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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
The Exporterrsquos Handbook Iran How to use this Handbook
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)
Enjoy Itrsquos from Europe ndash Market Entry Handbook
The Exporterrsquos Handbook Iran How to use this Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
The Exporterrsquos Handbook Iran How to use this Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
The Exporterrsquos Handbook Iran How to use this Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
The Exporterrsquos Handbook Iran How to use this Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
The Exporterrsquos Handbook Iran How to use this Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
The Exporterrsquos Handbook Iran How to use this Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
The Exporterrsquos Handbook Iran How to use this Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Iran at a glance
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Iran at a glance
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Iran at a glance
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 $)
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Iran at a glance
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Iran at a glance
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Iran at a glance
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview The Iranian Food and Beverage market
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview The Iranian Food and Beverage market
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
Department of Agriculture A Report from the Economic Research Service July 2017 pp 6 available at
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview The Iranian Food and Beverage market
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
AffairsStatistics Division available at httpscomtradeunorg
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview The Iranian Food and Beverage market
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
AffairsStatistics Division available at httpscomtradeunorg
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview The Iranian Food and Beverage market
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
AffairsStatistics Division available at httpscomtradeunorg
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Department of Agriculture A Report from the Economic Research Service July 2017 pp 18 available at
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Operating in the Iranian market
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Operating in the Iranian market
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Operating in the Iranian market
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
31 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 32 Ibid
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Operating in the Iranian market
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
33 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 34 Ibid
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Operating in the Iranian market
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
World Food Programme
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
Economic Outlook Middle East and Central Asia Report June 2016 available at
httpsdlcalogclusterorgdisplaypublicDLCAIran2C+Islamic+Republic+of 37 Iran Journey ldquoTransport in Iranrdquo 2011 available at httpwwwiranjourneycomcontentsTI
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Operating in the Iranian market
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
World Food Programme
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
38 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 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Operating in the Iranian market
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 -
World Food Programme
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
40 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 41 Iran Here ldquoRetail in Iranrdquo March 2016 available at httpsiranherecomretails-in-iran
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Operating in the Iranian market
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Operating in the Iranian market
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Operating in the Iranian market
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Country Overview Operating in the Iranian market
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Market information
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Market information
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Market information
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Market information
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Market information
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Market information
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Market information
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Legislation Regulations and Administrative Information
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)
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Legislation Regulations and Administrative Information
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Legislation Regulations and Administrative Information
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Legislation Regulations and Administrative Information
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
86 European Commission ldquoOverview of Import Proceduresrdquo European Commission Trade Database May
2017 available at
httpmadbeuropaeumadbviewPageIFPublihtmdoc=overviewamphscode=2200ampcountryid=IRkap58 87 Ibid
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Legislation Regulations and Administrative Information
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
Refer to Ministry of Agriculture Plant Protection
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Legislation Regulations and Administrative Information
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
88 European Commission ldquoOverview of Import Proceduresrdquo European Commission Trade Database May
2017 available at
httpmadbeuropaeumadbviewPageIFPublihtmdoc=overviewamphscode=2200ampcountryid=IRkap58
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
89 US Central Intelligence Agency ldquoIranrdquo The World Factbook 2017 available at
