Packaged Food in Iran

PACKAGED FOOD IN IRAN
Euromonitor International
December 2015
PACKAGED FOOD IN IRAN Passport I
LIST OF CONTENTS AND TABLES

Packaged Food in Iran - Industry Overview.................................................................................. 1
Executive Summary ..................................................................................................................... 1
Packaged Food Gradually Recovers From the Chaotic Situation of Previous Years ................ 1
More Stable Business Environment With Much Lower Unit Price Increases Helps Packaged
Food Grow Again in 2015 ......................................................................................................... 1
Artisanal Products Are Still Significant in A Highly Fragmented Arena ..................................... 1
Independent Small Grocers Are Still Dominant But Face Challenges From Modern Channels 1
Lessening of Sanctions and More Stable Economic Situation Will Fuel Growth for the Coming
Years ........................................................................................................................................ 2
Foodservice: Key Trends and Developments ............................................................................... 2
Headlines.................................................................................................................................. 2
Trends ...................................................................................................................................... 2
Competitive Landscape ............................................................................................................ 3
Prospects .................................................................................................................................. 4
Category Data .......................................................................................................................... 4
Table 1 Foodservice Sales of Packaged Food by Category: Volume 2010-
2015 ............................................................................................................. 4
Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth
2010-2015 .................................................................................................... 5
Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume
2015-2020 .................................................................................................... 5
Table 4 Forecast Foodservice Sales of Packaged Food by Category: %
Volume Growth 2015-2020 .......................................................................... 6
Market Data .................................................................................................................................. 6
Table 5 Sales of Packaged Food by Category: Volume 2010-2015 .......................... 6
Table 6 Sales of Packaged Food by Category: Value 2010-2015 ............................. 7
Table 7 Sales of Packaged Food by Category: % Volume Growth 2010-2015 ......... 7
Table 8 Sales of Packaged Food by Category: % Value Growth 2010-2015 ............ 8
Table 9 GBO Company Shares of Packaged Food: % Value 2011-2015 ................. 8
Table 10 NBO Company Shares of Packaged Food: % Value 2011-2015 ................. 9
Table 11 LBN Brand Shares of Packaged Food: % Value 2012-2015 ...................... 10
Table 12 Distribution of Packaged Food by Format: % Value 2010-2015 ................. 11
Table 13 Distribution of Packaged Food by Format and Category: % Value
2015 ........................................................................................................... 11
Table 14 Forecast Sales of Packaged Food by Category: Volume 2015-2020 ......... 13
Table 15 Forecast Sales of Packaged Food by Category: Value 2015-2020 ............ 14
Table 16 Forecast Sales of Packaged Food by Category: % Volume Growth
2015-2020 .................................................................................................. 14
Table 17 Forecast Sales of Packaged Food by Category: % Value Growth
2015-2020 .................................................................................................. 15
Definitions................................................................................................................................... 15
Sources ...................................................................................................................................... 16
Summary 1 Research Sources ...................................................................................... 16
Packaged Food in Iran - Company Profiles ................................................................................ 18
Behshahr Industrial Co in Packaged Food (iran) ........................................................................ 18
© Euromonitor International
PACKAGED FOOD IN IRAN Passport II
Strategic Direction .................................................................................................................. 18

Key Facts ................................................................................................................................ 18
Summary 2 Behshahr Industrial Co: Key Facts ............................................................. 18
Competitive Positioning .......................................................................................................... 18
Summary 3 Behshahr Industrial Co: Competitive Position 2015 ................................... 19
Golestan Distribution Organization in Packaged Food (iran) ...................................................... 19
Key Facts ................................................................................................................................ 20
Summary 4 Golestan Distribution Organization: Key Facts ........................................... 20
Kalleh Dairy Co in Packaged Food (iran) ................................................................................... 20
Key Facts ................................................................................................................................ 21
Summary 5 Kalleh Dairy Co: Key Facts ........................................................................ 21
Summary 6 Kalleh Dairy Co: Competitive Position 2015 ............................................... 21
Nestlé Iran Pjs Co in Packaged Food (iran) ............................................................................... 22
Key Facts ................................................................................................................................ 23
Summary 7 Nestlé Iran PJS Co: Key Facts ................................................................... 23
Summary 8 Nestlé Iran PJS Co: Competitive Position 2015 ......................................... 23
Saye Saman Co in Packaged Food (iran) .................................................................................. 24
Key Facts ................................................................................................................................ 24
Summary 9 Saye Saman Co: Key Facts ....................................................................... 24
Baby Food in Iran - Category analysis ....................................................................................... 26
Headlines ................................................................................................................................... 26
Trends ........................................................................................................................................ 26
Competitive Landscape .............................................................................................................. 27
Prospects ................................................................................................................................... 28
Category Data ............................................................................................................................ 29
Table 18 Sales of Baby Food by Category: Volume 2010-2015................................ 29
Table 19 Sales of Baby Food by Category: Value 2010-2015 .................................. 29
Table 20 Sales of Baby Food by Category: % Volume Growth 2010-2015 ............... 30
Table 21 Sales of Baby Food by Category: % Value Growth 2010-2015 .................. 30
Table 22 NBO Company Shares of Baby Food: % Value 2011-2015 ....................... 30
Table 23 LBN Brand Shares of Baby Food: % Value 2012-2015 .............................. 31
Table 24 Distribution of Baby Food by Format: % Value 2010-2015......................... 31
Table 25 Forecast Sales of Baby Food by Category: Volume 2015-2020................. 32
Table 26 Forecast Sales of Baby Food by Category: Value 2015-2020.................... 32
Table 27 Forecast Sales of Baby Food by Category: % Volume Growth 2015-
2020 ........................................................................................................... 33
PACKAGED FOOD IN IRAN Passport III
Table 28 Forecast Sales of Baby Food by Category: % Value Growth 2015-

2020 ........................................................................................................... 33
Baked Goods in Iran - Category analysis ................................................................................... 34
Headlines ................................................................................................................................... 34
Trends ........................................................................................................................................ 34
Prospects ................................................................................................................................... 36
Category Data ............................................................................................................................ 37
Table 29 Sales of Baked Goods by Category: Volume 2010-2015 ........................... 37
Table 30 Sales of Baked Goods by Category: Value 2010-2015 .............................. 37
Table 31 Sales of Baked Goods by Category: % Volume Growth 2010-2015 .......... 37
Table 32 Sales of Baked Goods by Category: % Value Growth 2010-2015 ............. 38
Table 33 NBO Company Shares of Baked Goods: % Value 2011-2015 ................... 38
Table 34 LBN Brand Shares of Baked Goods: % Value 2012-2015 ......................... 39
Table 35 Distribution of Baked Goods by Format: % Value 2010-2015 .................... 39
Table 36 Forecast Sales of Baked Goods by Category: Volume 2015-2020 ............ 40
Table 37 Forecast Sales of Baked Goods by Category: Value 2015-2020 ............... 40
Table 38 Forecast Sales of Baked Goods by Category: % Volume Growth
2015-2020 .................................................................................................. 41
Table 39 Forecast Sales of Baked Goods by Category: % Value Growth 2015-
2020 ........................................................................................................... 41
Biscuits and Snack Bars in Iran - Category analysis .................................................................. 42
Headlines ................................................................................................................................... 42
Trends ........................................................................................................................................ 42
Prospects ................................................................................................................................... 44
Category Data ............................................................................................................................ 44
Table 40 Sales of Biscuits and Snack Bars by Category: Volume 2010-2015 .......... 44
Table 41 Sales of Biscuits and Snack Bars by Category: Value 2010-2015 ............. 45
Table 42 Sales of Biscuits and Snack Bars by Category: % Volume Growth
2010-2015 .................................................................................................. 45
Table 43 Sales of Biscuits and Snack Bars by Category: % Value Growth 2010-
2015 ........................................................................................................... 46
Table 44 NBO Company Shares of Biscuits and Snack Bars: % Value 2011-
2015 ........................................................................................................... 46
Table 45 LBN Brand Shares of Biscuits and Snack Bars: % Value 2012-2015 ........ 47
Table 46 NBO Company Shares of Biscuits: % Value 2011-2015 ............................ 47
Table 47 LBN Brand Shares of Biscuits: % Value 2012-2015 ................................... 47
Table 48 NBO Company Shares of Snack Bars: % Value 2011-2015 ...................... 48
Table 49 LBN Brand Shares of Snack Bars: % Value 2012-2015 ............................. 48
Table 50 Distribution of Biscuits and Snack Bars by Format: % Value 2010-
2015 ........................................................................................................... 48
Table 51 Distribution of Biscuits by Format: % Value 2010-2015.............................. 49
Table 52 Distribution of Snack Bars by Format: % Value 2010-2015........................ 50
Table 53 Forecast Sales of Biscuits and Snack Bars by Category: Volume
2015-2020 .................................................................................................. 50
Table 54 Forecast Sales of Biscuits and Snack Bars by Category: Value 2015-
2020 ........................................................................................................... 51
PACKAGED FOOD IN IRAN Passport IV
Table 55 Forecast Sales of Biscuits and Snack Bars by Category: % Volume

Growth 2015-2020 ..................................................................................... 51
Table 56 Forecast Sales of Biscuits and Snack Bars by Category: % Value
Growth 2015-2020 ..................................................................................... 52
Breakfast Cereals in Iran - Category analysis ............................................................................ 53
Headlines ................................................................................................................................... 53
Trends ........................................................................................................................................ 53
Prospects ................................................................................................................................... 54
Category Data ............................................................................................................................ 55
Table 57 Sales of Breakfast Cereals by Category: Volume 2010-2015 .................... 55
Table 58 Sales of Breakfast Cereals by Category: Value 2010-2015 ....................... 56
Table 59 Sales of Breakfast Cereals by Category: Value 2010-2015 ....................... 56
Table 60 Forecast Sales of Breakfast Cereals by Category: Volume 2015-2020...... 56
Table 61 Forecast Sales of Breakfast Cereals by Category: Value 2015-2020 ........ 57
Table 62 Forecast Sales of Breakfast Cereals by Category: % Volume Growth
2015-2020 .................................................................................................. 57
Table 63 Forecast Sales of Breakfast Cereals by Category: % Value Growth
2015-2020 .................................................................................................. 57
Chocolate Confectionery in Iran - Category analysis.................................................................. 59
Headlines ................................................................................................................................... 59
Trends ........................................................................................................................................ 59
Prospects ................................................................................................................................... 62
Category Data ............................................................................................................................ 62
Table 64 Sales of Chocolate Confectionery by Category: Volume 2010-2015 .......... 62
Table 65 Sales of Chocolate Confectionery by Category: Value 2010-2015 ............. 63
Table 66 Sales of Chocolate Confectionery by Category: % Volume Growth
2010-2015 .................................................................................................. 63
Table 67 Sales of Chocolate Confectionery by Category: % Value Growth
2010-2015 .................................................................................................. 63
Table 68 Sales of Chocolate Tablets by Type: % Value Breakdown 2010-2015....... 64
Table 69 NBO Company Shares of Chocolate Confectionery: % Value 2011-
2015 ........................................................................................................... 64
Table 70 LBN Brand Shares of Chocolate Confectionery: % Value 2012-2015 ........ 64
Table 71 Distribution of Chocolate Confectionery by Format: % Value 2010-
2015 ........................................................................................................... 65
Table 72 Forecast Sales of Chocolate Confectionery by Category: Volume
2015-2020 .................................................................................................. 66
Table 73 Forecast Sales of Chocolate Confectionery by Category: Value 2015-
2020 ........................................................................................................... 66
Table 74 Forecast Sales of Chocolate Confectionery by Category: % Volume
Growth 2015-2020 ..................................................................................... 67
Table 75 Forecast Sales of Chocolate Confectionery by Category: % Value
Growth 2015-2020 ..................................................................................... 67
Gum in Iran - Category analysis ................................................................................................. 68
Headlines ................................................................................................................................... 68
Trends ........................................................................................................................................ 68
PACKAGED FOOD IN IRAN Passport V
Prospects ................................................................................................................................... 70
Category Data ............................................................................................................................ 71
Table 76 Sales of Gum by Category: Volume 2010-2015 ......................................... 71
Table 77 Sales of Gum by Category: Value 2010-2015 ............................................ 71
Table 78 Sales of Gum by Category: % Volume Growth 2010-2015 ........................ 71
Table 79 Sales of Gum by Category: % Value Growth 2010-2015 ........................... 71
Table 80 NBO Company Shares of Gum: % Value 2011-2015 ................................. 71
Table 81 LBN Brand Shares of Gum: % Value 2012-2015 ....................................... 72
Table 82 Distribution of Gum by Format: % Value 2010-2015 .................................. 72
Table 83 Forecast Sales of Gum by Category: Volume 2015-2020 .......................... 73
Table 84 Forecast Sales of Gum by Category: Value 2015-2020 ............................. 73
Table 85 Forecast Sales of Gum by Category: % Volume Growth 2015-2020 ......... 73
Table 86 Forecast Sales of Gum by Category: % Value Growth 2015-2020 ............ 74
Sugar Confectionery in Iran - Category analysis ........................................................................ 75
Headlines ................................................................................................................................... 75
Trends ........................................................................................................................................ 75
Prospects ................................................................................................................................... 77
Category Data ............................................................................................................................ 78
Summary 10 Other Sugar Confectionery: Product Types ................................................ 78
Table 87 Sales of Sugar Confectionery by Category: Volume 2010-2015 ................ 78
Table 88 Sales of Sugar Confectionery by Category: Value 2010-2015 ................... 78
Table 89 Sales of Sugar Confectionery by Category: % Volume Growth 2010-
2015 ........................................................................................................... 79
Table 90 Sales of Sugar Confectionery by Category: % Value Growth 2010-
2015 ........................................................................................................... 79
Table 91 Sales of Pastilles, Gums, Jellies and Chews by Type: % Value
Breakdown 2010-2015 ............................................................................... 80
Table 92 NBO Company Shares of Sugar Confectionery: % Value 2011-2015 ........ 80
Table 93 LBN Brand Shares of Sugar Confectionery: % Value 2012-2015 .............. 80
Table 94 Distribution of Sugar Confectionery by Format: % Value 2010-2015 ......... 80
Table 95 Forecast Sales of Sugar Confectionery by Category: Volume 2015-
2020 ........................................................................................................... 81
Table 96 Forecast Sales of Sugar Confectionery by Category: Value 2015-
2020 ........................................................................................................... 81
Table 97 Forecast Sales of Sugar Confectionery by Category: % Volume
Growth 2015-2020 ..................................................................................... 82
Table 98 Forecast Sales of Sugar Confectionery by Category: % Value Growth
2015-2020 .................................................................................................. 82
Cheese in Iran - Category analysis ............................................................................................ 84
Headlines ................................................................................................................................... 84
Trends ........................................................................................................................................ 84
Prospects ................................................................................................................................... 86
Category Data ............................................................................................................................ 87
Table 99 Sales of Cheese by Category: Volume 2010-2015 .................................... 87
Table 100 Sales of Cheese by Category: Value 2010-2015 ....................................... 88
Table 101 Sales of Cheese by Category: % Volume Growth 2010-2015 .................... 88
Table 102 Sales of Cheese by Category: % Value Growth 2010-2015 ....................... 88
PACKAGED FOOD IN IRAN Passport VI
Table 103 Sales of Spreadable Processed Cheese by Type: % Value

Breakdown 2010-2015 ............................................................................... 89
Table 104 NBO Company Shares of Cheese: % Value 2011-2015 ............................ 89
Table 105 LBN Brand Shares of Cheese: % Value 2012-2015 ................................... 89
Table 106 Distribution of Cheese by Format: % Value 2010-2015.............................. 90
Table 107 Forecast Sales of Cheese by Category: Volume 2015-2020...................... 90
Table 108 Forecast Sales of Cheese by Category: Value 2015-2020......................... 90
Table 109 Forecast Sales of Cheese by Category: % Volume Growth 2015-2020 ..... 91
Table 110 Forecast Sales of Cheese by Category: % Value Growth 2015-2020 ........ 91
Drinking Milk Products in Iran - Category analysis ..................................................................... 92
Headlines ................................................................................................................................... 92
Trends ........................................................................................................................................ 92
Prospects ................................................................................................................................... 94
Category Data ............................................................................................................................ 95
Table 111 Sales of Drinking Milk Products by Category: Volume 2010-2015 ............. 95
Table 112 Sales of Drinking Milk Products by Category: Value 2010-2015 ................ 96
Table 113 Sales of Drinking Milk Products by Category: % Volume Growth 2010-
2015 ........................................................................................................... 96
Table 114 Sales of Drinking Milk Products by Category: % Value Growth 2010-
2015 ........................................................................................................... 97
Table 115 NBO Company Shares of Drinking Milk Products: % Value 2011-2015 ..... 97
Table 116 LBN Brand Shares of Drinking Milk Products: % Value 2012-2015 ........... 97
Table 117 Distribution of Drinking Milk Products by Format: % Value 2010-2015 ...... 98
Table 118 Forecast Sales of Drinking Milk Products Products by Category:
Volume 2015-2020 ..................................................................................... 98
Table 119 Forecast Sales of Drinking Milk Products Products by Category:
Value 2015-2020 ........................................................................................ 99
Table 120 Forecast Sales of Drinking Milk Products Products by Category: %
Volume Growth 2015-2020 ........................................................................ 99
Table 121 Forecast Sales of Drinking Milk Products Products by Category: %
Value Growth 2015-2020 ......................................................................... 100
Yoghurt and Sour Milk Products in Iran - Category analysis .................................................... 101
Headlines ................................................................................................................................. 101
Trends ...................................................................................................................................... 101
Prospects ................................................................................................................................. 104
Category Data .......................................................................................................................... 104
Table 122 Sales of Yoghurt and Sour Milk Products by Category: Volume 2010-
2015 ......................................................................................................... 104
Table 123 Sales of Yoghurt and Sour Milk Products by Category: Value 2010-
2015 ......................................................................................................... 105
Table 124 Sales of Yoghurt and Sour Milk Products by Category: % Volume
Growth 2010-2015 ................................................................................... 105
Table 125 Sales of Yoghurt and Sour Milk Products by Category: % Value
Growth 2010-2015 ................................................................................... 105
Table 126 NBO Company Shares of Yoghurt and Sour Milk Products: % Value
2011-2015 ................................................................................................ 106
PACKAGED FOOD IN IRAN Passport VII
Table 127 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2012-
2015 ......................................................................................................... 106
Table 128 Distribution of Yoghurt and Sour Milk Products by Format: % Value
2010-2015 ................................................................................................ 106
Table 129 Forecast Sales of Yoghurt and Sour Milk Products by Category:
Volume 2015-2020 ................................................................................... 107
Table 130 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value
2015-2020 ................................................................................................ 107
Table 131 Forecast Sales of Yoghurt and Sour Milk Products by Category: %
Volume Growth 2015-2020 ...................................................................... 108
Table 132 Forecast Sales of Yoghurt and Sour Milk Products by Category: %
Value Growth 2015-2020 ......................................................................... 108
Other Dairy in Iran - Category analysis .................................................................................... 109
Headlines ................................................................................................................................. 109
Trends ...................................................................................................................................... 109
Prospects ................................................................................................................................. 111
Category Data .......................................................................................................................... 111
Table 133 Sales of Other Dairy by Category: Volume 2010-2015............................. 111
Table 134 Sales of Other Dairy by Category: Value 2010-2015................................ 112
Table 135 Sales of Other Dairy by Category: % Volume Growth 2010-2015 ............ 112
Table 136 Sales of Other Dairy by Category: % Value Growth 2010-2015 ............... 113
Table 137 Distribution of Other Dairy by Format: % Value 2010-2015...................... 113
Table 138 Forecast Sales of Other Dairy by Category: Volume 2015-2020.............. 114
Table 139 Forecast Sales of Other Dairy by Category: Value 2015-2020................. 114
Table 140 Forecast Sales of Other Dairy by Category: % Volume Growth 2015-
2020 ......................................................................................................... 115
Table 141 Forecast Sales of Other Dairy by Category: % Value Growth 2015-
2020 ......................................................................................................... 115
Ice Cream and Frozen Desserts in Iran - Category analysis .................................................... 116
Headlines ................................................................................................................................. 116
Trends ...................................................................................................................................... 116
Prospects ................................................................................................................................. 118
Category Data .......................................................................................................................... 119
Table 142 Sales of Ice Cream and Frozen Desserts by Category: Volume 2010-
2015 ......................................................................................................... 119
Table 143 Sales of Ice Cream and Frozen Desserts by Category: Value 2010-
2015 ......................................................................................................... 119
Table 144 Sales of Ice Cream and Frozen Desserts by Category: % Volume
Growth 2010-2015 ................................................................................... 120
Table 145 Sales of Ice Cream and Frozen Desserts by Category: % Value
Growth 2010-2015 ................................................................................... 120
Table 146 NBO Company Shares of Ice Cream and Frozen Desserts: % Value
2011-2015 ................................................................................................ 121
Table 147 LBN Brand Shares of Ice Cream and Frozen Desserts: % Value
2012-2015 ................................................................................................ 121
Table 148 NBO Company Shares of Ice Cream: % Value 2011-2015 ...................... 121
Table 149 LBN Brand Shares of Ice Cream: % Value 2012-2015............................. 121
PACKAGED FOOD IN IRAN Passport VIII
Table 150 Distribution of Ice Cream and Frozen Desserts by Format: % Value
2010-2015 ................................................................................................ 122
Table 151 Distribution of Ice Cream by Format: % Value 2010-2015 ....................... 122
Table 152 Forecast Sales of Ice Cream and Frozen Desserts by Category:
Volume 2015-2020 ................................................................................... 123
Table 153 Forecast Sales of Ice Cream and Frozen Desserts by Category:
Value 2015-2020 ...................................................................................... 124
Table 154 Forecast Sales of Ice Cream and Frozen Desserts by Category: %
Volume Growth 2015-2020 ...................................................................... 124
Table 155 Forecast Sales of Ice Cream and Frozen Desserts by Category: %
Value Growth 2015-2020 ......................................................................... 125
Oils and Fats in Iran - Category analysis .................................................................................. 126
Headlines ................................................................................................................................. 126
Trends ...................................................................................................................................... 126
Prospects ................................................................................................................................. 127
Category Data .......................................................................................................................... 128
Table 156 Sales of Oils and Fats by Category: Volume 2010-2015 .......................... 128
Table 157 Sales of Oils and Fats by Category: Value 2010-2015 ............................. 128
Table 158 Sales of Oils and Fats by Category: % Volume Growth 2010-2015 ......... 129
Table 159 Sales of Oils and Fats by Category: % Value Growth 2010-2015 ............ 129
Table 160 NBO Company Shares of Oils and Fats: % Value 2011-2015 ................. 129
Table 161 LBN Brand Shares of Oils and Fats: % Value 2012-2015 ........................ 130
Table 162 Distribution of Oils and Fats by Format: % Value 2010-2015 ................... 131
Table 163 Sales of Oils and Fats by Category: % Volume Growth 2010-2015 ......... 132
Table 164 Sales of Oils and Fats by Category: % Value Growth 2010-2015 ............ 132
Table 165 NBO Company Shares of Oils and Fats: % Value 2011-2015 ................. 132
Table 166 LBN Brand Shares of Oils and Fats: % Value 2012-2015 ........................ 133
Table 167 Distribution of Oils and Fats by Format: % Value 2010-2015 ................... 134
Table 168 Forecast Sales of Oils and Fats by Category: Value 2015-2020 .............. 134
Table 169 Forecast Sales of Oils and Fats by Category: % Volume Growth
2015-2020 ................................................................................................ 135
Table 170 Forecast Sales of Oils and Fats by Category: % Value Growth 2015-
2020 ......................................................................................................... 135
Processed Fruit and Vegetables in Iran - Category analysis .................................................... 136
Headlines ................................................................................................................................. 136
Trends ...................................................................................................................................... 136
Prospects ................................................................................................................................. 138
Category Data .......................................................................................................................... 138
Table 171 Sales of Processed Fruit and Vegetables by Category: Volume 2010-
2015 ......................................................................................................... 138
Table 172 Sales of Processed Fruit and Vegetables by Category: Value 2010-
2015 ......................................................................................................... 139
Table 173 Sales of Processed Fruit and Vegetables by Category: % Volume
Growth 2010-2015 ................................................................................... 139
Table 174 Sales of Processed Fruit and Vegetables by Category: % Value
Growth 2010-2015 ................................................................................... 140
PACKAGED FOOD IN IRAN Passport IX
Table 175 NBO Company Shares of Processed Fruit and Vegetables: % Value
2011-2015 ................................................................................................ 140
Table 176 LBN Brand Shares of Processed Fruit and Vegetables: % Value
2012-2015 ................................................................................................ 140
Table 177 Distribution of Processed Fruit and Vegetables by Format: % Value
2010-2015 ................................................................................................ 141
Table 178 Forecast Sales of Processed Fruit and Vegetables by Category:
Volume 2015-2020 ................................................................................... 141
Table 179 Forecast Sales of Processed Fruit and Vegetables by Category:
Value 2015-2020 ...................................................................................... 142
Table 180 Forecast Sales of Processed Fruit and Vegetables by Category: %
Volume Growth 2015-2020 ...................................................................... 142
Table 181 Forecast Sales of Processed Fruit and Vegetables by Category: %
Value Growth 2015-2020 ......................................................................... 142
Processed Meat and Seafood in Iran - Category analysis ........................................................ 144
Headlines ................................................................................................................................. 144
Trends ...................................................................................................................................... 144
Prospects ................................................................................................................................. 146
Category Data .......................................................................................................................... 147
Table 182 Sales of Processed Meat and Seafood by Category: Volume 2010-
2015 ......................................................................................................... 147
Table 183 Sales of Processed Meat and Seafood by Category: Value 2010-2015 ... 147
Table 184 Sales of Processed Meat and Seafood by Category: % Volume
Growth 2010-2015 ................................................................................... 148
Table 185 Sales of Processed Meat and Seafood by Category: % Value Growth
2010-2015 ................................................................................................ 148
Table 186 NBO Company Shares of Processed Meat and Seafood: % Value
2011-2015 ................................................................................................ 148
Table 187 LBN Brand Shares of Processed Meat and Seafood: % Value 2012-
2015 ......................................................................................................... 149
Table 188 Distribution of Processed Meat and Seafood by Format: % Value
2010-2015 ................................................................................................ 149
Table 189 Forecast Sales of Processed Meat and Seafood by Category: Volume
2015-2020 ................................................................................................ 150
Table 190 Forecast Sales of Processed Meat and Seafood by Category: Value
2015-2020 ................................................................................................ 150
Table 191 Forecast Sales of Processed Meat and Seafood by Category: %
Volume Growth 2015-2020 ...................................................................... 151
Table 192 Forecast Sales of Processed Meat and Seafood by Category: %
Value Growth 2015-2020 ......................................................................... 151
Ready Meals in Iran - Category analysis .................................................................................. 153
Headlines ................................................................................................................................. 153
Trends ...................................................................................................................................... 153
Prospects ................................................................................................................................. 155
Category Data .......................................................................................................................... 155
Table 193 Sales of Ready Meals by Category: Volume 2010-2015 .......................... 155
Table 194 Sales of Ready Meals by Category: Value 2010-2015 ............................. 156
PACKAGED FOOD IN IRAN Passport X
Table 195 Sales of Ready Meals by Category: % Volume Growth 2010-2015 ......... 156
Table 196 Sales of Ready Meals by Category: % Value Growth 2010-2015 ............ 156
Table 197 NBO Company Shares of Ready Meals: % Value 2011-2015.................. 157
Table 198 LBN Brand Shares of Ready Meals: % Value 2012-2015 ........................ 157
Table 199 Distribution of Ready Meals by Format: % Value 2010-2015 ................... 157
Table 200 Forecast Sales of Ready Meals by Category: Volume 2015-2020 ........... 158
Table 201 Forecast Sales of Ready Meals by Category: Value 2015-2020 .............. 158
Table 202 Forecast Sales of Ready Meals by Category: % Volume Growth
2015-2020 ................................................................................................ 159
Table 203 Forecast Sales of Ready Meals by Category: % Value Growth 2015-
2020 ......................................................................................................... 159
Rice, Pasta and Noodles in Iran - Category analysis ............................................................... 160
Headlines ................................................................................................................................. 160
Trends ...................................................................................................................................... 160
Prospects ................................................................................................................................. 162
Category Data .......................................................................................................................... 163
Table 204 Sales of Rice, Pasta and Noodles by Category: Volume 2010-2015 ....... 163
Table 205 Sales of Rice, Pasta and Noodles by Category: Value 2010-2015 .......... 163
Table 206 Sales of Rice, Pasta and Noodles by Category: % Volume Growth
2010-2015 ................................................................................................ 164
Table 207 Sales of Rice, Pasta and Noodles by Category: % Value Growth
2010-2015 ................................................................................................ 164
Table 208 NBO Company Shares of Rice, Pasta and Noodles: % Value 2011-
2015 ......................................................................................................... 164
Table 209 LBN Brand Shares of Rice, Pasta and Noodles: % Value 2012-2015 ...... 165
Table 210 NBO Company Shares of Rice: % Value 2011-2015 ............................... 165
Table 211 LBN Brand Shares of Rice: % Value 2012-2015 ...................................... 166
Table 212 NBO Company Shares of Pasta: % Value 2011-2015 ............................. 166
Table 213 LBN Brand Shares of Pasta: % Value 2012-2015 .................................... 166
Table 214 NBO Company Shares of Noodles: % Value 2011-2015 ......................... 167
Table 215 LBN Brand Shares of Noodles: % Value 2012-2015 ................................ 167
Table 216 Distribution of Rice, Pasta and Noodles by Format: % Value 2010-
2015 ......................................................................................................... 167
Table 217 Distribution of Rice by Format: % Value 2010-2015 ................................. 168
Table 218 Distribution of Pasta by Format: % Value 2010-2015 ............................... 168
Table 219 Distribution of Noodles by Format: % Value 2010-2015 ........................... 169
Table 220 Forecast Sales of Rice, Pasta and Noodles by Category: Volume
2015-2020 ................................................................................................ 170
Table 222 Forecast Sales of Rice, Pasta and Noodles by Category: % Volume
Growth 2015-2020 ................................................................................... 170
Table 223 Forecast Sales of Rice, Pasta and Noodles by Category: % Value
Growth 2015-2020 ................................................................................... 171
Sauces, Dressings and Condiments in Iran - Category analysis .............................................. 172
Headlines ................................................................................................................................. 172
Trends ...................................................................................................................................... 172
Prospects ................................................................................................................................. 174
Category Data .......................................................................................................................... 175
PACKAGED FOOD IN IRAN Passport XI
Table 224 Sales of Sauces, Dressings and Condiments by Category: Volume

2010-2015 ................................................................................................ 175
Table 225 Sales of Sauces, Dressings and Condiments by Category: Value
2010-2015 ................................................................................................ 175
Table 226 Sales of Sauces, Dressings and Condiments by Category: % Volume
Growth 2010-2015 ................................................................................... 176
Table 227 Sales of Sauces, Dressings and Condiments by Category: % Value
Growth 2010-2015 ................................................................................... 176
Table 228 NBO Company Shares of Sauces, Dressings and Condiments: %
Value 2011-2015 ...................................................................................... 177
Table 229 LBN Brand Shares of Sauces, Dressings and Condiments: % Value
2012-2015 ................................................................................................ 177
Table 230 Distribution of Sauces, Dressings and Condiments by Format: %
Value 2010-2015 ...................................................................................... 178
Table 231 Forecast Sales of Sauces, Dressings and Condiments by Category:
Volume 2015-2020 ................................................................................... 178
Value 2015-2020 ...................................................................................... 179
% Volume Growth 2015-2020 .................................................................. 180
% Value Growth 2015-2020 ..................................................................... 180
Soup in Iran - Category analysis .............................................................................................. 182
Headlines ................................................................................................................................. 182
Trends ...................................................................................................................................... 182
Prospects ................................................................................................................................. 183
Category Data .......................................................................................................................... 184
Table 235 Sales of Soup by Category: Volume 2010-2015 ...................................... 184
Table 236 Sales of Soup by Category: Value 2010-2015 ......................................... 184
Table 237 Sales of Soup by Category: % Volume Growth 2010-2015 ...................... 184
Table 238 Sales of Soup by Category: % Value Growth 2010-2015 ......................... 185
Table 239 NBO Company Shares of Soup: % Value 2011-2015 .............................. 185
Table 240 LBN Brand Shares of Soup: % Value 2012-2015 ..................................... 185
Table 241 Distribution of Soup by Format: % Value 2010-2015 ............................... 186
Table 242 Forecast Sales of Soup by Category: Volume 2015-2020........................ 186
Table 243 Forecast Sales of Soup by Category: Value 2015-2020........................... 186
Table 244 Forecast Sales of Soup by Category: % Volume Growth 2015-2020 ....... 187
Table 245 Forecast Sales of Soup by Category: % Value Growth 2015-2020 .......... 187
Spreads in Iran - Category analysis ......................................................................................... 188
Headlines ................................................................................................................................. 188
Trends ...................................................................................................................................... 188
Prospects ................................................................................................................................. 189
Category Data .......................................................................................................................... 190
Table 246 Sales of Spreads by Category: Volume 2010-2015 ................................. 190
Table 247 Sales of Spreads by Category: Value 2010-2015 .................................... 190
Table 248 Sales of Spreads by Category: % Volume Growth 2010-2015 ................. 191
Table 249 Sales of Spreads by Category: % Value Growth 2010-2015 .................... 191
PACKAGED FOOD IN IRAN Passport XII
Table 250 NBO Company Shares of Spreads: % Value 2011-2015 ......................... 191
Table 251 LBN Brand Shares of Spreads: % Value 2012-2015 ................................ 191
Table 252 Distribution of Spreads by Format: % Value 2010-2015........................... 192
Table 253 Forecast Sales of Spreads by Category: Volume 2015-2020................... 192
Table 254 Forecast Sales of Spreads by Category: Value 2015-2020...................... 193
Table 255 Forecast Sales of Spreads by Category: % Volume Growth 2015-
2020 ......................................................................................................... 193
Table 256 Forecast Sales of Spreads by Category: % Value Growth 2015-2020 ..... 193
Sweet and Savoury Snacks in Iran - Category analysis ........................................................... 195
Headlines ................................................................................................................................. 195
Trends ...................................................................................................................................... 195
Prospects ................................................................................................................................. 197
Category Data .......................................................................................................................... 198
Table 257 Sales of Sweet and Savoury Snacks by Category: Volume 2010-2015 ... 198
Table 258 Sales of Sweet and Savoury Snacks by Category: Value 2010-2015 ...... 198
Table 259 Sales of Sweet and Savoury Snacks by Category: % Volume Growth
2010-2015 ................................................................................................ 198
Table 260 Sales of Sweet and Savoury Snacks by Category: % Value Growth
2010-2015 ................................................................................................ 199
Table 261 NBO Company Shares of Sweet and Savoury Snacks: % Value 2011-
2015 ......................................................................................................... 199
Table 262 LBN Brand Shares of Sweet and Savoury Snacks: % Value 2012-
2015 ......................................................................................................... 199
Table 263 Distribution of Sweet and Savoury Snacks by Format: % Value 2010-
2015 ......................................................................................................... 200
Table 264 Forecast Sales of Sweet and Savoury Snacks by Category: Volume
2015-2020 ................................................................................................ 200
Table 265 Forecast Sales of Sweet and Savoury Snacks by Category: Value
2015-2020 ................................................................................................ 201
Table 266 Forecast Sales of Sweet and Savoury Snacks by Category: %
Volume Growth 2015-2020 ...................................................................... 201
Table 267 Forecast Sales of Sweet and Savoury Snacks by Category: % Value
Growth 2015-2020 ................................................................................... 201
PACKAGED FOOD IN IRAN Passport 1
PACKAGED FOOD IN IRAN -

INDUSTRY OVERVIEW
EXECUTIVE SUMMARY
Packaged Food Gradually Recovers From the Chaotic Situation of

Previous Years
The Iranian economy was much more stable in 2015 compared to previous years due to a
decline in the rate of inflation and improvement of purchasing power which positively impacts
demand for packaged food. As most packaged food categories have a very low consumer base
in Iran, customers who feel more financially stable are more willing to spend on packaged food
which was reflected in more positive growth rates in volume terms compared to 2013 and 2014.
More Stable Business Environment With Much Lower Unit Price

Increases Helps Packaged Food Grow Again in 2015
After the final agreement between Iran and Group 5+1 in Geneva in April 2015, the business
environment gradually started to change. Suppliers had more hopes for improvements as the
removal of sanctions (especially financial sanctions) could seriously improve the importation
process for both raw materials and finished products which meant more stable unit prices and
even declines in unit prices for some areas. Although no major actual change happened in
terms of sanctions, just the idea positively improved both supply and demand in most packaged
food categories.
Artisanal Products Are Still Significant in A Highly Fragmented Arena

Artisanal products ranked first among players in packaged food at the end of the review
period with cheaper prices ensuring their appeal to the widest possible consumer base.
Artisanal products are traditionally strong in bread, but may eventually lose share in the future to
packaged products due to rapid urbanisation. The popularity of unpackaged products is mostly
attributed to the eating habits and preferences of Iranian consumers who tend to prefer fresh
products from sources they are familiar with. Baked goods is dominated by artisanal products
produced by small, local bakeries that supply neighbourhoods and quarters.
Independent Small Grocers Are Still Dominant But Face Challenges

From Modern Channels
In line with the trend for one-stop shopping, supermarkets and hypermarkets played an
increasingly important role within packaged food distribution during the review period.
Supermarkets and hypermarkets outlets carry a wide range of goods, including food, clothing,
footwear, healthcare products and beauty and personal care. They tend to be located in large
shopping malls that include other types of retail outlets, food courts, cinema complexes and
leisure centres to entertain the whole family. The increasing number of chained supermarkets
and hypermarkets mean more shelf space and price promotions for packaged food, which
positively impacted sales in 2015 and cannibalised the share of independent small grocers.
However, there is still a long way for these modern channels to go before they become
dominant, as independent small grocers are still very strong due to their huge number.
Lessening of Sanctions and More Stable Economic Situation Will Fuel

Growth for the Coming Years
It is very likely that international sanctions on Iran will be loosened or even removed
completely after the 2015 agreement between Iran and western countries. This could mean a
major breakthrough in packaged food. The entrance of new multinationals and re-entry of those
who left the country is very possible which could totally change the competitive environment in
many categories. Domestic suppliers will find it much easier to import raw materials and export
finished products that could result in an improvement of their operation. Entry of multinationals
and performance improvement of domestic suppliers both mean that the Iranian marketplace,
with a very low base in many areas, will become a battlefield for value share during the forecast
period.
FOODSERVICE: KEY TRENDS AND DEVELOPMENTS
Headlines
 Volume sales increase by 10% to reach around 2.3 million tonnes in 2015
 Busier lifestyles and rapid urbanisation fuel growth, while hard economic times and a drop in
purchasing power negatively impact performance
 Processed frozen fruit and vegetables is expected to be most dynamic recording a
foodservice volume growth of 25% in 2015
 Unpackaged/artisanal bread sees the highest decline of 9% in foodservice volume terms
during 2015
 In the absence of giant multinationals, the Iranian foodservice competitive environment
remains very fragmented
 A foodservice volume CAGR of 2% is predicted for the forecast period with sales reaching 2.2
million tonnes in 2020
Trends
 Eating out is still a relatively new concept in Iran and most households still do not do it on a
regular basis. However, the habit of eating in restaurants grew at a rapid rate in 2015 for two
reasons. Firstly, the lifestyle of a typical Iranian urban family changed due to the
westernisation trend, hectic lifestyles and increase in the number of working women. A new
generation of women in key cities like Tehran, Mashhad and Isfahan often spend most of their
time at work so do not have enough time and energy to cook at home on a regular basis like
their mothers did. Secondly, the number of foodservice outlets grew rapidly which gives
consumers the opportunity to eat a wide range of foods at restaurants. There are two types of
foodservice outlets available in the country. Fast food outlets with typical menus including
sandwiches, pizzas and fried chicken. But, there are also traditional Iranian foodservice
outlets which usually serve traditional meals such as Qorme Sabzi and Fesenjan stews.
However, due to the poor economy and purchasing power decline, many Iranian households
could not eat outside the home like they used to which hampered growth during 2014 and
2015.
 In spite of these rapid changes in eating habits, the growth of packaged food in foodservice
was not so significant as that in the retail environment, which is mainly a result of the
availability of unpackaged/bulk alternatives offered to foodservice outlets at much lower unit
prices compared to packaged versions. For instance, a fast food outlet which sells fried
chicken seldom (if ever) tends to buy frozen/chilled processed poultry in packaged format and
prefers to buy fresh products on a daily basis. Even for traditional restaurants there is no
demand for major products such as packaged rice, red meat and poultry because these
products result in a severe decline of profit margin for the owners of foodservice outlets.
 Another factor which has a very negative effect on the sales of packaged food items to
foodservice outlets is the fact that the culture of chained foodservice does not exist in Iran, as
most foodservice outlets work independently. None of the multinational foodservice chains
such as KFC and McDonald’s are active in the country due to the special political situation
and this narrows choices of key manufacturers of packaged food to the limited number of
small restaurants and fast food outlets.
 Another factor which helped foodservice sales was the fact that the Ministry of Health and
Hygiene strengthened its supervision of foodservice outlets to ensure that for many items they
use packaged items due to health concerns. One example was sauces where the Ministry
forbids any form of loose, unpackaged sauce.
 The habit of eating out is rapidly becoming widespread, but the relationship between retail
and foodservice for packaged food is still not clear. There is little similarity between the retail
and foodservice channels in Iran as the at-home consumption of packaged food is a relatively
new trend. As a result, consumers often purchase fast food items for consumption at home. It
is also worth noting that many consumers only actually eat out on special occasions such as
wedding anniversaries and birthdays, although this is starting to change especially among
young people living in Iran’s cities.
 The highest volume growth in 2015 was for processed frozen fruit and vegetables because
the low base of the category and sudden improvement in availability resulted in higher
demand from foodservice outlets. Many fast food outlets started to offer these products
because of their better quality and shape compared to other alternatives.
Unpackaged/artisanal bread, however, recorded the fastest decline in volume as many
restaurants and fast food outlets decided that offering packaged bread is much more
fashionable and will give their food a better image.
Competitive Landscape
 Foodservice remained very fragmented in Iran during 2015 because the key multinational
chains such as McDonald’s and KFC have no presence. However, because of the strong
demand from the Iranian young population, many independent outlets became active in this
field especially in key urban areas. The popularity of eating out persuaded many distributors
of packaged food to establish their horeca (hotel, restaurant and coffee shop) divisions to
have a better focus on this rapidly growing area. Key suppliers of foodservice outlets during
2015 include Behshahr Industrial Co, Gooshtiran Co (Arezooman), Amol meat Products Co,
Golestan Co and Mahram Co. These suppliers are mainly specialists in oils, rice, sauce and
processed meat products which are essential for foodservice outlets.
 Foodservice is divided into two distinctive areas in Iran including traditional trade which offers
old Iranian dishes such as chelo kebabs and fast food outlets which are mainly known for their
Western-style foods like pizzas and burgers etc. Traditional trade usually needs oils, rice and
fresh meat as basic raw materials. Rice and meat is bought in fresh/unpackaged format so
this gives very limited chances for key suppliers of the packaged versions. By contrast, oils
are used packaged and this gives good opportunities to Behshahr Industrial Co and Pars
Vegetable Oil Co for sales to foodservice.
 Fast food outlets are a good choice for key suppliers of processed meat, oils and sauces as
well as pizza cheese. Gooshtiran Co (Arezooman) and Amol Meat Products Co are the key
suppliers of hamburgers, Kielbasa and sausages to these outlets and regard places like small
fast food outlets and delicatessens as strategic spots for their products.
 One of the key factors hampering sales of packaged food within foodservice is
unpackaged/artisanal products. A large number of foodservice operators purchase
unpackaged/artisanal supplies such as rice, flour, sugar, fresh vegetables and fruits. Such
products compete strongly with packaged food. Artisanal products, which are supplied by
different traders on a weekly basis, are cheaper and therefore more competitive.
Prospects
 An increase in the young population is expected during the forecast period, along with major
changes in the consumption behaviours of Iranians. Eating out will continue to grow in
popularity in Iran. Improvements in product quality, service and price competitiveness will all
help to boost sales. Consequently, it is expected that sales to foodservice will perform well
during the forecast period. However, unpackaged/artisanal products will remain the main
barrier to growth of packaged food. These products will remain popular as a result of their
affordable prices and availability in bulk.
 Foodservice suppliers will need to stay on top of cultural changes if they are to succeed. The
growing popularity of Western lifestyle trends among younger Iranians will be one of the main
factors driving the consumer foodservice channel over the forecast period. Increasing
popularity of eating out among teenagers and young adults will benefit fast food, casual
dining, full-service restaurants and specialist coffee outlet players most of all. This trend will
bode well for packaged food companies who will be able to meet the supply needs of
foodservice operators which capitalise on the latest lifestyle trends.
 Following the trend of the review period, ready meals is expected to achieve moderate growth
over the forecast period, but it is predicted that frozen processed food and chilled processed
food will surpass it. Demand for these products in foodservice outlets will be driven by the fact
that they last longer and are therefore more cost effective. In general, however, the fact that
the aforementioned categories are growing from a small base will be the most prominent
reason for their volume sales drive.
 Dairy and baked goods will remain the largest packaged foods in terms of foodservice volume
and value sales over the forecast period. As eating out grows in popularity in Iran, categories
such as bread, cakes and pastries will enjoy a surge in foodservice sales due to the Iranian
taste preferences for these products and the fact that many foodservice outlets do not have
the capacity to bake them on their premises. Frozen processed food will continue to achieve
high growth over the forecast period because of the convenience and sustainability that it
offers.
Category Data
Table 1 Foodservice Sales of Packaged Food by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Baby Food - - - - - -
Baked Goods 1,171.7 1,032.5 723.6 666.9 620.0 574.2
Biscuits and Snack Bars 1.8 1.9 2.5 2.9 3.4 3.8
Breakfast Cereals - - - - - -
Confectionery 7.5 7.7 7.9 7.8 7.9 7.9
Dairy 750.7 835.5 914.6 872.2 861.9 869.8
Ice Cream and Frozen 34.0 33.7 34.4 35.1 36.1 37.2
Desserts
Oils and Fats 130.8 138.5 146.4 149.1 152.5 159.8
Processed Fruit and 8.4 10.9 13.3 16.0 18.3 21.5
Vegetables
Processed Meat and 44.4 54.3 63.2 72.4 78.2 85.2
Seafood
Ready Meals 0.5 0.6 0.7 0.7 0.8 0.8
Rice, Pasta and Noodles 21.9 25.2 27.9 35.2 38.5 43.7
Sauces, Dressings and 159.1 169.8 180.5 190.5 199.6 211.2
Condiments
Soup 0.1 0.2 0.2 0.3 0.4 0.4
Spreads 6.0 6.3 6.8 7.5 8.5 9.3
Sweet and Savoury Snacks 3.6 3.9 4.2 4.3 4.6 5.0
Packaged Food 2,340.4 2,320.9 2,126.2 2,060.9 2,030.6 2,029.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2010-

2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Baby Food - - -
Baked Goods -7.4 -13.3 -51.0
Biscuits and Snack Bars 11.7 16.7 116.5
Breakfast Cereals - - -
Confectionery 1.0 1.3 6.7
Dairy 0.9 3.0 15.9
Ice Cream and Frozen Desserts 3.2 1.9 9.6
Oils and Fats 4.8 4.1 22.2
Processed Fruit and Vegetables 17.7 20.7 155.9
Processed Meat and Seafood 9.0 13.9 92.0
Ready Meals 5.9 12.2 77.6
Rice, Pasta and Noodles 13.4 14.8 99.2
Sauces, Dressings and Condiments 5.8 5.8 32.8
Soup 22.1 27.6 238.2
Spreads 8.6 9.0 53.6
Sweet and Savoury Snacks 7.3 6.9 39.6
Packaged Food 0.0 -2.8 -13.3
Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2015-

2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Baby Food - - - - - -
Baked Goods 574.2 529.8 489.2 452.1 418.1 387.2
Breakfast Cereals - - - - - -
Confectionery 7.9 8.0 8.2 8.3 8.4 8.6

Dairy 869.8 884.5 902.7 925.1 950.0 979.2
Desserts
Oils and Fats 159.8 168.7 178.5 189.3 201.5 215.1
Vegetables
Seafood
Ready Meals 0.8 0.9 0.9 1.0 1.0 1.1
Condiments
Soup 0.4 0.5 0.7 0.8 1.0 1.2
Spreads 9.3 10.1 11.1 12.1 13.4 14.8
Packaged Food 2,029.8 2,043.3 2,069.2 2,109.1 2,161.7 2,230.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume

Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
Baby Food - - -
Baked Goods -7.7 -7.6 -32.6
Breakfast Cereals - - -
Dairy 1.7 2.4 12.6
Ready Meals 6.3 7.0 40.2
Soup 22.0 21.5 164.8
Spreads 9.1 9.8 59.5
Packaged Food 0.7 1.9 9.9
trade sources
MARKET DATA
Table 5 Sales of Packaged Food by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Baby Food 13.0 14.6 16.0 15.9 15.7 16.3

Baked Goods 8,131.3 7,613.5 7,633.5 7,897.2 7,964.5 8,012.9
Breakfast Cereals 1.2 1.6 1.9 1.6 1.9 2.2
Confectionery 159.0 166.6 170.9 168.1 171.4 175.8
Dairy 4,452.5 4,704.0 4,931.5 4,538.8 4,362.9 4,251.5
Desserts
Oils and Fats 1,007.2 1,052.9 1,092.6 1,114.8 1,126.3 1,148.1
Vegetables
Seafood
Ready Meals 24.7 31.8 37.8 42.8 47.4 52.8
Rice, Pasta and Noodles 717.7 798.7 861.9 901.1 956.7 1,016.0
Condiments
Soup 1.4 1.7 2.0 2.1 2.4 2.7
Spreads 71.5 74.9 86.2 92.5 101.5 111.6
Packaged Food 15,485.3 15,419.2 15,815.8 15,778.1 15,782.7 15,860.7
Table 6 Sales of Packaged Food by Category: Value 2010-2015
IRR tn
2010 2011 2012 2013 2014 2015
Baby Food 1.5 1.9 2.7 3.8 6.2 7.1

Baked Goods 37.4 62.1 75.3 98.6 139.4 174.5
Confectionery 13.0 15.2 20.5 28.9 36.5 44.4
Dairy 62.3 71.7 95.3 114.5 144.4 177.2
Desserts
Oils and Fats 44.7 50.6 77.7 115.5 152.3 177.6
Vegetables
Seafood
Ready Meals 1.9 2.6 4.9 9.0 13.3 18.2
Condiments
Soup 0.1 0.2 0.3 0.4 0.6 0.8
Spreads 3.7 4.4 7.4 11.9 17.8 23.4
Packaged Food 219.1 274.8 383.8 533.3 709.9 874.3
Table 7 Sales of Packaged Food by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Baby Food 3.9 4.6 25.4
Baked Goods 0.6 -0.3 -1.5

