Relevant Regulatory

Framework




conditions


Agreement



Type of

Protection



Scope of

Legislation



are excluded


website here


National Law


Article I





Article III







Article 1(A)



72 | P a g e

Article V








Article VII








Article VIII









Article IX






conditions






73 | P a g e



















WIPO138






















74 | P a g e




see Annex I






42241 Organic Label





























75 | P a g e


















GI status




















76 | P a g e


















Distribution



Western products
















77 | P a g e







retail outlets
















few wholesalers154
















78 | P a g e




















this157




company158















79 | P a g e



Summary













superior products



80 | P a g e

Fresh meat












Strengths


Weaknesses



Opportunities


Threats




81 | P a g e

Consumption





OECD ndash FAO







OECD ndash FAO



poultry 7880

beef amp veal 1008

sheep 1112

27

28

29

30

31

32

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Co

nsu

mp

tio

n k

g p

r ca

pit

a



82 | P a g e



















revolution





















83 | P a g e



Offer





















4321 Import















84 | P a g e
























1

10

100

1000

10000

100000

1000000

Va

lue

EU

R 0

00

s



85 | P a g e

4322 Export











Luxembourg








market172









86 | P a g e


























1

10

100

1000

10000

Va

lue

EU

R 0

00

s



87 | P a g e




Distribution















Summary














88 | P a g e

Processed meat

Consumption












Strengths


Weaknesses



Opportunities


Threats




89 | P a g e




























West copy



90 | P a g e



Offer

4421 Domestic offer









statistical-surveyb

000

500

1000

1500

2000

2500

3000

Total 1stdecile

2nddecile

3rddecile

4thdecile

5thdecile

6thdecile

7thdecile

8thdecile

9thdecile

10thdecile

Processed meat

Fresh meat



91 | P a g e



4422 Import












2654

2235

2556 25952694 2726

2011 2012 2013 2014 2015 2016

Pro

du

ctio

n 1

00

0 t

on

s



92 | P a g e



4423 Export













0

500

1000

1500

2000

2500V

alu

e EU

R 0

00

s



93 | P a g e


ITC Trade Map186





















0

200

400

600

800

1000

1200

1400

1600

1800

2000V

alu

e E

UR

00

0s




94 | P a g e





















Distribution







as billboards192










95 | P a g e








Summary
















96 | P a g e

Olive Oil

Consumption








Strengths



Weaknesses


Opportunities


Threats





97 | P a g e



IOC196









0

20

40

60

80

100

120

140

160



98 | P a g e


Badkoobeh



201516 and 201617198


IOC199




not at all51


14


18


17

0

2

4

6

8

10

12

14

201011 201112 201213 201314 201415 201516(prediction)

201617(prediction)



99 | P a g e


























Offer

4521 Domestic offer















100 | P a g e














association202



4522 Import






0

1

2

3

4

5

6

7

8

201011 201112 201213 201314 201415 201516(prediction)

201617(prediction)



101 | P a g e




table below


copy UN Comtrade204





figure below






0

5

10

15

20

25

30

35

2012 2013 2014 2015 2016

Total

EU



102 | P a g e


copy UN Comtrade205

4523 Export









value that year



Spain 5270

Turkey 27

Italy 1540




103 | P a g e


copy UN Comtrade206


















206 Ibid

0

10

20

30

40

50

60

70

2012 2013 2014 2015 2016

Total

EU




104 | P a g e






the country207

Distribution









Summary























105 | P a g e

















Strengths




Weaknesses



Opportunities




Threats





106 | P a g e











Consumption



























107 | P a g e







ingredients



processed

counterparts This

can be traced to





























108 | P a g e




























Offer

4621 Domestic offer








109 | P a g e











Walnut 3rd Kiwi 3rd




Plum 5th Peach amp

Nectarine

6th







Gourd

4th





are exported221











110 | P a g e












4622 Import





















111 | P a g e


Euro millions


4623 Export














0

50

100

150

200

250

300

350

400

450

500


Vegetables

2012

2013

2014

2015



112 | P a g e


2012 2013 2014 2015 Fru

its

(n

o

nu

ts)

$1316569482

(euro1144843028)

$953109704

(euro 828791047)

$1109620866

(euro 964887710)

$861965515

(euro 749535230)

Veg

eta

ble

s

$711570489

(euro 618756947)

$484545293

(euro 421343733)