httpciagovlibrarypublicationsthe-world-factbookgeosirhtml 90 Economic Cooperation Organization ldquoIntroduction to ECOrdquo 2017 available at
httpwwwecointin2htm
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market Access and Entry Iranrsquos relationships with the GCC 6 and other regional
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
91 European Commission ldquoOverview of Import Proceduresrdquo European Commission Trade Database May
2017 available at
httpmadbeuropaeumadbviewPageIFPublihtmdoc=overviewamphscode=2200ampcountryid=IRkap58 92 United Nations International Trade Statistics Database Department of Economic and Social
AffairsStatistics Division available at httpscomtradeunorg
$0
$200000000
$400000000
$600000000
$800000000
$1000000000
$1200000000
$1400000000
$1600000000
2012 2013 2014 2015 2016
Trad
e v
alu
e (
USD
)
EU-28
ECO
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Beverages
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Beverages
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Beverages
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Beverages
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Beverages
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
copy ITC Trade Map107
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Beverages
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
4132 Carbonated Drinks
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Beverages
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Beverages
63 | P a g e
market Lifting of sanctions will create a more competitive environment for
European companies to participate in the market
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
116 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 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
4213 Challenges for EU products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
123 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 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
Typical Products from a Defined Geographical Areardquo Available at
httpwwwwipointedocspubdocsengeographical942wipo_pub_942pdf 132 Islamic Republic News Agency ldquoIran Known as the Worldrsquos largest Producer of Pomegranatesrdquo
December 2015 available at httpwww8irnairenNews81876021
Figure 25 Iranian Saffron from Khorasan copy
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
Typical Products from a Defined Geographical Areardquo Available at
httpwwwwipointedocspubdocsengeographical942wipo_pub_942pdf
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
Act for Protection of Geographical Indications (2005)
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)
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
Typical Products from a Defined Geographical Areardquo Available at
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
Lebensmittelmarkt im Iran] October 2016 available at
httpsagrarexportfoerderungdefileadminSITE_MASTERcontentfilesMarktstudien2016Kurzstudie_L
ebensmittel_Iran_COMMIT_Dezember2016_-_Internetdateipdf 145 International Society of Organic Agriculture Research ldquoCountry report Iranrdquo Available at
httpwwwisofarorgisofarindexphp2-uncategorised120-country-report-iran
146 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
147 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 148 Ibid 149 Ibid
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
150 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 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
4233 Challenges for EU products
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
Lebensmittelmarkt im Iran] October 2016 available at
httpsagrarexportfoerderungdefileadminSITE_MASTERcontentfilesMarktstudien2016Kurzstudie_L
ebensmittel_Iran_COMMIT_Dezember2016_-_Internetdateipdf 158 Ibid 159 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Products with Geographical Indications
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh meat
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh meat
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh meat
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
marketrdquo April 2016 available at
httpwwwsalaamgatewaycomenfoodstoryoverviewhalal_food_opportunities_in_irans_61_billion_fb_
market-SALAAM12042016112326 166 Italian Trade Agency ldquoMarket Overview of Iranrsquos Agricultural Food Sectorrdquo ICE January 2016
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh meat
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)
copy ITC Trade Map168
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
marketrdquo April 2016 available at
httpwwwsalaamgatewaycomenfoodstoryoverviewhalal_food_opportunities_in_irans_61_billion_fb_
market-SALAAM12042016112326
1
10
100
1000
10000
100000
1000000
Va
lue
EU
R 0
00
s
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh meat
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
marketrdquo April 2016 available at
httpwwwsalaamgatewaycomenfoodstoryoverviewhalal_food_opportunities_in_irans_61_billion_fb_
market-SALAAM12042016112326
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh meat
86 | P a g e
Figure 32 Iranrsquos exports of fresh meat (value in euro thousands 2016)
copy ITC Trade Map173
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
Lebensmittelmarkt im Iran] October 2016 available at
httpsagrarexportfoerderungdefileadminSITE_MASTERcontentfilesMarktstudien2016Kurzstudie_L
ebensmittel_Iran_COMMIT_Dezember2016_-_Internetdateipdf
1
10
100
1000
10000
Va
lue
EU
R 0
00
s
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh meat
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
Promotion Organization of Iran 2016 available at
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed meat
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
4411 Consumer Profile and Trends
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed meat
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed meat
92 | P a g e
Figure 36 Iranrsquos imports of processed meat184 (value in euro thousands 2016)
copy ITC Trade Map185
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed meat
93 | P a g e
Figure 37 Iranrsquos exports of processed meat (value in euro thousands 2016)
ITC Trade Map186
4424 Main Competitors
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed meat
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
4426 Specific customs and SPS requirements for import needed documents
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