Breakfast Cereals 17.3 12.5 79.9
Dairy -2.6 -0.9 -4.5
Ice Cream and Frozen Desserts 1.0 -0.4 -1.9
Ready Meals 11.5 16.5 114.4
Soup 13.0 14.4 95.6
Spreads 10.0 9.3 56.1
Table 8 Sales of Packaged Food by Category: % Value Growth 2010-2015
% current value growth

2014/15 2010-15 CAGR 2010/15 Total
Baby Food 15.7 36.2 369.3

Baked Goods 25.1 36.1 366.5
Dairy 22.8 23.3 184.6
Oils and Fats 16.6 31.8 297.3
Ready Meals 36.6 57.9 881.2
Soup 33.3 45.1 543.8
Spreads 31.4 44.4 528.9
Table 9 GBO Company Shares of Packaged Food: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Dasht Morghab Group 1.2 1.3 1.5 1.6 1.6

Gooshtiran Co (Arezooman) 1.1 1.2 1.3 1.2 1.2
Mahram Co 0.7 0.8 0.9 1.0 1.0
Dadash Baradar Co 1.0 0.9 0.9 0.9 0.9
Shirin Asal Co 0.8 0.9 0.9 0.9 0.9
Nejati Industrial Group 0.8 0.8 0.8 0.8 0.8
(Anata)
PepsiCo Inc 0.6 0.6 0.7 0.8 0.8
Tak Makaron Co 0.8 0.9 0.8 0.7 0.8

Keshto Sanat Shomal Co 0.8 0.8 0.8 0.8 0.7
Urum Ada Food 0.5 0.6 0.6 0.6 0.6
Production Industries Co
Nestlé SA 0.3 0.4 0.4 0.5 0.5
Shiva Mfg Co 0.3 0.3 0.3 0.3 0.4
Avijeh Esfahan Food 0.4 0.4 0.3 0.3 0.3
Industry Co
Behrouz Food Industries 0.4 0.4 0.4 0.3 0.3
Co
Danone, Groupe 0.2 0.2 0.2 0.3 0.3
Bel, Groupe - 0.1 0.2 0.2 0.2
Unilever Group 0.4 0.4 0.4 0.3 0.2
Alborz Makaron Co 0.2 0.2 0.2 0.2 0.2
Navidkaran Cooperative Co 0.1 0.1 0.1 0.2 0.2
Yildiz Holding AS 0.1 0.1 0.1 0.1 0.2
Etka Food Products Co 0.1 0.1 0.1 0.1 0.2
Blagoj Gorev ad 0.1 0.1 0.1 0.1 0.1
Khoshab Khorasan Co 0.1 0.1 0.1 0.1 0.1
Savola Group 0.1 0.1 0.1 0.1 0.1
Pajouhesh Co 0.1 0.1 0.1 0.1 0.1
Bonsaleh Macaron Food 0.1 0.1 0.1 0.1 0.1
Products Co
Mars Inc 0.3 0.1 0.1 0.1 0.0
Kraft Foods Inc 0.3 - - - -
Wrigley Jr Co, William - - - - -
Humana Milchunion eG - - - - -
Artisanal 15.1 13.1 12.5 13.0 13.1
Others 73.3 74.9 74.9 74.3 74.3
Total 100.0 100.0 100.0 100.0 100.0
Table 10 NBO Company Shares of Packaged Food: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Golestan Co 1.9 1.8 1.7 1.9 2.1

Choupan Agro Ind PJS 2.0 2.1 1.6 1.5 1.5
Mahram Co 0.7 0.8 0.9 1.0 1.0
Dina Food Industries 0.7 0.6 0.8 0.9 0.9
Shirin Asal Co 0.8 0.9 0.9 0.9 0.9
(Anata)
Tak Makaron Co 0.8 0.9 0.8 0.7 0.8
Urum Ada Food 0.5 0.6 0.6 0.6 0.6
Jahan Vegetable Oil Co 0.5 0.5 0.5 0.5 0.5
Pars Minoo Industrial Co 0.3 0.4 0.5 0.5 0.5
Nestlé Iran PJS Co 0.4 0.4 0.4 0.5 0.5
Delpazir Foodstuff Co 0.3 0.3 0.3 0.4 0.4
Shiva Mfg Co 0.3 0.3 0.3 0.3 0.4
Industry Co
Co
Emirates Refining Co Ltd 0.2 0.2 0.3 0.3 0.3
Unilever Group 0.4 0.4 0.4 0.3 0.2
Hajim Daneh Mihan Food 0.1 0.1 0.1 0.1 0.2
Industries
Aceites Borges Pont SA 0.1 0.1 0.2 0.1 0.1
Blagoj Gorev ad 0.1 0.1 0.1 0.1 0.1
Golab Co 0.1 0.1 0.1 0.1 0.1
Pajouhesh Co 0.1 0.1 0.1 0.1 0.1
Products Co
Gardooneh Ran Jahan Co 0.2 0.0 - - -
Artisanal 15.1 13.1 12.5 13.0 13.1
Others 69.5 70.8 71.4 70.6 70.4
Total 100.0 100.0 100.0 100.0 100.0
Table 11 LBN Brand Shares of Packaged Food: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Bahar Behshahr Industrial Co 2.7 2.6 2.6 2.4

Cenan Nami Nik Nahad Food 1.2 1.2 1.5 1.8
Industries Co
Choupan Choupan Agro Ind PJS 2.1 1.6 1.5 1.5
Aftab Margarine Mfg Co 1.5 1.5 1.4 1.2
Alis Cheshme Nooshan 1.1 0.9 0.9 0.9
Khorasan Co
Cheetos Dina Food Industries 0.6 0.7 0.8 0.8
Anata Nejati Industrial Group 0.4 0.4 0.3 0.4
(Anata)
Abali Bonyad Food & Beverage 0.4 0.3 0.3 0.4
Organization
1&1 Dasht Morghab Group 0.3 0.3 0.3 0.3
Aseel United Foods Co PSC 0.4 0.4 0.4 0.3
Behrouz Behrouz Food Industries Co 0.4 0.4 0.3 0.3
Aidin Dadash Baradar Co (Aidin) 0.3 0.3 0.3 0.3
Chika Esfahan Chika 0.2 0.2 0.2 0.2
Industrials Co
Atlas Pars Vegetable Oil Co 0.2 0.1 0.2 0.2
Canola Iran Canola Inc 0.1 0.2 0.2 0.2
Atlas Tallaie Pars Vegetable Oil Co 0.2 0.2 0.2 0.2
Bartar Navidkaran Cooperative Co 0.1 0.1 0.2 0.2
BA BA Production Group - 0.1 0.1 0.1 0.2
AFS Co
Borges Aceites Borges Pont SA 0.1 0.2 0.1 0.1
Chic Pars Minoo Industrial Co 0.1 0.1 0.1 0.1
Bebelac Danone Multi Nutrition 0.1 0.1 0.1 0.1
Avand Golab Co 0.1 0.1 0.1 0.1
Albina Shirin Asal Co 0.1 0.1 0.1 0.1
Behkam Behkam Co 0.1 0.1 0.1 0.1
Chichak Pars Minoo Industrial Co 0.1 0.1 0.1 0.1
Afia Behshahr Industrial Co 0.1 0.1 0.1 0.1
Bonasaleh Bonsaleh Macaron Food 0.1 0.1 0.1 0.1

Products Co
Cadbanoo Pars Vegetable Oil Co 0.3 0.2 0.1 0.1
Almas Pars Vegetable Oil Co 0.0 0.0 0.0 0.0
Aidin Dadash Baradar Co 0.0 0.0 0.0 0.0
Artisanal 13.1 12.5 13.0 13.1
Others 73.6 74.9 74.3 74.4
Total 100.0 100.0 100.0 100.0
Table 12 Distribution of Packaged Food by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015
Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0

- Grocery Retailers 99.3 99.3 99.3 99.3 99.1 99.2
-- Modern Grocery 2.9 3.2 3.6 4.1 4.5 4.8
Retailers
--- Convenience Stores - - - - - -
--- Discounters - - - - - -
--- Forecourt Retailers - - - - - -
--- Hypermarkets 1.5 1.6 1.9 2.2 2.4 2.6
--- Supermarkets 1.4 1.5 1.7 1.9 2.0 2.2
-- Traditional Grocery 96.4 96.2 95.7 95.2 94.7 94.4
Retailers
--- Food/drink/tobacco 18.3 22.8 20.5 19.9 20.8 21.1
specialists
--- Independent Small 77.3 72.6 74.3 74.2 72.8 72.2
Grocers
--- Other Grocery 0.9 0.8 0.9 1.0 1.0 1.1
Retailers
- Non-Grocery Specialists 0.7 0.7 0.7 0.7 0.9 0.8
-- Health and Beauty 0.7 0.7 0.7 0.7 0.9 0.8
Specialist Retailers
-- Other Foods Non- - - - - - -
Grocery Specialists
- Mixed Retailers - - - - - -
Non-Store Retailing - - - - - -
- Vending - - - - - -
- Homeshopping - - - - - -
- Internet Retailing - - - - - -
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 13 Distribution of Packaged Food by Format and Category: % Value 2015
% retail value rsp

BF BG BSB BC C D

-- Modern Grocery 0.7 3.0 7.9 16.5 2.4 2.5
Retailers
--- Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0

--- Discounters 0.0 0.0 0.0 0.0 0.0 0.0
--- Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0
--- Hypermarkets 0.7 1.8 4.7 10.2 1.2 0.9
--- Supermarkets 0.0 1.2 3.2 6.3 1.2 1.6
Retailers
specialists
Grocers
--- Other Grocery 0.0 0.0 11.3 0.0 3.3 0.0
Retailers
-- Other Foods Non- 0.0 0.0 0.0 0.0 0.0 0.0
Grocery Specialists
- Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0
Non-Store Retailing 0.0 0.0 0.0 0.0 0.0 0.0
- Vending 0.0 0.0 0.0 0.0 0.0 0.0
- Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0
- Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0
- Direct Selling 0.0 0.0 0.0 0.0 0.0 0.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
ICF OF PFV PMS RM RPN

-- Modern Grocery 4.8 3.1 8.5 14.3 8.5 6.0
Retailers
--- Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0
--- Discounters 0.0 0.0 0.0 0.0 0.0 0.0
--- Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0
--- Hypermarkets 3.0 1.0 5.5 8.9 5.3 3.3
--- Supermarkets 1.8 2.1 3.0 5.4 3.2 2.7
Retailers
specialists
Grocers
--- Other Grocery 14.8 0.0 1.5 0.0 0.0 0.0
Retailers
-- Other Foods Non- 0.0 0.0 0.0 0.0 0.0 0.0
Grocery Specialists
- Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0
Non-Store Retailing 0.0 0.0 0.0 0.0 0.0 0.0
- Vending 0.0 0.0 0.0 0.0 0.0 0.0
- Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0
- Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0
- Direct Selling 0.0 0.0 0.0 0.0 0.0 0.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
SDC SOU SPR SSS
Store-Based Retailing 100.0 100.0 100.0 100.0
- Grocery Retailers 100.0 100.0 100.0 100.0

-- Modern Grocery 7.9 10.6 6.2 10.3
Retailers
--- Convenience Stores 0.0 0.0 0.0 0.0
--- Discounters 0.0 0.0 0.0 0.0
--- Forecourt Retailers 0.0 0.0 0.0 0.0
--- Hypermarkets 4.3 6.8 4.1 7.2
--- Supermarkets 3.6 3.8 2.1 3.1
-- Traditional Grocery 92.1 89.4 93.8 89.7
Retailers
--- Food/drink/tobacco 0.0 0.0 6.2 0.0
specialists
--- Independent Small 92.1 89.4 87.6 82.7
Grocers
--- Other Grocery 0.0 0.0 0.0 7.0
Retailers
- Non-Grocery Specialists 0.0 0.0 0.0 0.0
-- Health and Beauty 0.0 0.0 0.0 0.0
-- Other Foods Non- 0.0 0.0 0.0 0.0
Grocery Specialists
- Mixed Retailers 0.0 0.0 0.0 0.0
Non-Store Retailing 0.0 0.0 0.0 0.0
- Vending 0.0 0.0 0.0 0.0
- Homeshopping 0.0 0.0 0.0 0.0
- Internet Retailing 0.0 0.0 0.0 0.0
- Direct Selling 0.0 0.0 0.0 0.0
Total 100.0 100.0 100.0 100.0
Key: BF = baby food; BG = baked goods; BSB = biscuits and snack bars; BC = breakfast cereals; C =
confectionery; D = dairy; ICF = ice cream and frozen desserts; OF = oils and fats; PFV = processed fruit
and vegetables; PMS = processed meat and seafood; RM = ready meals; RPN = rice, pasta and
noodles; SDC = sauces, dressings and condiments; SOU = soup; SPR = spreads; SSS = sweet and
savoury snacks
Table 14 Forecast Sales of Packaged Food by Category: Volume 2015-2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Baby Food 16.3 17.0 17.9 18.8 19.6 20.4

Baked Goods 8,012.9 7,967.7 7,907.5 7,813.4 7,694.3 7,553.8
Confectionery 175.8 181.2 187.7 193.9 200.2 206.7
Dairy 4,251.5 4,170.3 4,144.1 4,136.6 4,142.5 4,156.4
Desserts
Oils and Fats 1,148.1 1,174.3 1,204.3 1,234.4 1,265.2 1,296.1
Vegetables
Seafood
Ready Meals 52.8 59.3 67.4 75.6 84.0 93.0
Rice, Pasta and Noodles 1,016.0 1,092.6 1,184.9 1,276.1 1,366.8 1,457.4
Condiments
Soup 2.7 3.0 3.4 3.8 4.2 4.7
Spreads 111.6 124.3 140.1 156.3 173.6 192.1
Packaged Food 15,860.7 15,907.3 16,027.5 16,131.3 16,225.9 16,310.6
trade sources
Table 15 Forecast Sales of Packaged Food by Category: Value 2015-2020
IRR tn
2015 2016 2017 2018 2019 2020
Baby Food 7.1 7.5 8.1 8.7 9.2 9.7

Baked Goods 174.5 187.8 203.4 219.1 235.2 251.8
Confectionery 44.4 46.3 48.6 51.0 53.4 55.9
Dairy 177.2 181.5 187.8 194.7 202.1 210.0
Desserts
Oils and Fats 177.6 185.2 193.5 202.1 211.0 220.2
Vegetables
Seafood
Ready Meals 18.2 21.0 24.5 28.2 32.2 36.6
Condiments
Soup 0.8 0.9 1.1 1.2 1.4 1.6
Spreads 23.4 26.9 31.4 36.2 41.5 47.4
Packaged Food 874.3 928.4 993.1 1,060.1 1,130.4 1,204.5
trade sources
Table 16 Forecast Sales of Packaged Food by Category: % Volume Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
Baby Food 3.9 4.5 24.8

Baked Goods -0.6 -1.2 -5.7
Dairy -1.9 -0.5 -2.2
Ready Meals 12.3 12.0 76.1
Soup 12.4 11.9 75.1
Spreads 11.4 11.5 72.2
trade sources
Table 17 Forecast Sales of Packaged Food by Category: % Value Growth 2015-2020
% constant value growth

2015/2016 2015-20 CAGR 2015/20 TOTAL
Baby Food 5.7 6.4 36.3

Baked Goods 7.6 7.6 44.3
Dairy 2.4 3.5 18.5
Ready Meals 15.4 15.1 101.8
Soup 14.6 14.1 93.3
Spreads 15.2 15.2 102.5
trade sources
DEFINITIONS
Explanations of words and/or terminology used in this report are as follows:
 Gheime stew: Gheimeh or Qeymeh is a Persian and Mesopotamian stew of which the main
ingredients are meat, tomatoes, lentils, onion and lemon or lime. This stew is garnished with
aubergine and usually served with rice.
 Qorme Sabzi stew: Qormeh sabzi, is a Persian herb stew. It is a popular dish in Iran, Iraq and
Azerbaijan and is often said to be the Iranian national dish.
 Fesenjan stew: Khoresh-e fesenjan, or simply fesenjan, is a dish in Persian cuisine and
Mesopotamian cuisine. It is a thick, tart stew made from pomegranate molasses, prunes and
ground walnuts.
 Taskabab: Iranian traditional meal which is made from red meat, potato, tomato and plums.
 Mirza Ghsemi: Mirza-Qasemi or Mirza-Ghasemi is a Northern Iranian (originally from Gilan
province) appetiser or main dish. The dish is a mixture of aubergines (eggplant) seasoned
with garlic, tomato, turmeric, oil or butter, salt and pepper bound together with eggs. It is
usually served with bread or rice.
 Chelo kebab: Chelo kebab or Cheloe kebab is the national dish of Iran. The meal is simple,
consisting of steamed basmati or Persian rice (cheloe) with saffron and kebab (grilled red
meat), of which there are several distinct Persian varieties.
 IQF: Individual Quick Freezing is a method for freezing food which claims to have many
advantages over regular freezing, such as preserving many of the good characteristics of the
food.
 Norooz: Iranian new year.
 Baklava: Baklava (also baqlawah) is a rich, sweet pastry made of layers of filo pastry filled
with chopped nuts and sweetened with syrup or honey. It is characteristic of the cuisines of
the former Ottoman Empire, but is also found in Central and Southwest Asia.
 Gaz: Gaz is the traditional name of Persian nougat originating from the city of Esfahan and
Boldaji.
 Sohan: Sohan or sowhan is a traditional Iranian saffron brittle toffee. Its ingredients consist of
wheat sprouts, flour, egg yolks, rose water, sugar, butter or vegetable oil, saffron, cardamom
and slivers of almond and pistachio.
 Qottab: Qottab is an almond-filled, deep-fried Persian cake. It is prepared with flour, almonds,
powdered sugar, vegetable oil and cardamom.
 Halva: halva usually refers to a related confection made from wheat flour and butter and
flavoured with rose water. Halva is usually served for funerals and such ceremonies, often
with almonds or coconut shavings on the top.
 Doogh: Doogh is a fermented yoghurt-based beverage. Popular in Iran, Afghanistan,
Azerbaijan, Armenia, Iraq and Syria. It is sometimes carbonated and seasoned with mint.
SOURCES
Sources used during research include the following:
Summary 1 Research Sources

Official Sources Asrar-e-Maggi
Iran Dairy Industry Association (IDIA)
Iran Edible Oil Suppliers' Syndicate
Iran Nutritions Association
Iranian Sugar Factories Syndicate
Trade Associations Iran Wheat Organization
Iranian Association for Food Packaging
Trade Press BBC Perisan news
Faraz news agency
Foodna news agency
Iran Food News
Iran newspaper
Jamejam Newspaper
Mag Iran
MBA News
Milk Industry
Pool nespaper
Quds newspaper
Salamat News
Sarmayeh newspaper
Tabnak news agency
Tabyan website
Source: Euromonitor International
PACKAGED FOOD IN IRAN -

COMPANY PROFILES
BEHSHAHR INDUSTRIAL CO IN PACKAGED FOOD (IRAN)
Strategic Direction
 Behshahr Industrial Co aims to consolidate its position as one of Iran’s largest packaged food
producers by diversifying its product portfolio and moving into other packaged food
categories. It will also assess its environmental impact and focus on limiting its carbon
footprint by optimising energy requirements. The company would like to move from leadership
in oils and fats to category dominance while maintaining profitability. Behshahr Industrial's
strategy is to focus on premium quality and value for money segments, maximise value
through continuous product innovation and development as well as reducing costs without
compromising quality.
 Behshahr Industrial Co is a public joint stock company. Established in 1951, the player is one
of the largest and oldest companies in Iran and a producer of all types of vegetable oils
(hydrogenated, partially hydrogenated, liquid, frying). The company also has detergents,
sugar, packaging, warehousing, distribution, lead, tin, banking and trading operations.
 In 2004, Behshahr Industrial merged with Savola Co and Margarine Co, and in 2005 the
company embarked upon its third development and renovation plan for its production
facilities.
Key Facts
Summary 2 Behshahr Industrial Co: Key Facts

Full name of company: Behshahr Industrial Co
www: www.bidc.ir
Activities: Producer of oils and fats
Source: Euromonitor International from company reports, trade sources
Competitive Positioning
 The company is the strongest packaged food manufacturer in Iran after artisanal products and
achieved a value share of 8% in 2015. Since 1951, Behshahr Industrial was Iran's largest oils
and fats producer. The company led sales in oils and fats during 2015 with a 37% value
share. However, its value share experienced some stagnation in 2014 and 2015 due to the
wide range of activities by its competitors.
 In addition to oils and fats, Behshahr Industrial’s interests include detergents, sugar,
packaging, warehousing, distribution, lead, tin, banking and trading. The company has a very
wide range of products including canola oil, soy bean oil, sunflower oil, blended liquid oil, corn
oil, ordinary ghee, low trans ghee, frying oil and solid oil. In general the company has a varied
product offering within oils and fats, and it pays keen attention to product innovations along
with competitive prices.
Summary 3 Behshahr Industrial Co: Competitive Position 2015

Product type Value share Rank
Packaged food 7.6% 1
Baby food - -
Baked goods - -
Biscuits and snack bars - -
Breakfast cereals - -
Confectionery - -
Dairy - -
Ice cream and frozen - -
desserts
Oils and fats 37.2% 1
Processed fruit and - -
vegetables
Processed meat and seafood - -
Ready meals - -
Rice, pasta and noodles - -
Sauces, dressings and - -
condiments
Soup - -
Spreads - -
Sweet and savoury snacks - -
Source: Euromonitor International from company reports, company research, trade interviews
GOLESTAN DISTRIBUTION ORGANIZATION IN PACKAGED FOOD

(IRAN)
Strategic Direction
 As the only organisation distributing Golestan Co’s products, in the forecast period the
company aims to upgrade and increase storage capabilities in parallel with warehouses,
especially regional, throughout Iran. It aims to update and improve its distribution capabilities
as well as renovate transportation and its delivery fleet. It will continuously upgrade
information systems, namely WMS and use the latest related technologies. It will provide
exports and transit services for overseas customers as well as review working procedures
against the latest worldwide standards.
 Golestan Distribution Organization is a part of Golestan Co. Golestan Co has more than 50
years’ experience in the production and distribution of packaged food. The company was
founded during the 1950s by Mr Seied Mohammad Geramei and is the largest company of its
kind in Iran. Golestan Co is also the largest producer of packaged tea bags, pistachios and
rice in Iran. In 2003, Golestan Distribution Organization was established to distribute Golestan
products and provide local and overseas companies with third-party and logistics services.
 The company’s distribution network includes a modern fleet of delivery vans and fully
equipped and modern warehouse facilities. This enables the company to ensure that it has
sufficient stock to rapidly replenish its products throughout the country. The company’s main
mission is to satisfy customers through continuous product improvement and the provision of
a comprehensive product portfolio.
Key Facts
Summary 4 Golestan Distribution Organization: Key Facts

Full name of company: Golestan Distribution Organization
www: www.golestic.com
Activities: Distributor of packaged food and hot drinks
Source: Euromonitor International from company research, trade sources
 The company distribute Golestan and Pardis rice produced in Golestan factories, Golestan
and Twinings tea, Pardis canned preserved fish/seafood, Pardis oils and, recently, Golestan
iced tea. The company also plays a key role in the exporting of the products to neighbouring
countries such as Saudi Arabia, Iraq and Pakistan.
 As a very young distribution company, Golestan Distribution Organization grew rapidly in
recent years mainly as a result of improvements in its distribution facilities and also increasing
demand for packaged tea and packaged rice which are its key products. The company can be
regarded as the most important distributor of packaged rice and tea in Iran thanks to its well-
known brands like Golestan, Twinings and Pardis.
KALLEH DAIRY CO IN PACKAGED FOOD (IRAN)
Strategic Direction
 Kalleh Dairy tries to target more consumers by developing and diversifying its product line and
introducing new products every year. Packaging is another key concern and the company
attempts to attract consumers with better quality and more eye-catching packaging. Finally,
expanding activities to other countries is another key element of the company’s expansion
strategy. Kalleh Dairy Co distributes its products to the whole of Iran and to some Middle
Eastern countries including Iraq.
 Established in 1991 by Mr GA Soleimani, Kalleh Dairy Co is a subsidiary of Solico Food
Industries Group. The company's work force consists of graduate and postgraduate
professionals, technicians, operators and workers. The company uses more than 100 million
litres of milk each year. Kalleh Dairy Co is among the largest dairy companies active in Iran.
 In addition to plants and distribution centres all over Iran, Solico Food Industries Group has
offices in Germany and the US. Solico in Iran consists of several companies, all of which are
involved in the food industry. The most important ones are listed to follow.
 Kalleh Dairy Co has five main plants producing a range of more than 300 products and a daily
intake capacity of 600 tonnes of milk. The products include processed and unprocessed
cheese, ice cream, pasteurised products, UHT products and sauces and dressings.
 Amol Meat Products Co: this company specialises in processed meat such as sausages,
salami and other types of delicatessen products. It also manufactures frozen processed food
such as kebabs and hamburgers with daily production of more than 50 tonnes.
 Solico Tehran Meat Co: with daily production of more than 40 tonnes, this company also
specialises in processed meat including different types of ham, sausage, salami and
delicatessen products.
 Kaach Packaging Co: also known as Kalleh Plast, this company specialises in thermoforming
and other types of packaging and printing materials. Kaach mainly provides packaging for
companies owned by Solico Food Industrial Group.
 Iran Bartar Co: a joint venture with Alko International BV, this company is set to produce non-
alcoholic beer, malt concentrate, energy drinks and smoothies under the Castle Brau brand
name over the forecast period.
 Poushesh Navid Co: with a speciality in packaging, this company produces different casings
for delicatessen products, films and printing materials.
Key Facts
Summary 5 Kalleh Dairy Co: Key Facts

Full name of company: Kalleh Dairy Co
www: www.kalleh.com
Activities: Manufacturer, exporter and distributor of dairy,
ice cream and oils and fats products
 Kalleh Dairy Co is one of the largest players in Iranian food. The company ranked second
(excluding artisanal) in packaged food in 2015 with a value share of 7%. This represented a
marginal percentage increase over the previous year, which can be attributed to innovative
packaging, strong distribution and a wide product range. The player held a 25% value share
in dairy during 2015 putting it in first place. It was also one of the leading suppliers of ice
cream recording a current value sales share of 18% in the same year.
 The company launched several successful packaged food innovations over the review period
and is considered a pioneer within dairy.
 The company focuses on distribution and in-store advertisements and does not employ larger
mediums such as national TV to promote its products. In spite of this strategy, awareness of
its products grew rapidly, even in smaller cities and rural areas.
 The company believes that it offers the best quality in all categories it is present in and has
the ability to compete with established brands. In terms of product innovation it can be
considered as a leader in both dairy and ice cream.
Summary 6 Kalleh Dairy Co: Competitive Position 2015


Baby food - -
Baked goods - -
Breakfast cereals - -
Confectionery - -
Dairy 25.4% 1
Ice cream and frozen 17.5% 3
desserts
Oils and fats 2.6% 6
Processed fruit and 1.4% 5
vegetables
Ready meals - -
condiments
Soup - -
Spreads - -
Source: Euromonitor International from company research, trade interviews
NESTLÉ IRAN PJS CO IN PACKAGED FOOD (IRAN)
Strategic Direction
 Nestlé Iran PJS Co aims to become the undisputed leader in Iranian baby food in the forecast
period. The company also puts efforts into strengthening its position as a key supplier of
instant coffee, coffee whiteners and bottled water. One of the key objectives of the company
for the next five years is to expand its distribution subsidiary giving it a chance to distribute its
own products rather than using a third party across the country.
 In line with the Foreign Direct Investment law which was approved by the Iranian government
a decade ago, Nestlé SA started to invest in Iran’s complicated marketplace in 2001. To reach
that goal a new company which was a joint venture between Nestlé SA and Iranian investors
was established under the name Nestlé Iran PJS Co. More than 85% of the shares belong to
Nestlé SA which leaves less than 15% for individual Iranian investors. The company started
by buying a Humana production line for baby food in Qazvin which was old and bankrupt in
2001. It then started to renew the line and produce baby food under the Cerelac brand. Next,
it established a new modern production line for milk formula under the Nan brand.
 The core business of the company was baby food until 2004 when it started to import coffee
brands. It successfully launched Nescafé in 2005 which it followed with Maggi ready soup and
different breakfast cereals. In 2009 the company introduced bottled water under the brand
Nestlé Purelife. Of all its brands, only baby food and bottled water are produced locally. After
the tightening of sanctions in 2012 the company had to stop importing some products such as
Maggi soup and the sudden rise of unit prices in coffee had a very negative impact on
performance. This made Nestlé more dependent on baby food, which could be regarded as
the profit driver and cash cow of the company in 2015.
Key Facts
Summary 7 Nestlé Iran PJS Co: Key Facts

Full name of company: Nestlé Iran PJS Co
www: www.nestle.ir
Activities: Producer of baby food and bottled water.
Importer of instant coffee, coffee whiteners,
soup, bouillon and breakfast cereals
 Nestlé Iran PJS Co is mainly active in categories with a very low base in Iranian packaged
food, so its total value share was very small in 2015 (1% of value sales) positioning it 39th
among key suppliers. The company’s cash cow is baby food where it accounted for a 55%
value share and was the first supplier. The company was also the undisputed leader in coffee
whiteners, accounting for 81% of the retail value sales in 2015.
 The company’s share in different categories grew continually except for soup, bouillons and
breakfast cereals where a ban on imports in 2013 meant significant declines of value share.
However, the removal of this importation ban in cereals helped the company gain share again
in 2014 and 2015. Nestlé Iran benefits from a good marketing strategy which is designed by
Nestlé Dubai and involves effective activities such as giving out samples.
 Nestlé Iran PJS Co can be regarded as a leader in one key business which is baby food. Its
launches in baby food usually determine the strategic direction for its competitors. However,
in other categories like soup and bouillon the company is greatly influenced by competition
and regulation changes.
Summary 8 Nestlé Iran PJS Co: Competitive Position 2015

Baby food 55.1% 1
Baked goods - -
Breakfast cereals 16.4% 2
Confectionery - -
Dairy 0.1% 21
Ice cream and frozen - -
desserts
Oils and fats - -

Processed fruit and - -
vegetables
Ready meals - -
condiments
Soup - -
Spreads - -
Source: Euromonitor International from, company research, trade interviews
SAYE SAMAN CO IN PACKAGED FOOD (IRAN)
Strategic Direction
 As a key distributor company, Saye Saman Co aims to expand its coverage all across Iran to
have branches in all provinces. It also aims to expand its product portfolio by encouraging its
clients to launch new products. The company has a long-term plan for direct distribution in all
small grocery outlets and reduce the significance of wholesale in its distribution pattern.
 The company was established in 1995 as a private and family-owned corporation. It operates
as an affiliated body of Alizad group of companies. Mr Alizad who owns Alifard Company (the
main manufacturer of juices in Iran) established Saye Saman to distribute his juices,
concentrates and pastilles as the first priority. However, with the entry of Nestlé and Redbull
into Iran, Saye Saman found a chance to expand its offering from mainly soft drinks to hot
drinks, packaged food and energy drinks.
 The activity of Saye Saman was first limited to Tehran with only 35 employees but, with the
rapid expansion of Alifard (key producer of juices), Saye Saman had to grow rapidly to recruit
more than 120 staff in 2001. The first branch also started working in Gilan province in 2002
and the number of branches reached seven in 2007. Currently, almost 18 provinces of Iran
are directly covered by Saye Saman branches (accounting for more than 70% of the country’s
population). Saye Saman benefits from strong distribution facilities including modern vehicles,
warehouses and an educated sales team.
Key Facts
Summary 9 Saye Saman Co: Key Facts

Full name of company: Saye Saman Co
www: www.sayesaman.com
Activities: Distributor of juices, energy drinks, baby food,
sugar confectionery, instant coffee, soup,
bouillons, breakfast cereals and coffee
whiteners
 Saye Saman Co uses two sources of products. For categories like baby food, juices and
pastilles where there is domestic production, products are delivered from factories in Saveh
and Qazvin directly to the Tehran warehouse and are then distributed all across the country.
The rest are imported products which are mainly imported using Bandar Abbas harbour and
then delivered by clients such as Nestlé to the Tehran warehouse.
 Saye Saman Co is one of the key distribution companies in packaged food and non-alcoholic
drinks in Iran. It is estimated to have the highest sales of baby food, juices and energy drinks
among all distributors by using its strong distribution network inside the Iranian retail
environment.
BABY FOOD IN IRAN - CATEGORY

ANALYSIS
HEADLINES
 Baby food is set to increase in current value by 16% to IRR7,128.4 billion in 2015
 Stability in terms of both unit prices and the supply chain help the category to record volume
healthy growth rates during 2015
 Powder toddler milk formula is expected to be the most dynamic baby food category in 2015,
registering current value growth of 21%
 Average unit price increases are expected to be between 10% and 15% in current terms in all
baby food categories in 2015, except special powder milk formula, which is set to record
much lower unit price growth
 Nestlé Iran PJS Co strengthens its leading position, accounting for more than 55% of baby
food value sales in 2015
 Baby food is set to increase in value at a CAGR of 6% in constant 2015 terms over the
forecast period
TRENDS
 Baby food is expected to experience a more stable and predictable situation during 2015 in
comparison with previous years. Price increases are set to remain within a reasonable range,
much lower than the rate of inflation, while key active players have fewer issues and can
supply demand with fewer concerns than during 2012, 2013 and 2014. This is due to the
more stable economic situation, the continuous decline in inflation and improvements in the
business environment. The latter of these influences is having a major positive impact on the
category, especially after the mutual agreement struck between Iran and key Western nations
in Geneva during July 2015.
 However, the number of potential consumers of baby food, babies aged up to 36 months old,
has been declining since 2011 due to ageing of the Iranian population. The decline of around
3.5% in the number of babies and infants aged up to 36 months expected over the course of
2015 is the highest rate of decline of the last 15 years. This is mainly due to the fact that the
majority of young Iranian couples prefer to have only one child or, in many cases, not to have
any children at all. The number of families with one child or without children is growing at a
very fast rate each year, which means fewer potential customers for baby food. Overall, the
decline in Iran’s birth rate is in excess of 3.5% (2015 versus 2001), which is mainly the result
of demographic changes over the last 15 years.
 It is important to note that the number of babies being born in Iran is only one of the various
factors that could positively affect demand for baby food, while other factors such as the
increase in the number of working women, rapid Westernisation and the low bases from
which less mature categories such as dried baby food are rising are also key factors behind
improvements in sales growth in the category during 2015.
 In general, there is widespread awareness of the benefits of breastfeeding in Iran, thanks to
government advertisements and informational campaigns. Even the packaging of many milk
formula products bears a quotation from the Prophet Mohammad, which says “There is no
food better than breast milk for babies”. Nevertheless, baby food has benefited a lot from the
significant changes that Iranian society has witnessed in recent years. Many women now
consider breastfeeding as an activity that can harm their beauty and body shape and they are
thus more likely to consider packaged baby food as an alternative in an effort to maintain their
figure. This mindset is relatively new to Iran and was very uncommon among previous
generations.
 The Iranian government has very tight legislation in place to control the consumption of all
types of baby food, placing restrictions on the promotion of any products by suppliers and
producers. These restrictions far supersede the World Health Organisation recommendations
for breastfeeding over baby formula. Any form of promotional activity which can be delivered
to consumers such as “buy two, get one free” offers is forbidden, while using point-of-sale
promotional materials such as posters, danglers and sampling sessions is illegal, even for
dried baby food. Consequently, Iran’s per capita consumption of baby food remains very low
compared with most other Middle East countries.
 Baby food is expected to increase in current value by 16% during 2015, which is much lower
than the review period CAGR of 36%. However, this does not necessarily indicate any major
slowdown in demand as value growth rates were very erratic throughout the review period,
mainly as a result of unit price increase rather than volume sales.
 Following the re-launch of toddler milk formula in Iran in 2014 after the production, distribution
and importation of all products in the category had been banned during 2013, the category
recorded 158% current value growth in 2014, making it by far the most dynamic baby food
category during the year. This trend is expected to continue in 2015 due to the lingering
impact of the 2013 ban.
 As highlighted earlier in this report, growth in the average unit price of baby food is expected
to be more stable in 2015 as Iran’s inflation rate is now under control, with lower growth rates
thus expected. While dried baby food and milk formula are set to record average unit price
increases of 10% and 11% respectively in current terms, special baby milk formula is set to
record an average unit price increase of 3% in current terms in 2015.
 In Iran, milk formula is available only in powder format and no trace of liquid products can be
found in retail outlets. Special baby milk formula is offered mainly for treating low birth weight,
allergies, lactose intolerance and diarrhoea, especially during the hot weather which prevails
in summer.
 Until very recently, baby food in Iran could be sold only in chemists/pharmacies and no other
retail channel was permitted to sell these products. There are almost 9,000
chemists/pharmacies operating across Iran and these are likely to continue being supported
by the key manufacturers of baby food. Regulations regarding the retail distribution channels
for baby food were loosened in 2014 and dried baby food can now be sold in hypermarkets as
well as chemists/pharmacies.
COMPETITIVE LANDSCAPE
 Nestlé Iran PJS Co is set to maintain its leading position in baby food in Iran in 2015,
accounting for 55% of total value sales in the category. The company is the undisputed leader
in dried baby food with its Cerelac brand and it set to account for 90% of value sales in this
category during 2015. It also offers the Nan brand in milk formula, segmented for three
different age groups, and Guigoz in standard milk formula and follow-on milk formula. Al-110,
Pre-Nan and Nan HA are company’s special baby milk formula brands. The success of Nestlé
in baby food Iran is mainly because of its domestic production and widespread distribution as
well as the company’s strong impact on the Iranian paediatrician community through
professional visits from its scientific representatives.
 The competitive environment in baby food in Iran changed significantly over the course of the
review period. Two key multinational players in the category, Nestlé and Danone, each
started from a low sales base at the beginning of the review period when the leading player
was Iran's Trade & Industry Group, the local representative of DMK Deutsches Milchkontor
GmbH with the Humana brand. Since then, the two multinational companies have focused on
widening their distribution networks and increasing their professional visits to paediatricians
and pharmacists in order to establish a stronger brand image. Meanwhile, the previous
leader, Iran's Trade & Industry Group, has done very little except distributing its products to
chemists/pharmacies. As a result, Iran’s Trade & Industry Group lost significant value share,
falling from 34% in 2009 to just 9% in 2015. By way of contrast, Nestlé and Danone used the
opportunity to increase their respective value shares from 32% and 3% in 2009 to 55% and
21% in 2015.
 Most of the baby food brands available in Iran are domestically produced. For instance, Nan,
Bebelac and Guigoz, which are global brands, are all produced locally in Qazvin and
Mashhad. However, most of the special baby milk formula is still imported to the country.
Overall, multinational brands with domestic production are rapidly gaining value share in
absence of strong domestic brands.
 No advertising campaigns are allowed for milk formula in Iran. However, the category’s key
competitors focus on influencing paediatricians in the hope that they will promote their brands.
These companies generally have professional teams of medical representatives across the
country, who visit doctors on a regular basis. In addition, Danone and Nestlé are both
attempting to sponsor medical events and conferences in order to win the support of
pharmacists.
 Iranian consumers tend to have different attitudes toward milk formula and dried baby food.
Even lower-income consumers like to buy the best quality milk formula, regardless of the unit
price, because they believe the health of their babies is priceless. This means that if their
doctor suggests a particular brand, it is very likely that they will buy it. Nevertheless, demand
for dried baby food is more sensitive to changes in unit price as there is still a belief amongst
the majority of consumers that home made products are better for their child, and cheaper. It
can be concluded that the strongest threat to dried baby food growth is traditional homemade
items known as fereni and harire in Farsi.
 The prices charged for baby food in Iran are under the strong supervision of the Iranian
government and, as a result, the availability of premium items is not so prevalent. In fact, the
majority of products in the category can be classified as standard products. No trace of private
label baby food could be found in Iran during 2015.
PROSPECTS
 Baby food in Iran is expected to continue recording healthy growth over the forecast period.
The birth rate in Iran is expected to remain positive at between 1% and 1.5% over the forecast
period, although the birth rate is slowing down due to the fact that the majority of new families
in Iran are expected to prefer to have only one child or even to have no children at all.
Meanwhile, the number of working woman in the country is expected to grow rapidly,
especially in key urban areas, and this means that there is a strong consumer base for baby
food. Finally, agreements between Iran and the key Western countries over Iran’s nuclear
energy development programme issue is expected to result in a loosening or even a complete
removal of economic and trade sanctions, which is set to lead to an increase in disposable
income and thus higher spending on baby food. Overall, baby food is set to increase in value
at a CAGR of 6% in constant 2015 terms over the forecast period, which is a strong positive
figure, but slower than the review period value CAGR of 9% at constant 2015 prices due to
strong impact of the declines being recorded in the number of potential consumers,
specifically babies aged up to 36 months. It is expected that there will be some three million
babies of this age group in Iran in 2020, down from 3.5 million in 2015.
 The commodity price of milk increased consistently over the review period and it is expected
to continue growing over the forecast period. This means that Iran’s leading baby food
suppliers will have to increase their unit prices in order to ensure that their brands remain
profitable, although the rate of increase is expected to be much lower than during the review
period.
 The retail distribution of baby food is not expected to see any significant changes during the
forecast period. The more than 9,000 chemists/pharmacies in the country are expected to
remain the only distribution channel for milk formula allowed by the Iranian government,
although dried baby food is starting to be sold in grocery retailers outlets such as
supermarkets as the ministry of health has removed the ban on wider retail distribution for this
category.
 The battle between Nestlé and Danone in baby food Iran is set to become more severe during
the forecast period. Each of these companies is expected to attempt to gain value share by
improving their distribution networks and by influencing paediatricians through detailing
programmes. One of the key strategies for both of these multinational players involves
increasing their stock on retail shelves inside chemists/pharmacies in order to prevent
competitors from obtaining orders. Both of these companies are also likely to continue
strongly lobbying Iranian officials in order to obtain permission to engage in trade promotions.
 One of the key challenges for dried baby food in Iran during the forecast period is expected to
be the widespread popularity of homemade baby food, which obviates the need for
consumers to pay extra for dried baby food.
CATEGORY DATA
Table 18 Sales of Baby Food by Category: Volume 2010-2015
tonnes
2010 2011 2012 2013 2014 2015
Dried Baby Food 1,770.0 2,100.0 2,282.0 1,930.0 1,833.5 1,870.2

Prepared Baby Food - - - - - -
Milk Formula 11,263.0 12,473.9 13,752.2 13,947.4 13,894.0 14,469.1
- Standard Milk Formula 3,286.0 3,580.0 3,844.0 4,200.0 4,359.6 4,538.3
- Follow-on Milk Formula 3,976.4 4,331.4 4,655.0 6,960.0 5,568.0 5,679.4
- Toddler Milk Formula 3,477.0 3,972.0 4,532.0 1,970.0 3,053.5 3,206.2
- Special Baby Milk 523.5 590.5 721.2 817.4 912.9 1,045.2
Formula
Other Baby Food - - - - - -
Baby Food 13,033.0 14,573.9 16,034.2 15,877.4 15,727.5 16,339.3
Table 19 Sales of Baby Food by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Dried Baby Food 152.1 215.3 285.3 371.5 522.5 586.3

Milk Formula 1,366.8 1,663.4 2,436.8 3,437.9 5,639.8 6,542.1
- Standard Milk Formula 410.8 493.0 701.5 1,008.0 1,743.8 1,996.9
- Follow-on Milk Formula 481.1 576.4 814.6 1,670.4 2,227.2 2,544.4
- Toddler Milk Formula 371.9 463.2 713.8 472.8 1,221.4 1,474.8
- Special Baby Milk 103.0 130.9 206.9 286.7 447.3 526.0
Formula
Baby Food 1,518.9 1,878.7 2,722.1 3,809.4 6,162.3 7,128.4
Table 20 Sales of Baby Food by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Dried Baby Food 2.0 1.1 5.7

Prepared Baby Food - - -
Milk Formula 4.1 5.1 28.5
- Standard Milk Formula 4.1 6.7 38.1
- Follow-on Milk Formula 2.0 7.4 42.8
- Toddler Milk Formula 5.0 -1.6 -7.8
- Special Baby Milk Formula 14.5 14.8 99.6
Other Baby Food - - -
Baby Food 3.9 4.6 25.4
Table 21 Sales of Baby Food by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total

Milk Formula 16.0 36.8 378.7
- Toddler Milk Formula 20.8 31.7 296.6
Baby Food 15.7 36.2 369.3
Table 22 NBO Company Shares of Baby Food: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Nestlé Iran PJS Co 40.7 47.4 53.1 54.2 55.1

Danone Multi Nutrition 17.9 17.5 18.0 20.1 20.6
Iran's Trade & Industry 20.8 11.7 9.9 8.2 8.4
Group
Behdashtkar Co 9.0 9.8 8.6 8.2 7.7
Ghoncheh Parvar Food 0.8 0.6 0.7 0.8 0.7
Producing Co
Jahan Behbood Co 6.2 3.5 1.3 0.9 0.6
Nobaveh Baby Food Co 0.1 0.1 0.2 0.2 0.2
Humana Milchunion eG - - - - -
Hamiran Co - - - - -
Others 4.5 9.4 8.2 7.3 6.6
Total 100.0 100.0 100.0 100.0 100.0
Table 23 LBN Brand Shares of Baby Food: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Nan Nestlé Iran PJS Co 21.9 32.5 30.7 30.7

Bebelac Danone Multi Nutrition 13.4 13.0 13.7 13.9
Nan 3 Nestlé Iran PJS Co 12.1 8.6 12.4 13.1
Humana Iran's Trade & Industry 11.7 9.9 8.2 8.4
Group
Biomil Behdashtkar Co 9.8 8.6 8.2 7.7
Cerelac Nestlé Iran PJS Co 9.7 8.9 7.5 7.4
Aptamil Danone Multi Nutrition 4.0 5.1 6.4 6.8
Ghoncheh Ghoncheh Parvar Food 0.6 0.7 0.8 0.7
Producing Co
Similac Jahan Behbood Co 1.3 0.4 0.5 0.4
Isomil Jahan Behbood Co 1.1 0.9 0.5 0.3
Puree Nobaveh Baby Food Co 0.1 0.2 0.2 0.2
SMA Jahan Behbood Co 1.1 - - -
Nahalin Hamiran Co - - - -
Humana Humana Milchunion eG - - - -
Others 12.9 11.4 11.0 10.5
Total 100.0 100.0 100.0 100.0
Table 24 Distribution of Baby Food by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

- Grocery Retailers 2.1 2.2 - - 0.5 0.7
-- Modern Grocery 1.4 1.5 - - 0.5 0.7
Retailers
--- Hypermarkets 0.5 0.6 - - 0.5 0.7
--- Supermarkets 0.9 0.9 - - - -
-- Traditional Grocery 0.7 0.7 - - - -

Retailers
--- Food/drink/tobacco - - - - - -
specialists
--- Independent Small 0.7 0.7 - - - -
Grocers
--- Other Grocery - - - - - -
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 25 Forecast Sales of Baby Food by Category: Volume 2015-2020
tonnes
2015 2016 2017 2018 2019 2020
Dried Baby Food 1,870.2 1,900.7 1,942.8 1,984.8 2,023.4 2,060.3

Milk Formula 14,469.1 15,074.0 15,931.5 16,829.8 17,615.6 18,335.2
- Special Baby Milk 1,045.2 1,171.8 1,340.9 1,525.0 1,691.3 1,851.4
Formula
Baby Food 16,339.3 16,974.7 17,874.4 18,814.6 19,639.0 20,395.5
trade sources
Table 26 Forecast Sales of Baby Food by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Dried Baby Food 586.3 607.8 633.7 660.3 686.6 713.0

Milk Formula 6,542.1 6,926.8 7,442.9 7,994.8 8,507.0 9,001.3
- Special Baby Milk 526.0 603.3 706.6 822.0 932.1 1,042.9
Formula
Baby Food 7,128.4 7,534.5 8,076.6 8,655.1 9,193.6 9,714.3
trade sources
Table 27 Forecast Sales of Baby Food by Category: % Volume Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total

Baby Food 3.9 4.5 24.8
trade sources
Table 28 Forecast Sales of Baby Food by Category: % Value Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL

Baby Food 5.7 6.4 36.3
trade sources
BAKED GOODS IN IRAN - CATEGORY

ANALYSIS
HEADLINES
 Baked goods records 25% value growth and stagnates in total volume terms to reach
IRR174,456 billion and 8,587,000 tonnes in 2015
 Packaged bread records rapid volume growth at the expense of unpackaged bread in 2015
 Packaged pastries is the most dynamic category with value growth of 46% in 2015
 Unit prices of baked goods increase by 24% in 2015
 Artisanal products account for a 66% value share of baked goods in 2015
 An 8% value CAGR at constant 2015 prices is expected over the forecast period with sales
reaching IRR251,821 billion by 2020
TRENDS
 Among baked goods, bread remained the key item in 2015 as it is considered as essential
item in the Iranian diet and represented 99% of retail volume sales of baked goods. Nearly all
popular meals are served with bread or rice and it was rare to find households which did not
consume high volumes of bread on a daily basis in 2015. However, a key trend of conversion
from artisanal bread to packaged formats continued at a rapid rate. Strong support by the
government for packaged bread factories and workshops led to increased production in this
category and encouraged many consumers to convert to packaged bread, which entails less
wastage than artisanal bread. Increased awareness of the advantages of packaged bread
compared to artisanal types also played a key role in the growth of this modern format in
2015.
 Baked goods as a whole experienced no major improvement in total volume growth in 2015,
although this was an improved performance over the negative total volume CAGR of 2% over
the review period. This was mainly the result of improved performances of packaged products
from low bases, including packaged bread, cakes and pastries, which compensated for the
decline in unpackaged bread.
 The two most dynamic categories in 2015 were packaged pastries and packaged cakes,
which recorded total volume growth of 18% and 14%, respectively. As previously mentioned,
the change in consumer demand from artisanal products to packaged ones could be regarded
as the main reason for this improved performance. Increased availability through better
distribution in around 200,000 independent small grocers played a major role in the rapid
growth of these two categories in 2015.
 The year 2015 was more stable in terms of unit prices. As the Iranian government was able to
reduce the inflation rate, baked goods also witnessed lower increases in terms of unit prices,
which were not as erratic as in previous years. The average increase of 24% in unit prices in
2015 was entirely due to inflation.
 Traditionally, bread was prepared and baked at home in special ovens. Although this practice
is still carried out in villages, in towns and cities bread is generally baked in bakeries. Most
bakeries produce just one type of bread, which is their speciality. There are more than 40
types of traditional wheat breads, ranging from very dark to very light and from crisp to soft. At
least one type of flat bread features in most Iranian meals. The four main types of traditional
bread are barbari, lavash, sangak and taaftun. Barbari is thick bread, made of white flour and
popular among Turkish-speaking people. Lavash is very thin and crisp bread, is made of
white flour and keeps well. Sangak is the most traditional bread in Iran. It is made of brown
flour, baked in special ovens on hot pebbles and eaten while still warm. Taaftun is a thin
bread made of white flour and usually round or oval in shape. Increasingly, however, these
traditional breads were being replaced by packaged bread in 2015.
 The Iranian government is investing heavily in packaged bread for two main reasons. Firstly,
packaged bread offers a good substitute for unpackaged bread. If Iranian consumers can be
encouraged to switch to this type of bread then the implementation of the next phases of the
subsidies cut off programme will be much easier for the government, as there are no
subsidies for packaged bread. In addition less bread is wasted in the packaged format and
consumers can keep the product for a longer period. The Iranian government is therefore
offering attractive loans and supporting businesses to begin production of packaged bread.
 Packaged bread was available in nearly all hypermarkets and supermarkets and many
independent small grocers, although only in key urban areas. These products were also sold
in specialist outlets which are modern industrial bread shops, but are called “fantasy bakeries”
among consumers. Improved distribution and broader availability of packaged bread will be a
key element in its success over the forecast period. It is worth mentioning that artisanal bread
is mainly sold in traditional bakeries.
 The competitive environment for baked goods remained under the strong influence of
artisanal products, which accounted for a 66% value share in 2015. In individual players,
Nami Nik Nahad Food Industries and Nanavaran were the two main suppliers of packaged
bread in Iran in 2015, leaving a relatively high percentage for others, which were spread
across the country with provincial coverage. Shirin Novin Industrial, Namnik, Biscolarg and
Nejati Industrial Group (Anata) were key suppliers of packaged cakes with value shares of
16%, 10%, 9% and 9%, respectively, in 2015. Packaged pastries on the other hand was led
by key well-known suppliers, such as Noosheen Lahidjan, Lahijan Cookie, Naderian Fard and
Nadi FoodStuf Complex, with value shares of between 14% and 16% in 2015.
 Nami Nik Nahad Food Industries recorded the highest growth in value share among the
leading players in 2015, a consequence of the rapid changes in consumer preferences from
unpackaged to packaged bread. This supplier increased awareness of its product range
through widespread advertising campaigns on national TV and radio in 2015, which resulted
in a one and half percentage point increase in its value share in 2015.
 Baked goods was characterised by key domestic manufacturers and no presence of
multinationals was observed in 2015. Domestic suppliers offered fresh products of reasonable
quality and at affordable prices, which left no room for the activities of the key multinationals in
Iran.
 Packaged pastries and cakes were the subjects of most advertising campaigns. These
campaigns, which included television advertising and in-store promotions, aimed to raise
awareness of packaged baked goods and communicate that these products were as fresh as
unpackaged formats. In Iran, sliced packaged bread was traditionally considered to be
suitable only for people with digestive problems, although it was increasing in popularity at the
end of the review period, largely due to successful marketing.
 Standard and economy brands led baked goods in Iran. However, premium packaged
products, which offered greater convenience, became more popular. Packaged bread players
also promoted healthier ranges, such as wholewheat bread, brown bread and low-sugar or
low-salt bread in 2015.
 The north of Iran near the Caspian Sea has a good reputation as the centre of packaged
pastries. It is very common for tourists in this area to purchase pastries as souvenirs. Many
small pastries specialist retailers sell these products to tourists on the roadside.
PROSPECTS
 The conversion of consumers from unpackaged products to packaged alternatives is

expected to be the general trend for the forecast period. With the support of the government
for packaged bread, several large suppliers are expected to begin production and offer a wide
range of products with good quality and attractive packaging. Unpackaged products,
especially bread, will face considerable price increases, which will be a consequence of the
subsidies reform programme. This programme is designed to eliminate subsidies for
unpackaged bread over the forecast period.
 Iran has one of the highest per capita consumptions of bread in the world, which is mainly
unpackaged. One of the main drivers for this high consumption has been the very low,
subsidised price. With the elimination of subsidies, which will happen over the forecast period,
consumers will have to change their old habit of wasting bread. This change is expected to
translate into a negative total volume CAGR of 2% over the forecast period for baked goods,
which is in line with the review period CAGR.
 Unit prices are expected to continue to increase over the forecast period when measured at
constant 2015 levels. Each year the Iranian government will eliminate parts of the subsidies
for bread and thus deliver a shock to the unit price of this strategic product. As global unit
prices of wheat are also expected to rise over the forecast period, baked goods in Iran will
witness a double effect from both the national and global economies.
 This increase in the unit price of bread will be a strong motive for many consumers to take an
interest in products such as cakes and biscuits. During the review period the difference
between the unit price of bread and other bakery categories was significant, which led many
consumers to be reluctant to try other luxury categories. Now by gradual elimination of the
subsidies this price gap will become much smaller, which could support the positions of other
bakery products, such as cakes and biscuits.
 Unpackaged bread was traditionally prepared and sold in bakeries with large ovens. At the
end of the review period there were almost 60,000 bakeries in Iran, however with the phasing
out of subsidies and general trend of conversion from unpackaged to packaged bread many
of these bakeries are expected to shut down over the forecast period. In contrast packaged
bread will become available in most grocers and supermarkets in order to address the new
demand for this type.
 The Iranian government has announced that it will help any organisation or individual which
plans to begin production of packaged bread. This will be a strong motivator for many
suppliers and will encourage them to start business in this category over the forecast period.
As a result, the emergence of several large production units for packaged bread is very likely
over the forecast period.
CATEGORY DATA
Table 29 Sales of Baked Goods by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Bread 8,063.4 7,542.1 7,557.7 7,815.7 7,880.1 7,925.1

- Bread Substitutes - - - - - -
- Packaged Bread 588.6 626.0 665.1 703.4 732.9 768.7
- Unpackaged Bread 7,474.8 6,916.1 6,892.7 7,112.3 7,147.3 7,156.4
Cakes 35.3 37.1 39.7 42.7 44.1 46.0
- Packaged Cakes 11.1 12.4 13.7 15.3 17.3 19.9
- Unpackaged Cakes 24.3 24.7 26.0 27.4 26.9 26.1
Dessert Mixes 7.0 7.7 8.2 8.6 8.9 9.1
Frozen Baked Goods - - - - - -
Pastries 25.5 26.7 27.9 30.2 31.4 32.6
- Packaged Pastries 7.7 8.2 8.4 10.5 12.3 14.5
- Unpackaged Pastries 17.8 18.5 19.5 19.7 19.1 18.2
Baked Goods 8,131.3 7,613.5 7,633.5 7,897.2 7,964.5 8,012.9
Table 30 Sales of Baked Goods by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Bread 35,138.4 59,554.9 71,107.8 92,974.2 132,090.3 164,735.5

- Packaged Bread 17,821.8 19,332.0 23,003.9 28,963.9 42,749.6 53,811.8
Cakes 1,424.9 1,579.4 2,656.0 3,295.0 4,318.5 5,623.1
- Packaged Cakes 487.0 568.0 1,096.0 1,377.0 1,901.8 2,733.8
- Unpackaged Cakes 937.9 1,011.4 1,560.0 1,918.0 2,416.7 2,889.3
Dessert Mixes 295.3 354.1 656.3 1,035.6 1,288.9 1,809.9
Pastries 535.5 593.0 848.0 1,273.5 1,728.1 2,287.6
- Packaged Pastries 264.9 293.4 419.0 682.5 982.8 1,438.0
Baked Goods 37,394.2 62,081.4 75,268.1 98,578.3 139,425.7 174,456.2
Table 31 Sales of Baked Goods by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Bread 0.6 -0.3 -1.7

- Bread Substitutes - - -
- Packaged Bread 4.9 5.5 30.6
- Unpackaged Bread 0.1 -0.9 -4.3
Cakes 4.2 5.4 30.1
- Packaged Cakes 15.0 12.5 79.8
- Unpackaged Cakes -2.8 1.5 7.5
Dessert Mixes 2.5 5.5 30.7

Frozen Baked Goods - - -
Pastries 4.0 5.0 27.8
- Packaged Pastries 18.0 13.5 88.0
- Unpackaged Pastries -5.0 0.4 1.8
Baked Goods 0.6 -0.3 -1.5
Table 32 Sales of Baked Goods by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total
Bread 24.7 36.2 368.8

- Unpackaged Bread 24.2 45.0 540.6
Cakes 30.2 31.6 294.6
- Unpackaged Cakes 19.6 25.2 208.0
Pastries 32.4 33.7 327.2
- Unpackaged Pastries 14.0 25.7 213.9
Baked Goods 25.1 36.1 366.5
Table 33 NBO Company Shares of Baked Goods: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Nami Nik Nahad Food 7.2 6.1 6.2 7.4 8.9

Industries Co
Nanavaran Co 11.2 9.0 8.8 8.6 8.2
Ray Nan Research & 1.9 2.2 2.8 2.8 2.7
Production Co
Shiva Mfg Co 0.3 0.4 0.5 0.5 0.6
Shirin Novin Industrial 0.0 0.1 0.2 0.2 0.2
Co
Namnik Co Ltd 0.1 0.2 0.2 0.2 0.2
Parand Chocolate Co 0.1 0.2 0.2 0.2 0.2
Fal Food Industrial Co 0.1 0.1 0.2 0.2 0.2
Biscolarg Co 0.1 0.1 0.1 0.1 0.1
(Anata)
Noosheen Lahidjan Co 0.1 0.1 0.1 0.1 0.1
Lahijan Cookie Co 0.1 0.1 0.1 0.1 0.1
Naderian Fard Co 0.1 0.1 0.1 0.1 0.1
Urmia Seegool Co 0.1 0.1 0.1 0.1 0.1
Nadi FoodStuf Complex 0.1 0.1 0.1 0.1 0.1
Niloo Food Ind 0.1 0.1 0.1 0.1 0.1
Artisanal 66.9 66.6 67.5 66.3 65.7
Others 11.7 14.4 12.6 12.8 12.2
Total 100.0 100.0 100.0 100.0 100.0

Table 34 LBN Brand Shares of Baked Goods: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Cenan Nami Nik Nahad Food 6.1 6.2 7.4 8.9

Industries Co
Nanavaran Nanavaran Co 9.0 8.8 8.6 8.2
Hoorsun Ray Nan Research & 2.2 2.8 2.8 2.7
Production Co
Shiba Shiva Mfg Co 0.4 0.5 0.5 0.6
Shirin Novin Shirin Novin Industrial Co 0.1 0.2 0.2 0.2
Ashena Namnik Co Ltd 0.2 0.2 0.2 0.2
Farmand Parand Chocolate Co 0.2 0.2 0.2 0.2
Derazheh Fal Food Industrial Co 0.1 0.1 0.1 0.1
(Anata)
noosheen Noosheen Lahidjan Co 0.1 0.1 0.1 0.1
Lahijan Lahijan Cookie Co 0.1 0.1 0.1 0.1
Naderi Naderian Fard Co 0.1 0.1 0.1 0.1
Seegoal Urmia Seegool Co 0.1 0.1 0.1 0.1
nadi Nadi FoodStuf Complex 0.1 0.1 0.1 0.1
Niloo Niloo Food Ind 0.1 0.1 0.1 0.1
Artisanal 66.6 67.5 66.3 65.7
Others 14.5 12.7 13.0 12.4
Total 100.0 100.0 100.0 100.0
Table 35 Distribution of Baked Goods by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 1.7 1.9 2.2 2.5 2.7 3.0
Retailers
--- Hypermarkets 1.0 1.2 1.4 1.5 1.6 1.8
--- Supermarkets 0.6 0.8 0.9 1.0 1.1 1.2
Retailers
specialists
Grocers
Retailers
- Non-Grocery Specialists - - - - - -
-- Health and Beauty - - - - - -
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 36 Forecast Sales of Baked Goods by Category: Volume 2015-2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Bread 7,925.1 7,875.8 7,810.7 7,711.4 7,586.6 7,440.2

- Packaged Bread 768.7 818.6 890.9 954.7 1,012.8 1,067.1
Cakes 46.0 48.2 51.0 54.0 57.3 60.9
- Packaged Cakes 19.9 22.8 26.4 30.0 33.8 37.8
- Unpackaged Cakes 26.1 25.4 24.6 24.0 23.5 23.1
Dessert Mixes 9.1 9.5 10.0 10.5 11.0 11.5
Pastries 32.6 34.1 35.8 37.5 39.3 41.2
- Packaged Pastries 14.5 16.9 19.4 21.9 24.3 26.8
Baked Goods 8,012.9 7,967.7 7,907.5 7,813.4 7,694.3 7,553.8
trade sources
Table 37 Forecast Sales of Baked Goods by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Bread 164,735.5 177,263.0 191,915.6 206,603.9 221,568.9 236,957.4

- Packaged Bread 53,811.8 61,313.5 71,402.7 81,871.6 92,930.4 104,762.1
Cakes 5,623.1 6,086.9 6,659.9 7,288.6 7,989.3 8,774.1
- Packaged Cakes 2,733.8 3,234.9 3,851.1 4,508.3 5,226.0 6,019.7
- Unpackaged Cakes 2,889.3 2,852.0 2,808.8 2,780.4 2,763.3 2,754.4
Dessert Mixes 1,809.9 1,939.7 2,096.6 2,254.5 2,419.0 2,591.6
Pastries 2,287.6 2,495.7 2,730.0 2,975.1 3,231.0 3,497.8
- Packaged Pastries 1,438.0 1,702.7 1,989.5 2,279.2 2,573.2 2,873.1
Baked Goods 174,456.2 187,785.4 203,402.1 219,122.1 235,208.2 251,820.8
trade sources
Table 38 Forecast Sales of Baked Goods by Category: % Volume Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
Bread -0.6 -1.3 -6.1

- Unpackaged Bread -1.4 -2.3 -10.9
Cakes 4.9 5.8 32.4
- Unpackaged Cakes -2.7 -2.4 -11.5
Pastries 4.5 4.8 26.3
- Unpackaged Pastries -5.1 -4.4 -20.3
Baked Goods -0.6 -1.2 -5.7
trade sources
Table 39 Forecast Sales of Baked Goods by Category: % Value Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL
Bread 7.6 7.5 43.8

- Unpackaged Bread 4.5 3.6 19.2
Cakes 8.2 9.3 56.0
- Unpackaged Cakes -1.3 -1.0 -4.7
Pastries 9.1 8.9 52.9
- Unpackaged Pastries -6.7 -6.0 -26.5
Baked Goods 7.6 7.6 44.3
trade sources
BISCUITS AND SNACK BARS IN IRAN

- CATEGORY ANALYSIS
HEADLINES
 Biscuits and snack bars records 20% value growth and 7% total volume growth to reach
IRR2,157 billion and 32,300 tonnes in 2015
 The low base for both biscuits and snack bars remains the main driver of growth in 2015
 Cookies is the most dynamic category with value growth of 40% in 2015
 Average prices of biscuits and snack bars increase by 13% in 2015
 Gorji Biscuit remains the strong leader in biscuits and snack bars with a 30% value share in
2015
 A value CAGR of 9% at constant 2015 prices is expected over the forecast period for biscuits
and snack bars to reach IRR3,244 billion by 2020
TRENDS
 Both biscuits and snack bars remained very immature categories in Iran in 2015, which
helped them to record positive growth rates in spite of continuous price increases. The
majority of Iranian adults do not consume biscuits on a daily basis and consumption is mainly
limited to children, who are the key consumers of these products. There were two types of
biscuits available in Iran, single serve and guest size, with the latter available in large
packaging which is usually used for gatherings and celebrations. However, this trend
continued to change in 2015 as more sophisticated offerings, such as cookies, continued to
win a new consumer base due to the improvement in distribution and consumer awareness.
 There are several reasons for the immaturity of biscuits, including the strong competition from
other alternatives, such as confectionery, cakes and pastries. In fact, biscuits had not
developed in the same way as these categories by the end of the review period and
consumers could usually only find simple products, such as plain biscuits in the majority of
outlets, which was not attractive enough to convince them to try the products. However, this
trend was challenged in 2015 as more sophisticated items became available in an increasing
number of outlets, which gave more consumers the opportunity to purchase them.
 More modern concepts, such as oat biscuits, biscuits with date extracts, cookies and the
further development of bran biscuits played a key role in this progress. Improvements in
packaging, the expansion of biscuit imports (which were not available before) and the wide
distribution of these products with attractive packaging, as well as improved taste, led to new
demand from Iranian consumers who had little awareness about the different types of biscuit.
 However, the category continued its healthy growth in 2015 at a pace of 7% in total volume
terms, slightly lower than review period CAGR of 9%. This was mainly because biscuits
enjoyed consistently higher levels of awareness over the review period, which made it less
likely to repeat the somewhat erratic growth rates of the review period.
 Cookies was the most dynamic category in 2015, recording value growth of 40%. This was
mainly the result of major improvement in the availability of this type, especially supported by
Gorji Biscuit. The company also used point-of-sale materials inside stores, which helped
consumers discover this new modern type in 2015.
 In terms of distribution, supermarkets and hypermarkets grew in importance although were
not that significant compared to traditional grocery retailers, accounting for only a combined
8% of retail value sales in 2015, However, this is expected to increase over the forecast
period as a result of the growing urban population and the gradual expansion of modern
channels with promotional and discount offers. Independent small grocers, which accounted
for an 81% share of retail value sales in 2015 is expected to gradually lose share to these
modern channels.
 Gorji Biscuit remained the strong leader in biscuits and snack bars, accounting for a 30%
value share in 2015. The company has a long history in the Iranian market and is very well
known for its high-quality products, especially in the larger packs (guest type). It also
benefited from an effective distribution network which guaranteed availability, visibility and
accessibility for its products in most of the key urban areas. However, in single portion biscuits
Gorji Biscuit was not as strong and was not able to address the needs of the market
effectively.
 Pars Minoo Industrial, Nejati Industrial Group (Anata), and Shirin Asal were the other
important manufacturers of biscuits and snack bars in 2015. Pars Minoo Industrial owns a
very popular brand by the name of Saghe Talaie, which was very successful over the review
period. The brand used to be the only bran-based biscuit and can be regarded as the only
type of biscuit which enjoys everyday consumption among many adult consumers, often as a
substitute for breakfast at work. Pars Minoo Industrial improved its distribution of three other
types of Saghe Talaie in 2015, including a sandwich with cream version, a chocolate coated
version and a date extract type. This widening of its range helped the brand to strengthen its
position in 2015, although none of the new variants were as strong as the original SKU.
Shirin Asal, another key supplier of biscuits, especially single portion biscuits, performed very
well in 2015, increasing its value share by two percentage points, which was due to the good
performance of its bestselling brands. Shirin Asal, like Pars Minoo Industrial, tried to widen the
range of HiBye by focusing on date and coffee flavours, which proved to be very popular.
 The Iranian biscuits and snack bars category remained under the strong leadership of key
domestic manufacturers in 2015. These suppliers benefited from affordable products with
reasonable quality, which could easily be found in all hypermarkets and independent small
grocers. However, in the last three years of the review period some multinational brands
found their way in to the key supermarkets and hypermarkets, especially in key urban areas,
among which Loacker from Loacker was the most visible. The price difference between
domestic and imported products was significant, which made target group for the latter very
small.
 One of the small suppliers of biscuits in Iran, Ansari Food Industry, accelerated its activities in
2015. The company focuses on oat-based biscuits and offers products under the brand name
of Jomaneh. It widened its portfolio in 2015, which resulted in better sales, especially in the
guest serve biscuit category.
 Domestic manufacturers mainly used mass media channels to promote their products, such
as national TV channels and radio. They also targeted consumers via billboards and leaflets.
In contrast, multinational brands continued to focus on increasing availability and visibility for
their products and improving consumer access to their ranges at the end of the review period,
especially in hypermarkets. Some multinationals used point-of-sale promotions towards the

end of the review period, although only in a few selected outlets in major urban areas.
 Only economy and standard brands existed in the Iranian market during the review period.
However, towards the end of the review period some imports of premium brands opened the
way for this type. In addition, Gorji Biscuit expanded its premium cookies in 2015 which
enjoyed strong sales and demonstrated the ability of the Iranian market to absorb premium
products.
PROSPECTS
 The Iranian biscuits and snack bars category is expected to record good growth rates in
volume terms over the forecast period, although thanks to maturation and a greater
development of this sector in the last few years of the review period, the volume growth rates
over the forecast period will be lower than those seen in the review period at 6% compared to
8%. However, despite a slowing down thanks to increasing maturity growth will come from the
introduction of new products and flavours.
 The consumption preferences of Iranian consumers will be one of the main barriers for growth
of biscuits and snack bars in Iran. Many consumers are switching to chocolate confectionery
as a treat, attracted by the innovations and new product launches within chocolate
confectionery. Biscuits is also losing value share to cakes, which is perceived to be fresher
and more of a treat. Instead of biscuits, Iranians will also consume fruit as a snack or indulge
in ice cream as a treat during the hot summer months.
 Distribution of biscuits and snack bars is expected to witness a gradual change over the
forecast period. Independent small grocers is set to lose share to modern channels, such as
supermarkets and hypermarkets year by year. Consumers will become more interested in the
one-stop-shop concept, which will be a key driver of distribution changes.
 Biscuits is expected to remain under the strong influence of domestic manufacturers, which
will be responsible for the majority of value sales during the forecast period. Gorji, Minoo,
Anata and Shirin Asal will compete for value share in the absence of any significant
multinational competition.
CATEGORY DATA
Table 40 Sales of Biscuits and Snack Bars by Category: Volume 2010-2015
tonnes
2010 2011 2012 2013 2014 2015
Biscuits 19,130.0 19,495.0 22,785.0 24,973.2 26,463.1 28,280.0

- Savoury Biscuits 770.0 780.0 840.0 950.0 1,030.0 1,130.0
- Sweet Biscuits 18,360.0 18,715.0 21,945.0 24,023.2 25,433.1 27,150.0
-- Alfajores - - - - - -
-- Chocolate Coated 1,910.0 1,950.0 2,050.0 2,120.0 2,300.0 2,520.0
Biscuits
-- Cookies 190.0 194.9 205.0 274.7 373.1 480.0
-- Filled Biscuits 1,430.0 1,460.0 1,530.0 1,700.0 1,850.0 2,040.0
-- Plain Biscuits 13,680.0 13,940.0 16,910.0 18,680.0 19,610.0 20,750.0
-- Sandwich Biscuits 1,150.0 1,170.0 1,250.0 1,248.5 1,300.0 1,360.0
-- Wafers - - - - - -
Snack Bars 148.8 160.9 170.0 188.7 208.5 229.4
- Breakfast Bars - - - - - -
- Energy and Nutrition - - - - - -
Bars
- Fruit Bars 148.8 160.9 170.0 188.7 208.5 229.4
- Granola Bars - - - - - -
- Other Snack Bars - - - - - -
Biscuits and Snack Bars 19,278.8 19,655.9 22,955.0 25,161.9 26,671.6 28,509.4
Table 41 Sales of Biscuits and Snack Bars by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Biscuits 511.0 542.6 888.6 1,353.2 1,751.2 2,104.3

- Savoury Biscuits 21.3 22.9 37.8 66.5 87.6 104.0
- Sweet Biscuits 489.7 519.7 850.8 1,286.7 1,663.7 2,000.4
-- Alfajores - - - - - -
-- Chocolate Coated 96.2 103.1 169.9 267.8 326.8 378.0
Biscuits
-- Cookies 18.3 19.5 30.8 54.9 85.8 120.0
-- Filled Biscuits 46.8 51.1 80.3 129.4 166.5 204.0
-- Plain Biscuits 287.2 301.4 507.3 747.2 980.5 1,182.8
-- Sandwich Biscuits 41.3 44.5 62.5 87.4 104.0 115.6
-- Wafers - - - - - -
Snack Bars 13.2 15.1 20.4 28.3 41.7 52.8
Bars
- Fruit Bars 13.2 15.1 20.4 28.3 41.7 52.8
Biscuits and Snack Bars 524.2 557.7 909.0 1,381.5 1,792.9 2,157.1
Table 42 Sales of Biscuits and Snack Bars by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Biscuits 6.9 8.1 47.8

- Savoury Biscuits 9.7 8.0 46.8
- Sweet Biscuits 6.8 8.1 47.9
-- Alfajores - - -
-- Chocolate Coated Biscuits 9.6 5.7 31.9
-- Cookies 28.7 20.4 152.6
-- Filled Biscuits 10.3 7.4 42.7
-- Plain Biscuits 5.8 8.7 51.7
-- Sandwich Biscuits 4.6 3.4 18.3
-- Wafers - - -
Snack Bars 10.0 9.0 54.1
- Breakfast Bars - - -
- Energy and Nutrition Bars - - -
- Fruit Bars 10.0 9.0 54.1
- Granola Bars - - -
- Other Snack Bars - - -

Table 43 Sales of Biscuits and Snack Bars by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total
Biscuits 20.2 32.7 311.8

-- Alfajores - - -
-- Cookies 39.8 45.7 556.8
-- Plain Biscuits 20.6 32.7 311.8
-- Wafers - - -
Snack Bars 26.5 31.9 299.5
- Fruit Bars 26.5 31.9 299.5
Table 44 NBO Company Shares of Biscuits and Snack Bars: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Gorji Biscuit Co 34.2 32.5 30.4 31.4 29.7

(Anata)
Shirin Asal Co 7.4 7.5 8.8 9.2 11.4
Salamat Fard Co 5.0 5.2 5.6 6.5 6.9
Choco Pars Co 4.9 5.1 4.7 5.1 5.1
Beygi Food Industrial 5.0 4.9 4.6 4.2 3.7
Group
Vitana Co 1.6 2.2 2.5 2.7 3.2
Galin Golchin Co 1.0 0.9 0.8 0.9 0.9
ETi Co 1.1 1.2 1.0 0.8 0.5
Iran Chashni Co 0.2 0.1 0.1 0.2 0.2
Shemshak Co 0.2 0.1 0.1 0.2 0.2
Others 11.0 11.7 10.7 7.5 5.7
Total 100.0 100.0 100.0 100.0 100.0
Table 45 LBN Brand Shares of Biscuits and Snack Bars: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Gorji Gorji Biscuit Co 30.3 28.4 28.8 27.5

Saghe Talaie Pars Minoo Industrial Co 8.7 9.1 9.6 10.0
Salamat Salamat Fard Co 5.2 5.6 6.5 6.9
(Anata)
Digestive Choco Pars Co 5.1 4.7 5.1 5.1
Shirin Asal Shirin Asal Co 2.9 3.2 2.9 4.2
Beygi Beygi Food Industrial 4.9 4.6 4.2 3.7
Group
Vitana Vitana Co 2.2 2.5 2.7 3.2
Tord Pars Minoo Industrial Co 1.9 1.7 1.8 2.2
Galin Galin Golchin Co 0.9 0.8 0.9 0.9
Negro ETi Co 1.2 1.0 0.8 0.5
Torshin Iran Chashni Co 0.1 0.1 0.2 0.2
Shemshak Shemshak Co 0.1 0.1 0.2 0.2
Others 29.1 29.6 27.8 25.8
Total 100.0 100.0 100.0 100.0
Table 46 NBO Company Shares of Biscuits: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Gorji Biscuit Co 35.1 33.2 31.0 32.1 30.4

(Anata)
Shirin Asal Co 7.6 7.6 9.0 9.4 11.7
Salamat Fard Co 5.1 5.3 5.7 6.7 7.1
Choco Pars Co 5.1 5.2 4.8 5.2 5.2
Beygi Food Industrial 5.1 5.0 4.7 4.3 3.8
Group
Vitana Co 1.7 2.2 2.6 2.8 3.3
ETi Co 1.1 1.2 1.0 0.8 0.5
Others 9.9 10.8 9.9 6.6 4.6
Total 100.0 100.0 100.0 100.0 100.0
Table 47 LBN Brand Shares of Biscuits: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Gorji Gorji Biscuit Co 31.0 29.0 29.5 28.2

Saghe Talaie Pars Minoo Industrial Co 8.9 9.3 9.8 10.3
Salamat Salamat Fard Co 5.3 5.7 6.7 7.1
(Anata)
Digestive Choco Pars Co 5.2 4.8 5.2 5.2
Beygi Beygi Food Industrial 5.0 4.7 4.3 3.8
Group
Vitana Vitana Co 2.2 2.6 2.8 3.3
Tord Pars Minoo Industrial Co 2.0 1.7 1.8 2.3
Negro ETi Co 1.2 1.0 0.8 0.5
Others 28.7 29.2 27.3 25.2
Total 100.0 100.0 100.0 100.0
Table 48 NBO Company Shares of Snack Bars: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Galin Golchin Co 37.8 38.9 38.0 38.9 37.4

Iran Chashni Co 6.1 5.9 6.4 7.0 7.5
Shemshak Co 6.3 6.6 6.5 6.8 7.2
Others 49.9 48.5 49.1 47.3 47.9
Total 100.0 100.0 100.0 100.0 100.0
Table 49 LBN Brand Shares of Snack Bars: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Galin Galin Golchin Co 38.9 38.0 38.9 37.4

Torshin Iran Chashni Co 5.9 6.4 7.0 7.5
Shemshak Shemshak Co 6.6 6.5 6.8 7.2
Others 48.5 49.1 47.3 47.9
Total 100.0 100.0 100.0 100.0
Table 50 Distribution of Biscuits and Snack Bars by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 5.6 6.1 6.6 7.0 7.6 7.9
Retailers
--- Hypermarkets 3.3 3.6 3.9 4.2 4.5 4.7
--- Supermarkets 2.3 2.5 2.7 2.8 3.1 3.2
Retailers
specialists
Grocers
--- Other Grocery 12.5 12.2 11.9 11.7 11.6 11.3
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 51 Distribution of Biscuits by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 5.6 6.1 6.6 7.0 7.5 7.8
Retailers
--- Hypermarkets 3.3 3.6 3.9 4.2 4.4 4.6
--- Supermarkets 2.3 2.5 2.7 2.8 3.1 3.2
Retailers
specialists
Grocers
--- Other Grocery 12.6 12.4 12.0 11.8 11.7 11.4
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 52 Distribution of Snack Bars by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 6.9 7.8 8.4 8.9 9.2 9.9
Retailers
--- Hypermarkets 3.7 4.3 4.8 5.2 5.3 5.7
--- Supermarkets 3.2 3.4 3.6 3.7 3.9 4.2
Retailers
specialists
Grocers
--- Other Grocery 6.8 6.5 6.4 6.3 6.2 6.2
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 53 Forecast Sales of Biscuits and Snack Bars by Category: Volume 2015-2020
tonnes
2015 2016 2017 2018 2019 2020
Biscuits 28,280.0 30,021.7 31,915.2 33,753.3 35,598.3 37,482.2

- Savoury Biscuits 1,130.0 1,243.4 1,373.3 1,493.4 1,606.7 1,714.2
- Sweet Biscuits 27,150.0 28,778.3 30,541.9 32,259.9 33,991.5 35,768.0
-- Alfajores - - - - - -
-- Chocolate Coated 2,520.0 2,653.6 2,799.5 2,961.9 3,145.5 3,350.0
Biscuits
-- Cookies 480.0 577.8 689.9 809.3 937.1 1,079.6
-- Filled Biscuits 2,040.0 2,209.3 2,401.5 2,615.3 2,855.9 3,124.3
-- Plain Biscuits 20,750.0 21,903.8 23,131.9 24,277.7 25,383.4 26,471.9
-- Sandwich Biscuits 1,360.0 1,433.8 1,519.0 1,595.8 1,669.6 1,742.2
-- Wafers - - - - - -
Snack Bars 229.4 250.0 271.8 294.3 317.9 342.3
Bars
- Fruit Bars 229.4 250.0 271.8 294.3 317.9 342.3
trade sources
Table 54 Forecast Sales of Biscuits and Snack Bars by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Biscuits 2,104.3 2,286.8 2,490.2 2,700.4 2,922.7 3,161.2

- Savoury Biscuits 104.0 116.7 131.4 145.8 160.0 174.1
- Sweet Biscuits 2,000.4 2,170.1 2,358.7 2,554.6 2,762.7 2,987.0
-- Alfajores - - - - - -
-- Chocolate Coated 378.0 405.2 435.2 468.7 506.7 549.4
Biscuits
-- Cookies 120.0 147.9 180.9 217.2 257.6 303.9
-- Filled Biscuits 204.0 224.7 248.4 275.1 305.5 339.9
-- Plain Biscuits 1,182.8 1,267.2 1,358.4 1,447.0 1,535.6 1,625.5
-- Sandwich Biscuits 115.6 125.0 135.9 146.5 157.3 168.4
-- Wafers - - - - - -
Snack Bars 52.8 58.1 63.8 69.7 76.1 82.8
Bars
- Fruit Bars 52.8 58.1 63.8 69.7 76.1 82.8
trade sources
Table 55 Forecast Sales of Biscuits and Snack Bars by Category: % Volume Growth
2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
Biscuits 6.2 5.8 32.5

-- Alfajores - - -
-- Cookies 20.4 17.6 124.9
-- Wafers - - -
Snack Bars 9.0 8.3 49.3
- Fruit Bars 9.0 8.3 49.3

trade sources
Table 56 Forecast Sales of Biscuits and Snack Bars by Category: % Value Growth
2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL
Biscuits 8.7 8.5 50.2

-- Alfajores - - -
-- Cookies 23.3 20.4 153.2
-- Wafers - - -
Snack Bars 10.1 9.4 56.9
- Fruit Bars 10.1 9.4 56.9
trade sources
BREAKFAST CEREALS IN IRAN -

CATEGORY ANALYSIS
HEADLINES
 Breakfast cereals grows by 40% in value and 17% in total volume terms to reach IRR 674.8
billion and 2,170 tonnes in 2015
 Multinationals are back in 2015
 Children's breakfast cereals records the highest total volume growth of 18% in 2015
 Average unit prices rise by 20% in 2015
 Tak Makaron maintains its leading position, accounting for a 20% value share in 2015
 An impressive 19% value CAGR at constant 2015 prices is predicted for the forecast period
with sales reaching IRR1,623 billion by 2020
TRENDS
 The most important event of 2015 in breakfast cereals was the rapid growth in sales,
especially for multinationals, such as Nestlé. As expected, after the removal of the ban on
imports during the last months of 2014, multinationals gradually began their activities again
and their well-known brands once again became available on the shelves. This seriously
impacted the value shares of domestic suppliers and also positively impacted per capita
consumption growth.
 Overall, breakfast cereals remained a relatively new category with extreme potential for
growth. Awareness of these products improved in 2015 and the emergence of new products,
especially imported brands, offered consumers a chance to try breakfast cereals. In addition,
2015 could be regarded as a turning point for this category as availability, visibility and
awareness of both domestic and multinational brands improved at a very rapid pace
compared to the previous year. All in all, the category recorded value growth of 40% in 2015,
which was higher than the review period value CAGR of 33%.
 Children remained the major consumer group for cereals in Iran and in many families these
products were regarded as only appropriate for children. Children’s breakfast cereals was
also the most dynamic, recording total volume growth of 18% in 2015. Chocolate flavour was
very popular among these young consumers. However, young adults were especially
interested in flakes with unique selling points. Slimming breakfast cereals, such as products
with fibre carrying claims about weight reduction, were the best sellers in flakes, especially
among young urban females.
 Development of the category may be inhibited by the fact that, according to local research,
many school children and women skip breakfast (56% in the analysed region), and those who
do have breakfast stick to traditional Iranian foods. Most Iranians still prefer to breakfast on
traditional fresh unleavened bread with white cheese (feta-style), whipped heavy cream and
jam or honey. In addition, the low consumption of milk in the country also had a negative
effect on sales of breakfast cereals. Overall, traditional breakfast remained the main factor to
limit sales of modern breakfast cereals in 2015.
 Unit prices of breakfast cereals continued to rise as a result of the surge in the price of raw
materials and production. As the price of wheat and corn increased, domestic suppliers were
obliged to pass this on to their customers, resulting in price increases of 20% in 2015.
 The rapid expansion of modern retail outlets, especially hypermarkets and supermarkets,
played a key role in development of breakfast cereals in Iran in 2015 as these modern outlets
provided breakfast cereals with sufficient space to be visible to consumers, which was
missing in traditional channels such as independent small grocers.
 The competitive environment of breakfast cereals began to change rapidly in 2015 as

multinationals, such as Nestlé, began to grow again after the ban on imports was lifted, at the
expense of domestic suppliers, such as Tak Makaron. However, among these domestic
manufacturers, Tak Makaron remained the most significant supplier, accounting for a 20%
value share in 2015. The company, which is a strong leader in pasta, tried to fill the gap left by
multinational brands with widespread advertising, especially on billboards.
 Nestlé, on the other hand, was the greatest beneficiary of this situation as it was able gain a
considerable value share of 16% in its first full year after re-entering the country. This led to a
share loss of almost six percentage points for domestic leader, Tak Makaron. The relaunch of
the Nesquik, Chocapic and Fitness brands helped Nestlé gain this high value share.
 At the end of the review period breakfast cereals continued to be led by a domestic
manufacturer which had benefited from the import ban. However, with the change in
regulations this is set to be challenged strongly over the forecast period, a process which had
already begun in 2015.
 Some of the key breakfast cereal suppliers, such as Sadaf Talaee Iranian Food Industry, ran
significant advertising campaigns on satellite TV, which had a positive impact on value sales
in 2014 and 2015. The company used popular Iranian channels, including PMC, TV Persia,
Manoto and GEM, as the main media for advertising their products. The key concept in their
advertisements was the fitness and good shape that could be achieved by using breakfast
cereals. Some other manufacturers, such as Tak Makaron, used in-store advertising including
leaflets, posters and billboards as the main channels for contacting consumers.
 Premium brands had a negligible presence in Iran in 2015, due to their higher prices and
limited availability. Typically, they were only found in large supermarkets in Tehran and other
large cities. Standard brands, such as Tak Makaron’s Tak breakfast cereals, drove sales with
their relatively lower prices and wider availability. These products were increasingly available
in small local corner shops, as well as independent small grocers.
PROSPECTS
 The outlook for breakfast cereals seems extremely promising for the forecast period. Three
factors are expected to support this excellent performance. Firstly, the low base will act as the
main fuel for rapid double digit volume growth. Secondly, the strong growth of activities by
both domestic and multinationals is likely to play a major role in increasing awareness of
these products. The expected opening in relationships between Iran and the West, especially
after the Geneva agreement, means that activities of multinationals will be easier due to the
loosening of sanctions over the forecast period. Finally, the rapid expansion of modern
retailing channels, which is anticipated over the forecast period, will have a very positive
impact on growth in this category.
 Breakfast cereals is expected to continue to record impressive growth over the forecast
period, with a retail value CAGR of 19% at constant 2015 prices. This will be a major
improvement from the review period constant value CAGR of 7% and constitutes one of the
fastest growth rates in packaged food over the 2015-2020 period. However, this will be mainly
due to its very low base. As breakfast cereals remains a relatively marginal product category
in Iran, manufacturers will need to invest more in advertising, promotional activities and
consumer education in order to develop sales.
 Prices of wheat and corn as the main raw materials for breakfast cereals are expected to
witness significant increases over the forecast period. This is set to have an effect on the
price of breakfast cereals early in the forecast period. For domestic manufacturers price
increases will likely be even more severe as growth in unit prices will be coupled with a high
rate of inflation.
 Distribution will be a key element for the success of breakfast cereals in Iran over the forecast
period. The ideal channel for these products will be large supermarkets and hypermarkets,
where they could be visible and accessible. The Iranian retailing environment is expected to
witness a trend of modernisation over the forecast period. Supermarkets and hypermarkets
are expected to play a more important role at the expense of traditional independent small
grocers. This change will benefit breakfast cereals more than any other packaged food
category.
 Breakfast cereals is expected to become more consolidated over the forecast period,
continuing the trend from 2015. Many small manufacturers which tried to take advantage of
the import ban are not expected to survive, especially with the broader activities of
multinationals. Both domestic and multinational manufacturers will use point-of-sale materials,
such as stands and posters, as a key element in winning sales. In addition, some may use
satellite TV advertising at times as this has proved to be a very strong tool for promoting
volume sales.
 Launching different flavours and different pack sizes was a key trend for many manufacturers
during the review period and this is expected to continue over the forecast period. Key
manufacturers are set to continue to fight aggressively on the shelves in order to attract the
attention of consumers. They will also use sampling promotions to make consumers familiar
with the taste and quality of their products.
CATEGORY DATA
Table 57 Sales of Breakfast Cereals by Category: Volume 2010-2015
tonnes
2010 2011 2012 2013 2014 2015
Hot Cereals - - - - - -
RTE Cereals 1,205.8 1,618.8 1,869.5 1,580.0 1,850.0 2,169.8
- Children's Breakfast 730.0 970.0 1,100.0 1,160.0 1,400.0 1,652.0
Cereals
- Family Breakfast 475.8 648.8 769.5 420.0 450.0 517.8
Cereals
-- Flakes 310.0 420.0 504.0 200.0 210.0 239.4
-- Muesli 165.8 228.8 265.5 220.0 240.0 278.4
-- Other RTE Cereals - - - - - -
Breakfast Cereals 1,205.8 1,618.8 1,869.5 1,580.0 1,850.0 2,169.8

Table 58 Sales of Breakfast Cereals by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
RTE Cereals 159.9 234.2 365.3 408.2 480.6 674.8
- Children's Breakfast 88.5 129.3 198.0 292.3 334.2 481.1
Cereals
Cereals
-- Flakes 39.9 57.9 93.7 52.1 72.0 92.7
-- Muesli 31.5 47.0 73.6 63.8 74.4 101.0
Table 59 Sales of Breakfast Cereals by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
RTE Cereals 159.9 234.2 365.3 408.2 480.6 674.8
- Children's Breakfast 88.5 129.3 198.0 292.3 334.2 481.1
Cereals
Cereals
-- Flakes 39.9 57.9 93.7 52.1 72.0 92.7
-- Muesli 31.5 47.0 73.6 63.8 74.4 101.0
Table 60 Forecast Sales of Breakfast Cereals by Category: Volume 2015-2020
tonnes
2015 2016 2017 2018 2019 2020
RTE Cereals 2,169.8 2,547.2 3,007.1 3,487.4 3,995.5 4,534.2
- Children's Breakfast 1,652.0 1,963.4 2,354.9 2,770.2 3,214.4 3,688.2
Cereals
Cereals
-- Flakes 239.4 266.4 292.9 316.2 338.0 359.2
-- Muesli 278.4 317.4 359.4 400.9 443.1 486.9
Breakfast Cereals 2,169.8 2,547.2 3,007.1 3,487.4 3,995.5 4,534.2
trade sources
Table 61 Forecast Sales of Breakfast Cereals by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
RTE Cereals 674.8 814.4 988.1 1,178.4 1,389.2 1,623.2
- Children's Breakfast 481.1 591.9 734.7 894.5 1,074.3 1,275.8
Cereals
Cereals
-- Flakes 92.7 105.9 119.4 132.3 145.1 158.1
-- Muesli 101.0 116.7 134.0 151.6 169.9 189.3
Breakfast Cereals 674.8 814.4 988.1 1,178.4 1,389.2 1,623.2
trade sources
Table 62 Forecast Sales of Breakfast Cereals by Category: % Volume Growth 2015-

2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
Hot Cereals - - -
RTE Cereals 17.4 15.9 109.0
- Children's Breakfast Cereals 18.9 17.4 123.3
- Family Breakfast Cereals 12.7 10.3 63.4
-- Flakes 11.3 8.5 50.0
-- Muesli 14.0 11.8 74.9
-- Other RTE Cereals - - -
trade sources
Table 63 Forecast Sales of Breakfast Cereals by Category: % Value Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL
Hot Cereals - - -
RTE Cereals 20.7 19.2 140.5
- Children's Breakfast Cereals 23.0 21.5 165.2
- Family Breakfast Cereals 14.9 12.4 79.4
-- Flakes 14.2 11.3 70.6
-- Muesli 15.6 13.4 87.5
-- Other RTE Cereals - - -
trade sources
CHOCOLATE CONFECTIONERY IN
IRAN - CATEGORY ANALYSIS
HEADLINES
 Chocolate confectionery is set to increase in current value by 18% in 2015, rising to

IRR14,677.7 billion, while volume sales are set to rise by 2% to 36,200 tonnes
 After static volume growth was recorded in 2014, the category is set for positive volume
growth again in 2015
 Boxed assortments is expected to record the fastest current value growth of 21% in 2015
 An increase of 16% is expected in the average unit price of chocolate confectionery in 2015,
the consequence of high inflation
 Shirin Asal Co is expected to maintain its leading position in chocolate confectionery in 2015
with a 23% value share
 Chocolate confectionery is set to increase in value at a CAGR of 5% in constant 2015 terms
over the forecast period, rising to IRR18,311.6 billion in 2020
TRENDS
 Chocolate confectionery in Iran continued to rise from a very low base during 2015 as the
products in the category is not considered as the first snack option for the majority of Iranian
consumers. Consumption of chocolate confectionery is limited mainly to children as adult
Iranians usually prefer other options such as biscuits and cake, among others. However,
volume sales in the category have been growing consistently reasonably steadily in recent
years due to the wider availability of these products and the greater diversity of products on
offer in the category. In fact, chocolate confectionery recorded positive volume growth in 2014
and 2015 after recording a volume decline in 2013 as the more stable economic situation and
improvements in consumer purchasing power.
 Overall, due to these improvements, chocolate confectionery is expected to increase in
current value by 18% in 2015, although this is set to be slower than the review period CAGR
of 27%. This is mainly related to the fact that, in spite of the better situation in terms of volume
growth during the year, the category still needs time to achieve stability after rather erratic unit
price growth rates were recorded during 2013 and 2014.
 The smuggling of chocolate confectionery into Iran has been also a key factor which has had
a very negative impact on legitimate retail sales of chocolate confectionery in recent years.
Large volumes of smuggled chocolate are distributed through various retail channels, often
products of superior quality and often with even more affordable unit prices than official
imports. This situation had a seriously negative effect on the performance of the category
during 2015.
 There are also various technical issues with the domestic manufacture of chocolate
confectionery in Iran which continue to have a negative effect on demand. For domestic
brands, the major issue is that the majority of suppliers do not use cocoa butter when making
chocolate, replacing it instead with cooking fat, which adversely influences the overall taste
and quality of these products. Other obstacles for further expansion include Iran’s hot climate,
which has an impact on packaging and storage, as well as the Iranian preference for other
types of snacks such as nuts and fresh and dried fruit. Also, the prices charged for chocolate
confectionery are often higher than the prices of traditional Iranian sweets and snacks, which
has also prevented sales from increasing further.
 The strong performance of boxed assortments in comparison with other chocolate
confectionery categories in 2015 is mainly related to the rising popularity of these products as
gifts, especially for birthdays and celebrations, a trend which accelerated significantly during
2014 and 2015.
 Plain dark chocolate and filled chocolate remained the most important types of tablets in Iran
during 2015, accounting for 51% and 30% of retail value sales in the category respectively.
Although sales of plain milk chocolate tablets and white chocolate tablets are growing rapidly
from a very low base, awareness of these products remained very low at the end of the
review period. The most popular types of filled chocolate tablets contain coconut, nuts, vanilla
milk, dairy cream, banana and caramel.
 The average unit price of chocolate confectionery remained more stable during 2015 in
comparison with previous years, which helped consumers to become more accustomed to
this new balance as they are gradually able to spend higher amounts on chocolate
confectionery. The average unit price increase of 16% which is expected in the category in
2015 is much lower than the rate of inflation, which is indicative of how stable the unit price
situation is.
 There is usually a spike in the consumption of chocolate confectionery in Iran during March,
which is the result of the high demand for such products during Norooz celebrations. The
majority of Iranian households consume high volumes of chocolate confectionery during this
month to use in their ceremonies, festivities and gatherings during Norooz and to serve to
their guests.
 In the rather traditional environment of the Iranian retailing industry, independent small
groceries remains the most important retail distribution channel for chocolate confectionery,
accounting for 74% of total value sales in the category in 2015. However, with the emergence
and rapid expansion of supermarkets and hypermarkets in the country in recent years, these
channels have started to play a more important role in the retail distribution of chocolate
confectionery. Other popular distribution channels for chocolate confectionery include
confectionery specialists and confectionery kiosks, categorised under food/drink/tobacco
specialists.
 Shirin Asal Co remained the leading player in chocolate confectionery during 2015 with a 23%
value share, followed by Dadash Baradar Co (Aidin) with a 16% value share. Shirin Asal is
one of the oldest suppliers of confectionery, biscuits and cakes in Iran, with almost 25 years of
experience in Iran and various neighbouring countries. The company offers 15 brands in
chocolate confectionery, including Albina, Bonito, Collection, Dream, Flora, Harmony, Hiss,
Moon Light, Nani, Plenty, Prestige, Romini, Spark, Tido and Winner. One of the key pillars of
the Shirin Asal’s success has been its proactive approach to new product developments,
focusing on both products and packaging. The company also benefits from a very strong
supply chain for raw ingredients, which is due to the fact that it has a strong cocoa bean
collection network in Ivory Coast, which offers it protection against interruptions in the supply
of raw materials.
 The second largest supplier of chocolate confectionery in Iran, Dadash Baradar, was
established in 1945 as the first confectionery factory in the country and it has consistently
expanded its portfolio from cream toffee to include different forms of chocolate confectionery,
cocoa butter, cocoa powder, biscuits, cream wafers, bubble gum, chewing gum and snacks.
The company also benefits from its strong distribution network which spans across the
country and the combination of very low unit prices and acceptable quality. The company
witnessed some major changes to its corporate structure in 2010 when the two Biuk brothers
who have ownership of the company decided to divide the company’s brands between them
and manage them separately. As the key brand, Aidin remained under the control of Rasoul
Biuk, while Parviz Biuk became responsible for all of the company’s other brands including
Shoniz, Andis and Hoody under a new company with the name Dadash Baradar Co
(Mohandes Biuk).
 This separation of the company’s brands has had a negative effect on its total value share
since 2010 and its value share has declined from 25% in 2010 to 23% in 2014. In contrast,
Shirin Asal has recorded strong positive growth in its value share recently due to its superior
availability, stronger visibility and the accessibility of its brands in a wide range of retail stores.
The company also established its key retail chain in Tehran and other major urban areas of
Iran, which contributed considerably to the rising awareness of its products among
consumers. These stores, which are located in favourable spots in key urban areas sell only
Shirin Asal Co’s wide range of products, including chocolate confectionery.
 Chocolate confectionery in Iran is a category which is dominated by key domestic
manufacturers such as Dadash Baradar, Shirin Asal and Nejati Industrial Group (Anata), all of
which offer wide ranges of products at affordable unit prices. Imported brands usually have
much higher unit prices, which means that typical Iranian middle-income consumers are often
reluctant to pay more for them. For instance, Hiss which is Shirin Asal Co’s brand with a very
similar design to Nestle’s Kit Kat, has a unit price which is slightly more than one-third that of
Kit Kat. Even higher-income consumers who seek better quality chocolate confectionery
usually buy smuggled products because of their belief in the higher quality of smuggled
brands which have labels printed in any language except Farsi.
 One of the most important events in chocolate confectionery in Iran during 2015 was the
strong performance and expansion of Rezvan Chocolate Co under its popular brand name
Baraka. Baraka has been present in Iran since the start of the review period and it has been
known as one of the few suppliers of chocolate confectionery in Iran with a strong focus on
innovation in terms of both packaging and product quality. The company launched its
handmade boxed assortments in new attractive packaging in 2014 and 2015 and these
products are expected to generate a huge buzz in the country.
 The key domestic suppliers of chocolate confectionery in Iran still use national television and
radio networks as the main media channels for their advertising campaigns. In contrast,
multinational players use mainly in-store promotional activities and various different types of
point-of-sale displays as their main marketing methods. With strong expansion expected for
hypermarkets in Iran during the review period, the positioning of products on retail shelves is
becoming increasingly important and all of the leading players in the category are thus
seeking optimum shelf positions with the best possible visibility.
 Premium international chocolate confectionery brands such as Snickers and Ritter Sport are
present in Iran. However, these brands do not play a significant role in chocolate
confectionery in the country as they are too expensive for the average consumer. However,
this trend is changing slowly and some consumers who are not satisfied with the quality of
domestic brands are starting to trade up to these brands.
PROSPECTS
 The main driver of growth in chocolate confectionery in Iran over the forecast period is
expected to be the relatively low base from which the category is rising, which is set to result
in considerable growth in per capita consumption during the forecast period. This is set to
happen through better distribution of both domestic and multinational brands. However, huge
volumes of smuggled chocolate confectionery, especially across Iran’s western borders, is set
to act as a barrier for further expansion of retail volume sales, especially for imported
products. If the current lack of strong supervision on the illicit trade continues, the proliferation
of smuggled products is likely make it hard for key multinationals to control and support
chocolate confectionery in Iran.
 It is also important to note that the growth in consumer purchasing power which has been in
evidence since 2014 due to the declining inflation rate and the loosening of international
sanctions is almost certain to boost volume growth in the category as it gives many
consumers, especially middle-income consumers, the opportunity to look for more expensive,
higher quality chocolate confectionery and this will also have a positive influence on value
growth. All in all and considering all positive and negative factors, chocolate confectionery is
expected to increase in value at a CAGR of 5% in constant 2015 terms over the forecast
period, which is set to be much higher than the 2% value CAGR recorded in the category over
the review period in constant 2015 terms.
 The inflation rate is expected to remain high in Iran, although certainly lower than during the
review period, and this is set to result in considerable annual growth in the average unit price
in the category. The key suppliers of chocolate confectionery in the country other set to face
much higher costs for raw materials and production and this is likely to translate into much
higher unit prices.
 Over the review period, the retail distribution of chocolate confectionery is set to gradually
shift away from traditional retail channels such as independent small grocers towards modern
retail channels such as supermarkets and hypermarkets, as well as chocolate confectionery
specialist retailers. This is set to be mainly the result of the rapid expansion of supermarkets
and hypermarkets in Iran as well as the strong desire of the majority of Iranian consumers to
experience the one-stop shopping concept.
 Multinational companies such as Kraft Foods Inc are expected to re-enter the category during
the forecast period, especially with the current improvements in the relationship between Iran
and key Western countries. Those companies which left the country during the review period
might be able to operate in Iran once again if sanctions become loosened. Domestic
manufacturers such as Shirin Asal and Dadash Baradar, on the other hand, are likely to make
strong attempts to improve the quality of their products in order to remain competitive against
these newcomers.
CATEGORY DATA
Table 64 Sales of Chocolate Confectionery by Category: Volume 2010-2015
tonnes
2010 2011 2012 2013 2014 2015
Bagged Selflines/ 3,080.0 3,200.0 3,210.0 2,980.0 3,018.7 3,109.3