$818264285

(euro 711534161)

$683361778

(euro 594227633)

Nu

ts $1158578088

(euro 1007459207)

$1029098880

(euro 894868591)

$1668882856

(euro 1451202483)

$1111863632

(euro 966837941)

TOTAL

$3186718059

(euro 2771059182)

$2466753877

(euro 2145003371)

$3596768007

(euro 3127624354)

$2657190925

(euro 2310600804)






habits229














113 | P a g e

















produced locally






















114 | P a g e







Distribution


years However

small grocery


represent 90 of

the food and

beverage


fruit and

vegetables are

dominated by


outlets

Producers of

fresh fruit and

















115 | P a g e












Summary


















116 | P a g e
















Strengths




Weaknesses




Opportunities




Threats





117 | P a g e

















longer term








sanctions














118 | P a g e









































iran-embassy


Supermarket



119 | P a g e










































120 | P a g e









categories





term

















Offer

4721 Domestic offer












121 | P a g e


vegetables











4722 Import












Product Total

Canned Fruit 0

Canned Vegetables 2

Frozen Fruit 1



4723 Export








122 | P a g e




























0

50

100

150

200

250

300

2016

Canned Fruit

Canned Vegetables

Frozen Fruit

Frozen Vegetables



123 | P a g e
















vegetable products


















124 | P a g e












































125 | P a g e





















126 | P a g e

Dairy Products
















prospects

Strengths


Weaknesses



Opportunities


Threats




127 | P a g e








OECD-FAO


OECD-FAO







28

285

29

295

30

305

31

315

32

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021


Butter 1064

Cheese 1054



128 | P a g e







OECD-FAO


OECD-FAO










0

100

200

300

400

500

600

522648

535878

523532

503284

509214516247

522462528255

533525 53865

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021



129 | P a g e






























4812 Cheese














130 | P a g e


to previous years


OECD-FAO



increase in cheese



period 2011 -2015













the country







272415268527

259214255522

250001 251535

2011 2012 2013 2014 2015 2016




131 | P a g e










OECD-FAO


















prospects

769757 761

7778

793807

821835

85864

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021



132 | P a g e





















sectors





4821 Import














133 | P a g e










0

5

10

15

20

25

30

-200

0

200

400

600

800

1000

1200

2012-2016

2015-2016



134 | P a g e






OECD-FAO






0

20

40

60

80

100

120

140

160

180

200


2011 2012 2013 2014 2015 2016

2257 2264

34083825

454843



135 | P a g e










network



























exports-expand



136 | P a g e










































137 | P a g e



















foreign goods293























138 | P a g e




investments



139 | P a g e

Processed Cereals













Strengths



Weaknesses



Opportunities


Threats




140 | P a g e

























cereals-in-2017



141 | P a g e













products



industry

India40

Netherlands20

Belgium10

Germany6

Thailand6

France5

Italy5

Georgia4

Malaysia4



142 | P a g e








(lentil) soup



















Kazakhstan43


Germany18

France6

Estonia4



143 | P a g e
















categories


2012-2016

average 2016

2017

forecast

Change

20172016

000 tonnes percent

Wheat 10774 13500 13500 0

Barley 2776 3000 3100 3

Rice

(paddy) 2405 2520 2600 3

Others 1486 910 910 0

Total 17410 19930 20110 1








permission



144 | P a g e








copy UN Comtrade304






2012 2013 2014 2015 2016

Price per kg

(USD)

098 (EUR

085)

127 (EUR

101)

188 (EUR

164)

204 (EUR

178)

194

(169)

copy UN Comtrade305






0

50000

100000

150000

200000

250000

300000

$0

$100000

$200000

$300000

$400000

$500000

$600000

2012 2013 2014 2015 2016

Net

wei

ght

(kg)

Trad

e V

alu

e (U

S$)




145 | P a g e


copy UN Comtrade306

4931 Import






copy UN Comtrade307



UAE 2172

Jordan 2018

Poland 1410

Germany 1079

Other 1046

Sweden 688

Armenia 760

Bahrain 262


0

200000

400000

600000

800000

1000000

1200000

$0

$500000

$1000000

$1500000

$2000000

$2500000

$3000000

$3500000

2012 2013 2014 2015 2016

Net

wei

ght

(kg)

Trad

e V

alu

e (U

S$)




146 | P a g e





2012 2013 2014 2015 2016

Price per kg

(USD)

