Despite Hurdles, Opportunities Exist For Food Companies In A Post-Sanctions Iran

What should multinational food companies expect now that sanctions against Iran – the 17th largest economy in the world – have been lifted? It’s a mixed economic landscape: the country’s GDP will grow as much as two percent over the next five years, the country is tax friendly, but tariffs exist, inflation is at 20 percent and unemployment is high. As Iran further opens up, multinational brands will find importing easier, and market share will grow. This will increase competitive pressure on Iran’s domestic manufacturers, especially in juices and dairy. But tariffs on imports give domestic packaged food companies a distinct advantage when it comes to price-controlled staples such as dairy, baked goods, confectionery, oils and fats. Euromonitor advises multinationals to open up local factories to remain price competitive, or partner with local players.