Promotion Organization of Iran 2016 available at
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
Lebensmittelmarkt im Iran] October 2016 available at
httpsagrarexportfoerderungdefileadminSITE_MASTERcontentfilesMarktstudien2016Kurzstudie_L
ebensmittel_Iran_COMMIT_Dezember2016_-_Internetdateipdf 192 Italian Trade Agency ldquoMarket Overview of Iranrsquos Agricultural Food Sectorrdquo ICE January 2016
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed meat
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
193 Just Food ldquoHow attractive could Iran be for food majorsrdquo August 2015 available at httpswwwjust-
foodcomanalysishow-attractive-could-iran-be-for-food-majors_id130842aspx
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Olive Oil
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)
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Olive Oil
99 | P a g e
4511 Consumer Profile and Trends
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Olive Oil
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)
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Olive Oil
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
httpseceuropaeuagriculturesitesagriculturefilestrade-analysisstatisticsoutside-eucountriesagrifood-
iran_enpdf 204 United Nations International Trade Statistics Database Department of Economic and Social
AffairsStatistics Division available at httpscomtradeunorg
0
5
10
15
20
25
30
35
2012 2013 2014 2015 2016
Total
EU
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Olive Oil
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
205 United Nations International Trade Statistics Database Department of Economic and Social
AffairsStatistics Division available at httpscomtradeunorg
Spain 5270
Turkey 27
Italy 1540
Kuwait 390 Others 100
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Olive Oil
103 | P a g e
Figure 46 Irans exports of olive oil 2012-2016 (value in thousand EUR)
copy UN Comtrade206
4524 Main Competitors
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Olive Oil
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
at httpwwwlfdk~medialffor-medlemmervirksomhedsmedlem-hos-
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh Fruit and Vegetables
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
4611 Consumer Profile and Trends
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
213 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 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh Fruit and Vegetables
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh Fruit and Vegetables
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
4612 Cultural sensitivities
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh Fruit and Vegetables
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
221 Italian Trade Agency ldquoIran Fruits and Vegetables Marketrdquo ICE 2016 available at
httpwwwmacfrutcompublicallegatinews10991099_iran_fruits___vegetable_market_l_1_143pdf
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh Fruit and Vegetables
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
available at httpwwwlfdk~medialffor-medlemmervirksomhedsmedlem-hos-
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
at httpwwwlfdk~medialffor-medlemmervirksomhedsmedlem-hos-
osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da 225 Italian Trade Agency ldquoIran Fruits and Vegetables Marketrdquo ICE 2016 available at
httpwwwmacfrutcompublicallegatinews10991099_iran_fruits___vegetable_market_l_1_143pdf 226 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh Fruit and Vegetables
111 | P a g e
Figure 49 Imports of fresh fruit and vegetables (2012-2015) unit
Euro millions
Adapted from Italian Trade Agency report
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
227 Italian Trade Agency ldquoIran Fruits and Vegetables Marketrdquo ICE 2016 available at
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh Fruit and Vegetables
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)
Adapted from Italian Trade Agency report
4624 Main Competitors
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
Business Consultancy October 2016
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh Fruit and Vegetables
113 | P a g e
4625 Challenges for EU Products
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
4627 Specific customs and SPS requirements for import needed documents
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
httpwwwmacfrutcompublicallegatinews10991099_iran_fruits___vegetable_market_l_1_143pdf 233 ldquoIranrsquos Agriculture Machinery and Internal Combustion Engine Market Studyrdquo SGPM Economic and
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-
osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh Fruit and Vegetables
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
athttpwwwlfdk~medialffor-medlemmervirksomhedsmedlem-hos-
osingrediensnyhedsbrev2017april17report-the-agriculture-and-food-market-in-iran-pdfla=da 239 ldquoIran Agriculture Machinery and Internal Combustion Engine Market Studyrdquo SGPM Economic and
Business Consultancy October 2016
Figure 50 Vegetables Sold at Iran Bazaar
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Fresh Fruit and Vegetables
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
httpwwwmacfrutcompublicallegatinews10991099_iran_fruits___vegetable_market_l_1_143pdf
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed Fruits and Vegetables
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
4711 Consumer Profile and Trends
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
challenges for Danish companiesrdquo March 2017
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed Fruits and Vegetables
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed Fruits and Vegetables
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
4712 Cultural sensitivities
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed Fruits and Vegetables
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
4713 Challenges for EU Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed Fruits and Vegetables
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
Frozen Vegetables 12066
copy ITC Trade Map257
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed Fruits and Vegetables
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
copy ITC Trade Map258
4724 Main Competitors
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