279 (EUR

243)

211 (EUR

184)

212 (EUR

185)

251 (EUR

219)

291

(EUR

254)

copyUN Comtrade308



regional proximity



copy UN Comtrade309



Switzerland 1919

France 1225

UAE 1143


Germany 956

Poland 571

Spain 955

Malaysia 464

Other 376 China 282



147 | P a g e























148 | P a g e












the country






partner 315









continue to do so










Supermarket



149 | P a g e



continue


















150 | P a g e

Baked Goods









Consumption








global average

Strengths


Weaknesses


Opportunities



Threats





151 | P a g e









consumption and

























as bread







152 | P a g e













Offer

41021 Import











301

179159

086049

023 011 009 006 004



153 | P a g e













41022 Export












-1000

100200300400500600700

2012-2016

2015-2016



154 | P a g e




















produced bread330





economic-sense

288

175

9979

285 1 1



155 | P a g e







































1DAA9DB8CDAA9



156 | P a g e


















economic-sense



157 | P a g e

Chocolate









Consumption









Strengths


Weaknesses


Opportunities


Threats





158 | P a g e



















society)335




















159 | P a g e

Offer

41121 Import













647

351 304

169

030 018 014 009 004 002 000



160 | P a g e





illegal ways340











-200

0

200

400

600

800

1000

1200

1400

1600

1800

2012-2016

2015-2016



161 | P a g e




























31

23

6 52




162 | P a g e









Asia and Europe





















products













163 | P a g e





















Ministry of Health



















Supermarket



164 | P a g e










165 | P a g e

Confectionery








tradition






diseases





Strengths



Weaknesses


Opportunities


Threats




166 | P a g e










cent













0 10 20 30 40 50

EU

Iran

Asia-Pacific Region


2024 Projection

2012-2014 Average



167 | P a g e











































168 | P a g e






occasions





premium segments359



















unique to Europe

Offer












169 | P a g e
























22

23

24

25

26

27

28

29

30

31

0

02

04

06

08

1

12

14

16

18

2002 2003 2004 2005 2006

Per

Cap

ita

Suga

r C

on

sum

pti

on

in K

G

Gro

ss D

om

esti

c O

utp

ut

of

Suga

r in

To

nn

es

Mill

ion

s

Sugar Production




170 | P a g e























0

01

02

03

04

05

06

0

50

100

150

200

250

300

350

400

450

500

2011 2012 2013 2014 2015 2016A

nn

ual

Su

gar

Pri

ce in

Eu

ro p

er K

G

Imp

ort

ed V

alu

e in

Eu

ro

Mill

ion

s

Cane and Beat Sugar





171 | P a g e









0

100

200

300

400

500

600

700

2004 2005 2006 2007 2008 2009 2010 2011

Imp

ort

ed V

alu

e in

Eu

ro

Mill

ion

s
















172 | P a g e

41231 Export











































173 | P a g e
























Agent Contract















174 | P a g e















necessary















years










175 | P a g e










markets














distribution chains






176 | P a g e

Honey Products
















Strengths



Weaknesses


Opportunities


Threats




177 | P a g e








Offer




















medicine

41322 Import












178 | P a g e


Chile


ITC Trade Map378


ITC Trade Map379


0

5

10

15

20

25

China23

Germany20

India14

Italy12

France6

Korea Republic of4

Switzerland4

Denmark3

Chile3

Netherlands3

Spain2

Belgium2

Philippines2

Other2



179 | P a g e












2016 ()

Netherlands 7722

Denmark 146

United Kingdom 113

Italy 70

Germany 40

Belgium 3

Spain -9

France -16

Austria -60

Ireland -77

ITC Trade Map380
















180 | P a g e












ITC Trade Map384








countries





0

5

10

15

20

25

30

35



181 | P a g e














0

5

10

15

20

25

30

2012 2013 2014 2015 2016

0

5

10

15

20

25

30

35

40

45

50




182 | P a g e
































through







183 | P a g e

Cotton Plants








OECD-FAO

Strengths


Weaknesses



Opportunities


Threats


0

20

40

60

80

100

120

140

160

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021



184 | P a g e















Offer













example395












185 | P a g e








sectors altogether





















250

260

270

280

290

300

310

320

330

2012 2013 2014 2015 2016 2017



186 | P a g e











country


compact genotypes)