Softlines
Boxed Assortments 6,790.0 7,098.8 7,349.8 7,380.0 7,543.3 7,754.8
- Standard Boxed 6,660.0 6,959.7 7,203.3 7,230.0 7,389.1 7,596.0

Assortments
- Twist Wrapped 130.0 139.1 146.5 150.0 154.2 158.8
Miniatures
Chocolate with Toys 1,720.0 1,747.5 1,765.0 1,660.0 1,662.5 1,680.9
Countlines 8,820.0 9,199.3 9,410.8 9,120.0 9,028.8 9,128.1
Seasonal Chocolate - - - - - -
Tablets 14,680.0 14,841.5 15,007.7 14,160.0 14,315.8 14,530.5
Other Chocolate - - - - - -
Confectionery
Chocolate Confectionery 35,090.0 36,087.1 36,743.3 35,300.0 35,569.1 36,203.6
Table 65 Sales of Chocolate Confectionery by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Bagged Selflines/ 221.8 248.6 353.1 467.2 558.5 667.3

Softlines
Boxed Assortments 820.3 934.9 1,385.9 2,080.6 2,530.9 3,056.9
- Standard Boxed 794.2 904.6 1,337.4 2,008.6 2,442.8 2,950.7
Assortments
- Twist Wrapped 26.1 30.3 48.5 72.0 88.1 106.1
Miniatures
Chocolate with Toys 147.8 168.0 254.1 364.2 423.1 487.6
Countlines 828.2 932.8 1,488.8 2,224.5 2,598.7 3,034.5
Tablets 2,393.7 2,686.5 3,992.8 5,405.4 6,366.6 7,431.4
Confectionery
Table 66 Sales of Chocolate Confectionery by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Bagged Selflines/Softlines 3.0 0.2 1.0

Boxed Assortments 2.8 2.7 14.2
- Standard Boxed Assortments 2.8 2.7 14.1
- Twist Wrapped Miniatures 3.0 4.1 22.2
Chocolate with Toys 1.1 -0.5 -2.3
Countlines 1.1 0.7 3.5
Seasonal Chocolate - - -
Tablets 1.5 -0.2 -1.0
Other Chocolate Confectionery - - -
Chocolate Confectionery 1.8 0.6 3.2
Table 67 Sales of Chocolate Confectionery by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total

Chocolate with Toys 15.3 27.0 229.8
Countlines 16.8 29.7 266.4
Tablets 16.7 25.4 210.5
Table 68 Sales of Chocolate Tablets by Type: % Value Breakdown 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015
Plain Dark 55.0 54.0 53.0 51.0 50.0 50.5

Plain Milk 12.0 13.0 14.0 15.0 16.0 15.5
Plain White 2.0 3.0 3.0 4.0 4.0 4.3
Filled 31.0 30.0 30.0 30.0 30.0 29.7
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 69 NBO Company Shares of Chocolate Confectionery: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Shirin Asal Co 18.3 21.0 22.3 23.4 23.3

Dadash Baradar Co (Aidin) 18.2 16.6 15.8 15.6 16.1
(Anata)
(Mohandes Biuk)
Nahal Gostar Bazargan Co 3.8 3.5 4.5 4.8 6.5
Kavoshgar Kamineh Co 2.7 3.0 2.8 2.5 2.8
Tehran Dina Co 4.9 1.1 1.0 0.7 0.9
Frankforter Kish Co 1.4 2.1 1.8 0.7 -
Gardooneh Ran Jahan Co 8.7 1.2 - - -
Dadash Baradar Co - - - - -
Nixan Trading Co LLC - - - - -
Others 9.8 17.8 19.0 19.1 15.5
Total 100.0 100.0 100.0 100.0 100.0
Table 70 LBN Brand Shares of Chocolate Confectionery: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015

(Anata)
Maxi Shirin Asal Co 7.6 8.0 8.2 7.8
Albina Shirin Asal Co 5.9 6.1 6.4 6.2
Chichak Pars Minoo Industrial Co 3.4 4.1 4.9 5.1
Tak Tak Pars Minoo Industrial Co 5.6 5.0 4.8 5.1
Shoniz Dadash Baradar Co 4.3 4.2 4.3 4.7
(Mohandes Biuk)
Hobby Nahal Gostar Bazargan Co 2.5 3.0 3.1 4.2
His Shirin Asal Co 1.8 2.2 2.5 3.2
Jet Nejati Industrial Group 2.8 3.0 3.2 3.1
(Anata)
Lop Lop Kavoshgar Kamineh Co 3.0 2.8 2.5 2.8
Metro Nahal Gostar Bazargan Co 1.0 1.5 1.7 2.3
Class Nejati Industrial Group 1.4 1.6 1.8 2.0
(Anata)
Tourist Nejati Industrial Group 1.3 1.1 1.0 1.3
(Anata)
Snickers Tehran Dina Co 1.1 1.0 0.7 0.9
Morse Nejati Industrial Group 1.5 1.0 0.8 0.6
(Anata)
Ritter Sport Frankforter Kish Co 2.1 1.8 0.7 -
Milka Gardooneh Ran Jahan Co 1.1 - - -
Toblerone Gardooneh Ran Jahan Co 0.1 - - -
Aidin Dadash Baradar Co - - - -
Kinder Nixan Trading Co LLC - - - -
Bounty Tehran Dina Co - - - -
Mars Tehran Dina Co - - - -
Twix Tehran Dina Co - - - -
Others 33.1 33.6 33.3 30.3
Total 100.0 100.0 100.0 100.0
Table 71 Distribution of Chocolate Confectionery by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 1.7 1.8 1.8 1.8 1.8 1.9
Retailers
--- Hypermarkets 1.1 1.1 1.1 1.1 1.1 1.1
--- Supermarkets 0.6 0.6 0.7 0.7 0.7 0.7
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 72 Forecast Sales of Chocolate Confectionery by Category: Volume 2015-2020
tonnes
2015 2016 2017 2018 2019 2020
Bagged Selflines/ 3,109.3 3,211.5 3,309.1 3,399.8 3,489.7 3,580.1

Softlines
- Standard Boxed 7,596.0 7,833.4 8,118.0 8,398.6 8,693.3 8,997.7
Assortments
- Twist Wrapped 158.8 164.3 171.1 177.8 184.8 192.3
Miniatures
Chocolate with Toys 1,680.9 1,704.6 1,733.8 1,766.9 1,800.9 1,832.4
Countlines 9,128.1 9,302.9 9,525.8 9,749.8 9,983.3 10,225.6
Tablets 14,530.5 14,843.3 15,218.4 15,591.5 15,978.5 16,379.5
Confectionery
trade sources
Table 73 Forecast Sales of Chocolate Confectionery by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Bagged Selflines/ 667.3 701.7 736.0 769.8 804.4 840.1

Softlines
- Standard Boxed 2,950.7 3,088.6 3,248.8 3,411.5 3,584.2 3,765.4
Assortments
- Twist Wrapped 106.1 112.6 120.1 128.0 136.3 145.4
Miniatures
Chocolate with Toys 487.6 499.4 513.1 528.1 543.6 558.7
Countlines 3,034.5 3,154.4 3,294.6 3,439.5 3,592.3 3,753.1
Tablets 7,431.4 7,743.2 8,097.6 8,462.1 8,845.6 9,249.0
Confectionery
trade sources
Table 74 Forecast Sales of Chocolate Confectionery by Category: % Volume Growth

2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total

Tablets 2.2 2.4 12.7
trade sources
Table 75 Forecast Sales of Chocolate Confectionery by Category: % Value Growth

2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL

Tablets 4.2 4.5 24.5
trade sources
GUM IN IRAN - CATEGORY ANALYSIS

HEADLINES
 Gum is set to increase in current value by 26% in 2015, rising to IRR7,279.7 billion
 Iran’s young population remains the main driver of growth in gum during 2015
 Sugar free gum remains the most dynamic category in 2015, rising in current value by 30%
 The average unit price of gum is set to increase by 22% in 2015, the consequence of high
inflation
 Pars Minoo Industrial Co strengthened its position as the leading player in gum during 2015,
accounting for 26% of overall value sales in the category
 Gum is set to increase in value at a CAGR of 8% at constant 2015 prices over the forecast
period, rising to IRR10,562.7 billion in 2020
TRENDS
 Iran still has a very young population and this represented a very good opportunity for the
leading suppliers of gum during 2015. This young generation of Iranians has significant
demand for gum, which is seen as a cool product that can show that they are relaxed. Key
suppliers in the category such as Pars Minoo Industrial Co understand this opportunity and
supply large volumes of gum, targeting many consumers using the appropriate point-of-sale
materials. However, as result of the porous nature of Iran’s borders, especially on the western
side of the country, smugglers have also spotted the opportunities that gum presents and
large quantities of gum were smuggled into the country address demand during 2015.
 Some domestic gum manufacturers such as Pars Minoo Industrial Co and Shirin Asal Co
improved their distribution in 2015 to offer products of high quality at affordable unit price. The
acceleration seen in the rate of gum smuggling was another key event in the category in 2015
and which developed mainly due to very high prices and limited availability of imported gum
brands in Iran. Overall, due to the abovementioned factors, current value growth in gum
during 2015 was 26%, which is much lower than the review period CAGR of 46%. One of the
factors that played a key role in this slower performance was the proliferation of smuggled
gum after the withdrawal of key multinational brands such as Orbit from Iran.
 Sugar free gum was the most dynamic gum category in 2015, mainly as a result of its low
base compared with other gum categories. Sugar free gum witnessed an increase of 30% in
current value terms during 2015 due to strong demand among Iran’s young urban population.
In general increased availability played a key role in success of sugar free gum during 2015
as well as rapidly rising health concerns. Rising health awareness about the harmful effects of
consuming too much sugar has led many gum suppliers to launch sugar-free gum in Iran.
These launches also contributed to the significant growth recorded in sugar free gum in 2015,
which was also at least partially the result of the better availability of these products and
widespread advertising campaigns which highlight the benefits of sugar free gum over
sugarised alternatives.
 The 21% increase recorded in the average unit price of gum in current terms during 2015 was
in line with Iran’s inflation rate. Domestic manufacturers were forced to pay more for raw
materials and production costs. Multinational suppliers also face a global increase in the cost
of raw materials all of which resulted in growth in the unit prices of both domestic and
imported gum brands.
 Mint is the most popular flavour in gum in Iran in 2015. Many consumers expect their gum to
have refreshing and cool flavours. Eucalyptus flavour also proved very successful during the
review period and it was able to attract many consumers who were looking for refreshing
characteristics. Other popular flavours include banana, strawberry and cinnamon. Gum
consumers also showed their eagerness for new and unfamiliar flavours during the review
period. Flavours such as watermelon and orange have been able to find core target consumer
groups after their launches, although none of these flavours has been able to become as
popular as mint.
 Sugarised gum remains a category of products which target children. These products are
generally promoted by reference to a fun and playful image and come in a variety of fruit
flavours, whereas sugar-free gum targets teenagers and young adults, primarily females.
Sales of functional gum remain marginal in Iran.
 The proportion of gum sold through modern grocery retailers channels such as hypermarkets
and supermarkets expanded gradually over the review period. However, independent small
groceries remained dominant in 2015, accounting for 66% of value sales in the category.
Kiosks/newsagents are also becoming an important channel for gum because they are among
the key distribution channels for tobacco products, which are a good match for gum. Each
year, significant volumes of gum are consumed by smokers in order to minimise the odour of
tobacco products.
 Domestic supplier Pars Minoo Industrial Co maintained the leading position in gum in 2015,
accounting for 25% of value sales in the category. Its leading position can be attributed mainly
to the strong performance of its sugar free products offered under the White brand. This brand
is very similar to the Orbit brand in terms of quality and packaging and it has convinced many
of the previous consumers of Orbit to switch from their old brand to the new one due to its
much more affordable unit price. It is also worth mentioning that Akaam Tose’e Co, the
national brand owner of Orbit, was forced to leave Iran due to the difficulties that it faced such
as widespread smuggling of the Orbit brand, long periods of stock unavailability and rapid
price increases following the company’s withdrawal, Pars Minoo Industrial Co took the
opportunity to enhance its position in gum in Iran.
 Akaam Tose’e Co also recorded the highest decline in value sales in gum in 2015 due to
strong performance of smuggled versions of its brands and long periods of stock unavailability
due to regulatory issues and sanctions on the Iranian financial system.
 Gum in Iran was previously dominated by key multinationals, but at the end of the review
period was under the control of smuggled brands and some domestic products. It is very hard
to understand if products on retail shelves are legitimate imports or smuggled products.
 Most Iranian consumers cannot afford to pay for premium or even standard gum brands.
Therefore, in volume terms, economy brands still dominate sales in the category. Brands such
as Marukawa Conf Co’s Fusen and Pars Minoo’s Chic are thus very popular, even in rural
areas. By way of contrast, standard brands offered at higher prices are bought mainly in
urban areas by middle-income consumers. Among these brands, Orbit is the most important.
Premium brands, meanwhile, are generally bought only in high-income districts of Tehran and
other big cities.
 In terms of advertising campaigns, 2015 was a relatively silent year as most of the key
multinationals in the category were so busy with ensuring a steady supply of stock that they
did not invest heavily in mass media advertising campaigns such as television advertising.
Domestic brands also do not generally have any strategies to invest on advertising and they
are often more focused on increasing the availability of their products inside stores.
 Finally, one of the key events in gum in 2015 was the importation of large volumes of fake
Orbit gum, which seriously damaged the image of the Orbit brand in Iran. After the legitimate
importation of the Orbit brand was temporarily interrupted during the year, large quantities of
fake Orbit gum entered the country across its western borders. These products were
characterised by very low quality, although many consumers were duped into buying them
due to the limited stocks of legitimate orbit gum in the country.
PROSPECTS
 Over the forecast period, gum is expected to continue recording positive volume growth,
although at a much slower rate, increasing at a CAGR of 4%. Gum consumption could be
stimulated by new product developments, investment in research and marketing by the
multinational players and the nature of these products, which favours impulse purchases.
 Furthermore, the activities of multinational suppliers in both sales and marketing are set to
convince many people to engage in more regular consumption of gum, which was a new
concept several years ago. Sugar free gum is also set to continue competing with sugarised
versions, growing at a much faster rate. Demand for sugar-free gum is set to increase mainly
due to rising health awareness.
 The competitive environment in gum is set to remain very complicated over the forecast
period and it is liable to change frequently as it did during review period. Any decline in the
volume of smuggled gum available in Iran due to better government control of the borders
could represent a good opportunity for legitimate importers. In contrast, if the volume of
smuggled gum continues to grow, then legitimate importers will lose their already limited
chances to maintain a strong presence in the category.
 The average unit price of gum, which was very affordable during the review period, is
expected to rise consistently over the forecast period. Domestic brands are set to face higher
production costs as a result of the rising inflation, while multinational brands are likely to face
higher customs taxes and a less favourable exchange rate, which will be reflected in terms of
rising unit prices.
 The retail distribution of gum is expected to change over the forecast period. Supermarkets
and hypermarkets are set to play a more important role with each passing year, at the
expense of independent small grocers. The emergence and expansion of hypermarkets
played a major role in the success of gum during the review period and this trend is expected
to continue during the forecast period.
 The multinational companies present in gum are expected to attempt to keep their products
as affordable as possible so that they can compete more effectively as their consumers
cannot spend more than a certain amount on luxury products such as gum. On the other
hand, the lower prices in the illicit trade could pose a major threat to multinational companies
if unit price increase rapidly. However, in the case that the international trade sanctions on
Iran would be loosened, easier imports would almost certainly make smuggling less attractive,
resulting in much lower growth in smuggled volumes.
CATEGORY DATA
Table 76 Sales of Gum by Category: Volume 2010-2015
tonnes
2010 2011 2012 2013 2014 2015
Bubble Gum 520.0 1,020.0 1,080.0 1,110.0 1,116.7 1,128.9

Chewing Gum 6,721.3 9,483.2 9,175.4 9,132.0 9,401.9 9,787.5
Gum 7,241.3 10,503.2 10,255.4 10,242.0 10,518.5 10,916.4
Table 77 Sales of Gum by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Bubble Gum 102.1 216.6 385.3 645.5 811.7 984.7

Chewing Gum 981.2 1,571.7 2,377.6 3,804.8 4,955.0 6,295.0
Gum 1,083.3 1,788.3 2,762.9 4,450.2 5,766.7 7,279.7
Table 78 Sales of Gum by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Bubble Gum 1.1 16.8 117.1

Chewing Gum 4.1 7.8 45.6
Gum 3.8 8.6 50.8
Table 79 Sales of Gum by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total
Bubble Gum 21.3 57.3 864.4

Chewing Gum 27.0 45.0 541.6
Gum 26.2 46.4 572.0
Table 80 NBO Company Shares of Gum: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Bahar Azin Mahmood Co 20.2 20.3 19.6 19.0 22.5

Fars Zomorrod Shiraz Co 4.3 4.4 5.0 5.3 5.5
Armaghan Trading Co 4.3 4.4 5.0 5.5 5.1
Intergum Gida Sanayi Ve 3.7 3.4 3.8 4.5 4.2
Ticaret AS
Akaam Tose’e Co 25.9 15.1 10.9 7.0 3.2
Cadbury Schweppes Plc - - - - -
Shirin Asal Co - - - - -
Cadbury Plc - - - - -
Others 32.8 36.0 34.2 34.0 33.8
Total 100.0 100.0 100.0 100.0 100.0
Table 81 LBN Brand Shares of Gum: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Chic Pars Minoo Industrial Co 11.3 15.9 18.3 17.3

Relax Bahar Azin Mahmood Co 13.8 13.1 12.6 12.8
White Pars Minoo Industrial Co 5.1 5.6 6.4 8.4
Trident Bahar Azin Mahmood Co 3.9 3.5 3.0 5.5
Fusen Fars Zomorrod Shiraz Co 4.4 5.0 5.3 5.5
Lotte Armaghan Trading Co 4.4 5.0 5.5 5.1
TX Intergum Gida Sanayi Ve 3.4 3.8 4.5 4.2
Ticaret AS
Olips Bahar Azin Mahmood Co 2.7 3.0 3.4 4.2
Orbit Akaam Tose’e Co 15.1 10.9 7.0 3.2
Extra Akaam Tose’e Co - - - -
PK Akaam Tose’e Co - - - -
Pola Bahar Azin Mahmood Co - - - -
First Cadbury Plc - - - -
Olips Cadbury Plc - - - -
Pola Cadbury Plc - - - -
Relax Cadbury Plc - - - -
Trident Cadbury Plc - - - -
TX Cadbury Plc - - - -
First Cadbury Schweppes Plc - - - -
Olips Cadbury Schweppes Plc - - - -
Pola Cadbury Schweppes Plc - - - -
Relax Cadbury Schweppes Plc - - - -
Trident Cadbury Schweppes Plc - - - -
TX Cadbury Schweppes Plc - - - -
Others 36.0 34.2 34.0 33.8
Total 100.0 100.0 100.0 100.0
Table 82 Distribution of Gum by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 1.9 2.0 2.1 2.2 2.3 2.4
Retailers
--- Hypermarkets 0.9 0.9 0.9 0.9 1.0 1.0
--- Supermarkets 1.0 1.1 1.3 1.3 1.3 1.4
Retailers
specialists
Grocers
--- Other Grocery 17.9 19.0 19.1 19.1 19.3 20.4
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 83 Forecast Sales of Gum by Category: Volume 2015-2020
tonnes
2015 2016 2017 2018 2019 2020
Bubble Gum 1,128.9 1,141.7 1,163.3 1,189.0 1,216.7 1,243.8

Chewing Gum 9,787.5 10,182.8 10,677.2 11,137.5 11,594.9 12,067.8
Gum 10,916.4 11,324.5 11,840.5 12,326.4 12,811.6 13,311.6
trade sources
Table 84 Forecast Sales of Gum by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Bubble Gum 984.7 1,000.8 1,024.9 1,052.7 1,082.6 1,112.3

Chewing Gum 6,295.0 6,815.7 7,451.2 8,082.8 8,742.3 9,450.4
Gum 7,279.7 7,816.6 8,476.1 9,135.5 9,825.0 10,562.7
trade sources
Table 85 Forecast Sales of Gum by Category: % Volume Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
Bubble Gum 1.1 2.0 10.2

Gum 3.7 4.0 21.9
trade sources
Table 86 Forecast Sales of Gum by Category: % Value Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL
Bubble Gum 1.6 2.5 13.0

Gum 7.4 7.7 45.1
trade sources
SUGAR CONFECTIONERY IN IRAN -

CATEGORY ANALYSIS
HEADLINES
 Sugar confectionery increases in current value by 23% and in volume by 2% to reach

IRR22,424.5 billion and 128,600 tonnes in 2015
 Other sugar confectionery remains a relatively big category during 2015
 Pastilles, gums, jellies and chews records the highest retail volume growth of 4% within sugar
confectionery in 2015
 The average unit price of sugar confectionery is expected to increase by 21% in current terms
in 2015
 Nejati Industrial Group (Anata), Shirin Asal Co and Dadash Baradar Co (Aidin) remains the
key suppliers of sugar confectionery in 2015, accounting for 21%, 18% and 17% of value
sales respectively
 Sugar confectionery is set to increase in value at a CAGR of 4% at constant 2015 prices over
the forecast period, rising to IRR26,998.6 billion in 2020
TRENDS
 Sugar confectionery in Iran remained a unique combination of modern and traditional

products in 2015. Previously, only a limited range of modern sugar confectionery types such
as standard mints and toffees were popular in Iran; however, the expansion of the activities of
key suppliers such as Nejati Industrial Group (Anata), Shirin Asal Co and Dadash Baradar Co
(Aidin) has led to other sugar confectionery categories also generating considerable volume
sales. However, demand for modern sugar confectionery remains very immature and
traditional products continued to enjoy high popularity in 2015.
 The main consumption method for sugar in Iran is still sugarloaf, which is divided by hand to
irregular sugar cubes and then sold in bulk to be used mainly as a sweetener for tea as
Iranian consumers usually use sugar cubes rather than powder sugar to sweeten their tea.
Overall, modern packaged sugar confectionery products maintains a very low consumer base
in Iran and it is thus expected to increase in current value by 23% during 2015, which is
similar to the review period CAGR of 24%, which demonstrates the steady growth and
development of the category.
 One key factor which has helped sugar confectionery to generate relatively high volume
growth in recent years is the fact that growth in the average unit price of chocolate
confectionery has accelerated considerably over the last three years, resulting in many
consumers finding themselves unable to afford to buy chocolate confectionery. Many of these
consumers have turned to sugar confectionery as an affordable alternative that can be
consumed at social gatherings and parties.
 Pastilles, gums, jellies and chews is a relatively modern sugar confectionery category with a
relatively low sales base and for this reason it recorded the highest growth rates within sugar
confectionery in 2015. Pastilles saw especially high growth, especially among children, who
favour the new shapes and attractive flavours offered by key suppliers such as Shiva Mfg Co.
Improvements in the availability and visibility of these products, especially in special display
stands in retail outlets also played a key role in the success of this category in 2015,
especially for pastilles.
 Like other packaged food categories in Iran, sugar confectionery is also suffering the
consequences of very high inflation rates. The increase of 21% recorded in the average unit
price of sugar confectionery during 2015 is the result of the rapid surge in the costs of raw
materials and production.
 The concept of sugar-free products is still very new and immature in sugar confectionery in
Iran. Only a tiny proportion of value sales in the category in 2015 were generated by sugar-
free products, which shows the low awareness and limited coverage of this product type
within retail outlets in Iran. However, good growth rates for this niche category have been
recorded, especially in recent years, as the numbers of diabetic people in the country and
concerns regarding obesity are growing rapidly.
 Most Iranian cities offer their own traditional forms of sugar confectionery, which are classified
as other sugar confectionery. For instance, gaz from Isfahan, sohan from Qum and qottab
and baklava from Yazd are famous and popular across Iran. These products are produced in
small workshops using traditional methods and recipes, but are very popular among locals
and tourists alike. Sugarised Halva (tahini) is also important in Iranian cuisine. Halva comes in
a range of flavours, including sesame seed (tahini) and pistachio and is traditionally
consumed during periods of mourning or during the holy month of Ramadan.
 Independent small grocers is the most important distribution channel for sugar confectionery
in Iran. However, during the review period, supermarkets and hypermarkets gradually became
more popular in urban areas of the country. In spite of the sudden boom in the number of
modern grocery retailers outlets in the country, some local sugar confectionery brands are still
offered mainly within traditional grocery retailers outlets due to their traditional nature.
 Children are one of the key consumer groups for sugar confectionery, with children usually
convincing their parents to buy these products. With the key sugar confectionery suppliers
striving to increase the visibility and accessibility of these products among children in
supermarkets and hypermarkets during the review period, there was strong growth recorded
in sales of sugar confectionery through modern grocery retailers channels.
 Sales of liquorice and medicated confectionery remained marginal in Iran at the end of the
review period. This was due to a lack of availability for these products throughout the country
and the fact that their flavours do not generally appeal to Iranian tastes.
 Sugar confectionery in Iran remains under control of three domestic manufacturers, all of
which offer affordable products and enjoy wide distribution. Nejati Industrial Group (Anata),
Shirin Asal Co and Dadash Baradar Co (Aidin) accounted for 21%, 18% and 17% of value
sales respectively in the category in 2015 and each of them continues to compete fiercely in
order to win value sales in the highly competitive retail environment. While these three
manufacturers are mainly active in categories such as boiled sweets, toffees, caramel and
nougat and mints, Shiva Mfg Co is the leading player in pastilles, offering a wide range of
products with different shapes and flavours which target children.
 Nejati Industrial Group (Anata) as one of the oldest suppliers of confectionery in Iran and it
recorded value growth of 1% in 2015 due to improvements in its distribution network as well
as strong demand for its affordable high-quality brands such as Anata, Milky, Call Me and
Class. In addition, the company’s strong promotional activities in other packaged food
categories such as bakery products had a positive impact on its sales in sugar confectionery.
 Sugar confectionery is dominated by the leading domestic suppliers and the sales generated
by multinational companies are limited. Nevertheless, much higher volumes of sugar
confectionery were imported during the review period. However, due to the much lower prices
charged by domestic brands and the reasonable quality of their products, many consumers
continue to prefer these products to those of premium multinational brands. The leading four
players in sugar confectionery are thus all domestic manufacturers, with these players
accounting for 64% of value sales in 2015.
 The leading domestic manufacturers in sugar confectionery continued to invest in research
and development and strong marketing campaigns in order to support their products towards
the end of the review period. These suppliers use in-store marketing campaigns as one of
their key marketing tools. Different forms of posters, displays and leaflets were widely used in
retail outlets in 2015, especially in the outlets of Iran’s leading supermarkets and
hypermarkets chains. In addition, national television advertising campaigns were used by
domestic manufacturers in order to create awareness of their new products throughout the
review period.
 As a consequence of the dominance of domestic suppliers, mass products with low unit prices
are widely available in outlets in bazaars. Premium products, meanwhile, are available only in
a handful of supermarkets and hypermarkets in urban areas. Most consumers, even middle-
income consumers, are reluctant to pay higher prices for premium sugar confectionery. As a
result of the limited activities of multinational retailers, meanwhile, private label products are
not present in sugar confectionery and consumers are accustomed to buying only branded
products.
PROSPECTS
 Sugar confectionery is expected to generate strong growth rates during the forecast period as
the category is expected to register a superior performance to what was registered over the
review period. One reason for this trend is the faster growth expected in the average unit price
for chocolate confectionery, which is expected to persuade many potential consumers of
chocolate confectionery to switch to sugar confectionery as a more affordable alternative. In
addition, traditional sugar confectionary such as gaz and halva are expected to see very
significant growth in volume terms during the forecast period. Overall, sugar confectionery is
expected to increase in value at a CAGR of 4% in constant 2015 terms over the forecast
period, which is set to be much higher than the marginally negative value CAGR recorded in
constant 2015 terms over the review period.
 The average unit price of sugar confectionery is expected to increase further in constant 2015
terms over the forecast period, which is set to be mainly the result of the high inflation rate in
Iran. However, unit price growth over the forecast period is set to be lower than during the
review period, mainly as result of the much lower inflation rate which is expected over the
forecast period.
 The Iranian retailing industry is expected to continue being defined largely by the ongoing
modernisation trend, which is expected to proceed at a faster rate during the forecast period.
Many supermarkets and hypermarkets are expected to be opened in the country, making
consumers eager to shop in modern grocery retailers outlets instead of traditional grocery
retailers channels such as independent small grocers.
 The dominance of domestic manufacturers in sugar confectionery is expected to remain in
effect throughout the forecast period. These suppliers are expected to attempt to modernise
their production facilities and they will do their best to expand their distribution networks so as
to obtain higher value shares from the niche suppliers categorised under “others”.
Multinational sugar confectionery suppliers, on the other hand, are not expected to regard Iran
as a country which is suitable for them to enter because they cannot compete with the very
low unit prices of the leading domestic brands.
CATEGORY DATA
Summary 10 Other Sugar Confectionery: Product Types
Product type Type of food
Halva Confectionery usually made from wheat
semolina, sugar or honey and butter or
vegetable oil. Raisins, dates or other dried
fruits are often included. Nuts such as
almonds are also commonly added to
semolina halva. Halva is sweet with a
gelatinous texture similar to polenta.
Baklava Layers of filo pastry filled with chopped nuts
and sweetened with syrup or honey.
Gaz Traditional Persian nougat originating from the
city of Esfahan, located in the central plateau
of Iran.
Sohan Traditional Persian saffron confectionery made
from honey and flour. Variants can be made
from honey and almonds. The most famous
sohan are made in the city of Qom.
Source: Euromonitor International from, store checks, trade interviews
Table 87 Sales of Sugar Confectionery by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Boiled Sweets 12.3 12.4 12.5 12.6 12.8 13.0

Liquorice - - - - - -
Lollipops 3.7 3.7 3.8 3.9 3.9 4.0
Medicated Confectionery - - - - - -
Mints 6.5 6.6 6.8 6.6 6.6 6.8
- Power Mints 0.1 0.1 0.1 0.1 0.1 0.1
- Standard Mints 6.4 6.5 6.7 6.5 6.6 6.7
Pastilles, Gums, 24.0 25.1 26.1 26.9 28.0 29.2
Jellies and Chews
Toffees, Caramels and 26.6 27.2 28.1 26.1 26.6 27.3
Nougat
Other Sugar Confectionery 43.6 44.9 46.5 46.6 47.4 48.3
Sugar Confectionery 116.6 120.0 123.9 122.5 125.3 128.6
Table 88 Sales of Sugar Confectionery by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Boiled Sweets 594.3 640.7 750.0 1,097.9 1,384.5 1,696.3

Lollipops 146.4 158.5 192.2 258.0 326.9 402.1
Mints 803.8 887.8 1,084.9 1,423.9 1,778.8 2,174.4
- Power Mints 20.9 24.2 34.6 60.8 80.4 103.7
- Standard Mints 782.9 863.6 1,050.3 1,363.1 1,698.4 2,070.7
Pastilles, Gums, 2,388.4 2,745.1 3,397.3 4,749.8 6,218.1 7,660.2
Jellies and Chews
Toffees, Caramels and 1,188.7 1,291.6 1,544.6 1,892.0 2,472.6 2,996.4
Nougat
Other Sugar Confectionery 2,421.7 2,719.4 3,324.4 4,525.3 6,028.9 7,495.1
Sugar Confectionery 7,543.3 8,443.0 10,293.4 13,946.8 18,209.8 22,424.5
Table 89 Sales of Sugar Confectionery by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Boiled Sweets 2.1 1.2 6.2

Liquorice - - -
Lollipops 2.5 2.0 10.5
Medicated Confectionery - - -
Mints 1.6 0.8 4.2
- Power Mints 3.2 3.6 19.3
- Standard Mints 1.6 0.8 4.0
Pastilles, Gums, Jellies and Chews 4.4 4.0 21.4
Toffees, Caramels and Nougat 2.7 0.6 2.8
Other Sugar Confectionery 1.9 2.1 10.7
Sugar Confectionery 2.7 2.0 10.3
Table 90 Sales of Sugar Confectionery by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total

Liquorice - - -
Lollipops 23.0 22.4 174.7
Mints 22.2 22.0 170.5
- Power Mints 29.0 37.8 396.8
Table 91 Sales of Pastilles, Gums, Jellies and Chews by Type: % Value Breakdown
2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015
Pastilles 34.9 36.8 39.3 42.1 45.0 47.0

Gums, Jellies and Chews 65.1 63.2 60.7 57.9 55.0 53.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 92 NBO Company Shares of Sugar Confectionery: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015

(Anata)
Shirin Asal Co 14.8 16.6 17.3 17.7 17.6
Dadash Baradar Co (Aidin) 14.5 14.0 14.8 15.6 16.5
Shiva Mfg Co 6.3 7.0 8.2 8.8 9.4
(Mohandes Biuk)
Frankforter Kish Co 0.8 0.8 0.5 0.3 0.6
Dadash Baradar Co - - - - -
Others 45.9 40.3 37.1 34.5 31.1
Total 100.0 100.0 100.0 100.0 100.0
Table 93 LBN Brand Shares of Sugar Confectionery: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Shiba Shiva Mfg Co 7.0 8.2 8.8 9.4

(Anata)
Shoniz Dadash Baradar Co 3.3 3.5 3.8 4.2
(Mohandes Biuk)
Haribo Frankforter Kish Co 0.2 0.2 0.1 0.2
Aidin Dadash Baradar Co - - - -
Others 71.7 69.3 67.1 65.4
Total 100.0 100.0 100.0 100.0
Table 94 Distribution of Sugar Confectionery by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 2.5 2.6 2.6 2.7 2.7 2.7
Retailers
--- Hypermarkets 1.3 1.3 1.3 1.3 1.3 1.3
--- Supermarkets 1.3 1.3 1.4 1.4 1.4 1.4
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 95 Forecast Sales of Sugar Confectionery by Category: Volume 2015-2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Boiled Sweets 13.0 13.4 13.7 14.1 14.4 14.7

Lollipops 4.0 4.2 4.3 4.4 4.5 4.7
Mints 6.8 6.7 6.8 6.8 6.8 6.8
- Power Mints 0.1 0.1 0.1 0.1 0.1 0.1
- Standard Mints 6.7 6.7 6.7 6.7 6.7 6.7
Pastilles, Gums, 29.2 30.8 32.7 34.5 36.5 38.5
Jellies and Chews
Toffees, Caramels and 27.3 28.0 28.8 29.5 30.3 31.0
Nougat
Other Sugar Confectionery 48.3 49.7 51.5 53.1 54.8 56.5
Sugar Confectionery 128.6 132.8 137.7 142.5 147.3 152.2
trade sources
Table 96 Forecast Sales of Sugar Confectionery by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Boiled Sweets 1,696.3 1,753.9 1,820.2 1,883.2 1,945.3 2,007.2

Lollipops 402.1 416.1 432.1 447.3 462.5 477.7
Mints 2,174.4 2,198.2 2,231.6 2,263.4 2,296.3 2,330.1
- Power Mints 103.7 109.4 116.0 122.9 130.3 138.4
- Standard Mints 2,070.7 2,088.8 2,115.6 2,140.5 2,166.0 2,191.7
Pastilles, Gums, 7,660.2 8,170.8 8,749.1 9,337.0 9,956.0 10,611.9
Jellies and Chews
Toffees, Caramels and 2,996.4 3,039.3 3,094.0 3,142.7 3,190.0 3,236.7
Nougat
Other Sugar Confectionery 7,495.1 7,640.7 7,833.0 8,004.3 8,170.6 8,335.1
Sugar Confectionery 22,424.5 23,219.2 24,160.0 25,078.0 26,020.7 26,998.6
trade sources
Table 97 Forecast Sales of Sugar Confectionery by Category: % Volume Growth 2015-

2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total

Liquorice - - -
Mints -0.1 0.2 1.0
- Power Mints 3.4 3.9 20.8
- Standard Mints -0.1 0.1 0.7
trade sources
Table 98 Forecast Sales of Sugar Confectionery by Category: % Value Growth 2015-

2020

2015/2016 2015-20 CAGR 2015/20 TOTAL

Liquorice - - -
Mints 1.1 1.4 7.2
- Power Mints 5.5 5.9 33.4
trade sources
CHEESE IN IRAN - CATEGORY

ANALYSIS
HEADLINES
 Cheese is set to increase in current value by 24% to IRR64,406.3 billion in 2015, while retail
volume sales are set to rise by 2% to 336,000 tonnes
 Improvements in terms of the range and quality of the products on offer are the main drivers
of volume growth in cheese during 2015
 Soft cheese is the highest value category in 2015, accounting for 63% of total cheese value
sales
 The average unit price of cheese increases by 22% in current terms in 2015
 Kalleh Dairy Co remained the leading player in cheese in 2015 with a 28% value share during
2015
 Cheese is set to increase in volume at a CAGR of 2% and in value at a CAGR of 4% at
constant 2015 terms over the forecast period
TRENDS
 Cheese is expected to continue recording healthy growth in 2015 as a result of the better
availability of different product ranges in both traditional and modern retail outlets. The
consumption of packaged cheese is becoming widespread and unpackaged products are
becoming less popular, even in rural areas of Iran. More sophisticated products were offered
to consumers in 2015, which boosted growth in the category substantially. Previously, only
one type of cheese was available in Iran, which was known as UF Iranian cheese, classified
as soft cheese as per Euromonitor International’s definitions, although innovations by some
key manufacturers altered this situation and gave consumers the chance to purchase many
other types of cheese such as cream cheese, processed cheese and cheese with added
flavours such as walnut. This helped the entire category to record rapid growth towards the
end of the review period. Overall, cheese is expected to record current value growth of 24% in
2015, which is set to be better than the 23% current value CAGR recorded in the category
over the entire review period, demonstrating the steady positive performance of cheese sales.
 In spite of consistent growth being recorded in the consumption new modern types of cheese,
more than 63% of volume total cheese sales in 2015 were accounted for by soft cheese,
which is a staple of the typical Iranian breakfast. This type of cheese, along with sweetened
tea, is regarded as the most popular breakfast in Iran.
 There is also a popular traditional cheese in Iran, Lighvan. The white, semi-soft Tabriz
(Lighvan) cheese is the most popular cheese in unpackaged format. It is prepared from
sheep’s milk, has a sour flavour and usually has numerous holes in it. The name comes from
Lighvan, a village in Tabriz, where it is prepared. The milk is coagulated with rennet tablets,
with the curd packed into triangular cloth bags and allowed to drain thoroughly. The triangular
block of cheese, which is about 20cm thick, is removed from the bag and put in an
earthenware pot, covered with salt, and allowed to stand for two days. It is then eaten with
bread for breakfast or dinner while it is still fresh.
 Packaged hard cheese was the most dynamic cheese category in Iran in 2015, increasing in
current value by 38%. The main reason for this impressive performance was the relatively
small base from which the category is rising and the strong desire of young Iranian
consumers for these tastier products. In recent years, many newer products have also played
a major role in the success of hard cheese, among them gouda and cheddar, with products in
sliced format the most important ones.
 Traditionally in Iran, cheese has been an item widely purchased unpackaged, even in urban
areas. Special types of retail outlets by the name of labaniati, which means “dairy specialist
retailer”, were responsible for the production and sale of whole dairy items. However, with
introduction of packaged products over the course of the last decade and the rapid growth in
sophisticated packaged items has led to the popularity of unpackaged versions of cheese
experiencing a sudden decline. Currently, unpackaged cheese makes a very small
contribution to volume sales of cheese and it is even experiencing faster declines due to
strong will of the Iranian government to eliminate the consumption of unpackaged cheese.
Many people who previously purchased cheese in bulk from dairy specialist retailers now can
find more attractive high-quality products in independent small grocers outlets and
supermarkets. These products are generally healthier and more diverse in terms of tastes and
packaging formats.
 Cheese in Iran remains under the strong influence of the commodity price of milk and the
level of subsidies which are paid to the manufacturers of these strategically important
products. The key manufacturers of dairy products in Iran experienced a more stable situation
in terms of unit prices during 2015 as government policies have been decidedly less erratic in
recent months, unlike the previous three years. For this reason, growth in the average unit
price of cheese during 2015 was more reasonable and completely in line with the inflation
rate.
 Flavours are now playing a major role in the success of new products in cheese as they can
attract the attention of consumers. The most popular cheese flavours in Iran include tomato,
chilli, caraway and walnut. Another key factor which has been used by key cheese
manufacturers is reducing the fat content of their cheese, which has the potential to attract the
attention of consumers with concerns about obesity. Low fat cheese has proved especially
successful in key urban areas, where health and wellness concerns are generally stronger.
 Spreadable processed cheese continued to lead sales of processed cheese in Iran in 2015,
accounting for 11% of total cheese volume sales during 2015. Spreadable processed cheese
is available in jars, portions (triangles and squares) and tubs. It is largely consumed by
children, who represent a high proportion of the total Iranian population. Research on the
eating habits of children aged between seven and 12 in Tabriz during the review period
showed their preference for having cheese and tea for breakfast. Moreover, consumers
favour spreadable cheese because of its similarity to traditional fresh cheese, which is
consumed as a dip with unleavened bread, as well as for its slightly salty taste. Cream cheese
was the most popular spreadable processed cheese in Iran in 2015.
 The main distribution channels for cheese in Iran are independent small grocers,
supermarkets and hypermarkets. During the review period, some independent small grocers,
especially in urban areas, were converted into supermarkets. However, modern grocery
retailers channels still play a very small role in the distribution of cheese, with supermarkets
and hypermarkets combined set to account for only 3% of retail value sales of cheese in
2015, leaving the rest to traditional grocery retailers, almost entirely independent small
grocers.
 Kalleh Dairy Co, Pegah Dairy Co and Sahar Dairy Industrials Co remained the strong leaders
in cheese in 2015, accounting for 28%, 26% and 10% of value sales respectively. Outright
leader Kalleh Dairy Co focuses mainly on more complex products with higher added value. It
currently offers five types of cheese including Amol cheese, cream cheese, fresh cheese,
pizza cheese and natural cheese. Amol cheese is mainly produced in the Kalleh factory in
Amol and consists of attractive products flavoured with walnut and caraway and Lighvan
cheese, which proves very popular, especially among younger consumers. Its range of fresh
cheese includes cottage cheese, village cheese (mahall) and rio cheese, while its natural
cheeses include blue cheese, butterkase, gouda, parmesan, prato, camembert, esrom and
halloumi.
One of the key pillars of success for Kalleh Dairy Co in 2014 and 2015 was the strong
performance of its cream cheese range, especially its labneh (ana) range. This is a spreadable
processed cheese with high fat content of 20% and it has proven very popular among families
living in urban areas, which played a key role in the marginal value share gain generated by
Kalleh Dairy Co in 2015.
 The second leading player in cheese, Pegah Dairy Co is mainly focused on simple economy
products and maintaining its nationwide coverage. The company has factories scattered
across Iran and it is able to guarantee availability of its products in all of the urban and even
rural areas of the country. Pegah Dairy Co offers the Shabnam brand, which can be regarded
as the bestselling cheese brand in Iran.
 Cheese in Iran is dominated by key domestic manufacturers and no multinationals were
present in the category at the end of the review period, with the exception of the joint venture
of France-based Bel Group and Sahar Dairy Industrials Co for the production of the Laughing
Cow and Kibi brands. The relatively low unit price of milk in Iran and the existence of high-
quality cheese at affordable prices makes the importing of any form of cheese unfeasible.
 Key new product launches in 2015 included Kalleh Roja, which is a lactic cheese intended to
compete with Pegah’s Shabnam brand as it offers very similar levels of quality. Pegah Dairy
Co, in response, changed the packaging of its popular Shabnam brand with innovative
artwork to prevent further value share loss to Kalleh.
 The key players in cheese all use similar approaches to educate and target relevant
consumer groups. They focus on advertising campaigns on national television and radio
channels and strong point-of-sale displays in different retail outlets, especially supermarkets
and hypermarkets. Distribution is a key element of such company strategies. Sampling has
also become a key pillar of the success of key cheese manufacturers such as Kalleh and
Sahar in recent years.
 In terms of price platform, all of the cheese available in Iran can be regarded as standard or
economy brands and there are few premium products available in the category. Most Iranian
consumers are unable to afford premium products as they consume cheese on a daily basis.
As a result, products with high price tags have found it difficult to attract consumers. Private
label does not exist in cheese in Iran.
PROSPECTS
 The outlook for cheese over the forecast period seems to be promising as per capita
consumption of packaged cheese remains very low. The process of converting from
unpackaged products to packaged cheese is expected to continue at a rapid rate over the
forecast period and many consumers are expected to discover the new types of cheese which
are set to be offered by key manufacturers such as Kalleh during the forecast period. Demand
for unspreadable processed cheese, especially pizza cheese, is expected to grow at a very
fast rate in response to the rapid surge in consumption of fast food through both retail and
foodservice channels. Finally, the tiny consumer base for natural cheese such as gouda and
parmesan is set to result in significant volume growth due to the expected increase in the
consumer awareness of these cheeses.
 It is also important to note that the business environment in Iran is set to be more stable over
the forecast period and was during the review period, which is also set to benefit sales of
cheese. This is set to be due to the mutual agreement between Iran and key Western
countries over the nuclear ambitions of Iran’s Islamic government. This agreement is likely to
mean a loosening or even a complete removal of current international trade sanctions.
Overall, cheese is set to increase in volume at a CAGR of 2% over the forecast period, which
is set to be considerably higher than the review period value CAGR of -1%.
 The retail distribution of cheese is expected to undergo some major changes during the
forecast period. After the rapid expansion of the Hyperstar hypermarkets chain by Carrefour
during 2014 and 2015, many other supermarkets and hypermarkets are expected to open in
key urban areas of Iran, offering large selections of packaged and unpackaged cheese. This
means that a major value share loss for traditional channels grocery retailers such as
independent small grocers during the forecast period is inevitable.
 The three main manufacturers of cheese in Iran are expected to remain the leading players in
the category throughout the forecast period. However, Pegah Dairy Co is expected to face
major declines in its value share due to the activities of the two other leading cheese
suppliers, Kalleh and Sahar. Kalleh, in particular, seems likely to increase its value share
substantially over the forecast period to become the undisputed leader in the category by
2020.
 Sales of spreadable unprocessed cheese are set to remain marginal in cheese in Iran
throughout the forecast period as this category is unlikely to meet consumer taste
preferences. However, healthier types of cheese such as reduced fat, reduced lactose/lactose
free and soy-based products, are expected to gain more popularity over the forecast period
due to growing health awareness among Iranian consumers.
CATEGORY DATA
Table 99 Sales of Cheese by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Processed Cheese 58.8 63.7 60.5 56.6 55.4 56.4

- Spreadable Processed 43.4 46.9 45.0 42.1 40.8 41.3
Cheese
- Other Processed Cheese 15.4 16.9 15.5 14.5 14.6 15.1
Unprocessed Cheese 289.7 307.1 293.2 277.6 273.8 279.2
- Hard Cheese 48.5 46.6 46.7 43.8 44.6 45.6
-- Packaged Hard Cheese - - 2.9 3.2 3.5 3.9
-- Unpackaged Hard Cheese 48.5 46.6 43.8 40.5 41.1 41.7
- Soft Cheese 241.2 260.5 246.4 233.9 229.2 233.5
Cheese 348.5 370.8 353.7 334.2 329.3 335.6
Table 100 Sales of Cheese by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Processed Cheese 3,712.8 4,363.4 5,243.5 6,656.0 8,069.6 9,888.5