4725 Challenges for EU Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed Fruits and 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
4726 Specific customs and SPS requirements for import needed documents
The Food and Drug Department operates within the Ministry of Health and
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
The Institute of Standard and Industrial Research in Iran develops official
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
organic farming were first prepared by The Institute of Standards and
Industrial Research of Iran (ISIRI) in 2009 with further updates as recently
as 2014263 No official certified label has been published as of today
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
httpwwwisofarorgisofarindexphp2-uncategorised120-country-report-iran
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed Fruits and Vegetables
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Processed Fruits and Vegetables
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
267 Financial Tribune ldquoIranian dairy market offers strong growth prospectsrdquo December 2016 available at
httpsfinancialtribunecomarticlesdomestic-economy55665iranian-dairy-market-offers-strong-growth-
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
4811 Consumer Profile and Trends
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
269 Financial Tribune ldquoIranian dairy market offers strong growth prospectsrdquo December 2016 available at
httpsfinancialtribunecomarticlesdomestic-economy55665iranian-dairy-market-offers-strong-growth-
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
httpsfinancialtribunecomarticlesdomestic-economy55665iranian-dairy-market-offers-strong-growth-
prospects
769757 761
7778
793807
821835
85864
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
133 | P a g e
copy ITC Trade Map279
Figure 63 value growth in Irans imports of dairy products from leading EU countries ( pa)
copy ITC Trade Map280
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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)
copy ITC Trade Map281
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
135 | P a g e
4831 Main Competitors
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
httpsfinancialtribunecomarticleseconomy-domestic-economy70617iran-s-dairy-industry-booming-as-
exports-expand
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
4832 Challenges for EU Products
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
4833 Specific customs and SPS requirements for import needed documents
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
httpsfinancialtribunecomarticleseconomy-domestic-economy70617iran-s-dairy-industry-booming-as-
exports-expand 292 ldquoExport - Import Regulations 2016rdquo Available at
httpfarsitpoiruploadsmogarrarat1395_1_ok_16238pdf section I chapter 4
Figure 66 Kibi Promotion Campaign
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
142 | P a g e
Figure 69 Barley imports value into Iran
copy ITC TradeMap301
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
4912 Challenges for EU products
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
301 Trade Map International Trade Centre wwwtrademaporg
Kazakhstan43
Russian Federation29
Germany18
France6
Estonia4
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
(Islamic Republic of) httpwwwfaoorggiewscountrybriefcountryjspcode=IRN Reproduced with
permission
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
304 United Nations International Trade Statistics Database Department of Economic and Social
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)
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
or cereal products (eg corn flakes) cereals other than maize (corn) in grain form pre-cooked or otherwise prepared copy
copy UN Comtrade307
306 United Nations International Trade Statistics Database Department of Economic and Social
AffairsStatistics Division available at httpscomtradeunorg 307 Ibid
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
$3500000
2012 2013 2014 2015 2016
Net
wei
ght
(kg)
Trad
e V
alu
e (U
S$)
Trade Value (US$) Netweight (kg)
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
Figure 73 Import 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 by partner country share (2012-2016 total trade value USD)
copy UN Comtrade309
308 United Nations International Trade Statistics Database Department of Economic and Social
AffairsStatistics Division available at httpscomtradeunorg 309 Ibid
Switzerland 1919
France 1225
UAE 1143
Turkey 1088Italy 1021
Germany 956
Poland 571
Spain 955
Malaysia 464
Other 376 China 282
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
147 | P a g e
4932 Main Competitors
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
4933 Specific customs and SPS requirements for import needed documents
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
httpsfinancialtribunecomarticleseconomy-domestic-economy55595kellogg-relaunches-cereals-
pringles-in-iran 312 The Ministry of Foreign Affairs of DenmarkldquoThe agriculture and food market in Iran Opportunities and
challenges for Danish companiesrdquo March 2017
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Dairy Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
41011 Consumer Profile and Trends
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Baked Goods
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Baked Goods
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
41012 Challenges for EU products
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)
copy ITC Trade Map323
320 Market Research World lsquolsquoBakery Retail Performance In The Middle East And Africarsquorsquo November 2010
available at httpmarketresearchworldnetcontentview357977 321 Trade Map International Trade Centre wwwtrademaporg 322 Ibid 323 Ibid
301
179159
086049
023 011 009 006 004
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Baked Goods
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)
copy ITC Trade Map325
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Baked Goods
154 | P a g e
copy ITC Trade Map327
41023 Main Competitors
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
httpsfinancialtribunecomarticleseconomy-domestic-economy65968iran-bread-consumption-six-times-
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Baked Goods
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
41024 Challenges for EU Products
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
41025 Specific customs and SPS requirements for import needed documents
