In 2015, butter and margarine segment dominated Iran’s dairy products market, followed by milk.
In 2015, butter and margarine segment dominated Iran’s dairy products market, followed by milk.

Iranian Dairy Market Offers Strong Growth Prospects

The market for dairy products in Iran is projected to grow at a CAGR of over 22% by 2021

Iranian Dairy Market Offers Strong Growth Prospects

Iran’s market for dairy products witnessed a significant growth during 2011-15, on the back of increasing demand from across the country and shift in consumer preferences from unpacked dairy products to packaged dairy products.
In addition, rapid urbanization and changing lifestyles in Iran are projected to drive production and consumption of processed and packaged dairy products across the country.
According to a new report by US-based market research firm TechSci Research, the market for dairy products in Iran is projected to grow at a compound annual growth rate of over 22% by 2021, which is attributable to increasing the online presence of major market players offering dairy products and increasing westernization of food habits.
The increasing focus of the Iranian government to reduce economic dependence on oil and gas sector is fueling investments for development of dairy farming and agriculture sectors.
The recent lifting of economic sanctions from Iran by the UN opened up the economy, facilitating trade and business with countries in Europe and North America.
Consequently, various international dairy brands are expected to enter Iran in the coming years and establish multiple milk collection and cooling centers in various provinces, including rural areas.
Ireland’s state agency Bord Bia embarked on a trade mission with 17 Irish food producers to explore the potential of Iranian market at the end of April this year. The visit was aimed at increasing Ireland’s share in the Iranian food market, following the removal of international sanctions in January.
The Irish delegates, including Minister of Agriculture Michael Creed, met senior officials of Iran’s Agriculture Ministry to discuss trade opportunities for Irish agricultural products, including dairy.
“Iran’s profile as a key player in the region will make it a key focus for any nation with agro export-related ambitions such as Ireland and could be considered a gateway to the region,” Creed said after the visit.
About 600,000 tons of dairy products worth $624 million were exported from Iran to 30 countries in the last fiscal year that ended in March.
Latest statistics show, exports during the eight months to November 20 earned $500 million. The Dairy Industries Association of Iran expects the figure to reach $650 million by the end of the current Iranian year (March 20, 2017).
Iran is the second biggest exporter of dairy products in the Middle East after Turkey, Mohammad Reza Sanjabi, the head of Holstein Association of Iran, said.
“At present, Iran has around 8.8 million head of cattle, close to 1 million of which are of the Holstein breed, which produce an average of 32 kilograms of milk per day,” he was quoted as saying by ISNA.
Iran is now self-sufficient in meeting its demand for cheese, butter and milk powder. It has copious exports in the field owing to the high milk production.
In 2015, butter and margarine segment dominated Iran’s dairy products market, followed by milk. The rising consumption of yogurt and cheese in the country can be attributed to increasing preference for such products over fresh/pasteurized milk as well as high consumption of ‘doogh’, a yogurt-based beverage commonly served with Iranian meals.
Pegah Dairy Company, Kalleh Dairy Company, Mihan Dairy Group, Teen Dairy Products Company and Pak Dairy Company are some of the leading players operating in Iran’s dairy products market and these companies offer a wide variety of dairy products through a well-established distribution network.

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