- Spreadable Processed 2,431.1 2,861.8 3,489.1 4,436.7 5,164.3 6,167.0
Cheese
- Other Processed Cheese 1,281.7 1,501.6 1,754.5 2,219.3 2,905.3 3,721.4
Unprocessed Cheese 19,384.6 21,453.7 26,498.7 34,545.7 43,694.4 54,517.9
- Hard Cheese 4,814.7 4,852.8 6,610.3 8,412.4 10,912.8 13,764.4
-- Packaged Hard Cheese - - 908.3 1,292.0 1,743.3 2,398.7
-- Unpackaged Hard Cheese 4,814.7 4,852.8 5,702.0 7,120.4 9,169.5 11,365.7
- Soft Cheese 14,570.0 16,600.9 19,888.4 26,133.3 32,781.6 40,753.5
Cheese 23,097.4 25,817.0 31,742.2 41,201.7 51,764.0 64,406.3
Table 101 Sales of Cheese by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Processed Cheese 1.8 -0.8 -4.0

- Spreadable Processed Cheese 1.2 -1.0 -4.8
- Other Processed Cheese 3.3 -0.4 -1.8
Unprocessed Cheese 1.9 -0.7 -3.7
- Hard Cheese 2.2 -1.2 -6.0
-- Packaged Hard Cheese 9.2 - -
-- Unpackaged Hard Cheese 1.6 -3.0 -14.0
- Soft Cheese 1.9 -0.6 -3.2
Cheese 1.9 -0.8 -3.7
Table 102 Sales of Cheese by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total
Processed Cheese 22.5 21.6 166.3

- Spreadable Processed Cheese 19.4 20.5 153.7
- Other Processed Cheese 28.1 23.8 190.4
Unprocessed Cheese 24.8 23.0 181.2
- Hard Cheese 26.1 23.4 185.9
-- Packaged Hard Cheese 37.6 - -
-- Unpackaged Hard Cheese 24.0 18.7 136.1
- Soft Cheese 24.3 22.8 179.7
Cheese 24.4 22.8 178.8
Table 103 Sales of Spreadable Processed Cheese by Type: % Value Breakdown 2010-
2015
% retail value rsp

2010 2011 2012 2013 2014 2015
Cream Cheese 72.0 70.0 69.0 68.0 67.0 69.0

Reconstituted Cheese 28.0 30.0 31.0 32.0 33.0 31.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 104 NBO Company Shares of Cheese: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Kalleh Dairy Co 24.2 25.0 26.1 27.6 28.2

Pegah Dairy Co 27.4 25.4 26.4 26.2 25.8
Sahar Dairy Industrials 15.7 13.6 11.2 11.0 10.4
Co
Ramak Dairy Co 5.0 4.9 5.4 6.4 7.2
Bel Sahar Co - 1.1 2.3 3.0 3.4
Salar Lighvan Co 4.9 4.0 2.5 2.2 2.0
Pak Dairy Co 0.8 0.6 0.8 0.9 1.1
Tabriz Cheese 2.0 1.7 1.0 0.7 0.9
Industries Co
Domino Dairy & Ice - 0.3 0.5 0.6 0.9
Cream Co
Others 20.0 23.2 23.9 21.4 20.1
Total 100.0 100.0 100.0 100.0 100.0
Table 105 LBN Brand Shares of Cheese: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Kalleh Kalleh Dairy Co 25.0 26.1 27.6 28.2

Pegah Pegah Dairy Co 25.4 26.4 26.2 25.8
Rouzaneh Sahar Dairy Industrials Co 13.6 11.2 11.0 10.4
Ramak Ramak Dairy Co 4.9 5.4 6.4 7.2
Laughing Cow Bel Sahar Co 1.1 1.8 2.2 2.5
Lighvan Salar Lighvan Co 4.0 2.5 2.2 2.0
Pak Pak Dairy Co 0.6 0.8 0.9 1.1
Lighvan Tabriz Cheese 1.7 1.0 0.7 0.9
Industries Co
Domino Domino Dairy & Ice 0.3 0.5 0.6 0.9
Cream Co
Kibi Bel Sahar Co - 0.5 0.8 0.9
Others 23.2 23.9 21.4 20.1
Total 100.0 100.0 100.0 100.0
Table 106 Distribution of Cheese by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 2.1 2.1 2.2 2.3 2.5 2.6
Retailers
--- Hypermarkets 0.6 0.6 0.7 0.7 0.8 0.9
--- Supermarkets 1.5 1.5 1.5 1.6 1.7 1.8
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 107 Forecast Sales of Cheese by Category: Volume 2015-2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Processed Cheese 56.4 57.9 59.9 61.8 63.8 65.9

- Spreadable Processed 41.3 42.2 43.4 44.5 45.8 47.1
Cheese
- Other Processed Cheese 15.1 15.8 16.6 17.3 18.1 18.8
Unprocessed Cheese 279.2 284.4 291.2 297.9 304.6 311.5
- Hard Cheese 45.6 46.2 46.8 47.5 48.2 49.1
-- Packaged Hard Cheese 3.9 4.2 4.6 5.0 5.4 5.7
-- Unpackaged Hard Cheese 41.7 42.0 42.2 42.5 42.9 43.3
- Soft Cheese 233.5 238.2 244.4 250.4 256.3 262.4
Cheese 335.6 342.4 351.2 359.7 368.4 377.4
trade sources
Table 108 Forecast Sales of Cheese by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Processed Cheese 9,888.5 10,345.1 10,895.0 11,447.7 12,025.9 12,637.1

- Spreadable Processed 6,167.0 6,423.9 6,735.6 7,054.5 7,395.3 7,762.1
Cheese
- Other Processed Cheese 3,721.4 3,921.2 4,159.4 4,393.2 4,630.6 4,875.0
Unprocessed Cheese 54,517.9 56,386.8 58,611.2 60,869.4 63,225.9 65,704.5
- Hard Cheese 13,764.4 13,993.7 14,235.2 14,502.3 14,807.1 15,151.7
-- Packaged Hard Cheese 2,398.7 2,665.3 2,968.5 3,272.7 3,591.2 3,931.1
-- Unpackaged Hard Cheese 11,365.7 11,328.4 11,266.7 11,229.5 11,215.9 11,220.6
- Soft Cheese 40,753.5 42,393.1 44,376.0 46,367.2 48,418.8 50,552.8
Cheese 64,406.3 66,732.0 69,506.2 72,317.1 75,251.8 78,341.6
trade sources
Table 109 Forecast Sales of Cheese by Category: % Volume Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total

- Hard Cheese 1.4 1.5 7.6
-- Packaged Hard Cheese 8.9 8.2 48.4
-- Unpackaged Hard Cheese 0.7 0.8 3.8
- Soft Cheese 2.0 2.4 12.4
Cheese 2.0 2.4 12.5
trade sources
Table 110 Forecast Sales of Cheese by Category: % Value Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL

- Hard Cheese 1.7 1.9 10.1
-- Packaged Hard Cheese 11.1 10.4 63.9
-- Unpackaged Hard Cheese -0.3 -0.3 -1.3
- Soft Cheese 4.0 4.4 24.0
Cheese 3.6 4.0 21.6
trade sources
DRINKING MILK PRODUCTS IN IRAN -

CATEGORY ANALYSIS
HEADLINES
 Value sales of drinking milk products set to record impressive growth of 22% in current terms
to reach IRR37,147.0 billion in 2015
 Consumption of drinking milk products continues to decline in 2015 as many consumers can
no longer afford to buy non-subsided milk
 Flavoured milk drinks is expected to be the most dynamic drinking milk category in 2015,
recording current value growth of 35% in 2015
 Fresh milk is set to record 30% average unit price growth in current terms over the course of
2015, the highest rate of unit price growth in drinking milk products
 Pegah Dairy Co remains the leading player in drinking milk products in 2015 with a 25% value
share
 Drinking milk products is expected to increase in value at a CAGR of 2% in constant 2015
terms over the forecast period
TRENDS
 Consumption of drinking milk products, especially fresh milk, continued to decline during
2015, a trend which can be considered as a direct consequence of high unit prices and
continuous unit price increases. This trend was most obvious in fresh milk as many low-
income consumers could not afford to pay for fresh milk anymore. In contrast, shelf stable
milk continued to record positive growth because of the lower base from which it is rising and
the smaller price gap between fresh milk and shelf stable milk.
 Another key trend in drinking milk products in 2015 was the substantial increase in the value
shares of key suppliers such as Kalleh, at the expense of small local manufacturers. Milk
suppliers are forced to buy their milk from husbandries and prices were much higher than in
previous years; in addition, the suppliers also faced higher costs for processing and
packaging, while they were not allowed by the government to increase unit prices in line with
these new costs. The low profit margins which result from this led to bankruptcy for many
small suppliers, helping key well-known brands to strengthen their positions because of their
higher volume sales.
 Considering the above points, it is perhaps unsurprising that the performance of drinking milk
in Iran was weak in value terms during 2015, with current value growth of 22% during the
year, lower than the review period CAGR of 24%.
 Flavoured milk drinks was the most dynamic category in 2015, recording current value growth
of 35%. This category has the lowest consumer base of any drinking milk products category in
Iran and the recent activity of key suppliers such as Mihan Dairy Group, Kalleh Dairy Co and
Danone Sahar helped to increase consumer awareness of these products among Iranian
consumers.
 The average unit price of drinking milk products experienced more stability in 2015 than in
2014. Although the higher cost of raw milk and production activities made a 20% unit price
increase inevitable, this increase occurred in several steps over the course of the year,
cushioning consumers from major price shocks.
 The bulk of Iranian consumers are accustomed to drinking fresh milk, which is offered in
flexible packaging and the price of which has long been subsided. However, in recent years,
the activities of the key manufacturers in shelf stable milk such as Rouzaneh, Kalleh and
Mihan have encouraged significant increases in consumption. The launch of shelf stable milk
in attractive Tetra Pak carton packaging and the addition of new flavours such as coffee, date
and banana, among others, combined with significant improvements in the retail distribution of
shelf stable milk to support strong growth in the category.
 Sales of soy drinks and soy milk remained extremely low in Iran and there is only one
important supplier covering both of these categories. However, Iranian consumers are now
becoming more familiar with the taste of soy milk. Rising health concerns led to consumer
awareness of the benefits of soy drinks increasing during the review period and Iranians are
now slowly becoming more interested in eliminating lactose from their diets or reducing their
fat and cholesterol intake. The most popular soy milk brand in Iran is Maxsoy, offered by
Soyasan Co, the local subsidiary of the Canada-based multinational company Maxsoy Co,
which dominates sales of non-dairy milk alternatives in Iran.
 The popularity of unpackaged milk, which is sold mainly in dairy specialist retailers outlets
known as labaniati outlets, declined consistently until 2010, when price subsidies for milk
were removed. Since then, demand for unpackaged milk has suddenly started to grow as
many consumers have found it more affordable than packaged milk and thus the process of
conversion from packaged milk to unpackaged milk has accelerated. This trend continued to
build throughout 2015.
 The key retail distribution channels for drinking milk products in Iran includes independent
small grocers, supermarkets and hypermarkets. During the review period, independent small
grocers lost slight value share in the category to supermarkets and hypermarkets. In urban
areas, in particular, many independent small grocers are being converted into supermarkets.
In 2015, supermarkets and hypermarkets accounted for 2% of retail value sales in drinking
milk products, while traditional grocery retailers, mainly independent small grocers, accounted
for the rest.
 The perception of fresh milk and shelf stable milk are totally different in Iran. While fresh milk
is usually considered healthier due to its shorter shelf life, shelf stable milk is considered to
contain a lot of preservatives due to its long shelf life. The key manufacturers of shelf stable
milk have been trying hard to change this false perception by communicating the lack of
preservatives in shelf stable milk.
 The competitive environment for drinking milk in Iran remained consolidated in 2015 as
several key manufacturers are able to effectively cover most of the country. However, State-
owned Pegah Dairy Co, which has subsidiaries in most of the provinces of Iran was able to
remain the category leader, accounting for 25% of value sales. The company is active mainly
in fresh milk and benefits from a wide distribution network. A total of 17 companies are
responsible for the processing of raw milk and other dairy products in Iran, while another 27
other companies are responsible for sales and exports. These companies form the largest
distribution chain for dairy products in the country.
 The second largest supplier of drinking milk in Iran in 2015 was Mihan Dairy Group, a
company which is mainly active shelf stable milk. The company has been active in offering
non-subsided milk in attractive Tetra Pak cartons and it has been able to expand its
distribution network very rapidly. The company now offers its full fat and low fat milk in most of
Iran’s key urban areas. The success of Mihan is associated mainly with its wide distribution
network, which ensures the availability of its products, even in remote rural areas.
 Mihan Dairy Group, Kalleh Dairy Co and Sahar Dairy Industrials Co are the main suppliers of
shelf stable milk in Iran. Kalleh Dairy Co, in particular, has been responsible for most of the
innovations in terms of packaging and product flavours in the category during the review
period. The company has expanded its distribution network rapidly and it now offers products
with strong health and wellness characteristics such as high calcium, zero fat and lactose-free
products.
 Drinking milk in Iran has long been dominated by key domestic manufacturers. The relatively
low unit price of milk in Iran has made the importation of milk unfeasible. However,
multinational companies have been spotted in the category in recent years, in the form of joint
ventures. The affiliation of France-based Danone Group with Sahar Dairy Industrials Co can
be regarded as the most important example of these kinds of activities. The two companies
are now active with the Danette brand in dairy-based desserts, which is available in banana,
melon and chocolate flavours. Danette was launched in 2007 and was subject significant
advertising campaigns during 2015.
 The key players in each drinking milk products category attempt to gain competitive
advantages by targeting new groups of consumers and raising product awareness. They use
different strategies to reach this goal. For instance, Pegah Dairy Co focuses more on
availability and affordability, while Kalleh Dairy focuses on quality and communications. Key
advertising campaigns in the category focus mainly on the health benefits of drinking milk
products, while events such as the World School Milk Day attract advertising activities that
promote the concept of drinking more milk. National television plays an important role in
advertising and it has an enormous effect on sales.
 In terms of price platforms, all fresh milk in flexible packaging, which was previously subject to
price subsidies, can be regarded as economy milk. All shelf stable milk and bottled fresh milk
is positioned in the standard segment, while soy milk is a premium product type. Most Iranian
consumers cannot afford to buy premium products.
 One of the key new concepts which was introduced into drinking milk products in Iran during
2014 is half-fat milk, which is milk with 2% fat content. This type has fat content falls between
full fat milk, with 3% fat content, and semi-skimmed milk, with 1.5% fat content. Half-fat milk
proved to be very successful during 2014 and 2015.
PROSPECTS
 The future prospects for drinking milk products in Iran seem promising, with the exception of
fresh milk. While fresh milk is set to continue declining in volume over the forecast period due
to the recent removal of price subsidies, a more stable situation in terms of unit price is likely
to result in strong growth in consumption for this category. Non-subsidised milk products such
as shelf stable milk and flavoured milk, each of which is rising from a very low base, are likely
to continue growing in volume at a rapid pace over the forecast period. Overall, drinking milk
products is expected to increase in value at a CAGR of 2% at constant 2015 prices over the
forecast period, which is set to be much a higher rate of growth than the marginally negative
value CAGR recorded over the review period in constant 2015 terms. It is important to note
that the switch prevailed during special situation of 2012 and 2013 due to the sudden
increase in the unit prices of milk, had a very negative impact on growth in the category over
the review period, while major improvements in the Iranian economy in terms of declining
inflation and positive GDP growth are likely to remain in effect during the forecast period.
 The average unit price of drinking milk products is set to remain the big question for the
category during the forecast period. Price subsidies are expected to be fully eliminated by
2020, which is set to make the Iranian business environment more competitive. In this
subsidy-free environment, all suppliers of milk will have an equal opportunity to target
consumers. This will make an increase in advertising campaigns and new product
developments inevitable, contributing substantially to growth in the category. However, the
elimination of subsides is likely to result in a suspension number of Iran’s lower-income
consumers becoming unable to afford milk, which will act as a barrier for higher volume
growth.
 Independent small grocers, supermarkets and hypermarkets are set to remain the main retail
distribution channels for drinking milk products during the forecast period. The modernisation
of the Iranian retailing industry which has been in effect since the beginning of the review
period is set to result in more supermarkets and hypermarkets opening during the forecast
period and this is likely to motivate more consumers to buy their drinking milk products from
these modern grocery retailers outlets instead of from independent small grocers outlets.
 Launching new flavours and introducing health and wellness benefits are expected to be the
main strategies of the key suppliers of drinking milk products during the forecast period.
Following on from trends established during the review period, many manufacturers in the
category are expected to attempt to launch attractive products such as mixtures of banana,
date, honey and strawberry with milk, which have so far been well received among Iranian
consumers. Fortified products such as milk with additional calcium are also likely to be a good
choice for manufacturers, targeting more educated consumers. Most of these new launches
are expected to happen in shelf stable milk, a category which gives manufacturers more
flexibility in terms of production. Fresh milk, on the other hand, is expected to maintain its
simple and plain characteristics, although a conversion from flexible plastic packaging to
bottles seems set to continue during the forecast period.
 Although sales of soy drinks remained low in Iran at the end of review period, this category is
expected to develop strongly over the forecast period. If significant numbers of consumers
come to regard these products as healthy, as they are perceived as such in other countries,
and view them as viable milk alternatives for those with lactose intolerance and allergies, then
general interest in these products will inevitably increase. This, in turn, could alter the tastes
of some Iranian consumers, thus stimulating demand for soy beverages in the country.
CATEGORY DATA
Table 111 Sales of Drinking Milk Products by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Flavoured Milk Drinks 27.2 30.9 35.6 39.9 43.9 48.7

- Dairy Only Flavoured 27.2 30.9 35.6 39.9 43.9 48.7
Milk Drinks
- Flavoured Milk Drinks - - - - - -
with Fruit Juice
Milk 1,891.8 1,850.5 1,827.3 1,650.8 1,615.8 1,525.8
- Cow's Milk 1,891.8 1,850.5 1,827.3 1,650.8 1,615.8 1,525.8
- Goat Milk - - - - - -
Powder Milk - - - - - -
Non-Dairy Milk 0.3 0.3 0.3 0.3 0.4 0.4
Alternatives
- Soy Drinks - - - - - -
- Soy Milk 0.3 0.3 0.3 0.3 0.4 0.4
- Other Non-Dairy Milk - - - - - -
Alternatives
Drinking Milk Products 1,919.3 1,881.8 1,863.3 1,691.0 1,660.0 1,574.9
Table 112 Sales of Drinking Milk Products by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Flavoured Milk Drinks 215.4 367.3 725.8 1,185.6 1,669.3 2,260.6

- Dairy Only Flavoured 215.4 367.3 725.8 1,185.6 1,669.3 2,260.6
Milk Drinks
with Fruit Juice
Milk 12,309.7 13,549.5 17,013.5 21,604.4 28,794.4 34,867.3
- Cow's Milk 12,309.7 13,549.5 17,013.5 21,604.4 28,794.4 34,867.3
- Goat Milk - - - - - -
Non-Dairy Milk 6.5 7.3 10.1 13.2 15.9 19.1
Alternatives
- Soy Drinks - - - - - -
- Soy Milk 6.5 7.3 10.1 13.2 15.9 19.1
Alternatives
Table 113 Sales of Drinking Milk Products by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Flavoured Milk Drinks 11.0 12.4 79.2

- Dairy Only Flavoured Milk Drinks 11.0 12.4 79.2
- Flavoured Milk Drinks with Fruit Juice - - -
Milk -5.6 -4.2 -19.3
- Cow's Milk -5.6 -4.2 -19.3
- Goat Milk - - -
Powder Milk - - -
Non-Dairy Milk Alternatives 1.8 2.2 11.7
- Soy Drinks - - -
- Soy Milk 1.8 2.2 11.7
- Other Non-Dairy Milk Alternatives - - -
Drinking Milk Products -5.1 -3.9 -17.9
Table 114 Sales of Drinking Milk Products by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total

Milk 21.1 23.1 183.3
- Cow's Milk 21.1 23.1 183.3
- Goat Milk - - -
Powder Milk - - -
- Soy Drinks - - -
- Soy Milk 20.1 24.0 193.0
Drinking Milk Products 21.9 24.3 196.4
Table 115 NBO Company Shares of Drinking Milk Products: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Pegah Dairy Co 28.4 27.7 26.0 25.7 24.6

Mihan Dairy Group 15.2 13.9 14.8 14.2 14.2
Kalleh Dairy Co 9.1 9.3 11.4 11.1 11.4
Pak Dairy Co 6.8 7.0 6.8 7.1 6.9
Teen Dairy Products Co 4.2 4.5 4.4 5.9 6.2
Sahar Dairy Industrials 5.2 5.2 6.2 5.5 5.7
Co
Khazarshir Dairy Co 3.3 4.4 3.9 3.7 3.4
Pakban Dairy Co 1.2 1.5 1.8 2.6 2.7
Pajan Co 1.4 1.9 2.2 2.2 2.4
Domino Dairy & Ice - 0.6 0.7 0.9 1.6
Cream Co
Mimas Dairy Co 0.8 0.9 0.9 1.4 1.2
Danone Sahar 0.1 0.3 0.7 0.8 0.9
Others 18.8 17.0 14.5 12.7 12.5
Total 100.0 100.0 100.0 100.0 100.0
Table 116 LBN Brand Shares of Drinking Milk Products: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015

Mihan Mihan Dairy Group 13.9 14.8 14.2 14.2
Damdaran Teen Dairy Products Co 4.5 4.4 5.9 6.2
Rouzaneh Sahar Dairy Industrials Co 5.2 6.2 5.5 5.7
Khazarshir Khazarshir Dairy Co 4.4 3.9 3.7 3.4

Pakban Pakban Dairy Co 1.5 1.8 2.6 2.7
Pajan Pajan Co 1.9 2.2 2.2 2.4
Cream Co
Mimas Mimas Dairy Co 0.9 0.9 1.4 1.2
Danette Danone Sahar 0.3 0.7 0.8 0.9
Others 17.0 14.5 12.7 12.5
Total 100.0 100.0 100.0 100.0
Table 117 Distribution of Drinking Milk Products by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 1.3 1.4 1.4 1.6 1.8 2.1
Retailers
--- Hypermarkets 0.6 0.6 0.6 0.7 0.7 0.9
--- Supermarkets 0.8 0.9 0.9 0.9 1.1 1.2
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 118 Forecast Sales of Drinking Milk Products Products by Category: Volume
2015-2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Flavoured Milk Drinks 48.7 55.1 63.2 71.4 79.8 88.6

- Dairy Only Flavoured 48.7 55.1 63.2 71.4 79.8 88.6
Milk Drinks
with Fruit Juice
Milk 1,525.8 1,450.5 1,389.5 1,347.3 1,318.4 1,299.0
- Cow's Milk 1,525.8 1,450.5 1,389.5 1,347.3 1,318.4 1,299.0
- Goat Milk - - - - - -
Non-Dairy Milk 0.4 0.4 0.4 0.4 0.4 0.4
Alternatives
- Soy Drinks - - - - - -
- Soy Milk 0.4 0.4 0.4 0.4 0.4 0.4
Alternatives
trade sources
Table 119 Forecast Sales of Drinking Milk Products Products by Category: Value 2015-
2020
IRR billion
2015 2016 2017 2018 2019 2020
Flavoured Milk Drinks 2,260.6 2,632.4 3,109.1 3,618.3 4,167.3 4,763.5

- Dairy Only Flavoured 2,260.6 2,632.4 3,109.1 3,618.3 4,167.3 4,763.5
Milk Drinks
with Fruit Juice
Milk 34,867.3 34,527.3 34,476.2 34,801.9 35,424.2 36,281.8
- Cow's Milk 34,867.3 34,527.3 34,476.2 34,801.9 35,424.2 36,281.8
- Goat Milk - - - - - -
Non-Dairy Milk 19.1 19.9 20.8 22.0 23.2 24.6
Alternatives
- Soy Drinks - - - - - -
- Soy Milk 19.1 19.9 20.8 22.0 23.2 24.6
Alternatives
trade sources
Table 120 Forecast Sales of Drinking Milk Products Products by Category: % Volume
Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total

Milk -4.9 -3.2 -14.9
- Cow's Milk -4.9 -3.2 -14.9
- Goat Milk - - -
Powder Milk - - -
- Soy Drinks - - -
- Soy Milk 2.4 3.2 16.9

Drinking Milk Products -4.4 -2.5 -11.9
trade sources
Table 121 Forecast Sales of Drinking Milk Products Products by Category: % Value
Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL

Milk -1.0 0.8 4.1
- Cow's Milk -1.0 0.8 4.1
- Goat Milk - - -
Powder Milk - - -
- Soy Drinks - - -
- Soy Milk 4.4 5.2 29.1
Drinking Milk Products 0.1 2.0 10.6
trade sources
YOGHURT AND SOUR MILK

PRODUCTS IN IRAN - CATEGORY
ANALYSIS
HEADLINES
 Yoghurt and sour milk products is set to decline in volume by 1% to 2.3 million tonnes in
2015, while current value sales are set to increase by 22% to reach IRR67,966.2 billion
 Significant unit price growth over the previous two years has had a significant negative effect
on volume growth in 2015
 Fruited yoghurt is expected to be the most dynamic category in 2015, registering current
value growth of 29%
 The average unit price of yoghurt and sour milk products is set to increase by 23% in current
terms in 2015
 Kalleh Dairy Co and Pegah Dairy Co remain the two strongest performers in yoghurt and sour
milk products in 2015 with respective value shares of 30% and 19%
 Yoghurt and sour milk products is set to increase in value at a CAGR of 4% in constant 2015
terms over the forecast period, rising to IRR80,895.9 billion in 2020
TRENDS
 The trends which prevailed in yoghurt and sour milk products during 2014 continued into
2015. This category experienced significant volume declines during 2013 and 2014 due to
unpredictable unit price increases and although volume sales fell further in 2015, the rate of
volume decline was much lower in 2015, which gives an indication that after the category has
emerged from the problems caused by the crisis over the previous three years, it is now
headed towards some level of stabilisation due to the more stable business environment in
Iran. Sour milk products is set to record a 2% decline in retail volume in 2015, while plain
yoghurt is expected to record a marginal volume increase. Overall, the 2% decline expected
in retail volume sales of yoghurt and sour milk products in 2015 is set to be much worse than
the review period CAGR of 1%.
 Consumption of yogurt and sour milk originates from the long history of yoghurt consumption
in Iran. Yoghurt, which is known as mast in the Persian language, has been served as an
accompaniment to many well-known Iranian cuisines such as chelo kebab (rice with lamb) for
many years. The making of traditional yoghurt from fresh milk is a regular practice in many
Iranian homes, especially in rural areas and smaller cities. First, milk is boiled and then a
spoon of yoghurt is added to the boiled milk. Finally, this mixture is put in a warm and dark
place. Over a period of several hours, the boiled milk will be transformed into yoghurt.
Traditional Iranian sour milk, on the other hand is made by adding water, salt and mint into
this handmade yoghurt. This sour milk product is called doogh and is consumed along with
food as an alternative to carbonates and water.
 The very high popularity of yoghurt and doogh in Iran remains the key motivation for dairy
suppliers to industrialise the abovementioned process. Over the last five years, many local
manufacturers of dairy products have started to offer packaged yoghurt with various fat levels.
The young generation of Iranian consumers often do not have enough time to make yoghurt
at home as their ancestors did and this makes them the ideal target audience for new
packaged yoghurt. As a result, a rapid process of conversion from handmade yoghurt to
industrial packaged versions has been obvious in Iran for several years. In spite of this rapid
change in consumer attitudes, a considerable volume of yoghurt is still made at home, with
much of it purchased from the dairy specialist retailers known as labaniati which offer artisanal
dairy products, leaving significant opportunity for the key suppliers of yoghurt.
 Yoghurt is mainly consumed in one of two formats in Iran. One is regular yoghurt, while the
other is the concentrated yoghurt which is known as chekideh in Farsi. Regular yoghurt is
usually served as an accompaniment to the main dish at lunch or dinner, while the
concentrated version is mainly served along with bread as a breakfast item.
 Doogh, on the other hand, was discovered by the suppliers of commercial dairy products a
little bit later than yoghurt. Doogh is offered two formats in Iran. Carbonated doogh has been
present for many years, while the non-carbonated, pasteurised version has been available
since 2000. The latter product has so far proved to be very successful and has led many
consumers to convert from cola carbonates to doogh.
 The most dynamic category in yoghurt and sour milk products in 2015 is expected to be
fruited yoghurt, which is set to increase in current value by 29%. This is mainly due to the very
low base from which this category is rising in comparison with sour milk products and plain
yoghurt. In fact, the popularity of fruited yoghurt and increased over the course of 2015. Many
manufacturers expanded the distribution of attractive mixtures generating an advantage
amidst severe competition for shelf space in retail outlets. Vegetable yoghurt, cucumber
yoghurt, beetroot yoghurt, eggplant yoghurt, mint yoghurt, chilli yoghurt and celery yoghurt
were the most significant types which attracted the attention of many consumers in 2015.
 The average unit price of yoghurt and sour milk products is expected to increase by 23% in
current terms in 2015, in line with the high rate of inflation in the country. However, the level of
this unit price increase is much lower than the increases recorded in previous years.
 Drinking yoghurt is not available in Iran. Consumer awareness of this category remains very
low and no major changes are expected to occur during the forecast period. In contrast,
spoonable yoghurt is very popular and is offered in various packaging formats and with
different levels of fat content.
 Functional yoghurt remained a very niche category in Iran during 2015. Although some
manufacturers offer pre/probiotic yoghurt and yoghurt containing omega 3, consumer
awareness of the benefits of these products remains very low and this has so far prevented
functional yoghurt from becoming a major category in Iran.
 There is no soy-based yoghurt available in Iran; indeed, soy-based food in general is
unfamiliar to consumers in Iran and these products have a negligible presence in the country.
Consumers are unlikely to be interested in non-dairy yoghurt as yoghurt is synonymous with
dairy milk in the minds of Iranian consumers.
 Yoghurt can be found in nearly all of the supermarkets, hypermarkets and independent small
grocers outlets throughout Iran. However, with the emergence and expansion of
supermarkets and hypermarkets each year, this channel could play more of an important role
in this category during 2015. At the end of the review period, independent small grocers
continued to play the most important role in the retail distribution of yoghurt, although its value
share is declining due to the rapid expansion of modern grocery retailers channels.
 Yoghurt and sour milk products is a category in which local manufacturers are the strongest
performers. This means that each city of Iran has its own local yoghurt producers, which
support demand in a limited geographical area, usually in close proximity to their respective
factories. However, there are several key suppliers which have nationwide coverage. Kalleh
Dairy Co, Pegah Dairy Co, and Choupan Agro Ind PJS, for instance, are the key suppliers of
yoghurt in the country with value shares of 30%, 22% and 16% respectively in 2015. The rest
of the category is for local manufacturers such as Padratoos Dairy Co, which covers only the
northeast of the country. Sales of doogh are also dominated by local manufacturers, with
Kalleh Dairy Co accounting for 29% of total sour milk products value sales in 2015, Cheshme
Nooshane Khorasan Co accounting for 20%, Pegah Dairy Co accounting for 16% and
Choupan Agro Ind PJS accounting for 15%.
 The most significant value share growth in yoghurt in 2015 was registered by Kalleh Dairy Co,
which recorded marginal value share growth over the course of the year. The company was
able to expand its distribution network rapidly by offering many popular products such as the
new Kalleh Seven range and Kalleh fruited yoghurt, which attracted the attention of many
consumers.
 One of the key events in yoghurt during the review period was the rapid expansion of the
Kalleh Seven range by Kalleh Dairy Co, a move which completely changed the competitive
environment in the category. Kalleh Seven is a type of yoghurt that has a much higher density
compared with regular yoghurt and its taste and salt levels are also different from its major
competitors. Its attractive taste and the wide distribution of the popular range played a key
role in the success of Kalleh, encouraging other suppliers to launch similar products.
 Cheshme Nooshane Khorasan Co recorded one of the most dynamic growth rates in value
share in sour milk products in 2015, rising by one percentage point. The company, which
previously only covered Khorasan province with its popular Alis brand, was able to expand its
distribution network to include Tehran and other major cities during the review period. It also
launched strong advertising campaigns on national television, which helped it to strengthen
the position of its Alis brand during 2015.
 The key players in yoghurt and sour milk products attempt to gain competitive advantages by
targeting more consumers and increasing awareness of the health benefits of yoghurt.
However, each of these companies also uses different strategies to reach its goals. For
instance, Pegah Dairy focuses more on availability and affordability, while Kalleh Dairy is
focused on quality communications campaigns. The key advertising campaigns in the
category generally focus mainly on the health benefits of sour milk products in comparison
with alternative products. On the other hand, yoghurt is traditionally perceived as a very
healthy and nutritious food and it is consumed by people of all ages. Domestic manufacturers
have added value to plain yoghurt, targeting parents and children with products fortified with
vitamins and adults with lower fat versions.
 Yoghurt and sour milk products in Iran is dominated by key domestic manufacturers and there
are no multinational players or international brands present in the category. The high quality
and relatively low unit prices of milk in Iran makes yoghurt production highly profitable for
domestic manufactures and thus leaves no room for multinational companies to become
major players in the category.
 One of the key new product launches in the category in 2015 was the new metal can
packaging for doogh, which was launched by Pakban Dairy Co in sour milk products. This
launch which was accompanied by sampling sessions in hypermarkets and this can be
regarded as the key event in the category as, previously, the packaging for doogh was
entirely made from PET.
 In terms of price platform, all yoghurt available in Iran can be regarded as standard or
economy products and there are no premium products available in the category. Most Iranian
consumers cannot afford to buy premium products as they eat or cook with yoghurt on a daily
basis. Consequently, products with high unit prices are unable to find a substantial consumer
base.
PROSPECTS
 Yoghurt and sour milk products is expected to record more dynamic growth during the
forecast period. The category’s key suppliers are set to do their best to increase the speed of
conversion from artisanal products to packaged alternatives. Yoghurt, in particular, is set to
benefit from numerous new launches of different additives which higher consumption among
encourage consumers. Doogh is also set to remain a very dynamic category due to its health
benefits in comparison with cola carbonates. As a more stable situation is expected in terms
of price, both yoghurt and sour milk products are expected to gradually return to stability, with
positive volume growth rates expected during the forecast period. Overall, yoghurt and sour
milk products is set to increase in value at a CAGR of 4% in constant 2015 terms over the
forecast period, which is set to be a higher rate of growth than the -2% value CAGR recorded
in constant 2015 terms over the review period.
 As the main sour milk products available in Iran, doogh is set to see significant growth in
consumption during the forecast period, especially in the on-trade channel, where cola
carbonates are facing declining volume sales due to the negative publicity about their harmful
effects on health.
 Home-made yoghurt is set to continue being produced in many Iranian households,
particularly in rural areas. Domestic manufacturers are expected to continue leading sales,
with Kalleh Dairy Co expected to remain the strong leader in yoghurt over the forecast period.
Given the less than entirely positive prospects for future growth for multinational companies
and investors in Iran the forecast period, coupled with the Iranian government’s self-
sufficiency programme, it is unlikely that foreign companies will enter yoghurt during the
forecast period.
 It is expected that the activity of supermarkets and hypermarkets will continue to expand in
the promotion and sale of yoghurt over the forecast period, to the detriment of traditional
grocery retailers. Supermarkets and hypermarkets is expected to account for a higher
proportion of retail value sales of yoghurt and sour milk products by the end of the review
period.
 New product launches, including various different types of fruited yoghurt and flavoured
yoghurt, are set to continue gaining popularity over the forecast period. This is set to be due
to the wide range of new products launched in the category during the review period, which is
expected to boost overall yoghurt consumption in Iran over the forecast period. On the other
hand, retail sales of functional yoghurt are set to remain negligible throughout the forecast
period; nevertheless, the wider emergence of these products is expected in Iran.
CATEGORY DATA
Table 122 Sales of Yoghurt and Sour Milk Products by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Sour Milk Products 1,522.4 1,738.6 2,042.0 1,878.6 1,749.0 1,712.3

Yoghurt 614.2 660.5 621.8 586.5 575.8 578.9
- Drinking Yoghurt - - - - - -
- Flavoured Yoghurt - - - - - -
- Fruited Yoghurt 30.3 32.9 36.2 36.7 36.9 37.7
- Plain Yoghurt 583.9 627.6 585.6 549.9 538.9 541.2
Yoghurt and Sour Milk 2,136.6 2,399.1 2,663.8 2,465.2 2,324.8 2,291.2
Products
Table 123 Sales of Yoghurt and Sour Milk Products by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015

Yoghurt 10,694.0 12,353.4 15,372.6 19,208.6 24,313.4 29,929.9
- Fruited Yoghurt 690.2 846.5 1,201.2 1,612.6 2,241.0 2,885.8
- Plain Yoghurt 10,003.8 11,506.9 14,171.4 17,596.0 22,072.4 27,044.1
Products
Table 124 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth
2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Sour Milk Products -2.1 2.4 12.5

Yoghurt 0.5 -1.2 -5.7
- Drinking Yoghurt - - -
- Flavoured Yoghurt - - -
- Fruited Yoghurt 2.2 4.5 24.4
- Plain Yoghurt 0.4 -1.5 -7.3
Yoghurt and Sour Milk Products -1.4 1.4 7.2
Table 125 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2010-
2015

2014/15 2010-15 CAGR 2010/15 Total
Sour Milk Products 20.4 22.0 169.8

Yoghurt 23.1 22.9 179.9

- Plain Yoghurt 22.5 22.0 170.3
Yoghurt and Sour Milk Products 21.6 22.3 174.2
Table 126 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2011-
2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Kalleh Dairy Co 25.3 27.3 28.3 28.9 29.5

Pegah Dairy Co 20.6 19.0 19.5 19.1 18.6
Cheshme Nooshan 9.2 10.3 10.6 10.9 11.1
Khorasan Co
Teen Dairy Products Co 3.3 3.2 4.7 5.1 5.1
Bonyad Food & Beverage 3.3 3.9 3.4 4.2 4.6
Organization
Ramak Dairy Co 1.0 1.0 0.8 1.3 1.5
Pak Dairy Co 0.5 0.5 0.5 0.5 0.4
Others 21.0 17.9 16.6 14.2 13.9
Total 100.0 100.0 100.0 100.0 100.0
Table 127 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015

Alis Cheshme Nooshan 10.3 10.6 10.9 11.1
Khorasan Co
Damdaran Teen Dairy Products Co 3.2 4.7 5.1 5.1
Abali Bonyad Food & Beverage 3.9 3.4 4.2 4.6
Organization
Ramak Ramak Dairy Co 1.0 0.8 1.3 1.5
Others 17.9 16.6 14.2 13.9
Total 100.0 100.0 100.0 100.0
Table 128 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2010-
2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 1.2 1.7 2.0 2.2 2.4 2.6

Retailers
--- Hypermarkets 0.4 0.6 0.8 0.8 0.9 0.9
--- Supermarkets 0.7 1.1 1.2 1.3 1.5 1.7
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 129 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume
2015-2020
'000 tonnes
2015 2016 2017 2018 2019 2020

Yoghurt 578.9 586.4 598.2 609.1 619.7 630.3
- Fruited Yoghurt 37.7 38.9 40.3 41.8 43.2 44.7
- Plain Yoghurt 541.2 547.6 557.9 567.3 576.5 585.6
Products
trade sources
Table 130 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2015-
2020
IRR billion
2015 2016 2017 2018 2019 2020

Yoghurt 29,929.9 31,381.4 33,137.3 34,924.5 36,781.1 38,719.6
- Fruited Yoghurt 2,885.8 3,061.9 3,274.2 3,491.8 3,721.2 3,964.5

- Plain Yoghurt 27,044.1 28,319.5 29,863.1 31,432.7 33,059.9 34,755.0
Products
trade sources
Table 131 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume
Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
Sour Milk Products -1.6 -0.1 -0.5

Yoghurt 1.3 1.7 8.9
- Plain Yoghurt 1.2 1.6 8.2
Yoghurt and Sour Milk Products -0.9 0.4 1.8
trade sources
Table 132 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value
Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL
Sour Milk Products 0.5 2.1 10.9

Yoghurt 4.8 5.3 29.4
- Plain Yoghurt 4.7 5.1 28.5
Yoghurt and Sour Milk Products 2.4 3.5 19.0
trade sources
OTHER DAIRY IN IRAN - CATEGORY

ANALYSIS
HEADLINES
 Other dairy is expected to increase in current value by 24% in 2015, rising to IRR7,684.9
billion in 2015
 The low sales base of cream, coffee whiteners and chilled and shelf stable desserts remain
the main drivers of growth in other dairy in 2015
 Chilled dairy-based desserts remained the most dynamic other dairy category in 2015, rising
in current value by 31%
 The average unit price of other dairy increases by 21% in 2015
 Kalleh Dairy Co remains the leading player in other dairy, accounting for 33% of total value
sales in the category in 2015
 Other dairy is set to increase in value at a CAGR of 5% over the forecast period, rising to
IRR9652.7 billion in 2020 is
TRENDS
 Cream, chilled and shelf stable desserts and coffee whiteners were the only other dairy
categories present in Iran during 2015. Currently, cream has a very low sales base in the
country, which is the result of the range of limited products and weak distribution. However, in
2014 and 2015, major changes happened in this category. Several key manufacturers
including Mihan, Kalleh and Ramak started to engage in broader distribution of this product.
They also introduced mixtures such as cream and honey, which have proved very successful
in Iran and this also boosted per capita consumption. One factor which is hampering growth in
cream, however, has been the popularity of the unpackaged products which are offered in the
dairy specialist retailers outlets known as labaniati in Farsi.
 Coffee whiteners is another category without a long history in Iran. Iran is a tea drinking
country with a very tiny base of regular coffee drinkers. This also means that there is a low
sales base for coffee whiteners. The main consumption of coffee in Iran is instant coffee,
which is generally offered as 3-in-1 coffee in sachets, specifically mixtures of coffee, whitener
and sugar. This popular product already contains whitener and this limits consumption of
coffee whiteners. 2015 was a very tough year for this category as very strong competition was
also posed by smuggled coffee whiteners, seriously compromising growth in legitimate sales.
 Chilled desserts is a category of products which are mainly available under one brand,
Danette from Danone. The wide range of desserts offered under this brand in different
flavours such as vanilla, coffee and banana proved to be very successful in 2015.
 Overall, other dairy is expected to increase in current value by 24% in 2015, a slower rate of
growth than the review period CAGR of 33%. The main reason for this lower growth rate is
the significant unit price increase of 21% which is expected in the category during 2015 and
which is set to hamper volume growth rates.
 Sales of shelf stable desserts remained negligible in Iran during 2015. While chilled desserts
generated an impressive performance, Danone Sahar and Kaleh Dairy offer vanilla, melon,
saffron and chocolate desserts as well as biscuit-based products, all of which are available in
100g cups. These desserts are still at a density on stage of development in Iran and they will
need time to find their consumer base.
 Fresh full fat cream is the most popular type of cream in Iran, particularly products offered
under the Pegah brand. This cream is mixed with honey and carrot jam for daily breakfasts
and it is also used as an ingredient in baking, for example, the traditional Iranian cream cake.
Double cream and single cream are also available in Iran, as is low fat cream, although these
products are far less popular among Iranian consumers.
 The main distribution channels for other dairy products in Iran are independent small grocers,
supermarkets and hypermarkets. During the review period, many independent small grocers,
especially those in urban areas, were converted into supermarkets. Supermarkets and
hypermarkets combined accounted for 3% of retail value sales in other dairy in 2015.
 Kalleh Dairy Co maintained its leadership of other dairy in 2015 with a 33% retail value share.
Overall, the company is one of the leaders in dairy in Iran overall as it has a strong distribution
chain for dairy products across the country, which means that its products are available to
consumers throughout the country. Its strong position in other dairy was won through the
company’s leading cream product, which is a simple 30% shelf stable cream available in the
majority of grocery retailers outlets throughout the country.
 Nestlé Iran PJS Co remains the clear leader in coffee whiteners with its Coffee-mate brand,
holding a total value share of 81% in this category in 2015. This product is widely available in
Iran and comes in three different packaging types: 400g and 170g jars and a 150g pouch
containing 50 sticks of 3g. Nestlé maintains its dominant position in the category due to its
strong presence within coffee in Iran. The company introduced Nescafé instant coffee into
Iran at the beginning of the review period and it continued to account for the majority of the
total coffee sales in Iran at the end of the review period. Moreover, many Iranians tend to refer
to instant coffee as Nescafé and they generally perceive Nestlé’s coffee-related products to
be of high quality, a perception upon which the company has leveraged its coffee whitener
sales in 2015. However, declining purchasing power and the strong performance of smuggled
products were key factors which seriously damaged sales of Coffee-mate in Iran during 2015.
 Danone Sahar and Kalleh Dairy Co faced severe competition in chilled-dairy based desserts
in 2015. Kalleh offers a wide range of dairy products and attempts to take advantage of its
success in other categories to strengthen its position in chilled dairy-based desserts as well.
Danone Sahar, meanwhile, continues to attempt to improve its distribution network by
expanding its own sales team to other major cities outside of Tehran.
 Domestic manufacturers such as Pegah Dairy Co, Kalleh Dairy Co, Pak Dairy Co and Ramak
Dairy all continue to benefit from their longstanding and well-established reputations due to
the high quality of their products, which are available at affordable prices. These companies
are also supported by strong promotional activities and they all have strong distribution
networks throughout the country including independent small grocers and chained
supermarkets and hypermarkets.
 The leading manufacturers of cream and coffee whiteners in Iran tend to use in-store
advertisements as their main method for attracting the attention of consumers. They use
point-of-sale materials to increase the visibility of their products whilst constantly looking to
distribution as the main pillar of their success.
PROSPECTS
 The low sales base from which cream in Iran is rising is set to be the main driver of
impressive growth in the category over the forecast period. Iranian consumers are expected
to discover cream as a good choice for breakfast and also when preparing meals. The
process of conversion from unpackaged cream to packaged products is also set to accelerate
over the forecast period, thus boosting sales in the category.
 Coffee whiteners is also set to benefit from the strong growth expected in sales of coffee in
Iran. As coffee is expected to record better growth figures in volume terms, coffee whiteners is
also set to see major improvements in per capita consumption due to the conversion of
increasing numbers of young Iranian consumers from tea to coffee.
 Chilled dairy-based deserts is expected to be the most dynamic other dairy category in Iran
over the forecast period, mainly due to its lower consumer base and the widespread
advertising campaigns which are being conducted by Danone Sahar Co.
 However, one key factor which threatens to hamper growth in all these categories is the
relatively high inflation rate in Iran and declining purchasing power, which has the potential to
seriously compromise demand for these products. Many consumers will have to make do with
basic offerings instead of these relatively luxurious items. Overall, other dairy is expected to
increase in value at a CAGR of 5% at constant 2015 prices over the forecast period, a rate of
growth which is set to be slower than the value CAGR of 7% recorded in the category at
constant 2015 prices over the review period.
 The presence of supermarkets and hypermarkets is expected to continue expanding in Iran
over the forecast period, with more activity related to this anticipated. These retail channels
are thus expected to continue gaining value share from independent small grocers in other
dairy. In 2020, supermarkets and hypermarkets are expected to account for 7% of retail value
sales in the category.
 With no major changes expected in terms of company and brand shares in other dairy over
the forecast period, Pegah, Kalleh, Ramak and Pak are likely to continue leading in cream
and other dairy products overall. In coffee whiteners, Nestlé is expected to maintain its
dominance throughout the forecast period. Nestlé’s Coffee-mate brand is set to record
positive growth along with company’s Nescafé coffee brand. Finally, Danone is expected to
become the absolute leader in chilled deserts in absence of other multinational players.
CATEGORY DATA
Table 133 Sales of Other Dairy by Category: Volume 2010-2015
tonnes
2010 2011 2012 2013 2014 2015
Chilled and Shelf 2,353.0 3,058.8 3,750.0 4,425.0 5,044.5 5,599.4

Stable Desserts
- Dairy-Based Desserts 2,353.0 3,058.8 3,750.0 4,425.0 5,044.5 5,599.4
- Soy-based Desserts - - - - - -
Chilled Snacks - - - - - -
Coffee Whiteners 730.0 800.0 790.0 695.2 651.4 644.9
Condensed Milk - - - - - -
- Flavoured Condensed - - - - - -
Milk
- Plain Condensed Milk - - - - - -

Cream 45,000.0 48,375.0 46,198.1 43,241.4 43,094.4 43,568.5
Fromage Frais and Quark - - - - - -
- Flavoured Fromage - - - - - -
Frais and Quark
- Plain Fromage Frais - - - - - -
and Quark
- Savoury Fromage Frais - - - - - -
and Quark
Other Dairy 48,083.0 52,233.8 50,738.1 48,361.6 48,790.3 49,812.7
Table 134 Sales of Other Dairy by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Chilled and Shelf 128.1 196.0 312.4 442.5 615.4 806.1

Stable Desserts
- Dairy-Based Desserts 128.1 196.0 312.4 442.5 615.4 806.1
Milk
Cream 1,651.4 1,935.0 3,002.9 4,324.1 5,386.8 6,644.2
Frais and Quark
and Quark
and Quark
Other Dairy 1,835.2 2,197.0 3,473.3 4,961.3 6,213.8 7,684.9
Table 135 Sales of Other Dairy by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Chilled and Shelf Stable Desserts 11.0 18.9 138.0

- Dairy-Based Desserts 11.0 18.9 138.0
- Soy-based Desserts - - -
Chilled Snacks - - -
Coffee Whiteners -1.0 -2.4 -11.7
Condensed Milk - - -
- Flavoured Condensed Milk - - -
- Plain Condensed Milk - - -
Cream 1.1 -0.6 -3.2
Fromage Frais and Quark - - -
- Flavoured Fromage Frais and Quark - - -
- Plain Fromage Frais and Quark - - -
- Savoury Fromage Frais and Quark - - -

Other Dairy 2.1 0.7 3.6
Table 136 Sales of Other Dairy by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total

Coffee Whiteners 10.9 33.3 320.7
Cream 23.3 32.1 302.3
Other Dairy 23.7 33.2 318.7
Table 137 Distribution of Other Dairy by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 2.1 2.2 2.5 2.8 3.1 3.3
Retailers
--- Hypermarkets 0.6 0.7 0.8 1.0 1.2 1.2
--- Supermarkets 1.4 1.5 1.7 1.8 1.9 2.1
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 138 Forecast Sales of Other Dairy by Category: Volume 2015-2020
tonnes
2015 2016 2017 2018 2019 2020
Chilled and Shelf 5,599.4 6,224.0 6,909.0 7,568.1 8,212.0 8,842.9