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Baked Goods
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
httpsfinancialtribunecomarticleseconomy-business-and-markets38073industrial-bread-makes-more-
economic-sense
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
41111 Consumer Profile and Trends
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
bull Lifting of sanctions by the west is opening up the market
Threats
bullDomestic brands growth developments and opportunities due to easier access to raw materials and machinery imports
bullUncertain economic growth prospects
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Chocolate
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
41112 Challenges for EU products
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
httpsfinancialtribunecomarticleseconomy-business-and-markets25578sweet-creamy-investment
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Chocolate
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)
copy ITC Trade Map338
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
337 Trade Map International Trade Centre wwwtrademaporg 338 Ibid
647
351 304
169
030 018 014 009 004 002 000
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Chocolate
160 | P a g e
Figure 80 Value growth in Iranrsquos imports of chocolate products from EU countries ( pa)
copy ITC Trade Map339
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Chocolate
161 | P a g e
Figure 81 Iranrsquos exports of chocolate products to the EU (2016 value in EUR thousands)
copy ITC Trade Map342
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)
41131 Main Competitors
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Chocolate
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
41132 Challenges for EU 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Chocolate
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
41133 Specific customs and SPS requirements for import needed documents
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
httpsfinancialtribunecomarticleseconomy-business-and-markets19404why-grocery-stores-outnumber-
any-other-shop-in-tehran 351 Ibid
Figure 83 European Chocolate Sold in Tehran
Supermarket
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Chocolate
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Confectionery
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
41211 Consumer Profile and Trends
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Confectionery
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Confectionery
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
available at httpsfinancialtribunecomarticleseconomy-business-and-markets49831a-sweet-return-for-
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
available at httpsfinancialtribunecomarticleseconomy-business-and-markets49831a-sweet-return-for-
confectionery-industry
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Confectionery
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Confectionery
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
364 Trade Map International Trade Centre wwwtrademaporg 365 Ibid
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Confectionery
171 | P a g e
Figure 87 Iran Import Flows for Confectionery Products by Partner
copy ITC Trade Map366
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
366 Trade Map International Trade Centre wwwtrademaporg
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Confectionery
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
41232 Main Competitors
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
at httpsfinancialtribunecomarticleseconomy-business-and-markets35505investment-opportunities-
series-rock-candy-production 368 Trade Map International Trade Centre wwwtrademaporg
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Confectionery
173 | P a g e
industrialised confectionery production at the same time as Iran becomes
increasingly open to international markets369
41233 Challenges for EU Products
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
369 Financial Tribune ldquoInvestment Opportunities Series Rock Candy Productionrdquo February 2016 available
at httpsfinancialtribunecomarticleseconomy-business-and-markets35505investment-opportunities-
series-rock-candy-production 370 European Commission Market Access Database ldquoProcedures and Formalities Sugar and Confectionery
Productsrdquo available through
httpmadbeuropaeumadbdatasetPreviewIFpublihtmcountries=IRamphscode=1701
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Confectionery
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Confectionery
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
httpsfinancialtribunecomarticleseconomy-business-and-markets19404why-grocery-stores-outnumber-
any-other-shop-in-tehran
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Honey Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Honey Products
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
378 Trade Map International Trade Centre wwwtrademaporg 379 Ibid
0
5
10
15
20
25
China23
Germany20
India14
Italy12
France6
Korea Republic of4
Switzerland4
Denmark3
Chile3
Netherlands3
Spain2
Belgium2
Philippines2
Other2
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Honey Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Honey Products
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Honey Products
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
EU Commission DG Agri
41331 Main Competitors
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Honey Products
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-
dailycomNews188818html
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Cotton Plants
184 | P a g e
41411 Consumer Profile and Trends
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
41421 Domestic 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Cotton Plants
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
httpswwwicacorggetattachmenttechRegional-NetworksAsian-Cotton-R-D-Network-6th-
MeetingCotton-Roadmap-in-Iranpdf
250
260
270
280
290
300
310
320
330
2012 2013 2014 2015 2016 2017
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Cotton Plants
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
httpswwwicacorggetattachmenttechRegional-NetworksAsian-Cotton-R-D-Network-6th-
MeetingCotton-Roadmap-in-Iranpdf
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Cotton Plants
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