41422 Import














187 | P a g e


copy UN Comtrade399


copy UN Comtrade400

41423 Export









000

5000

10000

15000

20000

25000

30000

2012 2013 2014 2015 2016

World

EU

United Arab

Emirates22

China42

Turkey22

India13

Other1



188 | P a g e







copy UN Comtrade402


copy UN Comtrade403





0

1

10

100

1000

2012 2013 2014 2015 2016

World

EU

China51

France21

Germany7

Sri Lanka5

Armenia5

Kazakhstan4

Turkey4

Georgia1

Other2



189 | P a g e


























for success406










through






190 | P a g e















191 | P a g e

Communication

Advertising in Iran


























Turkish410













192 | P a g e



































193 | P a g e











Resalat







Shargh










a more neutral tone

Tehran Times










Chronicle415





194 | P a g e























(IRNA)






languages










195 | P a g e



Chronicle419






their products



Digikala















in the Middle East

Bamilo









196 | P a g e













Techrasa421







awareness422




















197 | P a g e







advertising425









producers427
























198 | P a g e










































199 | P a g e







cultural concepts


























Iran






food-market



200 | P a g e





oriented
































201 | P a g e






























202 | P a g e

DOs AND DONrsquoTs



DO








surname


for delays



they insist







203 | P a g e

DONrsquoT









other on the cheeks



offended by



204 | P a g e

Quick Facts

The People














people first













Language





Body Language



205 | P a g e




disinterested


meetings


Corporate Culture














6 hours a day



Banking Systems













206 | P a g e



cent






meal


the food


where to sit

Business Holidays



period


year

Dress






Gifts




Helpful Hints







207 | P a g e

Synopsis





Iran

SWOT analysis

Strengths











5146 billion)











entrants






Weaknesses







government budget






















208 | P a g e



category






easier







GI Status







tricky




channel This makes










businesses

Opportunities











and Pakistan

Threats










collective



209 | P a g e





13012 USD (EUR 11349) to

17388 (EUR 15165) This









fruit and wheat See










demand










its opportunities

















demand














lower EU exporter

opportunities



210 | P a g e










with it







be able to

4P Analysis


Product












Promotion






to the product








211 | P a g e








should do well







in the country


the market



and follows dietary





market













fail in Iran









for Iranians


Synopsis Conclusion

212 | P a g e

Placement




Shiraz and Ahvaz



of supermarkets and




The large number of






arrangements here






Price





Western







FampB exporters








Iran

Conclusion









Synopsis Conclusion

213 | P a g e









new market entrants





















214 | P a g e





Commerce and Trade

infoincctnl


Chamber of Commerce


Agriculture

infoniccimacom

niccimacom

+31 20 2400 794

Deutsch-Iranische

Handelskammer eV

infodihkevde

dihkevde

+49 40 44 08 47


Commerce

adminbiccorguk

biccorguk

+44 20 7233 4441



infocciiit

cciiit

+39 06 59 26 206


+31 70 379 80 00


of Commerce

infoscan-irancom

scan-irancom

+46 8 559 140 20



infoniccceu

niccceu

+45 3694 4444



215 | P a g e


EU Member

State




teheran-obbmeiagvat

bmeiagvatteheran

+98 21 22 75 00-38 +98 21 22 75 00-40 +98 21 22

75 00-42




+98 21 22 39 87 80 +98 21 22 39 19 06 +98 21 22

24 73 13 +98 21 22 23 91 160



bulgrtehrnedanet

+98 21 88 77 5662 +98 21 88 77 5037



vrhteheranmvpeihr

+98 21 258 9923 +98 21 258 7039



1834844681 Tehran

cyprusparsonlinenet


+98 21 22 21 98 42 +98 21 22 01 240

Czech

Republic



and Sonbol)