Stable Desserts
- Dairy-Based Desserts 5,599.4 6,224.0 6,909.0 7,568.1 8,212.0 8,842.9
Milk
Cream 43,568.5 44,187.7 45,170.5 46,175.0 47,218.8 48,301.0
Frais and Quark
and Quark
and Quark
Other Dairy 49,812.7 51,059.2 52,735.7 54,409.7 56,108.9 57,834.5
trade sources
Table 139 Forecast Sales of Other Dairy by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Chilled and Shelf 806.1 916.6 1,040.9 1,166.4 1,294.8 1,426.3

Stable Desserts
- Dairy-Based Desserts 806.1 916.6 1,040.9 1,166.4 1,294.8 1,426.3
Milk
Cream 6,644.2 6,839.7 7,096.7 7,363.3 7,642.7 7,935.2
Frais and Quark
and Quark
and Quark
Other Dairy 7,684.9 7,998.9 8,390.9 8,794.7 9,215.2 9,652.7

trade sources
Table 140 Forecast Sales of Other Dairy by Category: % Volume Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total

Cream 1.4 2.1 10.9
trade sources
Table 141 Forecast Sales of Other Dairy by Category: % Value Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL

Cream 2.9 3.6 19.4
trade sources
ICE CREAM AND FROZEN DESSERTS

IN IRAN - CATEGORY ANALYSIS
HEADLINES
 Ice cream and frozen desserts grows by 26% in value and 1% in total volume terms to reach
IRR 41,047 billion and 322 million litres in 2015
 Packaged ice cream is threated by artisanal products in 2015 due to the rapid growth in unit
prices
 Retail artisanal ice cream is the most dynamic category in 2015 with 27% value growth
 An average increase of 25% in unit prices is recorded in 2015
 Mihan Dairy Group remains the strong leader in ice cream and frozen desserts accounting for
a 33% value share in 2015
 A 6% value CAGR at constant 2015 prices is predicted for the forecast period, with sales
TRENDS
 The popularity of retail artisanal ice cream grew at a rapid pace compared to packaged
products in 2015. This was mainly due to the fact that unit prices witnessed significant
increases in 2014 and 2015, which resulted in many consumers being unable to afford
packaged products, who thus sought cheaper artisanal alternatives.
 In packaged ice cream, increased diversification of products, together with strong activities
among key established suppliers, such as Mihan Dairy Group and Kalleh Dairy, and relative
newcomers, such as Domino Dairy & Ice Cream, played a key role in the development of the
category. These suppliers increased their visibility within stores in the form of in-store
activities, such as posters, shades and refrigerators inside stores, which persuaded many
consumers to try their products.
 Iran traditionally was characterised as an artisanal ice cream country, although this trend
changed over the last ten years to 2015, when several key manufacturers expanded their
activities in packaged ice cream. The low base of the category, strong demand among the
younger population, as well as improvements in the distribution network, resulted in good
growth rates, especially for impulse ice cream. However this trend was interrupted in 2014
and 2015 as price increases and affordability began to limit the performance of packaged
products. Overall, ice cream recorded value growth of 26% in 2015 which was much lower
than the review period CAGR of 42%.
 Retail artisanal ice cream was the most dynamic category, recording value growth of 27% in
2015. This was mainly due to affordability, which became increasingly important, especially
after the sharp price increases in 2014 and 2015. Unit prices of ice cream continued to surge
in line with the high rate of inflation in the country. Several rounds of price increases for milk
meant that ice cream suppliers needed to increase their unit prices in order to maintain
profitability.
 Vanilla, chocolate, coffee and saffron were among the preferred ice cream flavours in Iran in
2015. Chocolate was the most popular choice, especially among children. Coffee, meanwhile,
had a strong appeal due to its coffee bean aroma and taste. Iranians are also very fond of
saffron, which is grown extensively in Iran and is a typical ingredient in Persian cuisine.
Recently new flavours such as chilli were also introduced to the Iranian market, which found a
good consumer base. It is also worth mentioning that fruit varieties of ice cream were also
popular, with strawberry, banana, orange and carrot flavours the most highly favoured.
 Ice cream was widely available in Iran. The strong performance of the leading domestic
companies was strengthened by the use of a variety of distribution channels over the review
period, especially independent small grocers. This distribution channel accounted for a 71%
value share of ice cream in 2015. Fridges containing single portion ice cream in these stores
boosted impulse sales and increased sales through the channel.
 Mihan Dairy Group was the leader in ice cream with a value share of 33% in 2015. The
company offered a wide range of products to address different tastes and its production line
was the largest in the country. It also benefited from a very strong and effective distribution
network, which ensured the presence of its products even in remote areas. Its key brands
include Carnita, Roya, Salar, Prima, Rolet, Mirax and Waferna. Branded refrigerators were
one of the pillars of its success and could be found in most retail outlets in urban areas.
 However, Mihan Dairy Group was challenged by Domino Dairy & Ice Cream, which recorded
the highest growth in value share in 2015 of two percentage points. Domino Dairy & Ice
Cream began its activity in 2011 as a result of a dispute within the upper echelons of Mihan
Dairy Group. As a result, some executives of the family-run Mihan Dairy Group left and
formed their own company, Domino Dairy & Ice Cream. Not only does Domino Dairy & Ice
Cream have plenty of experience in the country’s ice cream category, it has also launched a
dazzling array of ice cream brands.
 In addition, Domino’s products are very similar in look and branding to those of Mihan Dairy
Group and in many cases it is hard to tell the different between the two brands, such as
between the brands Salar (Mihan Dairy Group) and Solino (Domino Dairy & Ice Cream) or
between the company’s respective wafer brands, to name but a few. Domino also carried out
aggressive marketing campaigns with posters and billboards to increase its visibility and really
gave Mihan Dairy Group a run for its money.
 Kalleh Dairy was the third largest manufacturer of ice cream in the country in 2015. This
company, which is a part of Solico Food Industrial Group, was able to increase its value share
by almost one percentage point to reach 18% in 2015. This was mainly at the expense of
Mihan Dairy Group. Kalleh was a pioneer in new flavours and packaging and introduced many
new products to the Iranian market during the review period. However, in spite of its high
quality it suffered from weak distribution, which was only strong in Tehran and the north of
Iran, leaving the rest of the country for the other key suppliers.
 Ice cream was characterised by key domestic manufacturers and multinationals were not
visible in 2015. This was mainly because of the relatively low price of production in Iran which
makes imports of ice cream unreasonable. In addition, the specific political situation of the
country made key multinational suppliers of ice cream reluctant to establish a factory in the
country.
 Key players used similar approaches to educate and target specific consumer groups. They
tended primarily to focus on advertising via national television and radio and strong point-of-
sale displays in various distribution channels, especially supermarkets and hypermarkets, as
a secondary tactic. Distribution was a key element. Having targeted consumers in five key
Iranian cities, domestic players competed for consumers in smaller cities. They made
concerted efforts to expand their consumer bases in these areas by widening and perfecting
their distribution networks.
 There were relatively few premium or economy ice cream brands in Iran. Most products could
be categorised as standard in terms of price. There was no considerable difference in price
among domestic brands.
PROSPECTS
 Ice cream is expected to record a good performance over the forecast period. The young
Iranian population is set to discover the various advantages of packaged ice cream over
artisanal products and with the increased awareness of key domestic manufacturers, such as
Mihan, Domino and Kalleh, it will be possible for ice cream to become a key part of the
shopping baskets of middle- and higher-income consumers, especially in the hot summer
period. Overall, a total volume CAGR of 3% is expected over the forecast period, which is
much higher than review period equivalent of 0%.
 Another reason for this good performance in volume terms is the growing population in Iran
and a large population of young consumers under the age of 30. Children and younger people
are the main consumers of ice cream in the country. The hot climate in Iran will continue to
drive growth of ice cream as people seek a cooling, fun, sweet treat to combat the heat.
 Dairy ice cream is expected to continue to be the leading type, with sales of water ice cream
remaining low over the forecast period. This will be due to the Iranian preference for cream
and creamy products. Impulse ice cream will continue to lead sales, largely because it is
affordable and widely available at all kiosks, independent food stores, supermarkets and
hypermarkets. It appeals greatly to children, with many flavours and colourful varieties on
offer. Single portion dairy ice cream will continue to grow due to its cheaper prices and wide
availability.
 Ice cream still has a long way to go before it becomes a regular alternative to Iranian
desserts. Iranians prefer to eat real traditional desserts, and ice cream is not considered a
replacement. It is therefore unlikely that ice cream will ever come to be considered as a main
dessert option in Iran.
 A high level of competition between the key players is expected over the forecast period,
enhanced by product development and new launches. However, domestic and well-
established manufacturers are predicted to continue to outperform many local and foreign
companies. Combinations of vanilla with other flavours are expected to be developed due to
the popularity of vanilla among Iranian consumers.
 It is also anticipated that the category leaders will witness a much better business
environment due to sanctions being relaxed, which began in 2015. These suppliers will be
able to import raw materials and machinery much easier, which could result in a better
performance for ice cream in the country.
 The emergence and expansion of new modern channels is expected to change the balance of
distribution of ice cream over the forecast period. Supermarkets and hypermarkets are set to
continue to expand their presence, activity and retail shares during the forecast period. On the
other hand, the independent small grocers channel is expected to lose value share.
CATEGORY DATA
Table 142 Sales of Ice Cream and Frozen Desserts by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Ice Cream 207.1 221.0 211.4 203.2 201.2 203.2

- Frozen Yoghurt - - - - - -
- Impulse Ice Cream 134.1 146.5 137.6 131.4 129.9 131.1
-- Single Portion Dairy 117.4 128.2 119.9 114.5 113.3 114.6
Ice Cream
-- Single Portion Water 16.8 18.3 17.7 16.9 16.6 16.5
Ice Cream
- Retail Artisanal Ice 52.7 52.3 51.9 50.8 51.4 52.3
Cream
- Take-Home Ice Cream 20.2 22.3 21.8 21.0 20.0 19.8
-- Take-Home Dairy Ice 20.2 22.3 21.8 21.0 20.0 19.8
Cream
--- Bulk Dairy Ice Cream 20.2 22.3 21.8 21.0 20.0 19.8
--- Ice Cream Desserts - - - - - -
--- Multi-Pack Dairy - - - - - -
Ice Cream
-- Take-Home Water Ice - - - - - -
Cream
--- Bulk Water Ice Cream - - - - - -
-- Multi-Pack Water Ice - - - - - -
Cream
Frozen Desserts - - - - - -
Desserts
Table 143 Sales of Ice Cream and Frozen Desserts by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Ice Cream 7,002.4 8,346.1 14,397.3 25,339.2 32,553.8 41,047.4

- Impulse Ice Cream 5,083.3 6,211.4 10,923.3 19,310.7 24,820.4 31,310.4
-- Single Portion Dairy 4,694.6 5,735.4 10,273.2 18,313.6 23,569.6 29,789.0
Ice Cream
-- Single Portion Water 388.8 476.0 650.1 997.1 1,250.8 1,521.4
Ice Cream
- Retail Artisanal Ice 1,275.7 1,358.3 2,226.0 3,628.5 4,769.4 6,069.1
Cream
- Take-Home Ice Cream 643.4 776.5 1,248.0 2,400.0 2,964.0 3,668.0
-- Take-Home Dairy Ice 643.4 776.5 1,248.0 2,400.0 2,964.0 3,668.0
Cream
--- Bulk Dairy Ice Cream 643.4 776.5 1,248.0 2,400.0 2,964.0 3,668.0
Ice Cream
Cream

Cream
Ice Cream and Frozen 7,002.4 8,346.1 14,397.3 25,339.2 32,553.8 41,047.4
Desserts
Table 144 Sales of Ice Cream and Frozen Desserts by Category: % Volume Growth
2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Ice Cream 1.0 -0.4 -1.9

- Frozen Yoghurt - - -
- Impulse Ice Cream 0.9 -0.5 -2.3
-- Single Portion Dairy Ice Cream 1.1 -0.5 -2.4
-- Single Portion Water Ice Cream -0.3 -0.3 -1.4
- Retail Artisanal Ice Cream 1.8 -0.1 -0.7
- Take-Home Ice Cream -1.0 -0.5 -2.4
-- Take-Home Dairy Ice Cream -1.0 -0.5 -2.4
--- Bulk Dairy Ice Cream -1.0 -0.5 -2.4
--- Ice Cream Desserts - - -
--- Multi-Pack Dairy Ice Cream - - -
-- Take-Home Water Ice Cream - - -
--- Bulk Water Ice Cream - - -
-- Multi-Pack Water Ice Cream - - -
Frozen Desserts - - -
Ice Cream and Frozen Desserts 1.0 -0.4 -1.9
Table 145 Sales of Ice Cream and Frozen Desserts by Category: % Value Growth 2010-
2015

2014/15 2010-15 CAGR 2010/15 Total
Ice Cream 26.1 42.4 486.2

- Impulse Ice Cream 26.1 43.8 515.9
-- Single Portion Dairy Ice Cream 26.4 44.7 534.5
-- Single Portion Water Ice Cream 21.6 31.4 291.3
- Retail Artisanal Ice Cream 27.3 36.6 375.8
- Take-Home Ice Cream 23.8 41.6 470.1
-- Take-Home Dairy Ice Cream 23.8 41.6 470.1
--- Bulk Dairy Ice Cream 23.8 41.6 470.1
Table 146 NBO Company Shares of Ice Cream and Frozen Desserts: % Value 2011-
2015
% retail value rsp

Company 2011 2012 2013 2014 2015

Domino Dairy & Ice 4.0 8.0 10.0 18.0 20.1
Cream Co
Kalleh Dairy Co 14.2 15.4 16.3 17.2 17.5
Zarrin Ghazal Co 6.7 6.8 6.6 7.2 6.8
Pak Dairy Co 5.2 5.2 6.0 6.2 6.7
Rooz Dairy Co 0.9 0.9 0.8 0.8 0.9
Others 26.0 22.7 22.3 15.6 14.9
Total 100.0 100.0 100.0 100.0 100.0
Table 147 LBN Brand Shares of Ice Cream and Frozen Desserts: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015

Cream Co
Daity Zarrin Ghazal Co 6.8 6.6 7.2 6.8
Rooz Rooz Dairy Co 0.9 0.8 0.8 0.9
Others 22.7 22.3 15.6 14.9
Total 100.0 100.0 100.0 100.0
Table 148 NBO Company Shares of Ice Cream: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015

Domino Dairy & Ice 4.0 8.0 10.0 18.0 20.1
Cream Co
Kalleh Dairy Co 14.2 15.4 16.3 17.2 17.5
Zarrin Ghazal Co 6.7 6.8 6.6 7.2 6.8
Pak Dairy Co 5.2 5.2 6.0 6.2 6.7
Rooz Dairy Co 0.9 0.9 0.8 0.8 0.9
Others 26.0 22.7 22.3 15.6 14.9
Total 100.0 100.0 100.0 100.0 100.0
Table 149 LBN Brand Shares of Ice Cream: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015

Cream Co
Daity Zarrin Ghazal Co 6.8 6.6 7.2 6.8
Rooz Rooz Dairy Co 0.9 0.8 0.8 0.9
Others 22.7 22.3 15.6 14.9
Total 100.0 100.0 100.0 100.0
Table 150 Distribution of Ice Cream and Frozen Desserts by Format: % Value 2010-
2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 2.9 3.4 3.7 4.1 4.4 4.8
Retailers
--- Hypermarkets 1.8 2.1 2.2 2.5 2.7 3.0
--- Supermarkets 1.1 1.3 1.5 1.6 1.7 1.8
Retailers
specialists
Grocers
--- Other Grocery 18.2 16.3 15.5 14.3 14.7 14.8
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 151 Distribution of Ice Cream by Format: % Value 2010-2015
% retail value rsp
2010 2011 2012 2013 2014 2015

-- Modern Grocery 2.9 3.4 3.7 4.1 4.4 4.8
Retailers
--- Hypermarkets 1.8 2.1 2.2 2.5 2.7 3.0
--- Supermarkets 1.1 1.3 1.5 1.6 1.7 1.8
Retailers
specialists
Grocers
--- Other Grocery 18.2 16.3 15.5 14.3 14.7 14.8
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 152 Forecast Sales of Ice Cream and Frozen Desserts by Category: Volume
2015-2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Ice Cream 203.2 208.5 214.7 221.3 228.0 234.5

- Impulse Ice Cream 131.1 136.2 142.0 148.2 154.5 160.6
-- Single Portion Dairy 114.6 119.2 124.4 130.0 135.7 141.2
Ice Cream
-- Single Portion Water 16.5 17.0 17.6 18.2 18.8 19.4
Ice Cream
- Retail Artisanal Ice 52.3 52.3 52.3 52.1 52.0 51.9
Cream
- Take-Home Ice Cream 19.8 20.0 20.5 20.9 21.5 22.0
-- Take-Home Dairy Ice 19.8 20.0 20.5 20.9 21.5 22.0
Cream
--- Bulk Dairy Ice Cream 19.8 20.0 20.5 20.9 21.5 22.0
Ice Cream
Cream

Cream
Desserts
trade sources
Table 153 Forecast Sales of Ice Cream and Frozen Desserts by Category: Value 2015-
2020
IRR billion
2015 2016 2017 2018 2019 2020
Ice Cream 41,047.4 43,356.9 45,984.8 48,839.4 51,865.0 54,970.4

- Impulse Ice Cream 31,310.4 33,504.4 35,990.4 38,699.3 41,572.9 44,518.6
-- Single Portion Dairy 29,789.0 31,913.0 34,315.3 36,934.6 39,715.6 42,568.6
Ice Cream
-- Single Portion Water 1,521.4 1,591.3 1,675.1 1,764.7 1,857.3 1,950.0
Ice Cream
- Retail Artisanal Ice 6,069.1 6,105.5 6,125.9 6,141.5 6,158.4 6,175.9
Cream
- Take-Home Ice Cream 3,668.0 3,747.0 3,868.6 3,998.6 4,133.7 4,275.8
-- Take-Home Dairy Ice 3,668.0 3,747.0 3,868.6 3,998.6 4,133.7 4,275.8
Cream
--- Bulk Dairy Ice Cream 3,668.0 3,747.0 3,868.6 3,998.6 4,133.7 4,275.8
Ice Cream
Cream
Cream
Ice Cream and Frozen 41,047.4 43,356.9 45,984.8 48,839.4 51,865.0 54,970.4
Desserts
trade sources
Table 154 Forecast Sales of Ice Cream and Frozen Desserts by Category: % Volume
Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
Ice Cream 2.6 2.9 15.4

- Retail Artisanal Ice Cream 0.1 -0.1 -0.7

trade sources
Table 155 Forecast Sales of Ice Cream and Frozen Desserts by Category: % Value
Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL
Ice Cream 5.6 6.0 33.9

- Retail Artisanal Ice Cream 0.6 0.3 1.8
trade sources
OILS AND FATS IN IRAN - CATEGORY

ANALYSIS
HEADLINES
 Oils and fats records 17% retail value and 2% retail volume growth to reach IRR177,606
billion and 1,308 million tonnes in 2015
 Continued increases in unit prices has a negative impact on performance in 2015
 Olive oil is the most dynamic category, recording 29% value growth in 2015
 Average unit prices increase by 14% in 2015
 Behshahr Industrial continues to lead oil and fats with a 37% value share in 2015
 A 4% value CAGR at constant 2015 prices is predicted for the forecast period with sales
reaching IRR220,242 billion in 2020
TRENDS
 Iranian oils and fats remained dependent on imports of raw materials in 2015, with key
manufacturers needing to import high quantities. These suppliers had to increase their unit
prices due to the higher costs of imported raw materials although unit price rises were lower
than had been seen in previous years. However, rising costs meant that volume growth did
not achieve as positive growth rates as expected.
 However, some factors which could help this category to grow remained. One was the
popularity of fast food, which usually requires more oil than traditional foods. The low
penetration of meal solutions also acted as a positive factor which helped growth as the
majority of consumers continued to prepare food at home and did not rely on meal solutions.
Overall, oils and fats recorded value growth of 17% in 2015 which, although dynamic, was
lower than review period value CAGR of 32%.
 Olive oil was the most dynamic category recording value growth of 29% in 2015. This rapid
development was mainly a result of significant mass imports from countries such as Turkey
and Italy. Iranian consumers were targeted by many advertising campaigns in mass media,
including TV and radio, about the benefits and health advantages of olive oil over alternatives,
which played a key role in this impressive growth. It is also worth mentioning that after the
increase in demand many small factories began production or expanded their activities, which
also increased the range of products on offer and thus contributed to volume growth.
 Various types of vegetable and seed oil were available in Iran. Sunflower oil was the leader in
2015, as consumers were more familiar with this type, followed by corn oil and soya seed oil,
which were also very popular. It is worth mentioning that demand for hydrogenised solid oil
declined as a result of the potential health risks. Finally, the new concept of special frying oil
also grew rapidly and many consumers preferred to have two types of oil, one for frying and
one for other usages.
 As in other packaged food categories, the main distribution formats for oils and fats were
independent small grocers, food/drink/tobacco specialists, supermarkets and hypermarkets.
During the review period, some independent small grocers, especially in urban areas,
converted to supermarkets. However, this channel still has a long way to go in the distribution
of oils and fats. It is important to note the very important role of wholesale markets in
distribution in the category as this accounted for a considerable volume of sales to distributors
of oils and fats.
 Behshahr Industrial was the clear leader in vegetable and seed oil in 2015, accounting for a
49% value share. The company has a wide range of products which have been popular in
Iran for many years. Ladan, Bahar, Nastaran and Afia were the company’s most popular
brands. Behshahr also benefited from its wide distribution carried out by Bahpakhsh.
Behshahr Industrial was also responsible for most innovations in terms of quality and
packaging and continued this trend by introducing new UV-protected packs of Ladan frying oil
in 2015. A joint venture between Behshahr and Savola helped the company to strengthen its
marketing activities.
 In contrast to vegetable and seed oil, olive oil was a relatively fragmented category in Iran in
2015. A variety of brands were available, many with small value shares in 2015. Among them
Gilvan, Borges, Ghezel Rood, and Etka were the most popular. A combination of domestic
and multinational brands could be found in most grocery shops in key urban areas.
 Butter was led by Kalleh Dairy, Iran Khorram Dairy Packaging, Shakelli and Pegah Dairy. Iran
Khorram and Shakelli are professional producers of butter in Iran. They both import butter
from Holland and package the products in Iran. In contrast, Kalleh and Pegah have their own
production and packaging in the country.
 Domestic manufacturers characterised oils and fats in Iran in 2015. The three leading
companies accounted for 51% of retail value sales in 2015. They provided a wide range of
products under many different brands, such as Ladan and Bahar (Behshahr Industrial), Ghoo
(Pars Vegetable Oil), and Aftab (Margarine Mfg).
 There was frequent advertising of oils and fats on national TV by domestic suppliers. These
products were also widely advertised in weekly family magazines, of which Khanevadeh was
the most popular. The readership of these magazines is largely female as women are the
main purchasers of food products in Iran.
 Most of the successful brands were categorised as standard or economy. There was no
tendency among Iranian consumers to purchase premium brands and sales of these products
remained limited to higher-income consumers in certain urban areas.
PROSPECTS
 Oils and fats is expected to record a healthy value CAGR of 4% at constant 2015 prices over
the forecast period, slightly lower than review period constant value CAGR of 6%. While the
main category in total volume terms, vegetable and seed oil, has reached some form of
maturity, the other modern categories, such as olive oil, margarine and other vegetable and
seed oils are expected to grow rapidly in line with the increasing demand. Olive oil in
particular will benefit from increasing health awareness and many households will use this
item instead of old seed oils.
 Oils and fats is set to remain a part Iranian cuisine, in particular vegetable and seed oil and
cooking fats. The consumption of cooking fat will also remain relatively high in Iran as this
product is an essential component of traditional Iranian meals. Moreover, sales of oils and fats
will be driven by new product development (low cholesterol products, for instance) and wider
product ranges, as well as packaging innovation.
 Unit prices of oils and fats are expected to experience growth over the forecast period
although this is expected to be at a slower rate than over the review period thanks to a greater
expected stability in Iran’s economic environment. However, oils and fats manufacturers will
also face higher costs for raw materials and production, which will be reflected in the unit
price.
 It is predicted that supermarkets and hypermarkets will continue to increase their activities
during the forecast period, at the expense of small independent grocers. Furthermore, an
increasing number of modern channels in Iran could initiate discounting and other price-based
competition within oils and fats.
 With no major changes predicted in terms of company shares, oils and fats is likely to
continue to be led by the same domestic brands over the forecast period. Ladan and Bahar,
Ghoo, and Aftab are forecast to remain the leaders in oils and fats, particularly in terms of
vegetable and seed oil, the largest category in oils and fats in total volume terms. Domestic
companies are expected to continue to enjoy the benefits of long-established consumer
loyalty alongside the effective nationwide distribution of their products.
CATEGORY DATA
Table 156 Sales of Oils and Fats by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Butter 52.8 56.1 59.9 63.9 64.6 65.5

Cooking Fats 210.1 219.6 222.5 224.7 226.9 230.8
Margarine 7.0 7.4 8.0 8.7 9.4 10.1
Olive Oil 17.1 18.7 20.2 22.0 23.9 26.0
Spreadable Oils and Fats - - - - - -
Vegetable and Seed Oil 720.2 751.1 782.1 795.4 801.5 815.7
- Corn Oil 18.7 21.8 25.8 27.8 29.7 31.8
- Palm Oil - - - - - -
- Rapeseed Oil - - - - - -
- Soy Oil - - - - - -
- Sunflower Oil 688.5 712.8 737.5 746.9 748.6 758.5
- Other Vegetable and 13.0 16.5 18.8 20.7 23.2 25.4
Seed Oil
Oils and Fats 1,007.2 1,052.9 1,092.6 1,114.8 1,126.3 1,148.1
Table 157 Sales of Oils and Fats by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Butter 3,595.9 4,128.5 7,182.0 10,866.4 15,913.8 19,364.0

Cooking Fats 20,574.5 23,005.3 32,635.5 49,431.8 68,081.1 83,086.1
Margarine 465.4 537.7 811.6 1,333.4 1,720.0 2,154.9
Olive Oil 2,587.9 3,131.1 5,253.2 8,592.5 11,560.4 14,855.3
Vegetable and Seed Oil 17,483.6 19,805.0 31,776.8 45,316.4 55,071.8 58,146.3
- Corn Oil 753.0 1,018.2 1,991.6 2,783.9 3,577.5 4,315.0
- Palm Oil - - - - - -
- Soy Oil - - - - - -
- Sunflower Oil 16,054.4 17,619.3 28,255.3 40,059.7 48,082.9 49,695.5
- Other Vegetable and 676.3 1,167.4 1,530.0 2,472.8 3,411.5 4,135.8
Seed Oil
Oils and Fats 44,707.3 50,607.6 77,659.2 115,540.5 152,347.2 177,606.6
Table 158 Sales of Oils and Fats by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Butter 1.4 4.4 24.1

Cooking Fats 1.7 1.9 9.8
Margarine 8.0 7.8 45.3
Olive Oil 8.9 8.7 52.0
Spreadable Oils and Fats - - -
Vegetable and Seed Oil 1.8 2.5 13.3
- Corn Oil 7.1 11.1 69.6
- Palm Oil - - -
- Rapeseed Oil - - -
- Soy Oil - - -
- Sunflower Oil 1.3 2.0 10.2
- Other Vegetable and Seed Oil 9.1 14.4 95.7
Table 159 Sales of Oils and Fats by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total
Butter 21.7 40.0 438.5

Cooking Fats 22.0 32.2 303.8
Margarine 25.3 35.9 363.0
Olive Oil 28.5 41.8 474.0
- Corn Oil 20.6 41.8 473.1
- Palm Oil - - -
- Soy Oil - - -
Oils and Fats 16.6 31.8 297.3
Table 160 NBO Company Shares of Oils and Fats: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Behshahr Industrial Co 40.5 38.6 37.7 37.5 37.2

Pars Vegetable Oil Co 11.4 10.1 9.1 8.5 8.0
Margarine Mfg Co 7.6 7.3 6.8 6.5 6.1
Kalleh Dairy Co 1.4 1.9 2.2 2.4 2.6
Iran Khorram Dairy 2.0 2.2 2.1 2.4 2.5
Packaging Co
Shakelli Co 1.4 1.5 1.5 1.6 1.7
United Foods Co PSC 2.2 2.1 2.0 1.7 1.5
Pegah Dairy Co 1.1 1.2 1.2 1.3 1.3
Unilever Group 2.2 2.1 1.8 1.5 1.2
Gilvan Zetoon Co 0.8 0.9 1.0 1.1 1.2
Golbarg E Baharan Co 1.2 1.1 1.0 1.0 1.1
Ramak Dairy Co 0.8 0.9 1.0 1.1 1.1
Pak Dairy Co 0.9 0.8 0.8 0.9 0.9
Iran Canola Inc 0.5 0.6 0.7 0.8 0.8
Ghezel Rood Food 0.4 0.5 0.6 0.6 0.7
Products Co
Ganjeh Roudbar Co 0.2 0.4 0.5 0.6 0.7
Blagoj Gorev ad 0.4 0.4 0.4 0.4 0.5
Golab Co 0.4 0.4 0.5 0.5 0.5
Mihan Dairy Group - - 0.1 0.3 0.4
Deoleo SA 0.3 0.3 0.3 0.3 0.3
Monini SpA 0.2 0.2 0.1 0.2 0.2
SOS Corp Alimentaria SA - - - - -
Others 15.0 18.1 20.4 20.9 21.3
Total 100.0 100.0 100.0 100.0 100.0
Table 161 LBN Brand Shares of Oils and Fats: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Ladan Behshahr Industrial Co 23.9 24.2 24.5 24.6

Ghoo Pars Vegetable Oil Co 7.1 6.6 6.2 5.9
Ghoncheh Keshto Sanat Shomal Co 4.0 3.7 3.5 3.2
Jahan Jahan Vegetable Oil Co 2.3 2.1 2.4 2.6
Khorram Iran Khorram Dairy 2.2 2.1 2.4 2.5
Packaging Co
Golden Maize Emirates Refining Co Ltd 1.1 1.2 1.3 1.3
Mazola Unilever Group 2.1 1.8 1.5 1.2
Gilvan Gilvan Zetoon Co 0.9 1.0 1.1 1.2

Ghezel Rood Ghezel Rood Food 0.5 0.6 0.6 0.7
Products Co
Etka Ganjeh Roudbar Co 0.4 0.5 0.6 0.7
Familia Golbarg E Baharan Co 0.6 0.5 0.5 0.6
Kristal Blagoj Gorev ad 0.4 0.4 0.4 0.5
Nastaran Behshahr Industrial Co 0.9 0.8 0.6 0.5
Mihan Mihan Dairy Group - 0.1 0.3 0.4
Carbonell Deoleo SA 0.3 0.3 0.3 0.3
Monini Monini SpA 0.2 0.1 0.2 0.2
Khazar Keshto Sanat Shomal Co 0.2 0.1 0.1 0.1
Carbonell SOS Corp Alimentaria SA - - - -
Others 23.2 25.6 26.4 27.1
Total 100.0 100.0 100.0 100.0
Table 162 Distribution of Oils and Fats by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 1.9 2.1 2.3 2.5 2.8 3.1
Retailers
--- Hypermarkets 0.6 0.6 0.7 0.8 0.9 1.0
--- Supermarkets 1.4 1.5 1.6 1.7 1.9 2.1
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 163 Sales of Oils and Fats by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Butter 1.4 4.4 24.1

Olive Oil 8.9 8.7 52.0
- Corn Oil 7.1 11.1 69.6
- Palm Oil - - -
- Soy Oil - - -
Table 164 Sales of Oils and Fats by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total
Butter 21.7 40.0 438.5

Cooking Fats 22.0 32.2 303.8
Margarine 25.3 35.9 363.0
Olive Oil 28.5 41.8 474.0
- Corn Oil 20.6 41.8 473.1
- Palm Oil - - -
- Soy Oil - - -
Oils and Fats 16.6 31.8 297.3
Table 165 NBO Company Shares of Oils and Fats: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Behshahr Industrial Co 40.5 38.6 37.7 37.5 37.2

Pars Vegetable Oil Co 11.4 10.1 9.1 8.5 8.0
Margarine Mfg Co 7.6 7.3 6.8 6.5 6.1
Kalleh Dairy Co 1.4 1.9 2.2 2.4 2.6
Iran Khorram Dairy 2.0 2.2 2.1 2.4 2.5
Packaging Co
Shakelli Co 1.4 1.5 1.5 1.6 1.7

United Foods Co PSC 2.2 2.1 2.0 1.7 1.5
Pegah Dairy Co 1.1 1.2 1.2 1.3 1.3
Unilever Group 2.2 2.1 1.8 1.5 1.2
Gilvan Zetoon Co 0.8 0.9 1.0 1.1 1.2
Golbarg E Baharan Co 1.2 1.1 1.0 1.0 1.1
Ramak Dairy Co 0.8 0.9 1.0 1.1 1.1
Pak Dairy Co 0.9 0.8 0.8 0.9 0.9
Iran Canola Inc 0.5 0.6 0.7 0.8 0.8
Ghezel Rood Food 0.4 0.5 0.6 0.6 0.7
Products Co
Ganjeh Roudbar Co 0.2 0.4 0.5 0.6 0.7
Blagoj Gorev ad 0.4 0.4 0.4 0.4 0.5
Golab Co 0.4 0.4 0.5 0.5 0.5
Mihan Dairy Group - - 0.1 0.3 0.4
Deoleo SA 0.3 0.3 0.3 0.3 0.3
Monini SpA 0.2 0.2 0.1 0.2 0.2
SOS Corp Alimentaria SA - - - - -
Others 15.0 18.1 20.4 20.9 21.3
Total 100.0 100.0 100.0 100.0 100.0
Table 166 LBN Brand Shares of Oils and Fats: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Ladan Behshahr Industrial Co 23.9 24.2 24.5 24.6

Ghoo Pars Vegetable Oil Co 7.1 6.6 6.2 5.9
Ghoncheh Keshto Sanat Shomal Co 4.0 3.7 3.5 3.2
Jahan Jahan Vegetable Oil Co 2.3 2.1 2.4 2.6
Khorram Iran Khorram Dairy 2.2 2.1 2.4 2.5
Packaging Co
Golden Maize Emirates Refining Co Ltd 1.1 1.2 1.3 1.3
Mazola Unilever Group 2.1 1.8 1.5 1.2
Gilvan Gilvan Zetoon Co 0.9 1.0 1.1 1.2
Ghezel Rood Ghezel Rood Food 0.5 0.6 0.6 0.7
Products Co
Etka Ganjeh Roudbar Co 0.4 0.5 0.6 0.7
Familia Golbarg E Baharan Co 0.6 0.5 0.5 0.6
Kristal Blagoj Gorev ad 0.4 0.4 0.4 0.5
Nastaran Behshahr Industrial Co 0.9 0.8 0.6 0.5
Mihan Mihan Dairy Group - 0.1 0.3 0.4
Carbonell Deoleo SA 0.3 0.3 0.3 0.3
Monini Monini SpA 0.2 0.1 0.2 0.2

Khazar Keshto Sanat Shomal Co 0.2 0.1 0.1 0.1
Carbonell SOS Corp Alimentaria SA - - - -
Others 23.2 25.6 26.4 27.1
Total 100.0 100.0 100.0 100.0
Table 167 Distribution of Oils and Fats by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 1.9 2.1 2.3 2.5 2.8 3.1
Retailers
--- Hypermarkets 0.6 0.6 0.7 0.8 0.9 1.0
--- Supermarkets 1.4 1.5 1.6 1.7 1.9 2.1
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 168 Forecast Sales of Oils and Fats by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Butter 19,364.0 20,343.3 21,469.3 22,646.5 23,883.0 25,182.2

Cooking Fats 83,086.1 84,589.7 85,724.9 86,680.8 87,460.8 88,022.1
Margarine 2,154.9 2,390.0 2,665.9 2,951.3 3,256.6 3,587.5
Olive Oil 14,855.3 16,964.3 19,566.3 22,467.9 25,649.0 29,049.1
Vegetable and Seed Oil 58,146.3 60,877.9 64,038.7 67,327.3 70,779.2 74,401.4
- Corn Oil 4,315.0 4,771.7 5,329.2 5,906.1 6,509.9 7,146.1

- Palm Oil - - - - - -
- Soy Oil - - - - - -
- Sunflower Oil 49,695.5 51,437.9 53,412.5 55,475.3 57,646.0 59,919.9
- Other Vegetable and 4,135.8 4,668.3 5,296.9 5,945.9 6,623.3 7,335.4
Seed Oil
Oils and Fats 177,606.6 185,165.2 193,465.2 202,073.8 211,028.6 220,242.3
trade sources
Table 169 Forecast Sales of Oils and Fats by Category: % Volume Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
Butter 2.0 2.3 12.2

Cooking Fats 0.6 0.0 -0.2
Olive Oil 9.8 10.0 60.7
- Corn Oil 8.2 8.2 48.5
- Palm Oil - - -
- Soy Oil - - -
trade sources
Table 170 Forecast Sales of Oils and Fats by Category: % Value Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL
Butter 5.1 5.4 30.0

Margarine 10.9 10.7 66.5
Olive Oil 14.2 14.4 95.5
- Corn Oil 10.6 10.6 65.6
- Palm Oil - - -
- Soy Oil - - -
trade sources
PROCESSED FRUIT AND

VEGETABLES IN IRAN - CATEGORY
ANALYSIS
HEADLINES
 Processed fruit and vegetables records retail volume and value growth of 5% and 26%
respectively to reach 110,800 tonnes and IRR10,301 billion in 2015
 More hectic lifestyles, a rapid trend towards urbanisation and a low sales base for most
subcategories are the main drivers of growth in 2015
 Frozen processed potatoes is the most dynamic subcategory in 2015, recording current value
growth of 34% in 2015
 Average unit price rises by 20% in 2015
 Dasht Morghab Group remains as leader in 2015, accounting for a value share of 28%.
 Processed fruit and vegetables is set to record an 8% value CAGR at constant 2015 prices
over the forecast period, to reach sales of IRR 14,811 billion by 2020
TRENDS
 A rapid trend towards urbanisation continued in 2015, which had a positive impact on
processed fruit and vegetables. In 2015, urban households accounted for around 76% of the
population which represents a rise of almost half a percentage point compared to the previous
year. The increase in the number of women working outside the home, as well as more hectic
lifestyles, fuelled growth in this category especially in key urban areas such as Tehran,
Isfahan, Mashhad, Tabriz and Shiraz. Many new mothers gradually put aside fresh
ingredients due to time constraints and thus opt for easier packaged options. The low sales
base of nearly all subcategories, as well as major improvements in their availability, also
played a key role in the strong sales growth seen in 2015.
 However, processed fruits and vegetables recorded current value growth of 26% in 2015
which is lower than the review period CAGR of 40%. Although this is still a positive
performance, the slowdown is mainly due to the fact that the growth rates of the review period
were strong due to the low sales base while over time this category is becoming more stable,
with steadier growth rates.
 Frozen processed potatoes is the most dynamic subcategory in 2015 with current value
growth of 34% and retail volume growth of 13%. This is mainly due to the low base, as frozen
processed potatoes is a relatively new category in Iran’s retail environment. The rapid
expansion of modern retailing played a key role in the success of this immature category,
making the products more widely available to a higher number of consumers.
 Main driver of volume sales in 2015 was shelf stable fruit and vegetables, especially in
canned format. This type of packaging enjoys much higher awareness and retail availability,
and even consumers in smaller cities and rural areas are aware of this type of product.
Frozen processed fruit and vegetables, on the other hand, has a much lower sales base and
is mainly known in big urban centres, which means it makes a smaller contribution to the
overall category’s volume performance, even though it has better growth potential. Shelf
stable beans and fruit accounted for 76% of overall current value sales in 2015.
 The high inflation rate was the main reason for the average current value price increase of
20%. Although nearly all suppliers are domestic, they are highly dependent on imported raw
materials for production and packaging, and the higher prices of these items led to an
inevitable price increase.
 The main distribution channel for processed fruit and vegetables in 2015 was independent
small grocers due to the high number of these outlets in Iran. However, for processed frozen
fruit and vegetables, modern channels such as hypermarkets and supermarkets are important
as they are equipped with large freezers to store and display products.
 Dasht Morghab Group, as the national brand owner of 1&1, remained the leader of processed
fruit and vegetables in 2015, holding a 28% value share. This was mainly due to its
longstanding presence in the country and its strong brand image, especially in
canned/preserved food. One of the pillars of success for Dasht Morghab Group is its wide
range of products which are distributed effectively, even in remote areas.
 While 1&1, as well as Mahram (Mahram Co), Delpazir (Kadbanoo Co), Behrouz (Behrouz
Food Industries Co) and are the bestselling brands in shelf stable fruit and vegetables, Kalleh
Pamina Frozen Potato (Kalleh Dairy Co) and Tiko (Tarvand Group) are the leading brands in
processed frozen fruit and vegetables. However, it is important to note that there are many
brands with limited and local coverage that are not distributed throughout the country; these
are categorised within “others”. Among the leading brands, Behrouz recorded a two
percentage points decline in value share in 2015 which was largely a result of weakness in its
distribution network as well as non-effective marketing campaigns.
 The competitive environment for processed fruit and vegetables remained intense due to the
relatively high number of suppliers at the end of the review period. To succeed in this
environment, key manufacturers use similar methods, including trade and consumer
promotions. Offering 5+1, 6+1 and even 4+1 promotions to retailers is common, while in key
hypermarkets and supermarkets offers of “Buy one, get one free” are commonplace.
 A key trend in the new launches of 2014 and 2015 was chilli variants of shelf stable beans
which enjoyed positive demand. These variants for popular brands such as Behrouz and Oila
were launched in 2014, reflecting operators’ attempts to attract consumer by offering value-
added products. Another important event of 2015 was the launch of a wide range of
processed fruit and vegetables under the brand name of Esalat by Esalat Food Industries Co.
Esalat, a niche brand, was the focus of a widespread advertising campaign and witnessed the
launch of several products including shelf stable beans, corn and peas during 2015.
 The category of processed fruit and vegetables is dominated by domestic manufacturers;
there are only limited volumes of imports into the country. One main reason for the success of
domestic products is their affordable unit price and reasonable quality, which means that the
bulk of consumers are reluctant to choose imported brands. In addition, domestic suppliers
usually benefit from broad and effective distribution networks, which tend to be missing in the
activities of the few importers in the category. However, it should be noted that one of the
categories with a significant volume of imports is shelf stable corn.
 At the end of the review period, all products in Iran could be regarded as standard or
economy; few premium products are available. Price is often the main deterrent for Iranian
consumers, who generally remain satisfied with the quality of standard brands and thus are
unlikely to trade up in most cases.
PROSPECTS
 Improved distribution and availability, increased spending on advertising and promotion, the
expansion of modern retail outlets, and the rapid urbanisation trend will all stimulate increased
consumption. However, growth will continue to be limited by the popularity and wide
availability of fresh products and the strong preference amongst Iranians for homemade
meals. Unit price will also play a key role in the progress of this category in Iran. If inflation
continues to remain high, as it did during the review period, consumer purchasing power may
be negatively impacted, which in turn could negatively impact category growth. Overall,
processed fruit and vegetables is expected to experience a retail volume CAGR of 6% during
the forecast period, which will be marginally stronger than the review period CAGR. The main
reason for the slightly stronger growth will be the expected increase in consumption as the
category continues to grow from a relatively low base.
 The average unit price of processed fruit and vegetables is expected to continue to rise but at
a lower rate in terms of constant 2015 prices than was seen over the review period. The
highly competitive environment will oblige key players to reduce their production costs as
much as possible by improving their production capacity; however, they will have to increase
their unit prices due to inflation.
 An increase in the number of supermarkets and hypermarkets will continue to drive volume
and value sales of processed fruit and vegetables over the forecast period. The relatively wide
range of products in these outlets appeals to consumers and there are often marketing
promotions to attract shoppers.
 Processed frozen fruit and vegetables will be the most dynamic category in terms of volume
sales over the forecast period, with a predicted 13% retail volume CAGR. Growth will be
driven by its low base, novelty, high quality and competitive prices. Furthermore, an
increasing range of these products will also serve to further boost sales. Compared with this,
volume sales in other categories are predicted to see weaker growth, especially as Iranian
families will continue to prefer fresh products.
 Key domestic suppliers are expected to continue supporting their brands through increased
investment in advertising on television and more promotions in supermarkets and
hypermarkets in particular, in order to boost sales and secure their position in terms of value
share. It is unlikely that these companies will be challenged by multinationals, because of the
quality of local produce and the low prices of domestic brands.
CATEGORY DATA
Table 171 Sales of Processed Fruit and Vegetables by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Shelf Stable Fruit and 80.7 88.3 90.7 93.3 96.3 100.2
Vegetables
- Shelf Stable Beans 32.7 39.1 41.0 41.1 42.4 44.3
- Shelf Stable Fruit 36.3 37.0 36.9 38.4 39.2 40.1
- Shelf Stable Tomatoes - - - - - -

- Shelf Stable Vegetables 11.7 12.2 12.8 13.7 14.7 15.9
Processed Frozen Fruit 3.8 7.1 7.7 8.4 9.4 10.5
and Vegetables
- Frozen Fruit - - - - - -
- Frozen Processed - 2.9 3.1 3.4 3.8 4.3
Potatoes
- Frozen Processed 3.8 4.2 4.6 5.0 5.6 6.2
Vegetables
Vegetables
Table 172 Sales of Processed Fruit and Vegetables by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Shelf Stable Fruit and 1,851.9 2,221.4 3,843.5 5,553.8 7,460.6 9,330.3
Vegetables
- Shelf Stable Beans 908.3 1,173.0 2,255.0 2,879.8 3,737.4 4,608.6
- Shelf Stable Fruit 732.8 814.2 1,180.8 1,920.5 2,605.4 3,251.6
- Shelf Stable Vegetables 210.8 234.2 407.7 753.5 1,117.8 1,470.1
and Vegetables
- Frozen Processed - 63.8 86.8 139.4 209.0 279.5
Potatoes
Vegetables
Processed Fruit and 1,946.5 2,396.5 4,139.9 6,065.4 8,194.3 10,301.4
Vegetables
Table 173 Sales of Processed Fruit and Vegetables by Category: % Volume Growth
2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Shelf Stable Fruit and Vegetables 4.1 4.4 24.2

- Shelf Stable Beans 4.5 6.3 35.4
- Shelf Stable Fruit 2.3 2.0 10.4
- Shelf Stable Tomatoes - - -
- Shelf Stable Vegetables 7.8 6.3 35.6
Processed Frozen Fruit and Vegetables 12.3 22.6 177.3
- Frozen Fruit - - -
- Frozen Processed Potatoes 13.2 - -
- Frozen Processed Vegetables 11.7 10.4 64.1
Table 174 Sales of Processed Fruit and Vegetables by Category: % Value Growth 2010-
2015

2014/15 2010-15 CAGR 2010/15 Total

- Frozen Processed Potatoes 33.7 - -
Table 175 NBO Company Shares of Processed Fruit and Vegetables: % Value 2011-
2015
% retail value rsp

Company 2011 2012 2013 2014 2015

Mahram Co 17.4 17.6 18.1 18.3 18.2
Kadbanoo Co 14.7 15.2 15.5 15.1 15.3
Co
Kalleh Dairy Co 0.4 0.7 1.1 1.2 1.4
Tarvand Group - 0.3 0.5 0.8 1.1
Others 27.7 27.2 25.4 25.9 26.8
Total 100.0 100.0 100.0 100.0 100.0
Table 176 LBN Brand Shares of Processed Fruit and Vegetables: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
1&1 Dasht Morghab Group 26.3 27.2 27.6 28.1

Mahram Mahram Co 17.6 18.1 18.3 18.2
Delpazir Kadbanoo Co 15.2 15.5 15.1 15.3
Kalleh Pamina Kalleh Dairy Co 0.7 1.1 1.2 1.4
Frozen Potato
Tiko Tarvand Group 0.3 0.5 0.8 1.1
Others 27.2 25.4 25.9 26.8
Total 100.0 100.0 100.0 100.0
Table 177 Distribution of Processed Fruit and Vegetables by Format: % Value 2010-
2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 5.3 5.8 6.4 7.2 8.0 8.5
Retailers
--- Hypermarkets 3.5 3.8 4.1 4.7 5.2 5.5
--- Supermarkets 1.8 2.0 2.3 2.5 2.8 3.0
Retailers
specialists
Grocers
--- Other Grocery 1.5 1.5 1.5 1.5 1.5 1.5
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 178 Forecast Sales of Processed Fruit and Vegetables by Category: Volume
2015-2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Shelf Stable Fruit and 100.2 105.1 110.7 116.1 121.8 127.6
Vegetables
- Shelf Stable Beans 44.3 46.5 49.1 51.7 54.3 57.0
- Shelf Stable Fruit 40.1 41.3 42.7 44.1 45.5 47.0
- Shelf Stable Vegetables 15.9 17.2 18.8 20.4 22.0 23.6
and Vegetables
Potatoes
Vegetables
Vegetables
trade sources
Table 179 Forecast Sales of Processed Fruit and Vegetables by Category: Value 2015-
2020
IRR billion
2015 2016 2017 2018 2019 2020
Shelf Stable Fruit and 9,330.3 9,936.2 10,636.6 11,346.2 12,090.6 12,878.3
Vegetables
- Shelf Stable Beans 4,608.6 4,900.0 5,235.1 5,572.0 5,923.7 6,294.3
- Shelf Stable Fruit 3,251.6 3,402.8 3,570.6 3,741.1 3,920.6 4,110.0
- Shelf Stable Vegetables 1,470.1 1,633.4 1,830.9 2,033.1 2,246.2 2,474.0
Processed Frozen Fruit 971.1 1,114.3 1,286.7 1,476.2 1,689.9 1,933.1
and Vegetables
Potatoes
- Frozen Processed 691.6 792.5 914.8 1,045.7 1,190.7 1,353.4
Vegetables
Processed Fruit and 10,301.4 11,050.5 11,923.3 12,822.5 13,780.4 14,811.4
Vegetables
trade sources
Table 180 Forecast Sales of Processed Fruit and Vegetables by Category: % Volume
Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total

- Frozen Processed Potatoes 13.9 14.5 97.0
trade sources
Table 181 Forecast Sales of Processed Fruit and Vegetables by Category: % Value
Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL


- Frozen Processed Potatoes 15.2 15.7 107.4
trade sources
PROCESSED MEAT AND SEAFOOD IN