399 United Nations International Trade Statistics Database Department of Economic and Social
AffairsStatistics Division available at httpscomtradeunorg 400 Ibid
000
5000
10000
15000
20000
25000
30000
2012 2013 2014 2015 2016
World
EU
United Arab
Emirates22
China42
Turkey22
India13
Other1
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Cotton Plants
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
2017 available at httpseceuropaeuagriculturesitesagriculturefilestrade-analysisstatisticsoutside-
eucountriesagrifood-iran_enpdf 402 United Nations International Trade Statistics Database Department of Economic and Social
AffairsStatistics Division available at httpscomtradeunorg 403 Ibid
0
1
10
100
1000
2012 2013 2014 2015 2016
World
EU
China51
France21
Germany7
Sri Lanka5
Armenia5
Kazakhstan4
Turkey4
Georgia1
Other2
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Cotton Plants
189 | P a g e
41424 Main Competitors
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
41425 Specific customs and SPS requirements for import needed documents
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
httpwebcachegoogleusercontentcomsearchq=cachep4TeoQTT1ksJiranexporthubitwp-
contentpluginsdownload-
attachmentsincludesdownloadphp3Fid3D286+ampcd=1amphl=nlampct=clnkampgl=jp
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Market snapshots Cotton Plants
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Communication Advertising in Iran
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 Iranrdquo accessed 2017 available at httpszigma8comon-the-mediaadvertising-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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Communication Advertising in Iran
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Communication Advertising in Iran
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Communication Advertising in Iran
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
419 Chronicle Fanack ldquoIranrsquos Media Landscape An Overviewrdquo 2017 available at
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Communication Advertising 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
httpschroniclefanackcomiransociety-media-culturemedia
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Communication Advertising in Iran
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
425 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 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
httpmaatirenfirst-step-to-invest-in-iran-is-to-know-about-the-laws
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Communication Presenting a Product in Iran
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
430 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 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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Communication Presenting a Product in Iran
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Communication Presenting a Product in Iran
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
DOs AND DONrsquoTs Quick Facts
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
DOs AND DONrsquoTs Quick Facts
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
The Food and Beverage
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Synopsis SWOT and 4P analysis
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Synopsis SWOT and 4P analysis
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Synopsis 4P Analysis
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Support Service Directory Directory of EU member State Embassies
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Support Service Directory Directory of EU member State Embassies
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Support Service Directory Directory of EU member State Embassies
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Support Service Directory Directory of EU member State Embassies
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Commerce and Industry
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
15 ndash 18 September
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)
25 ndash 28 November
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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)
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 GIs
however there are 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 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)
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Annex I - EU Products Registered as GIs in Iran Calendar of Trade Events in Iran
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Annex I - EU Products Registered as GIs in Iran Calendar of Trade Events in Iran
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Annex I - EU Products Registered as GIs in Iran Calendar of Trade Events in Iran
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
Valleacutee Des Baux De
Provence
France Fruits and Vegetables
Muscat Du Ventoux France Fruits and Vegetables
Kalocsa Kalocsaer
Kalocsai
Hungary Fruits and Vegetables
Szeged Szegediner
Szegedi
Hungary Fruits and Vegetables
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Annex I - EU Products Registered as GIs in Iran Calendar of Trade Events in Iran
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
Italy Fruits and Vegetables
Pecorino Romano Italy Cheese
Pecorino Toscano Italy Cheese
Piave Italy Cheese
Pomodoro S Marzano
Dellrsquoagro Sarnese-
Nocerino
Italy Fruits and Vegetables
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
Italy Fruits and Vegetables
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Annex I - EU Products Registered as GIs in Iran Calendar of Trade Events in Iran
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Table of figures Marketing Strategy and Key to Success
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Table of figures Marketing Strategy and Key to Success
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
roasting of cereals 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 val 144 Figure 69 Import 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
145 Figure 70 Import 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
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
Table of figures Marketing Strategy and Key to Success
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
Enjoy Itrsquos from Europe ndash Market Entry Handbook
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