tehranembassymzvcz



216 | P a g e

mzvcztehran

+98 21 22 28 81 49 +98 22 28 81 53



thrambumdk

ambteheranumdk

+ 98 21 22 60 13 63 + 98 21 22 60 70 20




armenmootafianmfaee

+98 21 88 82 95 51 +98 21 88 82 95 28



sanomattehforminfi

finlandorgir

+98 21 23 51 20 00


Chateau - Tehran


ambafrance-irorg

+98 21 64 09 4000



infoteherandiplode

teherandiplode

+98 21 39 99 00 00





217 | P a g e


+98 21 20 50 533 +98 21 20 53 784



POB636319395

+98 21 25 50 452



First Floor


+98 21 8804 1925


Chateau


ambteheranesteriit

+98 21 672 6955






TURKEY

ambtrurmlt

trmfalt

+90 312 447 07 66








218 | P a g e


+98 21 2640 5277 8



tehminbuzanl

+98 212 366 0000


1-3 19-174


teheranpolembnet

+98 21 8878 7262



portugalsrcoir

+98 21 254 3237


Baharestan Ave


+98 21 77 53 90 41 +98 21 77 64 75 70



embtehranmzvsk

mzvskTehran

+98 21 22 41 11 64



vtemzz-dkpsigovsi

+98 21 87 16 873 +98 21 87 16 661



219 | P a g e



embteheranmaeces

+98 21 225 68 681 682 683 684





+98 21 2371 2200 +98 21 2371 2200


Tehran

+98 21 6405 2000



220 | P a g e


Organisation

Associations

Contact details



infofoodimportersir

foodimportersir


(advertising)

daarvagcom



Business Council

pzarrinigccmir

igccmir

+981 21 66949103

Iran-Spain Business

Council

infoisbcir

isbcir

+98 21 88 38 1350

Iran Belgium amp



blccaorg

+98 21 88 50 08 91

Isfahan Union of

Restaurant Owners

etefoodcom







and Taverns


Tehran Food Sellers

Association



Trade Promotion


engtpoir



221 | P a g e


Communication

zigma8com





The 8th

International

Exhibition of Dairy

Beverage Tea

Coffee amp Related

Industries


2017

Mr Rabyi

+98 21 21 91 26 51

The 16th Iran

International

Confectionery Fair


2017


Co - +98 21 88 55 80

66

iranicfcom

The 2nd

International

Exhibition of Halal


related industries


2017


(MeatEx)

+98 21 21 91 29 60

+98 21 22 66 26 90

The 11th


Bakery Industry

Exhibition (Ibex

2017)


2017


Ibexir

+98 21 88 07 08 33

+98 21 88 07 06 93

The 16th

International


Livestock Dairy and

Related Industries


Co

Abolghasem Salar

Rezayee

CEOmiladgroupnet

+98 21 44 44 8216




222 | P a g e





















GI Associations



Maslo




Karlovarskeacute

Trojhraacutenky




Oplatky







223 | P a g e



France Cheese






Salers Haute-

Montagne

France Cheese












Huile Dolives De

Nyons

France Olive Oil


Pintadeaux De La

Drocircme

France Meat






224 | P a g e




Bresse

France Cheese


Beurre Charentes-

Poitou

France Butter

Beurre Des Deux-

Segravevres

France Butter




Mont dOr ou

Vacherin du Haut-

Doubs

France Cheese





ou

France Cheese

Camembert de

Normandie

France Cheese


Brocciu Corse Ou

Brocciu

France Cheese


Huile Dolive De La


Provence

France Olive Oil

Miel De Sapin Des

Vosges

France Honey



225 | P a g e


Di Corsica

France Honey

Pomme De Terre De

Licircle De Reacute





Sainte-Maure De

Touraine

France Cheese

Fourme De

Montbrison

France Cheese


Olives Noires De La


Provence



Kalocsa Kalocsaer

Kalocsai


Szeged Szegediner

Szegedi






Aceto Balsamico Di

Modena




Asiago Italy Cheese




226 | P a g e


Mela Alto Adige

Suumldtiroler Apfel





Campana

Italy Cheese


Nocciola Piemonte




Piave Italy Cheese

Pomodoro S Marzano


Nocerino






Cipolla Rossa Di

Tropea Calabria


Vitellone Bianco

Dellrsquoappennino

Centrale

Italy Meat



Formai De Mut

Dellrsquoalta Val

Brembana

Italy Cheese




227 | P a g e







Bitto Italy Cheese




228 | P a g e


Major Retailers

Name Type Contact


nationwide

etkastoresir


Shiraz Isfahan) 5


Lavasan)

hyperstarirancom

Refah

Supermarkets


country

refahir

Shahrvand

Supermarkets



shahrvandtehranir


Convenience stores


Bametehra

n

Supermarket

foreign

products


+982122123050

Family

Market

Supermarket (2

branches)

specialised in

international

products

ImportersDistr

ibutors

+98 21 2611 7399


etco

Sepah

Consumers

Cooperativ

e

Supermarket

chain (18

stores)