HEADLINES
 Processed meat and seafood records retail volume and value growth of 6% and 24%
respectively, to reach 251,700 tonnes and IRR78,015 billion in 2015
 More hectic lifestyles, rapid urbanisation and a low sales base in most subcategories are the
main drivers of growth in 2015
 Chilled processed meat is the most dynamic subcategory in 2015, recording current value
growth of 27%
 Average unit price rises by 18% current value terms in 2015
 Amol Meat Products Co remains category leader in 2015, posting a 17% value share
 Processed meat and seafood is set to post a value CAGR of 9% at constant 2015 prices over
the forecast period, with sales reaching IRR122,061 billion by 2020
TRENDS
 Per capita consumption of processed meat and seafood remained limited at the end of 2015
but showed a good potential for growth. One of the reasons for this low sales base was lack
of awareness among consumers, which limits the offering to basic products such as shelf
stable tuna, hamburgers, sausages and kielbasa (smoked sausage). However, with the fast
trend towards urbanisation and strong demand among the young population for quick and
easy meals, this category has grown steadily over the review period. Overall, processed meat
and seafood recorded retail volume growth of 6% in 2015, which was in line with the review
period CAGR, thereby reflecting steady and continuous growth. It is worth mentioning that the
rapid rate of change in consumers’ lifestyles has played an important role in the development
of this category. Westernisation, the increase in the number of women working outside the
home and time/money constraints all supported the positive growth of this category in 2015.
 Chilled processed meat remained the most dynamic subcategory in value terms at the end of
the review period, with current value growth of 27% in 2015. Two main product types, namely
sausages and kielbasa, accounted for nearly all volume sales. Consumption of kielbasa is
very common among Iranian youngsters, often in the form of a sandwich with mayonnaise,
lettuce and pickled cucumber. The meat content in such products varies from 30-90%
depending on the kielbasa brand, while consumption of mushroom and poultry kielbasa is
also popular. The sale of sausages through both retail and foodservice is common. This
product is prepared in a range of formats, including chilli sandwich and hotdog.
 One of the main reasons for the success of kielbasa and sausages in Iran is their perceived
quality. As consumption of pork meat is forbidden according to Islamic law, Iranian
manufacturers only use beef, which is claimed to offer superior product quality. In addition,
these two products are affordable to most consumers, thus they are purchased by consumers
of all income levels. Frozen variants tend to consist of more basic offerings compared to
chilled alternatives. The only other popular products with high level of consumption is
hamburgers, which are found in a high number of foodservice (fast food) outlets.
 Widespread advertisements regarding the potentially harmful impact of continuous

consumption of these products on health has been hampering growth. There is a general
belief, especially among educated consumers, that processed meat contains a high number
of preservatives that are not good for health and can even heighten the risk of cancer over the
long term.
 In line with the high inflation rate in Iran, the average unit price of processed meat and
seafood increased by 18% in current value terms in 2015. This was mainly a result of the
higher costs of production and raw materials. Key suppliers faced difficulties in terms of
gaining approval from the Government to increase their prices and maintain profitability.
 The opening of new supermarkets and hypermarkets led to a wider distribution of processed
meat and seafood, as these new outlets have refrigerators and freezers that facilitate the
effect storage and display of such products, which benefited from increased visibility. Many
women use these products for making sandwiches for their children to eat whilst at school, or
for lunch at work for themselves and their husbands. In 2015, sales of processed meat and
seafood were dominated by independent small grocers, with a 70% retail value share. These
outlets are used most frequently by the majority of Iranian consumers, which stock these
products in their refrigerators.
 Amol Meat Products Co, a subsidiary of Solico Food Industrial Group, remained as the
leading player in processed meat and seafood in Iran in 2015 due to the strong brand image
of Kalleh. The company has 11 direct distribution centres and 112 sales agencies throughout
the country; it is one of the major manufacturers and distributors of kielbasa and sausages in
Iran. Amol Meat Products Co’s strength and success lies in the wide range of products
distributed countrywide, as well as its competitive prices, attractive packaging and strong
marketing activities.
 Iran Protein Co remained ranked second in processed meat and seafood, mainly as a result
of the strong presence of its Shilton brand in shelf stable fish/seafood. The company posted a
13% value share in 2015, achieved through the strong brand image of Shilton and the
diversity of its product range which is relatively rare among suppliers of shelf stable
fish/seafood. The Shilton brand offers tuna in both vegetable oil and olive oil, as well as
smoke-flavoured tuna, fat-free tuna and tuna in herbs. This range gives the company a good
position amongst its competitors. Another reason for the success of this company is its strong
distribution network, which guarantees its presence in most urban areas, especially large
cities where there is a stronger consumer base.
 The processed meat and seafood category is dominated by domestic manufacturers; there
are very limited volumes of imports to the country. A key reason for the success of domestic
products is their affordable unit price and reasonable quality, which means most consumers
are reluctant to try out imported brands. In addition, domestic suppliers tend to benefit from
broad and effective distribution networks, which is generally missing in the activities of the few
importers active in the category.
 One of the key events in 2015 was the rapid expansion in marketing activities and distribution
of the previously small Tohfe brand. This brand, which is produced by Tohfe Food Products
Co, is mainly active in shelf stable seafood, and was the subject of major advertising
campaigns on national television and radio. The focus of these adverts was to promote the
brand’s healthy image. Tohfe Food Products Co also saw innovations in terms of new
products; it introduced new combinations such as shelf stable tuna and aubergine, among
others, which helped it to gain importance in the category.
 There are different approaches to advertising campaigns for shelf stable meat, chilled and
frozen processed meat. As the competitive environment for shelf stable food remained severe
due to the high number of suppliers at the end of the review period, manufacturers use similar
methods to gain share. Offering 5+1, 6+1 and even 4+1 promotions to retailers is common,
while in key hypermarkets and supermarkets “Buy one, get one free” offers are common. In
addition, using national television advertisements are widely used to boost awareness.
Products in the frozen and chilled processed meat categories, on the other hand, are mainly
promoted using in-store visibility and point-of-sales materials. Product visibility inside
refrigerators and freezers, especially in modern retail channels such as hypermarkets, are
vital to increase awareness.
 At the end of the review period, all processed meat and seafood in Iran can be regarded as
standard or economy; there are few premium products available. Price is often the main factor
in the purchasing decision of Iranian consumers, who generally remain satisfied with the
quality of standard brands and thus are unlikely to trade up.
PROSPECTS
 Processed meat and seafood is expected to experience a value sales CAGR of 9% at

constant 2015 prices over the forecast period, in line with the CAGR of the review period. The
rapid growth of modern retail channels such as supermarkets and hypermarkets is set to be a
key factor contributing to growth going forward. The offer of these products in these outlets is
serving to increase availability, visibility and accessibility for urban consumers. Cultural
changes, such as the rising number of women working in Iranian society, as well as
urbanisation and westernisation, can all positively impact the growth of this category.
 Another key factor that can potentially help this category to maintain relatively high constant
value growth during the forecast period is the high rate of inflation and the decline of
consumer purchasing power, factors that are a strong possibility going forward. Many
consumers who cannot afford fresh ingredients, especially fresh meat, will opt for chilled or
shelf stable meat with a lower meat content. Therefore these products will play a greater role
in the everyday eating habits of middle- and lower-income Iranians.
 Sales of processed meat and seafood, will also be hampered by several factors during the
forecast period. The vast majority of Iranian families still rely heavily on fresh produce, which
is a key mind set for many middle-aged Iranian families. Another key factor will be widespread
advertisements regarding the potentially harmful impact of the continuous consumption of
these products on consumers’ health; this could constrain demand especially among the more
educated segments of society.
 Chilled processed meat will continue to be a dynamic subcategory. Kielbasa will continue to
hold the highest value share within the category, as it is very popular for making sandwiches;
sausages will continue to follow. Chilled processed seafood will remain marginal, as the
Iranian population prefers to purchase fresh unprocessed fish or shelf stable fish/seafood.
Iranian consumers are also expected to increasingly opt for frozen processed fish/seafood
rather than chilled processed fish/seafood, as it can be kept for longer in the country’s hot
climate and due to the more competitive prices in frozen processed food. Indeed, frozen
processed seafood is set to post the strongest volume and value performance over the
forecast period, at a CAGR of 8% and 11% respectively, albeit growing from a relatively low
base.
 An increase in the number of supermarkets and hypermarkets will continue to drive volume
and value sales of processed meat and seafood over the forecast period. These outlets will
have better chilling facilities and a range of products which appeal to consumers, coupled with
attractive in-store promotions.
 None of the key players are expected to undertake major advertising campaigns to educate
and target consumers, except for national television and radio advertisements. They will try to
expand their activities with better distribution and in-store marketing. This limited approach to
marketing and expansion will prevent manufacturers from realising the full potential of
processed meat and seafood in Iran.
CATEGORY DATA
Table 182 Sales of Processed Meat and Seafood by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Processed Meat 101.3 110.6 118.3 125.4 133.1 142.0

- Shelf Stable Meat - - - - - -
- Chilled Processed Meat 37.8 41.2 43.3 44.9 47.9 51.4
- Frozen Processed Meat 63.5 69.4 75.0 80.6 85.3 90.5
Processed Seafood 88.6 92.7 95.9 100.8 104.8 109.7
- Shelf Stable Seafood 85.3 88.8 91.5 96.3 100.0 104.5
- Chilled Processed - - - - - -
Seafood
Seafood
Meat Substitutes - - - - - -
- Chilled Meat - - - - - -
Substitutes
- Frozen Meat Substitutes - - - - - -
Substitutes
Seafood
Table 183 Sales of Processed Meat and Seafood by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Processed Meat 8,118.3 9,682.3 14,292.0 21,850.1 28,865.4 36,111.5

- Chilled Processed Meat 3,349.0 4,007.0 5,866.0 8,684.9 11,578.5 14,670.1
- Frozen Processed Meat 4,769.3 5,675.3 8,426.0 13,165.2 17,286.9 21,441.4
Processed Seafood 8,649.3 9,881.6 16,431.7 26,306.4 33,928.2 41,903.1
- Shelf Stable Seafood 8,215.0 9,332.2 15,558.4 25,038.0 32,226.9 39,739.0
Seafood
- Frozen Processed 434.3 549.4 873.3 1,268.4 1,701.2 2,164.0
Seafood
Substitutes
Substitutes
Processed Meat and 16,767.6 19,563.8 30,723.7 48,156.5 62,793.5 78,014.6
Seafood
Table 184 Sales of Processed Meat and Seafood by Category: % Volume Growth 2010-
2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Processed Meat 6.6 7.0 40.1

- Shelf Stable Meat - - -
- Chilled Processed Meat 7.4 6.3 36.0
- Frozen Processed Meat 6.2 7.4 42.6
Processed Seafood 4.7 4.4 23.8
- Shelf Stable Seafood 4.5 4.1 22.5
- Chilled Processed Seafood - - -
- Frozen Processed Seafood 7.8 9.1 54.6
Meat Substitutes - - -
- Chilled Meat Substitutes - - -
- Frozen Meat Substitutes - - -
- Shelf Stable Meat Substitutes - - -
Table 185 Sales of Processed Meat and Seafood by Category: % Value Growth 2010-
2015

2014/15 2010-15 CAGR 2010/15 Total

Table 186 NBO Company Shares of Processed Meat and Seafood: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Amol Meat Products Co 13.4 14.2 14.8 15.5 17.4

Iran Protein Co 11.8 12.2 12.6 12.8 13.4
Sham Sham Industrial 9.5 9.9 9.4 8.9 8.5
Protein Complex
Solico Food Industrial 4.3 4.7 5.2 5.4 5.6
Group
Mahya Protein Co 2.3 2.5 2.7 2.9 3.1
Sheidan Protein Product 3.2 3.5 3.3 3.1 2.9
Co
Mah Goosht Co 2.7 2.3 2.5 2.6 2.8
Sheilan Far Conserving Co 2.1 2.3 2.0 1.9 1.7
Others 35.2 33.6 33.6 33.2 31.3
Total 100.0 100.0 100.0 100.0 100.0
Table 187 LBN Brand Shares of Processed Meat and Seafood: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Kalleh Amol Meat Products Co 14.2 14.8 15.5 17.4

Shilton Iran Protein Co 12.2 12.6 12.8 13.4
Gooshtiran Gooshtiran Co (Arezooman) 14.8 13.9 13.7 13.2
Sham Sham Sham Sham Industrial 9.9 9.4 8.9 8.5
Protein Complex
Solico Solico Food Industrial 4.7 5.2 5.4 5.6
Group
Mahya protein Mahya Protein Co 2.5 2.7 2.9 3.1
Sheidan Sheidan Protein Product Co 3.5 3.3 3.1 2.9
Mah Goosht Mah Goosht Co 2.3 2.5 2.6 2.8
Sheilan Sheilan Far Conserving Co 2.3 2.0 1.9 1.7
Others 33.6 33.6 33.2 31.3
Total 100.0 100.0 100.0 100.0
Table 188 Distribution of Processed Meat and Seafood by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 10.3 11.2 11.7 13.0 13.6 14.3
Retailers
--- Hypermarkets 6.5 7.2 7.4 8.3 8.5 8.9
--- Supermarkets 3.8 4.0 4.3 4.7 5.1 5.4
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 189 Forecast Sales of Processed Meat and Seafood by Category: Volume 2015-
2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Processed Meat 142.0 152.2 164.3 176.0 188.0 200.4

- Chilled Processed Meat 51.4 55.5 60.3 64.9 69.5 74.3
- Frozen Processed Meat 90.5 96.8 104.0 111.2 118.5 126.1
Processed Seafood 109.7 116.4 124.0 131.6 139.4 147.5
- Shelf Stable Seafood 104.5 110.7 117.8 124.9 132.2 139.8
Seafood
Seafood
Substitutes
Substitutes
Seafood
trade sources
Table 190 Forecast Sales of Processed Meat and Seafood by Category: Value 2015-
2020
IRR billion
2015 2016 2017 2018 2019 2020
Processed Meat 36,111.5 39,559.2 43,636.0 47,776.5 52,137.8 56,799.2

- Chilled Processed Meat 14,670.1 16,209.9 18,046.0 19,902.2 21,851.6 23,936.3

- Frozen Processed Meat 21,441.4 23,349.3 25,590.1 27,874.3 30,286.2 32,862.9
Processed Seafood 41,903.1 45,794.5 50,247.8 54,899.2 59,889.7 65,262.0
- Shelf Stable Seafood 39,739.0 43,394.2 47,563.2 51,923.4 56,605.9 61,646.9
Seafood
- Frozen Processed 2,164.0 2,400.3 2,684.6 2,975.7 3,283.8 3,615.1
Seafood
Substitutes
Substitutes
Processed Meat and 78,014.6 85,353.8 93,883.8 102,675.7 112,027.5 122,061.1
Seafood
trade sources
Table 191 Forecast Sales of Processed Meat and Seafood by Category: % Volume
Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total

trade source
Table 192 Forecast Sales of Processed Meat and Seafood by Category: % Value
Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL


trade source
READY MEALS IN IRAN - CATEGORY

ANALYSIS
HEADLINES
 Ready meals records current value growth of 37% in 2015, to reach IRR18,159 billion
 More hectic lifestyles among the middle-income urban population, along with improvements in
distribution, are the main reasons for rapid growth in 2015
 Frozen ready meals is the most dynamic subcategory, recording retail value growth of 45% in
2015
 Average unit price rises by 23% in 2015, reflecting the high rate of inflation
 Maedeh Food Industry remains the category leader, posting a 29% retail value share in 2015
 A value CAGR of 14% is anticipated for ready meals over the forecast period, to reach sales
of IRR36,642 billion by 2020
TRENDS
 The young Iranian population is experiencing rapid cultural changes that positively impacted
ready meals sales during 2015. The number of women working outside the home has
increased continuously while quick, easy and convenient food is gradually replacing more
traditional food that requires more preparation. Ready meals in both frozen and shelf stable
format have been introduced as solutions for busy urban families who do not have time to
prepare traditional food the way their parents once did. Key suppliers of these products have
tried to localise tastes and recipes to target consumers who demand Iranian cuisine by
offering traditional meals in frozen and shelf stable format. Popular stews such as Qorme
Sabzi, or dishes such as Mirza Ghasemi, were available during 2015 in both shelf stable and
frozen format.
 Emerging from a tiny base and due to the rapid improvements in consumer awareness and
the distribution of ready meals, this category recorded strong volume growth during the review
period, a trend that continued in 2015. However, the volume growth rate recorded in 2015
was slower than the review period CAGR of 17%, reflecting the fact that the category is no
longer in its initial stages of development.
 Frozen ready meals was the most dynamic subcategory in Iran, recording retail volume
growth of 14% in 2015. The main reason for this performance was the better distribution of a
wide range of products and the emergences of strong new suppliers that engaged in
promotions. The rapid expansion of supermarkets and hypermarkets, which are well
positioned to effectively display frozen ready meals (ie in freezers), contributed significantly to
this growth.
 One of the main trends in Iranian ready meals is the production of traditional well-known
meals in attractive packaging. This trend is more obvious in shelf stable ready meals where
products such as Qorme Sabzi (a traditional stew made from lamb and vegetables), Qeimeh
(also a traditional stew, made from minced lamb), Fesenjun (a traditional stew made from
chicken and walnuts) are sold and enjoy some popularity even among traditional Iranian
households.
 One of the key unique selling points for most of the new launches during 2015 was the
concept of “No-preservatives” or “Completely natural”, which proved to be important for
Iranian households. In general, there is still some suspicion among Iranian consumers about
the quality of ready meals and key suppliers tried to gain the trust of consumers through the
use of these kinds of labels on product packaging.
 The main distribution channels for ready meals are independent small grocers (with a 92%
value share in 2015), followed by hypermarkets (5%) and supermarkets (3%). During the
review period, independent small grocers lost share, while that of supermarkets and
hypermarkets rose. In fact, many independent small grocers, especially in urban areas,
converted to supermarkets.
 Vegetarian products did not gain popularity in 2015, with sales of shelf stable ready meals
and frozen ready meals accounting for almost all value sales. The concept of vegetarianism is
not widespread in Iran, neither for health nor animal rights reasons. The majority of the Iranian
population eats meat and fish, and thus the range of vegetarian products remained negligible.
 Maedeh Food Industry held a 29% value share in ready meals in 2015. Established in 1994,
the domestic manufacturer, which belongs to Sepahe Pasdaran (Military Guard for the Islamic
Revolution) produces many different types of ready meals, including a variety of traditional
Iranian meals, stews and rice-based products. The company insists that all of its meat-based
products include fresh lamb meat.
 Shelf stable ready meals is dominated by three key domestic manufacturers, namely Maedeh
Food Industry, Hani Co and Esfahan Chika Industrials Co. Frozen ready meals, on the other
hand, is led by three key suppliers: Amol Meat Products Co, BA Production Group - AFS Co,
and Tehran Meat Products Co.
 Amol Meat Products Co, a subsidiary of Solico Food Industrial Group, is thought to be the
leader in frozen ready meals as a result of the successful performance of its popular Kalleh
brand. The distribution network of this company’s frozen ready meals has improved,
especially during the last two years of the review period, which meant a strong gain for the
company at the expense of its key competitor BA Production Group - AFS Co. Amol Meat
Products Co claims to have IQF (individually quick frozen) products in its ready meals range,
which it claims means a better quality of frozen meal compared to the conventional slow
freezing method.
 BA Production group - AFS Co, which commenced production in frozen ready meals in 2009,
quickly gained a strong position. The company invested heavily in advertising and distribution,
utilising billboards in key urban areas. Its free in-store sampling sessions also contributed to
its success. However, BA Production Group - AFS Co found that strong year-on-year share
growth was unsustainable. Its share fell during the review period after a high of 13% in 2010;
it was negatively impacted by the positive development in terms of distribution and product
quality of its key competitor Amol Meat Products Co.
 Billboards represent a key area of advertising, especially for frozen ready meals. In-store
activities such as posters, leaflets and free sampling have also been also proved to be
effective in terms of attracting consumers.
 All ready meals brands can be regarded as standard or economy; there are no premium
products in the category. Most Iranian consumers are not able to afford premium prices for a
product that is already considered a luxury. As a result, products that have a particularly high
price will not gain popularity among consumers.
 Foodservice outlets, especially those that offer traditional Iranian meals, can be regarded as a
major threat to shelf stable ready meals because these outlets offer similar products, but of a
better quality. In contrast, frozen ready meals are strongly influenced by fast food outlets
whose portfolios are similar to the existing brands in frozen ready meals.
PROSPECTS
 Ready meals is expected to be among the most dynamic product types within packaged food
over the forecast period. The category has a low sales base and thus has strong potential for
further development. In addition, the fast trend towards urbanisation and more hectic
lifestyles, along with the rising number of women working outside the home, mean better
opportunities for ready meals. Furthermore, the rapid growth of modern retail channels such
as hypermarkets and supermarkets, will give this category a better chance to become an
essential part of the Iranian household’s shopping basket. Overall, ready meals is set to
record a retail volume CAGR of 12%, which is very high compared to other packaged food
categories.
 However, the retail volume CAGR of the forecast period is expected to be lower than review
period CAGR of 17%. The reason for this is that ready meals is maturing and is no longer in
its initial phase of development; it is unsurprising that the very high growth rates experienced
in the category’s early development cannot be sustained.
 The average unit price of ready meals is expected to continue to rise, but at a lower rate
compared to the review period. This will be due to the considerable inflation rate in Iran.
Prices will continue to rise as a result of increases in the price of raw materials and production
costs.
 Over the forecast period, sales of ready meals are likely to remain limited to frozen ready
meals and shelf stable ready meals. Sales of chilled ready meals and frozen pizza are
expected to remain marginal in Iran. There is no indication that other types of products, such
as dried ready meals, dinner mixes and prepared salads will be introduced over the forecast
period.
 It is expected that supermarkets and hypermarkets will continue the trend seen during the
review period and increase their activity over the forecast period. Meanwhile, independent
small grocers will lose share. Furthermore, an increasing number of supermarkets and
hypermarkets in Iran could initiate discounting strategies and price competition within Iranian
packaged food.
 Domestic manufacturers are expected to continue to dominate ready meals in Iran. Maedeh
Food Industry, Hani Co, Amol Meat Products Co, Esfahan Chika Industrials Co and BA
Production Group - AFS Co are predicted to lead sales over the forecast period with their
popular Maedeh, Hani, Kalleh, Chika and BA brands. However, the key players are forecast
to lose slight value share as more newcomers attempt to become part of this business in Iran.
 Discounting and price competition within Iranian packaged food is expected to develop, a
trend that will benefit consumers. However, a continuing high rate of inflation is predicted to
result in a steady increase in unit prices overall, as well as the lower purchasing power of
consumers.
CATEGORY DATA
Table 193 Sales of Ready Meals by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Shelf Stable Ready Meals 20.0 25.4 29.7 33.4 36.7 40.6
Chilled Lunch Kits - - - - - -
Chilled Pizza - - - - - -
Chilled Ready Meals - - - - - -
Dinner Mixes - - - - - -
Dried Ready Meals - - - - - -
Frozen Pizza - - - - - -
Frozen Ready Meals 4.7 6.4 8.0 9.4 10.7 12.2
Prepared Salads - - - - - -
Ready Meals 24.7 31.8 37.8 42.8 47.4 52.8
Table 194 Sales of Ready Meals by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Shelf Stable Ready Meals 1,600.0 2,217.1 4,164.8 7,675.1 11,228.7 15,164.8
Frozen Ready Meals 250.6 390.8 748.7 1,321.6 2,060.9 2,994.2
Ready Meals 1,850.6 2,607.9 4,913.4 8,996.7 13,289.6 18,159.0
Table 195 Sales of Ready Meals by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Shelf Stable Ready Meals 10.7 15.2 103.2

Chilled Lunch Kits - - -
Chilled Pizza - - -
Chilled Ready Meals - - -
Dinner Mixes - - -
Dried Ready Meals - - -
Frozen Pizza - - -
Frozen Ready Meals 14.4 21.3 162.4
Prepared Salads - - -
Ready Meals 11.5 16.5 114.4
Table 196 Sales of Ready Meals by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total

Chilled Pizza - - -
Dinner Mixes - - -
Frozen Pizza - - -
Frozen Ready Meals 45.3 64.2 1,094.8
Ready Meals 36.6 57.9 881.2
Table 197 NBO Company Shares of Ready Meals: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Maedeh Food Industry 34.2 34.7 32.4 30.1 28.7

Hani Co 23.2 24.1 22.8 23.3 23.8
Amol Meat Products Co 10.5 13.7 14.9 15.7 16.6
Esfahan Chika 11.4 11.8 11.1 11.9 10.2
Industrials Co
BA Production Group - 10.0 8.0 7.6 7.9 7.3
AFS Co
Tehran Meat Products Co 2.0 1.6 1.4 1.6 1.4
Others 8.7 6.1 9.8 9.5 12.0
Total 100.0 100.0 100.0 100.0 100.0
Table 198 LBN Brand Shares of Ready Meals: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Maedeh Maedeh Food Industry 34.7 32.4 30.1 28.7

Hani Hani Co 24.1 22.8 23.3 23.8
Kalleh Amol Meat Products Co 13.7 14.9 15.7 16.6
Chika Esfahan Chika 11.8 11.1 11.9 10.2
Industrials Co
BA BA Production Group - 8.0 7.6 7.9 7.3
AFS Co
Solico Tehran Meat Products Co 1.6 1.4 1.6 1.4
Others 6.1 9.8 9.5 12.0
Total 100.0 100.0 100.0 100.0
Table 199 Distribution of Ready Meals by Format: % Value 2010-2015
% retail value rsp
2010 2011 2012 2013 2014 2015

-- Modern Grocery 5.7 6.1 6.8 7.3 7.7 8.5
Retailers
--- Hypermarkets 3.9 4.2 4.4 4.7 4.8 5.3
--- Supermarkets 1.7 1.9 2.4 2.7 2.9 3.2
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 200 Forecast Sales of Ready Meals by Category: Volume 2015-2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Shelf Stable Ready Meals 40.6 45.2 51.0 56.7 62.5 68.7
Frozen Ready Meals 12.2 14.1 16.5 18.9 21.5 24.4
Ready Meals 52.8 59.3 67.4 75.6 84.0 93.0
trade sources
Table 201 Forecast Sales of Ready Meals by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Shelf Stable Ready Meals 15,164.8 17,391.2 20,172.8 23,102.2 26,260.4 29,714.0
Frozen Ready Meals 2,994.2 3,560.5 4,287.8 5,073.8 5,945.7 6,928.1
Ready Meals 18,159.0 20,951.7 24,460.7 28,176.0 32,206.1 36,642.0
trade sources
Table 202 Forecast Sales of Ready Meals by Category: % Volume Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total

Chilled Pizza - - -
Dinner Mixes - - -
Frozen Pizza - - -
Ready Meals 12.3 12.0 76.1
trade sources
Table 203 Forecast Sales of Ready Meals by Category: % Value Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL

Chilled Pizza - - -
Dinner Mixes - - -
Frozen Pizza - - -
Ready Meals 15.4 15.1 101.8
trade sources
RICE, PASTA AND NOODLES IN IRAN

- CATEGORY ANALYSIS
HEADLINES
 Rice, pasta and noodles records current value and retail volume growth of 30% and 6%
respectively in 2015, to reach IRR67,269.9 billion and 1.0 million tonnes
 Whilst growth in noodles is mainly derived from the low base, sales of rice and pasta are
stimulated by the conversion of consumers from loose/unpackaged products to packaged
products
 Noodles sees the most dynamic performance, recording current value growth of 45% in 2015
 The average unit price increases by 23% in current terms in 2015
 Golestan, a key player in rice, maintains its lead in rice, pasta and noodles in 2015,
accounting for a 24% share of value sales
 Rice, pasta and noodles is expected to increase by a value CAGR of 9% at constant 2015
prices in the forecast period, to reach IRR105,324.8 billion in 2020
TRENDS
 Rice remained a staple of the Iranian diet during 2015, as it is served along with Persian
kebabs and stews. The most important event of 2015 was the conversion of urban consumers
from loose/unpackaged rice to packaged products. Traditionally, the majority of households
prefer to buy rice in high volumes in unpackaged format, because of better affordability
compared with packaged products. This trend was challenged during 2015, as rice became
available in packaged format at a rapid pace, with widespread advertising campaigns in both
retail outlets and via mass media such as national television.
 Pasta was a very dynamic category during 2015, and its per capita consumption increased at
a rapid pace. There are several reasons for the popularity of this product in Iran. Affordable,
with easy, fun and convenient preparation, good nutritional value compared with alternatives
such as rice, rapid diversification of products on shelves, widespread advertising campaigns
and finally declining purchasing power can be regarded as the main factors improving the
position of pasta in Iranian households.
 Noodles, a more recent product, showed strong potential during 2015. Affordable, with easy
preparation and wide distribution even in independent small grocers resulted in impressive
volume growth for this category during 2015. Cultural changes, such as the increasing
number of working women, the increase in the number of people who live alone and the rapid
Westernisation trend all helped this product to strengthen its position in Iranians’ shopping
baskets.
 Overall rice, pasta and noodles recorded current value growth of 30% in 2015, which was
similar to the review period CAGR of 33%, and shows that this category has still not passed
its emerging phase, and is developing from a low base by recruiting new consumers each
year.
 Noodles was the most dynamic category in 2015, recording current value growth of 45%. Its
much lower base compared with rice and pasta, as well as the rapid increase in the
availability and penetration of noodles in grocery stores, can be regarded as the main reasons
for its impressive performance in 2015.
 In line with other packaged food categories, rice, pasta and noodles experienced a significant
increase in the average unit price during 2015, of 23%. This was mainly a result of high
inflation in the country, which is estimated to be more than 20% during 2015, which imposed
much higher costs for raw materials and production on domestic manufacturers.
 The most popular flavours of instant noodles are beef, chicken, vegetable, curry, mushroom
and cheese, mushroom and chilli, and are the most readily available in the Iranian market.
Amongst these, beef and chicken are the most popular SKUs.
 Rice has always been a major food type for Iranians. The popular cooked rice in Iran, cholo, is
always found at parties and celebrations, and this has been the case for many years. Iranians
mostly tend to purchase their rice in bulk, and it was only over the review period that
packaged, branded rice became popular, although it is still not commonplace. Most
foodservice outlets also use unpackaged bulk rice, due to its affordable price. The most
successful brand in this category is Golestan. The consumption of pasta and noodles in
loose/unpackaged format is very limited.
 In addition, Iranian rice is well-known for its quality and its long grain, and is generally grown
under irrigation in lowland areas. The wet Caspian lowlands in the northern provinces of
Gilan, Mazandaran and Golestan are the primary growing areas, where heavy rainfall typically
facilitates paddy cultivation in this sub-tropical, humid region.
 Rapid expansion of modern retail channels such as supermarkets and hypermarkets played a
key role in the development of rice, pasta and noodles in Iran. Prior to this development,
some of these products, such as packaged rice, were not widely distributed, and were not
known by Iranian consumers. Supermarkets and hypermarkets introduced promotions and
increased the visibility of the different brands available. However, independent small grocers
still accounted for the majority of retail value sales in Iran at the end of the review period.
 There are different key suppliers in each category in rice, pasta and noodles. Golestan is the
indisputable leader in packaged rice, accounting for a 41% retail value share in 2015, as
result of the strong performance of its Golestan and Pardis brands. The company was the first
supplier of packaged rice, and offers a wide range of products for consumers with different
levels of purchasing power. Its Golestan brand usually consists of domestic rice with higher
quality, whilst the Pardis brand is made of imported rice from India, which has lower quality
but a much more affordable unit price.
 There is strong competition between two domestic suppliers of pasta, Tak Makaron and Zar
Macaron. Tak Makaron, which accounted for a 23% share of retail value sales in pasta in
2015, enjoys strong consumer loyalty because of its long history in the market and good
quality. It offers a wide range of pastas in different shapes and packaging through its effective
distribution network. Zar Macaron, its key competitor, has the most modern production line,
and is responsible for many innovations in terms of the quality and packaging in pasta. The
company held a 22% share of retail value sales during 2015.
 Amadeh Laziz with its Noodelite brand was the strong leader in noodles in the Iranian market
in 2015, accounting for an 83% share of retail value sales. The company benefits a great deal
from the lack of a strong domestic competitor, and from being the pioneer which introduced
noodles to consumers for the first time. The main challenge for Amadeh Laziz is to create
awareness about this new product and recruit new consumers.
 Golestan, a successful player in rice, recorded the highest growth in value share of one
percentage point in 2015. Its key brand Golestan benefited from very successful advertising
campaigns. It uses several billboards in very visible and busy parts of the big cities, and also
tries to attract consumers’ attention through promotional activities in stores, such as draws.
 Domestic manufacturers continued to dominate rice, pasta and noodles in Iran in 2015, using
the opportunity of multinationals’ reluctance to enter the Iranian market. Key strong brands
such as Golestan, Tak, Zar and Noodelite have already established strong consumer loyalty
with their affordable and reasonably-priced products.
 One of the key launches in 2014 was the entry of Golestan in noodles under the brand name
Hotikara. Golestan, the indisputable leader in rice, decided to enter the virgin and intact
noodles category by introducing its new instant noodles product in beef, chicken, curry,
tomato and vegetable flavours. This new range, which is called HotiNoodles, is owned by
Kian Badas Food and Technology, a subsidiary of Golestan.
 Mass media advertising was very common for rice, pasta and noodles in 2015. However, the
types of media are not usually the same. Rice is usually advertised on national television and
radio, emphasising the good scent and taste. Pasta and noodles usually are advertised using
billboards in key urban areas and by using in-store point-of-sale materials.
 Overall, packaged rice is considered to be a premium product in comparison with unpackaged
type, and only consumers with higher incomes can afford to buy it (the price is approximately
twice that of the unpackaged format). In addition, most consumers buy high volumes of
unpackaged rice for their consumption in one year, which is much more economical. Iranian
rice can be categorised as premium, Indian and Pakistani rice as standard and Thai rice as
economy. Pasta and noodles, on the other hand, are usually economy and standard products,
as their unit prices do not vary significantly from brand to brand.
PROSPECTS
 Rice, as a staple traditional food in Iran, will be purchased by Iranians regardless of price
fluctuations in the forecast period. There will be two factors which will affect sales of packaged
rice. Whilst better availability and packaging of rice will stimulate the conversion of consumers
from loose/unpackaged rice to packaged rice, the much higher unit price of packaged rice
compared with the loose alternative will act as barrier to the further growth of packaged rice.
 Within pasta, improved distribution (and therefore product availability), increased spending on
advertising and promotion and more hectic lifestyles will all lead to increased consumption
during the forecast period. Retail volume and value sales will benefit from the increased
demand for convenience foods, as consumers’ lifestyles become increasingly hectic and more
women work outside of the home.
 Finally, the outlook for noodles is very promising. The launch of Noodelite could ensure good
consumer awareness and ease the entry of noodles into the Iranian market. This trend of
rising awareness is also expected to continue during the forecast period, which will result in
an impressive growth rate in volume terms.
 Overall, rice, pasta and noodles is expected to see a value CAGR of 9% at constant 2015
prices during the forecast period, which is much higher than the review period CAGR of 6%.
The conversion of consumers from loose to packaged rice, product diversification in pasta
and the very low base for noodles can be regarded as the main reasons for the better
performance.
 The average unit price of rice, pasta and noodles is expected to rise, due in part to the high
inflation rate which is forecast for the coming years. High inflation means that the key
suppliers of these products will face major increases in the prices of raw materials and
production costs, which will be translated into increases in unit prices for consumers.
 Independent small grocers, supermarkets and hypermarkets are expected to remain the
dominant distribution channels for rice, pasta and noodles during the forecast period. The
latter two channels are expected to increase in popularity at the expense of traditional
channels, especially independent small grocers.
 Golestan will remain the strong leader in rice. It is expected that the company will expand its
product portfolio and try to communicate with consumers of all income levels with
advertisements via billboards and in printed media. The main strategic target will be to convert
consumers from unpackaged to packaged rice. Pasta will be dominated by the two key
suppliers, Zar Makaron and Tak Macaron, which will engage in strong competition during the
forecast period. Finally, Amadeh Laziz’s dominance in noodles will be seriously challenged by
the activity of newcomers such as Golestan.
CATEGORY DATA
Table 204 Sales of Rice, Pasta and Noodles by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Rice 259.1 285.0 306.9 329.1 353.2 377.9

Noodles 0.2 0.3 0.4 0.7 0.8 1.0
- Chilled Noodles - - - - - -
- Frozen Noodles - - - - - -
- Instant Noodles 0.2 0.3 0.4 0.7 0.8 1.0
- Plain Noodles - - - - - -
- Snack Noodles - - - - - -
Pasta 458.5 513.5 554.5 571.3 602.7 637.1
- Canned Pasta - - - - - -
- Chilled Pasta - - - - - -
- Dried Pasta 458.5 513.5 554.5 571.3 602.7 637.1
Rice, Pasta and Noodles 717.7 798.7 861.9 901.1 956.7 1,016.0
Table 205 Sales of Rice, Pasta and Noodles by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Rice 9,792.1 11,956.2 16,265.5 21,394.1 29,613.1 39,290.6

Noodles 7.2 15.1 30.1 58.5 92.1 133.8
- Instant Noodles 7.2 15.1 30.1 58.5 92.1 133.8
Pasta 6,624.7 8,749.8 12,383.1 16,781.2 21,953.2 27,845.5
- Dried Pasta 6,624.7 8,749.8 12,383.1 16,781.2 21,953.2 27,845.5
Table 206 Sales of Rice, Pasta and Noodles by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Rice 7.0 7.8 45.9

Noodles 20.0 37.3 387.1
- Chilled Noodles - - -
- Frozen Noodles - - -
- Instant Noodles 20.0 37.3 387.1
- Plain Noodles - - -
- Snack Noodles - - -
Pasta 5.7 6.8 39.0
- Canned Pasta - - -
- Chilled Pasta - - -
- Dried Pasta 5.7 6.8 39.0
Table 207 Sales of Rice, Pasta and Noodles by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total
Rice 32.7 32.0 301.2

Noodles 45.2 79.2 1,750.4
- Instant Noodles 45.2 79.2 1,750.4
Pasta 26.8 33.3 320.3
- Dried Pasta 26.8 33.3 320.3
Table 208 NBO Company Shares of Rice, Pasta and Noodles: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Golestan Co 23.0 21.6 21.7 23.2 24.1

Tak Makaron Co 10.9 11.6 10.6 9.9 9.6
Zar Macaron Co 7.6 8.4 8.2 9.1 9.1
Shahdab Khorasan Co 5.2 5.3 5.5 5.4 5.3
Padid Co 7.0 6.5 5.6 5.0 4.8
Industry Co
Oghab Halva Co 4.2 4.1 3.7 3.7 3.6

Roshd Co 1.7 1.8 1.9 2.0 2.3
Manta Co 1.5 1.6 1.7 1.8 2.0
Behkam Co 1.3 1.3 1.2 1.1 1.2
Products Co
Sofreh Safa Co 1.1 0.8 0.7 0.6 0.5
Zartak Group 0.7 0.6 0.5 0.4 0.2
Amadeh Laziz Co 0.1 0.1 0.1 0.1 0.2
Nuhun Ankara Makarnasi 0.2 0.2 0.2 0.1 0.1
San ve Tic AS
Others 26.6 27.2 29.7 29.4 28.9
Total 100.0 100.0 100.0 100.0 100.0
Table 209 LBN Brand Shares of Rice, Pasta and Noodles: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Golestan Golestan Co 17.9 17.8 18.9 19.6

Tak Tak Makaron Co 11.6 10.6 9.9 9.6
Zar Zar Macaron Co 7.6 8.2 9.1 9.1
Tabarok Shahdab Khorasan Co 5.3 5.5 5.4 5.3
Padid Padid Co 6.5 5.6 5.0 4.8
Pardis Golestan Co 3.8 3.9 4.3 4.5
Taknam Avijeh Esfahan Food 4.8 4.5 4.4 4.4
Industry Co
Oghab Oghab Halva Co 4.1 3.7 3.7 3.6
Mana Alborz Makaron Co 3.0 3.2 3.0 3.0
Roshd Roshd Co 1.8 1.9 2.0 2.3
Samira Manta Co 1.6 1.7 1.8 2.0
Products Co
Lord Sofreh Safa Co 0.8 0.7 0.6 0.5
Zartak Zartak Group 0.6 0.5 0.4 0.2
Noodelite Amadeh Laziz Co 0.1 0.1 0.1 0.2
Ankara Nuhun Ankara Makarnasi 0.2 0.2 0.1 0.1
San ve Tic AS
Familia Zar Macaron Co 0.8 - - -
Others 27.2 29.7 29.4 28.9
Total 100.0 100.0 100.0 100.0
Table 210 NBO Company Shares of Rice: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Golestan Co 39.9 38.1 38.7 40.4 41.3

Padid Co 12.1 11.5 10.0 8.8 8.3
Industry Co
Oghab Halva Co 7.2 7.3 6.7 6.5 6.2

Others 23.6 25.3 26.8 27.1 27.6
Total 100.0 100.0 100.0 100.0 100.0
Table 211 LBN Brand Shares of Rice: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015

Padid Padid Co 11.5 10.0 8.8 8.3
Pardis Golestan Co 6.6 6.9 7.5 7.7
Taknam Avijeh Esfahan Food 8.4 8.0 7.7 7.5
Industry Co
Oghab Oghab Halva Co 7.3 6.7 6.5 6.2
Others 25.3 26.8 27.1 27.6
Total 100.0 100.0 100.0 100.0
Table 212 NBO Company Shares of Pasta: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Tak Makaron Co 25.7 26.9 24.2 23.4 23.1

Zar Macaron Co 18.0 19.5 18.7 21.3 21.9
Roshd Co 4.1 4.1 4.4 4.8 5.5
Manta Co 3.7 3.7 3.9 4.3 4.8
Behkam Co 3.1 2.9 2.8 2.5 2.8
Products Co
Sofreh Safa Co 2.6 1.8 1.6 1.3 1.1
Zartak Group 1.6 1.5 1.2 1.0 0.6
Nuhun Ankara Makarnasi 0.6 0.5 0.5 0.2 0.2
San ve Tic AS
Others 30.8 29.7 33.4 32.5 30.8
Total 100.0 100.0 100.0 100.0 100.0
Table 213 LBN Brand Shares of Pasta: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Tak Tak Makaron Co 26.9 24.2 23.4 23.1

Zar Zar Macaron Co 17.5 18.7 21.3 21.9
Mana Alborz Makaron Co 7.0 7.2 7.0 7.3
Roshd Roshd Co 4.1 4.4 4.8 5.5
Samira Manta Co 3.7 3.9 4.3 4.8

Products Co
Lord Sofreh Safa Co 1.8 1.6 1.3 1.1
Zartak Zartak Group 1.5 1.2 1.0 0.6
Ankara Nuhun Ankara Makarnasi 0.5 0.5 0.2 0.2
San ve Tic AS
Familia Zar Macaron Co 2.0 - - -
Others 29.7 33.4 32.5 30.8
Total 100.0 100.0 100.0 100.0
Table 214 NBO Company Shares of Noodles: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Amadeh Laziz Co 93.0 90.0 87.0 82.0 83.3

Others 7.0 10.0 13.0 18.0 16.7
Total 100.0 100.0 100.0 100.0 100.0
Table 215 LBN Brand Shares of Noodles: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Noodelite Amadeh Laziz Co 90.0 87.0 82.0 83.3

Others 10.0 13.0 18.0 16.7
Total 100.0 100.0 100.0 100.0
Table 216 Distribution of Rice, Pasta and Noodles by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 3.6 4.0 4.4 5.2 5.7 6.0
Retailers
--- Hypermarkets 1.7 1.8 2.1 2.8 3.1 3.3
--- Supermarkets 1.9 2.1 2.3 2.4 2.6 2.7
Retailers
specialists
Grocers

Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 217 Distribution of Rice by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 2.8 2.9 3.0 3.0 3.1 3.1
Retailers
--- Hypermarkets 1.0 1.0 1.1 1.1 1.1 1.1
--- Supermarkets 1.8 1.9 1.9 1.9 2.0 2.0
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 218 Distribution of Pasta by Format: % Value 2010-2015
% retail value rsp
2010 2011 2012 2013 2014 2015

-- Modern Grocery 4.7 5.3 6.2 8.0 9.2 10.1
Retailers
--- Hypermarkets 2.7 2.9 3.4 4.9 5.8 6.4
--- Supermarkets 2.0 2.4 2.8 3.1 3.4 3.6
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 219 Distribution of Noodles by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 3.5 4.5 5.5 6.4 7.5 8.7
Retailers
--- Hypermarkets 2.0 2.7 3.3 3.9 4.7 5.4
--- Supermarkets 1.5 1.8 2.2 2.5 2.8 3.3
Retailers
specialists
Grocers
Retailers

Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 220 Forecast Sales of Rice, Pasta and Noodles by Category: Volume 2015-2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Rice 377.9 409.8 448.3 486.4 524.2 561.8

Noodles 1.0 1.2 1.4 1.6 1.9 2.1
- Instant Noodles 1.0 1.2 1.4 1.6 1.9 2.1
Pasta 637.1 681.7 735.2 788.1 840.7 893.5
- Dried Pasta 637.1 681.7 735.2 788.1 840.7 893.5
trade sources
Table 221 Forecast Sales of Rice, Pasta and Noodles by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Rice 39,290.6 43,243.0 48,024.0 52,887.3 57,850.1 62,923.9

Noodles 133.8 163.0 200.2 240.7 284.7 332.0
- Instant Noodles 133.8 163.0 200.2 240.7 284.7 332.0
Pasta 27,845.5 30,241.3 33,104.1 36,016.9 38,999.8 42,068.9
- Dried Pasta 27,845.5 30,241.3 33,104.1 36,016.9 38,999.8 42,068.9
trade sources
Table 222 Forecast Sales of Rice, Pasta and Noodles by Category: % Volume Growth
2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
Rice 8.4 8.3 48.7

Noodles 18.9 17.0 119.4
Pasta 7.0 7.0 40.2
- Dried Pasta 7.0 7.0 40.2
trade sources
Table 223 Forecast Sales of Rice, Pasta and Noodles by Category: % Value Growth
2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL
Rice 10.1 9.9 60.1

Noodles 21.8 19.9 148.2
Pasta 8.6 8.6 51.1
- Dried Pasta 8.6 8.6 51.1
trade sources
SAUCES, DRESSINGS AND

CONDIMENTS IN IRAN - CATEGORY
ANALYSIS
HEADLINES
 Sauces, dressings and condiments records current value and retail volume growth of 19%
and 3% respectively in 2015, to reach IRR31,766.1 billion and 398,000 tonnes
 The low base of most categories is the main driver of growth during 2015
 Herbs and spices sees the most dynamic performance, recording current value growth of 40%
in 2015
 The average unit price increases by 16% in current terms in 2015
 Dasht Morghab Group maintains its lead in sauces, dressings and condiments in 2015,
accounting for an 18% value share
 Sauces, dressings and condiments is expected to increase by a value CAGR of 5% at
constant 2015 prices in the forecast period, to reach IRR41,321.2 billion in 2020
TRENDS
 There were three major groups of products in sauces, dressings and condiments in 2015,
based on consumption. Tomato pastes and purées remained the only product in the first
group. It has extraordinarily high consumption in Iran; in fact 70% of volume sales in sauces,
dressings and condiments belong to this single strategic product. It has wide applications in
Iranian cuisine, and total per capita consumption of this product was 6kg per head during
2015.
 The second group is products which enjoy good awareness amongst consumers but still show
strong potential for growth. Ketchup and mayonnaise can be regarded as two key items in this
group. Finally, the third group is products which have a very small base, and consumer
awareness regarding them is still in its infancy. Stock cubes, mustard, pasta sauces and salad
dressings can be regarded as several items in this group. It can be concluded that
considerable volumes sales in this category fall under the three key items in the first and
second groups, which are tomato pastes and purées, ketchup and mayonnaise, whilst high
growth rates in 2015 were seen for products in the third group, such as stock cubes and herbs
and spices, due to their low base.
 It is also important to know that the young population in Iran, with their growing demand for
modern sauces and dressings, were the most important drivers of volume growth during
2015. Cultural changes such as more working women and more hectic lifestyles encouraged
many consumers to opt for fast foods which can be prepared easily, and thus gave a good
opportunity for growth to bouillon, pasta sauces and pickled products.
 However, the rapid growth in unit price, at 16% in current terms in 2015, had a very negative
impact on growth. Many consumers who did not have strong purchasing power had to limit
their consumption in many categories, which negatively impacted volume growth. Overall,
sauces, dressings and condiments recorded current value growth of 19% in 2015, which was
lower than the review period CAGR of 33%.
 Herbs and spices was the most dynamic category in sauces, dressings and condiments
during 2015, recording current value growth of 40%. One reason for this impressive
performance is the fact that herbs and spices are traditionally loose/unpackaged products in
Iran, and it was only recently that they became available in large volumes in packaged format.
The low base of packaged spices, therefore, can be regarded as the main reason for growth.
 As previously mentioned, the average unit price experienced a significant jump of 16% during
2015, which was a result of the high inflation rate. Key producers were faced with much
higher costs for raw materials and production.
 The main product which is classified in other sauces, dressings and condiments is tahini,
which is called halva in Iran. It is used mainly for breakfast along with cheese and butter.
Yazd city in the centre of Iran is the main place for the production of tahini, and there are
many small workshops for the production of this product in the city.
 Wet/cooking sauces, dips, dry sauces, monosodium glutamate (MSG) and vinaigrettes,
amongst others, were either not available in Iran or registered marginal sales in the review
period. There is no demand for these sauces, but if the growth trend for similar such products
continues, players will eventually introduce them in Iran.
 The main distribution channels for sauces, dressings and condiments in Iran are independent
small grocers, supermarkets and hypermarkets. During the review period independent small
grocers lost retail value share to supermarkets and hypermarkets. Moreover, some
independent small grocers, especially in urban areas, were converted into supermarkets.
 Dasht Morghab Group with its popular Yek o Yek brand remained the strong leader in sauces,
dressings and condiments in Iran during 2015, accounting for an 18% retail value share. The
company benefits from a long history in the Iranian market, and its tomato paste is very
popular amongst Iranian consumers. Dasht Morghab Group has the motto “first class
products from first class ingredients”, and enjoys a strong distribution network, which
guarantees its presence even in remote areas.
 Sauces, on the other hand, is dominated by five domestic manufacturers, including Mahram,
Delpazir Foodstuff, Behrouz Food Industries, Alia Golestan Food Industries and Koochin
Food Industries, which offer a wide range of products, from ketchup to mayonnaise. The
leader in bouillon was Amadeh Laziz, which offers the popular Elit brand.
 Golestan saw the biggest increase from a low base, but the next most significant growth in
value share was that of Dasht Morghab Group during 2015. The company produces tomato
paste (with or without salt), pomegranate paste, mayonnaise (including low fat), ketchup,
different kinds of canned products and compôtes, purées, jams and jellies, various kinds of
fruit juice in different packaging and packaged honey. Its range of pickles (pepper and mixed
– cauliflower, carrot, red pepper, green pepper, cucumber and garlic), lemon juice, grape
pickle and grape leaf conserve also satisfied customers’ tastes in Iran over the review period.
Dasht Morghab Group boosted its sales with new product launches in 2014 and 2015, with
new packaging for pickled cucumber, for instance. It increased its value share by half a
percentage point during 2015.
 Sauces, dressings and condiments is dominated by domestic manufacturers, and there is a
very small presence of multinational brands in Iran. Domestic brands offer good quality at
affordable prices, and have established consumers’ loyalty through promotional activities and
broad advertising. Although some imports of multinational brands were seen during the review
period, these brands never reached considerable volumes due to their significantly higher unit
prices.
PROSPECTS
 In both volume terms and value terms at constant 2015 prices, the growth of sauces,
dressings and condiments is set to remain steady, with a CAGR of 3% in volume terms and a
CAGR of 5% in value terms during the forecast period. This is due to the high sales of basic
products such as tomato pastes and purées and mayonnaise, where consumer demand is
being met.
 Sauces, dressings and condiments will remain traditional in Iranian kitchens, and thus
demand for products such as tomato pastes and purées, pickled products and mayonnaise,
which are traditional cooking ingredients, will remain high. Tomato pastes and purées is
expected to remain dominant in sauces, dressings and condiments throughout the forecast
period.
 Furthermore, the growth of other types of sauces, dressings and condiments which are not
present in traditional cuisine in Iran may be driven in the future by an increase in the
population, which is becoming younger. Young people are more interested in Western
products and have higher purchasing power. The growing retail presence of supermarkets
and hypermarkets allows for a significantly larger product offering, which is anticipated to
trigger further demand.
 Another key factor driving growth will be the increasing number of quality products which
satisfy a variety of tastes, and consumers will become more aware of the range of sauces,
dressings and condiments available. In the forecast period more consumers will discover the
flavours and practicality of these sauces, due to new product developments and subsequent
advertising by key suppliers. Moreover, with new eating habits, such as eating food which can
be prepared more quickly, consumers will demand the sauces, dressings and condiments
which they eat in restaurants.
 Following the trend in the review period, pasta sauces is expected to experience a high
volume increase over the forecast period, which will correspond with the predicted overall
increase in the consumption of pasta in Iran. As demand for pasta rises in Iran, pasta sauces
will enjoy more popularity amongst Iranian consumers.
 Domestic companies are expected to continue to invest in research and marketing in order to
enhance the positions of their products in domestic and international markets. New product
developments and a strong focus on quality and innovation will drive growth in the forecast
period.
 Dasht Morghab Group, Behrouz Food Industries, Mahram, Delpazir Foodstuff and Urum Ada
Food Production Industries will improve their product diversity in order to compete with each
other. These companies are amongst the top six domestic companies in the category, and
operate in more or less the same areas. They will compete in order to take share from each
other, but also in order to enter different categories with new launches.
 With an increasing number of modern retail distribution outlets and the expansion of the
foreign hypermarket Carrefour, the competition will grow and unit prices may reduce in order
to attract consumers’ attention and encourage people to consume more products in sauces,
dressings and condiments. Lower unit prices will allow more people to buy and try new
products.
CATEGORY DATA
Table 224 Sales of Sauces, Dressings and Condiments by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Cooking Sauces 6.8 7.9 8.9 10.1 10.9 12.0

