Iran’s dairy products market is projected to grow at a high compound annual growth rate (CAGR) of around 22 per cent, during 2016 to 2021, according to report by TechSci Research, a research based global management consulting firm.

The increase in the market’s growth can be attributed to increasing urbanisation, rising health consciousness among youth population, growing preference for packaged dairy products among people living in rural and semi-urban regions and upliftment of economic sanctions that enabled international trade in the country, said the report titled “Iran Dairy Products Market By Type, By Organized vs. Unorganized, Competition Forecast and Opportunities, 2011-2021”.

Moreover, increase in the number of malnutrition cases in the country has led to higher awareness among people, regarding consumption of packaged milk and other packaged dairy products. This is expected to accelerate growth in the country's dairy products market through 2021.

During 2011-2015, Iran dairy products market experienced high demand for value added dairy products such as butter and margarine, cheese, yogurt, ice cream, etc., across the country. In order to address this demand, a large number of domestic as well as international dairy product manufacturers operating in Iran are offering high quality products, with no adulteration.

The upliftment of trade sanctions from Iran enabled domestic players operating in the country's dairy products market to import technologically advanced machinery and equipment for production of milk and eliminated trade barriers that would help domestic players to export dairy products to various markets in Europe and North America.

Additionally, Tehran and Tabriz regions of Iran were major revenue generators in Iran dairy products market in 2015 and these regions are expected to maintain their dominance in the country during the forecast period, due to the presence of major dairy products companies offering innovative products through a robust distribution network.

Karan Chechi, research director with TechSci Research, said: “Increasing government initiatives and investments in the country's dairy industry, upliftment of economic sanctions from Iran, and growing focus towards diversification of Iran's economy into non-oil sectors and establishment of a well-knit network of farms for milk supply to factories are few of the major reasons anticipated to fuel growth of dairy products market in Iran in the coming years.”

“Changing lifestyles and increasing popularity of western and packaged products is fuelling demand for processed and packaged dairy products such as ice-cream, cheese, butter, and more,” he said.

“Furthermore, packaged products are becoming increasingly popular in rural areas of Iran, due to growing awareness among consumers about the health benefits associated with the consumption of hygienically packaged dairy products,” he added.

The report has evaluated the future growth potential of dairy products market in Iran and provides statistics and information on market structure, size, share and future growth of Iran dairy products market.

It intends to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyses emerging trends along with essential drivers, challenges and opportunities in the Iran dairy products market. – TradeArabia News Service