High Potential Markets in Iran

Which markets are international companies looking at?

Certainly, the Iranian market is one of the most attractive and untapped markets in the world. Words of Jack Straw, the former British Foreign Secretary, called Iran “the last great and untapped market in the world”. But the question that arises is which markets in Iran are more attractive. And which markets in Iran have international companies focused on?

This question can be answered using different approaches and indicators. One of the most important indicators is the number of marketing research projects. We know that international companies, especially European ones, before entering Iran; Define marketing research projects to identify and analyze the Iranian market. The greater the number of these projects; Shows that international companies are more willing to enter certain markets. This index can be used as one of the best indicators to measure the desire of Western companies to enter the Iranian market. If we consider this index, we can define the most attractive Iranian markets for international companies as follows. It should be noted that this article will not talk about oil, gas, minerals, and the like, but only about consumer goods:

  1. A) milk formula and baby food

It is safe to say that powdered milk and baby food supplements can be considered one of the most attractive products in the food industry for foreigners. On average, more than 50 large marketing research projects are submitted annually by the producers of these products to marketing research agencies in Iran. Also, dozens of market research projects are implemented annually by the active teams of these companies. It can also be estimated that more than 500 specialized interviews are conducted annually by foreign manufacturers of these products with Iranian physicians in order to obtain information on how to prescribe and recommend powdered milk and other baby food supplements. The scope of these projects clearly shows what an attractive market we are facing in this area. Completely untapped market without the presence of capable Iranian competitors. The attractiveness of this market is such that some international producers have started joint or exclusive production in Iran and others are consulting to start production in Iran.

Interesting results have been obtained in research. The most important point in this regard is that the highest sensitivity to nutrition in Iran is related to child nutrition, and Iranian mothers are more sensitive to the type and quality of nutrition of their infants and children than the global average. Also, most of the visits to the doctor for nutrition advice were related to the nutrition of infants and children. All these factors have increased the attractiveness and size of this market in Iran. Also, in recent years, attention to the issue of food allergies, especially for infants, has increased, and this issue has made it more important to pay attention to infant nutrition.

  1. B) Cellulose products

Cellulose products can be divided into four groups: cellulose products for children (such as diapers); General cellulose products (such as paper towels, etc.); Cellulose products for women, and cellulose products for adults and the elderly. It is safe to say that the market for these products in Iran, has been one of the most attractive markets for international companies, so, during the last year, at least 40 large marketing research projects by these companies have been entrusted to marketing research agencies in Iran. A significant portion of these projects (at least 90%) are defined by international companies. Especially in two areas, cellulose products for women and the elderly; The market has been more attractive to international companies, and more projects in these areas have; Defined and implemented. The reason for this is also clear. Internal examples in these cases; They do not have acceptable quality and most consumers are dissatisfied with their quality. Also, the number of domestic competitors active in these two areas is not very large and the consumer does not have much choice. Therefore, we have witnessed the active presence of foreign brands in the market of these products in the country, and despite the high price of these products in Iran; We have seen their good sales, especially in urban areas.

  1. C) Types of milk-based desserts

One of the relatively untapped markets in Iran is the market of milk and fruit-based desserts. Dozens of research projects in this field have been carried out in the country in recent years. Some international brands have even started production in Iran or want to start a joint venture with an Iranian company. In this industry, Iranian brands have had limited activity, which, of course, have recently increased their scope of activity and have offered quality products to the market in this field. However, these products can still be considered new products in the Iranian market, and this case encourages international companies to enter the Iranian market.

  1. D) Types of non-alcoholic beer

The non-alcoholic beer market is one of the attractive local markets. Although there are several domestic brands in the industry; the space is open for foreign brands to enter Iran. Before the escalation of sanctions, we saw the presence of various Turkish, German, etc. brands in this industry in Iran, but after the escalation of sanctions and the increase in currency prices; Their presence in the Iranian market diminished. Now, the space for these brands to enter Iran has become more open, and due to the interest of Iranians in consuming foreign brands, especially in restaurants; the Presence of these brands in Iran; Increased. During the year 2017; At least 20 major marketing research or product testing projects by international companies operating in the industry have been implemented in Iran and are ongoing. Even Iranian companies have stepped in and conducted dozens of marketing surveys and conducted extensive advertising campaigns in this area.

The beer market, unlike the juice market, has shrunk in size in recent years (the juice market is not very attractive to foreign companies); It has an increasing trend and its market size has always been expanding. This issue has caused space for foreign brands to enter, despite the acceptable quality of domestic samples. Of course, the re-increase in foreign exchange prices has created restrictions on the entry of these brands into Iran, and for this reason, negotiations of these companies for joint production in Iran have begun.

  1. E) Tires and tires

In Iran, at least 10 factories producing tires and car tires are active. But unfortunately, almost a third of the country’s needs are met through imports or smuggling. Especially tires for luxury cars and SUVs, which are often supplied through imports. The new generation of high-tech tires is also produced to a limited extent in Iran, and most of the country’s products are not compatible with modern technologies. These have led to Korean, European, and even Chinese companies; Paying attention to the Iranian market. Many research projects have been carried out in the country over the past year in order to meet the information needs of these international companies about the Iranian market.

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