- Bouillon 0.6 0.8 0.9 1.0 1.1 1.1
- Dry Sauces - - - - - -
- Herbs and Spices 3.6 4.3 4.9 5.9 6.5 7.4
- Monosodium Glutamate - - - - - -
- Pasta Sauces 2.6 2.9 3.1 3.2 3.3 3.5
- Wet/Cooking Sauces - - - - - -
Dips - - - - - -
Pickled Products 25.3 27.6 29.7 30.7 32.3 34.7
Table Sauces 52.8 55.0 58.7 61.1 63.8 67.0
- Barbecue Sauces - - - - - -
- Fish Sauces - - - - - -
- Ketchup 17.0 17.4 17.8 18.1 18.6 19.2
- Mayonnaise 32.8 34.3 35.7 37.4 39.2 41.4
- Mustard 0.1 0.2 0.2 0.2 0.2 0.3
- Oyster Sauces - - - - - -
- Salad Dressings 2.8 3.1 5.0 5.4 5.8 6.2
- Soy Sauces - - - - - -
- Chili Sauces - - - - - -
Tomato Pastes and Purées 250.0 255.0 260.3 265.1 270.4 276.6
Other Sauces, Dressings 6.9 7.1 7.3 7.4 7.6 7.8
and Condiments
Condiments
Table 225 Sales of Sauces, Dressings and Condiments by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Cooking Sauces 443.5 569.5 886.8 1,656.0 2,403.7 3,297.7

- Bouillon 60.0 82.1 137.4 207.9 271.2 339.4
- Dry Sauces - - - - - -
- Herbs and Spices 327.6 408.0 647.2 1,289.6 1,892.4 2,648.4
- Pasta Sauces 55.9 79.4 102.1 158.5 240.2 309.9
Dips - - - - - -
Pickled Products 690.7 819.5 1,217.7 1,839.6 2,561.8 3,405.4
Table Sauces 1,528.1 1,821.1 2,659.6 3,531.2 4,801.6 6,033.8
- Ketchup 382.4 510.4 746.3 905.5 1,113.8 1,346.1
- Mayonnaise 1,040.7 1,184.9 1,660.5 2,309.4 3,225.1 4,079.2
- Mustard 6.0 9.2 13.3 17.0 24.4 34.2
- Salad Dressings 99.0 116.5 239.5 299.3 438.3 574.3
- Soy Sauces - - - - - -
Tomato Pastes and Purées 4,731.4 6,025.3 8,591.2 11,927.3 15,572.2 17,523.4
Other Sauces, Dressings 383.2 430.3 592.8 964.6 1,254.4 1,505.9
and Condiments
Sauces, Dressings and 7,776.9 9,665.7 13,948.0 19,918.7 26,593.8 31,766.1
Condiments
Table 226 Sales of Sauces, Dressings and Condiments by Category: % Volume Growth
2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Cooking Sauces 9.4 11.9 75.3

- Bouillon 4.3 13.3 87.1
- Dry Sauces - - -
- Herbs and Spices 12.5 15.1 102.4
- Monosodium Glutamate - - -
- Pasta Sauces 4.9 6.1 34.3
- Wet/Cooking Sauces - - -
Dips - - -
Pickled Products 7.2 6.5 36.8
Table Sauces 5.0 4.9 27.0
- Barbecue Sauces - - -
- Fish Sauces - - -
- Ketchup 3.3 2.4 12.8
- Mayonnaise 5.4 4.7 26.0
- Mustard 16.0 21.3 162.2
- Oyster Sauces - - -
- Salad Dressings 7.4 17.0 119.5
- Soy Sauces - - -
- Chili Sauces - - -
Tomato Pastes and Purées 2.3 2.0 10.6
Other Sauces, Dressings and Condiments 2.6 2.5 13.0
Table 227 Sales of Sauces, Dressings and Condiments by Category: % Value Growth
2010-2015

2014/15 2010-15 CAGR 2010/15 Total

- Bouillon 25.2 41.4 465.7
- Dry Sauces - - -
- Pasta Sauces 29.0 40.8 453.9
Dips - - -
Table Sauces 25.7 31.6 294.9
- Fish Sauces - - -
- Ketchup 20.9 28.6 252.0

- Mayonnaise 26.5 31.4 292.0
- Mustard 40.4 41.7 470.7
- Soy Sauces - - -
Table 228 NBO Company Shares of Sauces, Dressings and Condiments: % Value 2011-
2015
% retail value rsp

Company 2011 2012 2013 2014 2015

Delpazir Foodstuff Co 7.6 7.7 8.3 9.4 9.9
Urum Ada Food 9.5 10.3 10.1 9.5 9.1
Mahram Co 8.0 7.6 8.2 8.5 8.8
Co
Alia Golestan Food 2.7 2.9 3.3 3.9 4.4
Industries
Koochin Food Industries 1.4 1.8 2.3 3.2 4.2
Co
Golestan Co 1.2 1.3 1.9 2.3 3.2
Amadeh Laziz Co 0.8 1.0 1.7 2.5 2.8
Golha Food Industries 1.5 1.7 1.6 1.4 1.8
Sabzi-e-Iran Co 1.0 1.0 0.9 0.8 1.1
Etka Food Products Co 1.0 0.9 0.5 0.5 0.4
Nestlé Iran PJS Co 0.2 0.3 0.1 - -
Others 38.3 36.5 33.9 30.0 26.4
Total 100.0 100.0 100.0 100.0 100.0
Table 229 LBN Brand Shares of Sauces, Dressings and Condiments: % Value 2012-
2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Yek o Yek Dasht Morghab Group 16.1 17.2 17.8 18.4

Delpazir Delpazir Foodstuff Co 7.7 8.3 9.4 9.9
Urum Ada Urum Ada Food 10.3 10.1 9.5 9.1
Mahram Mahram Co 7.6 8.2 8.5 8.8
Rana Alia Golestan Food 2.9 3.3 3.9 4.4
Industries
Kalleh Koochin Food Industries Co 1.8 2.3 3.2 4.2

Elit Amadeh Laziz Co 1.0 1.7 2.5 2.8
Khoshab Khorasan Khoshab Khorasan Co 2.3 2.2 2.0 2.3
Golha Golha Food Industries 1.7 1.6 1.4 1.8
Sabzan Sabzi-e-Iran Co 1.0 0.9 0.8 1.1
Etka Etka Food Products Co 0.9 0.5 0.5 0.4
Maggi Nestlé Iran PJS Co 0.3 0.1 - -
Others 36.5 33.9 30.0 26.4
Total 100.0 100.0 100.0 100.0
Table 230 Distribution of Sauces, Dressings and Condiments by Format: % Value 2010-
2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 5.9 6.2 6.5 7.0 7.6 7.9
Retailers
--- Hypermarkets 3.1 3.3 3.4 3.7 4.1 4.3
--- Supermarkets 2.8 2.9 3.1 3.3 3.5 3.6
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 231 Forecast Sales of Sauces, Dressings and Condiments by Category: Volume
2015-2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Cooking Sauces 12.0 13.3 14.9 16.5 18.2 20.1

- Bouillon 1.1 1.2 1.3 1.4 1.4 1.5
- Dry Sauces - - - - - -
- Herbs and Spices 7.4 8.4 9.6 10.9 12.2 13.7
- Pasta Sauces 3.5 3.7 4.0 4.3 4.6 4.9
Dips - - - - - -
Pickled Products 34.7 37.2 40.2 43.1 46.0 49.0
Table Sauces 67.0 70.8 75.3 79.7 84.2 88.6
- Ketchup 19.2 19.9 20.7 21.6 22.4 23.3
- Mayonnaise 41.4 43.9 46.9 49.8 52.6 55.5
- Mustard 0.3 0.3 0.4 0.4 0.5 0.6
- Salad Dressings 6.2 6.7 7.3 8.0 8.6 9.3
- Soy Sauces - - - - - -
Tomato Pastes and Purées 276.6 278.9 282.1 284.9 287.8 290.5
Other Sauces, Dressings 7.8 8.0 8.3 8.5 8.8 9.0
and Condiments
Condiments
trade sources
Table 232 Forecast Sales of Sauces, Dressings and Condiments by Category: Value
2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Cooking Sauces 3,297.7 3,789.1 4,403.6 5,057.5 5,767.2 6,546.9

- Bouillon 339.4 368.7 402.9 438.3 476.0 516.3
- Dry Sauces - - - - - -
- Herbs and Spices 2,648.4 3,084.4 3,634.3 4,221.2 4,859.6 5,562.6
- Pasta Sauces 309.9 335.9 366.4 397.9 431.7 468.0
Dips - - - - - -
Pickled Products 3,405.4 3,728.9 4,111.2 4,495.6 4,894.3 5,314.8
Table Sauces 6,033.8 6,452.4 6,948.0 7,445.6 7,952.4 8,475.8
- Ketchup 1,346.1 1,409.2 1,484.3 1,562.2 1,639.1 1,716.1
- Mayonnaise 4,079.2 4,371.4 4,716.2 5,056.3 5,401.0 5,755.4
- Mustard 34.2 40.3 48.5 57.4 67.2 77.6
- Salad Dressings 574.3 631.6 699.0 769.6 845.1 926.7
- Soy Sauces - - - - - -
Tomato Pastes and Purées 17,523.4 17,815.0 18,158.4 18,490.1 18,822.8 19,156.2
Other Sauces, Dressings 1,505.9 1,561.4 1,625.0 1,690.2 1,757.7 1,827.4
and Condiments
Sauces, Dressings and 31,766.1 33,346.8 35,246.3 37,179.0 39,194.3 41,321.2
Condiments
trade sources
Table 233 Forecast Sales of Sauces, Dressings and Condiments by Category: %

Volume Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total

- Bouillon 6.2 6.3 35.8
- Dry Sauces - - -
Dips - - -
- Fish Sauces - - -
- Ketchup 3.7 3.9 21.3
- Mustard 15.9 16.0 110.5
- Soy Sauces - - -
trade sources
Table 234 Forecast Sales of Sauces, Dressings and Condiments by Category: % Value
Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL

- Bouillon 8.6 8.8 52.1
- Dry Sauces - - -
Dips - - -
- Fish Sauces - - -
- Ketchup 4.7 5.0 27.5
- Mustard 17.7 17.8 126.7
- Soy Sauces - - -
trade sources
SOUP IN IRAN - CATEGORY

ANALYSIS
HEADLINES
 Soup sees impressive current value and retail volume growth of 33% and 13% respectively in
2015, to reach IRR816.1 billion and 2,700 tonnes
 The low base of the category, as well as better availability of products in stores, are the main
reasons for the impressive performance in 2015
 Dehydrated soup accounts for all sales of soup in Iran in 2015
 The average unit price of soup increases by 18% in current terms in Iran in 2015
 Amadeh Laziz leads soup with a 66% share of retail value sales in 2015
 Soup is expected to see a value CAGR of 14% at constant 2015 prices in the forecast period,
with sales reaching IRR1,577.6 billion in 2020
TRENDS
 Soup, as a very immature category, performed well in 2015. Cultural changes such as the
increasing number of working women, the increase in the number of people who live alone
and the rapid trend of Westernisation all helped this product to strengthen its position in the
shopping baskets of Iranian households. Another key reason for the good growth was the
strong image of soup in the Iranian diet. Soup is the first choice for people who suffer from a
cold or the flu, and is very popular especially during the cold winters.
 However, Iranian households are used to putting fresh ingredients such as poultry and
vegetables in their soups. Recently, this habit was challenged by the rapid expansion of
packaged soup in grocery retailers. Many young Iranian families have discovered the
convenience and good taste of these products, and started to use dehydrated soup in 2015.
Even families who did not want to lose the freshness of traditional soup started to add
packaged products to their recipes to give them a better taste. The 13% growth in retail
volume terms during 2015 can be regarded as proof of the dynamic performance of soup in
the country.
 Dehydrated soup is the only product available in soup in Iran, and there is very limited
awareness about other types of soup amongst Iranian consumers. In key urban areas,
especially Tehran, a good consumer base for dehydrated soup has been built through
advertising campaigns, such as sampling in shopping centres, promotional activities in
cooking programmes on national television and promotional packs.
 In line with other packaged food categories, soup also saw a significant increase in unit price
of 18% in current terms during 2015. Key manufacturers were forced to implement a
significant rise in unit prices for raw materials and production costs.
 Barley is the most popular flavour of soup in Iran in both packaged and home-made traditional
soup. Key manufacturers of soup have always tried to add additional ingredients to barley to
make it more attractive. Vegetables, mushroom, chicken and tomato are the most popular
choices added to plain barley soup.
 The development of retailing in Iran, with the opening of new supermarkets and
hypermarkets, has played an important role in increasing the volume and value sales of
dehydrated soup. Prior to this development, this product was not widely distributed, and was
not well-known to Iranian consumers. Supermarkets and hypermarkets introduced promotions
and increased the visibility of the different brands available.
 Amadeh Laziz, which is a domestic manufacturer, was the indisputable leader in soup in
2015. The company offers its soup under the brand name Elit, and was able to grow its value
share continuously until 2014. It accounted for a 66% share of retail value sales of soup in
2015. However, the company started to record a decline in value share during 2015, as the
import ban was gradually removed.
 The company enjoys very strong distribution, which has made its products available in nearly
all of the independent small grocers in key urban areas. It has a wide range of packaged food
products, ranging from different flavours of soups and bouillons to noodles, and this wide
range contributes strongly to the sales of this company.
 Key advertising campaigns for soup include sampling sessions, advertisements in family and
professional cooking magazines and in-store activities such as posters and stands, which
proved to be crucial for the success of this category. For instance, one of the pillars of
success for Amadeh Laziz was the huge number of its red stands which were present in
grocery stores, ensuring its brand was available, visible and accessible.
 However, due to the weak loyalty of Iranian consumers to specific brands, distribution is still a
key element for success. In other words, only companies with effective distribution and trade
promotions are able to increase their shares.
 Domestic brands were considered as standard in 2015, whilst the small quantity of imported
brands could be considered premium. As dehydrated soup remains a relatively new entrant to
the Iranian culinary spectrum, premium brands are less likely to fare well in the short- to
medium-term.
PROSPECTS
 Soup is expected to see major growth during the forecast period. The rapid rate of
Westernisation and the major increase in the number of working women will contribute
strongly to the growth of this small category in Iran. Key suppliers, on the other hand, will try
to use the opportunity and gain share by improving their distribution. However, the category
will face direct competition from home-made soup or soup bought from restaurants, which
could hamper further development.
 However, the growth rate in the forecast period is not expected to be as high as that seen in
the review period, which is mainly a result of the fact that soup has passed its initial strongly
performing years, and thus it is not possible to repeat the particularly strong growth rates.
Overall, soup is expected to see a value CAGR of 14% at constant 2015 prices during the
forecast period, which is lower than the review period CAGR of 16%.
 The price of soup is expected to continue to rise, similar to other packaged food categories.
This is due to the considerable inflation rate in Iran, as well as increased raw materials and
production costs after the start of the subsidies reform programme.
 Over the forecast period sales of soup are likely to remain limited to dehydrated soup. Sales
of shelf stable soup, instant soup, chilled soup, UHT soup and frozen soup are expected to
remain negligible in Iran. There is no indication that other soup categories will emerge in the
Iranian packaged food market, as all other formats are too unfamiliar and/or expensive for
most local consumers.
 It is expected that supermarkets and hypermarkets will continue the review period trend of
increasing activity and share gains from independent small grocers. Furthermore, an
increasing number of supermarkets and hypermarkets in Iran could initiate discounting and
price competition within packaged food in Iran, including in soup.
 Soup in Iran is expected to continue to witness strong competition, and to remain highly
concentrated. The current key suppliers, Amadeh Laziz, Golestan and Mahnam Food
Industries, are expected to continue to lead the category through their popular Elit, Hotikara
and Mahnam brands. However, the relaunch of Maggi and Knorr could be a possibility if these
suppliers can get the necessary permissions.
CATEGORY DATA
Table 235 Sales of Soup by Category: Volume 2010-2015
tonnes
2010 2011 2012 2013 2014 2015
Shelf Stable Soup - - - - - -

Chilled Soup - - - - - -
Dehydrated Soup 1,360.0 1,720.0 2,012.4 2,140.0 2,354.0 2,660.0
Frozen Soup - - - - - -
Instant Soup - - - - - -
UHT Soup - - - - - -
Soup 1,360.0 1,720.0 2,012.4 2,140.0 2,354.0 2,660.0
Table 236 Sales of Soup by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015

Dehydrated Soup 126.8 173.1 295.8 428.0 612.0 816.1
UHT Soup - - - - - -
Soup 126.8 173.1 295.8 428.0 612.0 816.1
Table 237 Sales of Soup by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Shelf Stable Soup - - -

Chilled Soup - - -
Dehydrated Soup 13.0 14.4 95.6
Frozen Soup - - -
Instant Soup - - -
UHT Soup - - -
Soup 13.0 14.4 95.6
Table 238 Sales of Soup by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total

Chilled Soup - - -
Frozen Soup - - -
Instant Soup - - -
UHT Soup - - -
Soup 33.3 45.1 543.8
Table 239 NBO Company Shares of Soup: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Amadeh Laziz Co 54.0 56.0 63.3 69.0 66.3

Golestan Co 2.0 3.2 5.3 8.5 9.6
Mahnam Food Industries 7.2 6.8 8.2 8.0 8.4
Sabzan Co 3.2 3.1 4.3 5.6 5.9
Nestlé Iran PJS Co 23.8 21.1 12.0 - -
Unilever Iran Co 2.5 5.6 2.0 - -
Others 7.3 4.1 4.9 8.9 9.8
Total 100.0 100.0 100.0 100.0 100.0
Table 240 LBN Brand Shares of Soup: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Elit Amadeh Laziz Co 56.0 63.3 69.0 66.3

Hotikara Golestan Co 3.2 5.3 8.5 9.6
Mahnam Mahnam Food Industries 6.8 8.2 8.0 8.4
Sabzan Sabzan Co 3.1 4.3 5.6 5.9
Maggi Nestlé Iran PJS Co 21.1 12.0 - -
Knorr Unilever Iran Co 5.6 2.0 - -
Others 4.1 4.9 8.9 9.8
Total 100.0 100.0 100.0 100.0
Table 241 Distribution of Soup by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 6.0 6.9 7.7 8.8 9.7 10.6
Retailers
--- Hypermarkets 3.6 4.3 4.8 5.6 6.2 6.8
--- Supermarkets 2.4 2.6 2.9 3.2 3.5 3.8
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 242 Forecast Sales of Soup by Category: Volume 2015-2020
tonnes
2015 2016 2017 2018 2019 2020

Dehydrated Soup 2,660.0 2,989.5 3,403.6 3,813.0 4,228.3 4,657.5
UHT Soup - - - - - -
Soup 2,660.0 2,989.5 3,403.6 3,813.0 4,228.3 4,657.5
Source: Official statistics, trade associations, trade press, company research, Euromonitor International
estimates
Table 243 Forecast Sales of Soup by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020

Dehydrated Soup 816.1 935.5 1,086.4 1,241.4 1,404.2 1,577.6
UHT Soup - - - - - -
Soup 816.1 935.5 1,086.4 1,241.4 1,404.2 1,577.6
estimates
Table 244 Forecast Sales of Soup by Category: % Volume Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total

Chilled Soup - - -
Frozen Soup - - -
Instant Soup - - -
UHT Soup - - -
Soup 12.4 11.9 75.1
estimates
Table 245 Forecast Sales of Soup by Category: % Value Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL

Chilled Soup - - -
Frozen Soup - - -
Instant Soup - - -
UHT Soup - - -
Soup 14.6 14.1 93.3
estimates
SPREADS IN IRAN - CATEGORY

ANALYSIS
HEADLINES
 Spreads records 31% value and 10% total volume growth to reach IRR 23,395 billion and
120,900 tonnes in 2015
 The process of conversion from homemade products to packaged alternatives continues at a
rapid rate in 2015
 Honey is the most dynamic category in 2015 with 13% volume growth
 Unit prices increase by 20% in 2015
 Dasht Morghab Group maintains its leadership with a 22% value share in 2015
 A value CAGR of 15% at constant 2015 prices is predicted for the forecast period, with sales
TRENDS
 Honey and jams and preserves remained the most important categories in spreads in Iran in
2015 and growth in consumption was mainly the result of better availability of packaged items
and the process of conversion of consumers from loose/homemade products to packaged
items. However, both categories, and especially jams, remained under the strong influence of
unpackaged alternatives as these products continued to be made by many Iranians at home.
 Rapid urbanisation and modern lifestyles led many young Iranian couples to be reluctant to
continue the trend from their parents. These young people had a great desire for packaged
honey and jams, which are much easier to use and accessible even in independent small
grocers. This new attitude among consumers translated into strong growth for spreads in
2015. Overall, spreads recorded value growth of 32% in 2015 which was very dynamic,
although lower than the value CAGR of 44% witnessed over the review period. The reason for
the lower growth in 2015 was the continuing increase in the unit price, which negatively
impacted demand.
 Honey was the most dynamic category in Iran in 2015 in terms of total volume growth, the
result of better availability of this product and positive coverage of its health benefits.
Previously, key suppliers of jams were also involved in the honey category, while in recent
years some specialist honey producers were able to expand their activities, which attracted
the attention of consumers to a great extent. Among these Salar Khomein was the most
important supplier of honey in Iran in 2015.
 Smaller categories, such as chocolate spreads, enjoyed dynamic value growth in 2015, as
retail distribution improved and prices became more competitive. However, sales of yeast-
based spreads remained negligible in Iran at the end of the review period. These products are
unfamiliar to consumers and were too expensive to achieve notable sales.
 Unit prices of spreads continued to rise in line with other packaged food categories. Raw
materials for spreads, such as fruit and cocoa, recorded significant price increases, which
showed its impact on the price of spreads in 2015, which increased by 20%.
 Iranians consumed a wide range of fruit as jams and preserves, with this reflecting the
availability of popular fresh fruit in the country. However, the most traditional and popular
flavour for jams and preserves among Iranians was carrot. Other popular flavours included
quince, rose, sour cherry and strawberry. These products form a central part of a typical
Iranian breakfast, along with fresh bread, cream, butter and cheese.
 Dasht Morghab Group, with its popular Yek O Yek brand, remained the leader in spreads in
2015, accounting for a 22% value share. Dasht Morghab is one of the oldest suppliers of
packaged foods in Iran and is well known among Iranian consumers as a producer of quality
products. It had very wide distribution in most independent small grocers and enhanced the
position of its spreads with the help of its other well-known products, such as canned
preserved food.
 Iranian spreads was characterised by domestic suppliers and multinationals did not play a
significant role in 2015. Domestic brands, such as Yek o Yek, Mahram, Bartar and Urum Ada,
led due to their strong reputations among Iranian consumers. These brands were available in
almost every grocery outlet in Iran and were supported by strong promotional activity.
 No significant advertising campaigns were observed for spreads in Iran in 2015 and most of
the key manufacturers preferred to focus on improvements in their distribution networks and
in-store activities. TV advertising, billboards and similar mass media such as satellite TV were
not utilised by the majority of players. Sampling sessions were key in 2015, conducted by key
suppliers of honey such as Salar Khomein in modern grocery outlets in key urban areas.
 Mahram, which was the second largest supplier of spreads in Iran, had a strategic focus on
honey in 2015 and launched different pack sizes to target consumers. The company enjoyed
popularity amongst Iranians due to its Mahram brand, which has a long established
reputation, with almost 40 of years’ experience in the Iranian packaged food market.
 Most products in the spreads category could be classified as standard or economy. Premium
products were not popular in Iran as the majority of consumers were not prepared to pay too
much for spreads.
PROSPECTS
 Spreads is expected to record strong growth rates over the forecast period. Many consumers
are set to convert from unpackaged/homemade products to packaged alternatives as a result
of the increasing trend of urbanisation. Traditional spreads, such as honey and jams and
preserves, are expected to continue to account for the majority of retail sales, while more
modern products, such as nut and seed based spreads, will record volume growth rates of
8%, far higher than chocolate based spreads at 4% volume growth.
 One factor which could hamper growth of spreads would be an increase in unit prices, which
might encourage consumers to prepare spreads at home instead of buying packaged
products. In fact this was a reason for lower growth in 2015 compared to the review period
and could also inhibit high volume growth over the forecast period.
 Overall, spreads is expected to record a total volume CAGR of 11% over the forecast period,
higher than the review period equivalent of 9%, demonstrating the steady and promising
performance of this category.
 Unit prices of spreads are expected to record slight increases over the forecast period. Key
suppliers of spreads will have to increase unit prices over the forecast period in order to
maintain their profitability.
 Distribution of spreads is expected to witness major changes over the forecast period. Given
the trend of modernisation of retailing, many consumers will have the opportunity to purchase
their spreads from supermarkets and hypermarkets instead of independent small grocers.
This will also provide a good opportunity for suppliers to launch effective promotions and
advertising campaigns.
 Spreads in Iran is expected to continue to be characterised by local manufacturers, especially
in honey and jams and preserves, with leading players, Dasht Morghab Group, Mahram,
Navidkaran Cooperative and Urum Ada Food Production Industries enjoying long-established
consumer loyalty.
 Niche categories, such as chocolate spreads, are anticipated to enjoy growth over the
forecast period, as retail channels improve. However, yeast-based products is likely to
continue to record negligible sales over the forecast period, as consumer awareness is non-
existent. Any development of the category in Iran would require massive levels of advertising
and promotional support. As with unfamiliar products, such as breakfast cereals, sampling
sessions in supermarkets and hypermarkets could help to increase consumer awareness of
these products, although they are so alien to Iranian consumers that any development would
be strictly for the long term.
CATEGORY DATA
Table 246 Sales of Spreads by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Honey 34.9 36.7 46.3 50.0 56.3 63.3

Chocolate Spreads 5.2 5.6 5.9 6.0 6.2 6.4
Jams and Preserves 25.8 26.8 27.9 30.0 32.1 34.5
Nut and Seed Based 5.6 5.9 6.1 6.5 6.9 7.4
Spreads
Yeast-based Spreads - - - - - -
Spreads 71.5 74.9 86.2 92.5 101.5 111.6
Table 247 Sales of Spreads by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Honey 2,429.8 2,838.2 5,088.5 8,500.0 12,947.2 17,117.8

Chocolate Spreads 314.2 389.6 539.1 780.0 1,116.7 1,410.1
Jams and Preserves 757.0 919.7 1,451.9 2,100.0 3,016.4 3,915.8
Spreads
Spreads 3,720.0 4,405.1 7,441.8 11,875.7 17,798.3 23,395.4
Table 248 Sales of Spreads by Category: % Volume Growth 2010-2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Honey 12.6 12.7 81.6

Chocolate Spreads 3.5 4.1 22.2
Jams and Preserves 7.4 6.0 33.9
Nut and Seed Based Spreads 6.9 5.7 31.7
Yeast-based Spreads - - -
Spreads 10.0 9.3 56.1
Table 249 Sales of Spreads by Category: % Value Growth 2010-2015

2014/15 2010-15 CAGR 2010/15 Total
Honey 32.2 47.8 604.5

Spreads 31.4 44.4 528.9
Table 250 NBO Company Shares of Spreads: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015

Mahram Co 17.3 17.8 17.2 16.9 16.1
Urum Ada Food 10.8 11.4 11.0 10.7 10.4
Somayeh Co 6.4 6.4 6.0 6.3 6.5
Pajouhesh Co 3.7 3.2 3.0 2.7 2.5
Shemshad Co 3.5 2.9 2.5 2.3 2.1
Shadab Khorasan Co 3.5 2.9 2.4 2.1 1.8
Others 26.8 26.9 29.1 30.9 32.6
Total 100.0 100.0 100.0 100.0 100.0
Table 251 LBN Brand Shares of Spreads: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Yek o Yek Dasht Morghab Group 21.8 22.3 21.9 22.2

Mahram Mahram Co 17.8 17.2 16.9 16.1
Urum Ada Urum Ada Food 11.4 11.0 10.7 10.4
Somayeh Somayeh Co 6.4 6.0 6.3 6.5
Bartar Navidkaran Cooperative Co 6.6 6.5 6.2 5.8
Pajouhesh Pajouhesh Co 3.2 3.0 2.7 2.5
Shemshad Shemshad Co 2.9 2.5 2.3 2.1
Shadab Shadab Khorasan Co 2.9 2.4 2.1 1.8
Others 26.9 29.1 30.9 32.6
Total 100.0 100.0 100.0 100.0
Table 252 Distribution of Spreads by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 3.2 3.5 4.3 4.9 5.6 6.2
Retailers
--- Hypermarkets 1.9 2.1 2.7 3.0 3.7 4.1
--- Supermarkets 1.3 1.4 1.6 1.8 1.9 2.1
Retailers
specialists
Grocers
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 253 Forecast Sales of Spreads by Category: Volume 2015-2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Honey 63.3 72.4 83.8 95.7 108.6 122.5

Chocolate Spreads 6.4 6.6 6.9 7.2 7.5 7.8
Jams and Preserves 34.5 37.3 40.6 43.9 47.3 50.8
Spreads
Spreads 111.6 124.3 140.1 156.3 173.6 192.1
trade sources
Table 254 Forecast Sales of Spreads by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Honey 17,117.8 20,077.4 23,810.2 27,890.7 32,426.0 37,503.3

Chocolate Spreads 1,410.1 1,500.3 1,602.7 1,711.6 1,829.5 1,957.9
Jams and Preserves 3,915.8 4,323.6 4,808.9 5,307.1 5,835.6 6,404.6
Nut and Seed Based 951.7 1,046.1 1,161.1 1,276.1 1,393.3 1,513.4
Spreads
Spreads 23,395.4 26,947.4 31,382.9 36,185.5 41,484.4 47,379.4
trade sources
Table 255 Forecast Sales of Spreads by Category: % Volume Growth 2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
Honey 14.3 14.1 93.5

Spreads 11.4 11.5 72.2
trade sources
Table 256 Forecast Sales of Spreads by Category: % Value Growth 2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL
Honey 17.3 17.0 119.1

Spreads 15.2 15.2 102.5
trade sources
SWEET AND SAVOURY SNACKS IN

HEADLINES
 Sweet and savoury snacks records current value and retail volume growth of 29% and 4%
respectively in 2015, to reach IRR19,947.5 billion and 80,000 tonnes
 The young population and widespread advertising campaigns in the mass media are the main
drivers of growth during 2015
 Fruit snacks sees the most dynamic performance, recording current value growth of 36% in
2015
 The average unit price of sweet and savoury snacks increases by 24% in current terms in
2015
 Dina Food Industries maintains its lead in sweet and savoury snacks in 2015, accounting for a
40% value share
 Sweet and savoury snacks is expected to increase by a value CAGR of 7% at constant 2015
prices in the forecast period, to reach IRR27,888.0 billion in 2020
TRENDS
 Sweet and savoury snacks saw impressive growth in volume terms in 2015, benefiting from
the young population in Iran. National statistics show that there are still more than 14 million
people in Iran who are aged 0-14, accounting for 23% of the population, which gives this
category a large potential consumer base. Key suppliers have noticed this strong opportunity,
and in the absence of many multinational suppliers, are targeting consumers with massive
advertising campaigns and many new launches, which all resulted in the rapid growth of per
capita consumption, especially in recent years.
 However, sweet and savoury snacks recorded current value growth of 29% in 2015, which
was lower than the CAGR in the review period, at 39%. The main reason for this slower
performance was increasing awareness of the negative effects of snacks on health and
wellness, which convinced many consumers in urban areas to limit their consumption.
 Fruit snacks recorded the highest current value growth of 36% in 2015. The impressive
growth of fruit snacks was principally due to its relatively low sales base, as the category
accounted for a 1% share of retail volume sales in 2015. In addition, fruit is a staple part of the
Iranian diet, and Iranians consume fruit in large quantities every day. Therefore, products in
this category match consumers’ tastes and habits, mainly because of growing health
concerns.
 In line with other categories in packaged food, sweet and savoury snacks saw a significant
increase of 24% in the average unit price in 2015, which was mainly a consequence of the
high inflation rate. Key suppliers faced major increases in production costs (raw materials, fuel
and electricity), which resulted in the higher prices of end products.
 Microwave popcorn is a relatively new product in the Iranian market, and consumer
awareness of this product type is still very limited. As a result, a 95% share of retail value
sales is of the non-microwave variant. However, this new product has seen a major increase
in demand, which was mainly a result of key new launches which made it available in key
urban areas in particular.
 Although the consumption of nuts is traditionally high in Iran, people usually buy unpackaged
nuts in bulk, resulting in relatively low sales of packaged nuts. Adults and young people are
targeted by advertisements for branded nuts. In 2015 advertisements emphasised the
nutritional value of nuts and promoted their consumption. It is worth mentioning that during
Norooz (Iranian New Year), it is customary to buy high quantities of nuts in different varieties.
As a result there is a significant increase in sales at the end of March each year. However,
this development is mostly visible in terms of unbranded bulk products.
 There are various other products competing with sweet and savoury snacks in Iran. Fruit, as a
staple part of the Iranian diet, is a major threat to growth. The orchards and vineyards of Iran
produce an abundance of fruit, which is not only enjoyed fresh or as a dessert, but is
imaginatively combined with meat, and served as an accompaniment to main dishes. When
fresh fruits are not available, dried fruits such as dates, figs, apricots and peaches are eaten
instead. Chocolate confectionery, traditional Iranian sweets, biscuits and ice cream are also
popular snacks in Iran.
 However, there was a change in the consumption pattern for snacks during the review period.
The younger generation, unlike their parents, prefer cool and fun snacks such as crisps and
extruded snacks for their parties and celebrations instead of fruit and other snacks. It is very
common for the Iranian younger generation to serve extruded snacks or crisps and yoghurt
along with alcoholic drinks, which are served illegally at private parties.
 Sweet and savoury snacks are usually available in independent small grocers, supermarkets
and hypermarkets. The high number of independent small grocers implies that key suppliers
need to improve their distribution networks in order to remain competitive in the market. As
the majority of Iranian consumers still are not concerned about the brand, any company that
makes its products available at points of sale will enjoy higher volume sales.
 Dina Food Industries remains a very strong company in sweet and savoury snacks in Iran,
accounting for a 40% value share during 2015. The company has three key brands which can
be regarded as its best-selling products. Cheetos is a brand of crisps and extruded snacks
(pofak in the Farsi language) which enjoys a long history in Iran. Consumers’ loyalty to this
brand is amongst the highest in the whole packaged food market, and shows the efficacy of
advertising campaigns by Dina Food Industries. Iranian consumers are bombarded by
advertisements for this brand nearly everywhere. The company’s two other key brands
(Munchips and Nik Naks), although they cannot be compared to Cheetos, are still amongst
the most successful brands of snacks in Iran. Dina Food Industries also has a very strong and
effective distribution network, which guarantees its presence in nearly all potential points of
sale.
 Kish Chips, the second ranked player, accounted for a 19% share of retail value sales during
2015. The company is a leading manufacturer of high-quality nuts and nut products, which are
also exported to many different international markets. The launch of different nuts, such as
almond, pistachio and watermelon nuts in attractive packaging was a real breakthrough for
the company. In addition, the company’s brands are well-known and widely available,
especially Maz Maz, which enjoys long-established loyalty amongst Iranian consumers.
 However, most of the innovations in flavours and packaging are expected from Behara Food
Industries with its popular Chuckles brand. Chuckles continued to run widespread advertising
campaigns on national television and billboards, and improved its range of products in both
crisps and extruded snacks. Bestselling SKUs under this brand include yoghurt and basil
crisps, mushroom and cream crisps and salsa crisps.
 The strong performance of domestic manufacturers and their good coverage leaves little room
for the activity of multinationals in sweet and savoury snacks in Iran. Domestic products offer
competitive prices, enjoy widespread availability and consumers are loyal to established
brands and manufacturers.
 Domestic companies invest heavily in mass media advertising for sweet and savoury snacks,
including on national television. They also use billboard and magazine advertisements to
target young consumers. In the middle of the review period multinational players tried to gain
popularity, such as The Procter & Gamble Co through its Pringles brand. However,
multinationals were severely hampered as a result of their limited distribution and relatively
high prices.
 All sweet and savoury snacks can be regarded as standard or economy, and there are very
few premium products available in Iran. Most Iranian consumers cannot afford premium sweet
and savoury snacks. As a result, products which have a high price tag are not popular
amongst Iranian consumers.
PROSPECTS
 Sweet and savoury snacks is expected to benefit from the young consumer base in Iran
during the forecast period. Key suppliers will continue to offer more sophisticated products
with different unique selling points, which will boost sales in the coming years. Strong
competition means that rapid and effective awareness will be raised by the contribution of the
key suppliers, which will also increase demand. Overall, sweet and savoury snacks is
expected to see a retail volume CAGR of 5% during the forecast period, which is very close to
the review period figure.
 Currently, Iranian consumers have limited awareness about different flavours and shapes of
snacks, and usually enjoy simple products such as crisps, but this trend is expected to
change in the coming years. The launch of new shapes and flavours of snacks due to the
strong competition will make many consumers eager to ask for products which are different
from than the basic products. These new launches always have higher unit prices in
comparison with the basic offers, and thus contribute better to value growth.
 Forecasting the future in terms of price is very hard, considering major changes in the Iranian
economy after 2015 and agreements with the West. However, a general trend of price
increases is expected, due in part to the high inflation rate. The Iranian government will try to
manage and control these price increases, and in the case of price control, consumption
could grow further.
 It is predicted that supermarkets and hypermarkets will continue to increase their retail value
shares during the forecast period, at the expense of independent small grocers. By 2020
supermarkets and hypermarkets are expected to account for much higher shares of retail
value sales. Furthermore, the increasing number of supermarkets and hypermarkets in Iran
could initiate discounting and price competition within packaged food in Iran, including in
sweet and savoury snacks
 With no major changes predicted in terms of company shares, domestic players are expected
to continue to dominate sweet and savoury snacks over the forecast period. Dina Food
Industries is likely to remain the leading player through the Cheetos brand. Domestic
companies are expected to continue to invest in research and marketing in order to enhance
the positions of their products in the domestic and international markets. New product
developments and a strong focus on quality and innovation will drive sales of sweet and
savoury snacks during the forecast period.
CATEGORY DATA
Table 257 Sales of Sweet and Savoury Snacks by Category: Volume 2010-2015
'000 tonnes
2010 2011 2012 2013 2014 2015
Fruit Snacks 0.4 0.5 0.6 0.7 0.8 0.9

Nuts 9.6 10.3 10.7 10.9 11.1 11.4
Crisps 28.1 29.8 31.3 33.0 34.3 35.8
Extruded Snacks 21.0 21.7 22.4 23.1 24.0 25.0
Popcorn 4.2 4.5 4.8 5.0 5.3 5.7
Pretzels - - - - - -
Tortilla Chips - - - - - -
Other Sweet and Savoury - - - - - -
Snacks
Table 258 Sales of Sweet and Savoury Snacks by Category: Value 2010-2015
IRR billion
2010 2011 2012 2013 2014 2015
Fruit Snacks 16.4 24.9 40.9 62.1 92.7 125.9

Nuts 863.1 1,239.2 1,926.3 3,801.0 5,337.9 6,859.2
Crisps 1,828.1 2,073.4 2,817.2 4,239.5 5,643.7 7,313.1
Extruded Snacks 796.8 874.2 1,075.7 2,173.3 3,113.1 4,014.6
Popcorn 359.1 493.7 633.1 850.0 1,234.4 1,634.7
Snacks
Sweet and Savoury Snacks 3,863.5 4,705.4 6,493.2 11,125.9 15,421.8 19,947.5
Table 259 Sales of Sweet and Savoury Snacks by Category: % Volume Growth 2010-
2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
Fruit Snacks 16.0 19.1 139.9

Nuts 2.8 3.6 19.2
Crisps 4.5 5.0 27.4
Extruded Snacks 4.0 3.5 18.9
Popcorn 6.8 6.0 34.0
Pretzels - - -
Tortilla Chips - - -
Other Sweet and Savoury Snacks - - -
Table 260 Sales of Sweet and Savoury Snacks by Category: % Value Growth 2010-
2015

2014/15 2010-15 CAGR 2010/15 Total
Fruit Snacks 35.7 50.3 666.9

Nuts 28.5 51.4 694.7
Crisps 29.6 32.0 300.0
Popcorn 32.4 35.4 355.3
Pretzels - - -
Table 261 NBO Company Shares of Sweet and Savoury Snacks: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Dina Food Industries 40.2 37.3 37.7 39.3 39.5

Kish Chips Co 21.0 19.8 18.0 18.3 18.5
Behara Food Industries Co 9.1 12.7 13.2 13.7 13.7
Nik Pars Co 3.7 8.2 8.6 8.8 8.2
Hajim Daneh Mihan Food 6.6 6.8 7.0 6.5 6.6
Industries
Golestan Co 5.7 5.8 4.5 5.2 5.5
Lina nik Co 5.7 5.3 4.7 4.5 4.9
Talachin Agro 1.2 1.0 - - -
Industrial Co
Others 5.6 2.5 5.3 2.3 1.2
Total 100.0 100.0 100.0 100.0 100.0
Table 262 LBN Brand Shares of Sweet and Savoury Snacks: % Value 2012-2015
% retail value rsp

Brand Company 2012 2013 2014 2015
Cheetos Dina Food Industries 32.7 34.0 35.5 35.7

Maz Maz Kish Chips Co 19.8 18.0 18.3 18.5
Chuckles Behara Food Industries Co 10.7 12.2 12.9 13.1
Yummy Nik Pars Co 8.2 8.6 8.8 8.2
Poffila Hajim Daneh Mihan Food 6.8 7.0 6.5 6.6
Industries
Lina Lina nik Co 5.3 4.7 4.5 4.9
Munchips Dina Food Industries 2.8 2.2 2.1 1.9
Nik Naks Dina Food Industries 1.8 1.5 1.7 1.9
Pofak Namaki Pars Minoo Industrial Co 0.7 1.0 1.4 1.9
Crunchips Behara Food Industries Co 2.0 1.0 0.8 0.6
Bato Talachin Agro 1.0 - - -
Industrial Co
Others 2.5 5.3 2.3 1.2
Total 100.0 100.0 100.0 100.0
Table 263 Distribution of Sweet and Savoury Snacks by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015

-- Modern Grocery 6.4 7.2 7.9 8.5 9.7 10.3
Retailers
--- Hypermarkets 4.2 4.9 5.3 5.8 6.7 7.2
--- Supermarkets 2.2 2.3 2.5 2.7 3.0 3.1
Retailers
specialists
Grocers
--- Other Grocery 7.8 7.6 7.5 7.3 7.1 7.0
Retailers
Grocery Specialists
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 264 Forecast Sales of Sweet and Savoury Snacks by Category: Volume 2015-
2020
'000 tonnes
2015 2016 2017 2018 2019 2020
Fruit Snacks 0.9 1.1 1.2 1.4 1.7 1.9

Nuts 11.4 11.8 12.3 12.7 13.2 13.7
Crisps 35.8 37.7 40.0 42.2 44.4 46.7
Extruded Snacks 25.0 25.9 27.0 28.1 29.1 30.2
Popcorn 5.7 6.1 6.6 7.2 7.7 8.2
Snacks
trade sources
Table 265 Forecast Sales of Sweet and Savoury Snacks by Category: Value 2015-2020
IRR billion
2015 2016 2017 2018 2019 2020
Fruit Snacks 125.9 147.8 175.9 206.2 239.8 277.7

Nuts 6,859.2 7,262.4 7,727.8 8,210.7 8,728.3 9,287.4
Crisps 7,313.1 7,852.8 8,489.8 9,140.0 9,817.9 10,531.0
Extruded Snacks 4,014.6 4,221.1 4,467.4 4,720.3 4,972.2 5,229.8
Popcorn 1,634.7 1,786.0 1,970.0 2,162.8 2,361.8 2,562.1
Snacks
Sweet and Savoury Snacks 19,947.5 21,270.1 22,830.9 24,440.0 26,120.0 27,888.0
trade sources
Table 266 Forecast Sales of Sweet and Savoury Snacks by Category: % Volume Growth
2015-2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
Fruit Snacks 15.9 15.6 106.8

Nuts 3.3 3.7 19.7
Crisps 5.3 5.5 30.4
Popcorn 7.6 7.8 45.5
Pretzels - - -
trade sources
Table 267 Forecast Sales of Sweet and Savoury Snacks by Category: % Value Growth
2015-2020

2015/2016 2015-20 CAGR 2015/20 TOTAL
Fruit Snacks 17.4 17.1 120.6

Nuts 5.9 6.2 35.4
Crisps 7.4 7.6 44.0
Popcorn 9.3 9.4 56.7
Pretzels - - -
trade sources

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PACKAGED FOOD IN IRAN

LIST OF CONTENTS AND TABLES

Strategic Direction .................................................................................................................. 18

Table 28 Forecast Sales of Baby Food by Category: % Value Growth 2015-

Table 55 Forecast Sales of Biscuits and Snack Bars by Category: % Volume

Table 103 Sales of Spreadable Processed Cheese by Type: % Value

Table 224 Sales of Sauces, Dressings and Condiments by Category: Volume

PACKAGED FOOD IN IRAN -

Packaged Food Gradually Recovers From the Chaotic Situation of

More Stable Business Environment With Much Lower Unit Price

Artisanal Products Are Still Significant in A Highly Fragmented Arena

Independent Small Grocers Are Still Dominant But Face Challenges

Lessening of Sanctions and More Stable Economic Situation Will Fuel

FOODSERVICE: KEY TRENDS AND DEVELOPMENTS

Table 1 Foodservice Sales of Packaged Food by Category: Volume 2010-2015

Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2010-

Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2015-

Confectionery 7.9 8.0 8.2 8.3 8.4 8.6

Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume

Baby Food 13.0 14.6 16.0 15.9 15.7 16.3

Table 6 Sales of Packaged Food by Category: Value 2010-2015

Baby Food 1.5 1.9 2.7 3.8 6.2 7.1

Table 7 Sales of Packaged Food by Category: % Volume Growth 2010-2015

Baby Food 3.9 4.6 25.4

Baked Goods 0.6 -0.3 -1.5

Table 8 Sales of Packaged Food by Category: % Value Growth 2010-2015

% current value growth

Baby Food 15.7 36.2 369.3

Table 9 GBO Company Shares of Packaged Food: % Value 2011-2015

% retail value rsp

Dasht Morghab Group 1.2 1.3 1.5 1.6 1.6

Tak Makaron Co 0.8 0.9 0.8 0.7 0.8

Table 10 NBO Company Shares of Packaged Food: % Value 2011-2015

% retail value rsp

Golestan Co 1.9 1.8 1.7 1.9 2.1

Table 11 LBN Brand Shares of Packaged Food: % Value 2012-2015

% retail value rsp

Bahar Behshahr Industrial Co 2.7 2.6 2.6 2.4

Bonasaleh Bonsaleh Macaron Food 0.1 0.1 0.1 0.1

Table 12 Distribution of Packaged Food by Format: % Value 2010-2015

% retail value rsp

Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0

Table 13 Distribution of Packaged Food by Format and Category: % Value 2015

% retail value rsp

Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0

--- Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0

ICF OF PFV PMS RM RPN

Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0

SDC SOU SPR SSS

Store-Based Retailing 100.0 100.0 100.0 100.0

- Grocery Retailers 100.0 100.0 100.0 100.0

Table 14 Forecast Sales of Packaged Food by Category: Volume 2015-2020

Baby Food 16.3 17.0 17.9 18.8 19.6 20.4

Table 15 Forecast Sales of Packaged Food by Category: Value 2015-2020

Baby Food 7.1 7.5 8.1 8.7 9.2 9.7

Table 16 Forecast Sales of Packaged Food by Category: % Volume Growth 2015-2020

Baby Food 3.9 4.5 24.8

Table 17 Forecast Sales of Packaged Food by Category: % Value Growth 2015-2020

% constant value growth

Baby Food 5.7 6.4 36.3

Summary 1 Research Sources

PACKAGED FOOD IN IRAN -

Summary 2 Behshahr Industrial Co: Key Facts