DirectDistribut

ors

infosepah-cocom

+982143487



information



229 | P a g e




Ferdowsi

International Grand

Hotel

Hotel +982166727026




food

+982122254535

+982122252124


Persian Esteghlal

International Hotel

Hotel +982122660011

Shandiz Traditional

BarbecueGrillKabab

+98212043



Name Type Contact


DTP

Trading


+ 9821- 88879507

Farzan

Rad

Consultin

g Co


infofarzanradcom

enfarzanradcom

+982188339015

Nixan

Trading

Co LLC


nixancoir

+98 21 4459 0790



230 | P a g e

Paktab

Food


+9126207645

Part

LabanPal

com





pim-coir

+98 21 22630689-90

Zareen

Group


+982188702036

+982188702038

Media



News Agency)


rfoodpressgmailcom


foodpressir

+989192056998 +9821 22379499


hamshahrionlineir



+98212781


irinnir

+982127866000


PR +982122262142



231 | P a g e



+982143051000


+982144956101-7


Site)

tabnakir


tasnimnewscom

+982142139961 (PR)


MD

infotehrantimescom

+98 (21)43051000

Editorial Dept

+98 (21) 43051601


adstehrantimescom

Bloggers

Bloggers name Info


shefblogfacom


Ketabi)



6060aspx



232 | P a g e


Dorosty)






arab_msyahoocom

arabomidblogfacom


Tour)



+989392575396

VIP Chefs


Excusersquo)


Contact

infosamangolrizir

samangolrizir


+989128885154

Contact

inforanjbarchefcom

ranjbarchefcom


+982188799474


Company Profile

233 | P a g e




Company Profile
























Challenges in Iran










234 | P a g e


















in Iran












products






products in Iran




235 | P a g e

Table of figures













the West 89



236 | P a g e



















euro millions) 132



237 | P a g e























238 | P a g e












value 2016) 188



239 | P a g e

List of tables














2 Country Overview

21 Iran at a glance




232 Distribution




31 SWOT analysis











4 Market snapshots

41 Beverages

411 Consumption


4112 Bottled Water


4114 Fruit Juice

4115 Energy Drinks


412 Offer

4121 Domestic Offer

4122 Imports


413 Distribution



4133 Fruit Juice


414 Summary


421 Consumption




422 Offer

4221 Domestic offer

4222 Import

4223 Export


42241 Organic Label



423 Distribution




424 Summary

43 Fresh meat

431 Consumption


432 Offer

4321 Import

4322 Export



433 Distribution

434 Summary

44 Processed meat

441 Consumption


442 Offer

4421 Domestic offer

4422 Import

4423 Export




443 Distribution


444 Summary

45 Olive Oil

451 Consumption


452 Offer

4521 Domestic offer

4522 Import

4523 Export



453 Distribution

454 Summary


461 Consumption




462 Offer

4621 Domestic offer

4622 Import

4623 Export





463 Distribution

464 Summary


471 Consumption




472 Offer

4721 Domestic offer

4722 Import

4723 Export




473 Distribution

474 Summary

48 Dairy Products

481 Consumption


4812 Cheese



482 Offer

4821 Import

483 Export




484 Distribution

485 Summary

491 Consumption



492 Offer

493 Export

4931 Import



494 Distribution

495 Summary

410 Baked Goods

4101 Consumption



4102 Offer

41021 Import

41022 Export




4103 Distribution

4104 Summary

411 Chocolate

4111 Consumption



4112 Offer

41121 Import

4113 Export




4114 Distribution

4115 Summary

412 Confectionery

4121 Consumption



4122 Offer


4123 Import

41231 Export




4124 Distribution


4125 Summary

413 Honey Products

4131 Consumption

4132 Offer


41322 Import

4133 Export


4134 Distribution

4135 Summary

414 Cotton Plants

4141 Consumption


4142 Offer


41422 Import

41423 Export



4143 Distribution

4144 Summary

5 Communication



521 Target Audience




61 DO

62 DONrsquoT

63 Quick Facts

7 Synopsis


72 4P Analysis

73 Conclusion








101 Major Retailers



105 Media

106 Bloggers

107 VIP Chefs


111 Company Profile




Table of figures

List of tables

The Food and Beverage Market Entry Handbook: Iran

Documents

Transcript of The Food and Beverage Market Entry Handbook: Iran