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Iran Food and Beverage Industry Report 2014

General Industry Statistics and Trends, Exports, and Top Players

Industry Benchmark Report
Prepared for:
April/May 2024
Reading Time 5 min
Among the main sectors of the Gross Domestic Product (GDP), between 1390 and 1401 (2011–2022), the highest Compound Annual Growth Rates (CAGR) were related to Services (4%), Agriculture (2%), and Industry and Mining (1%), respectively, while Oil and Gas experienced a decline at a rate of -4%. In 1399 (2020/2021), the food and beverage industry accounted for 18% of the total industrial workforce and, with a 10% share of the production value, constituted 10% of the total investment in industrial production. The number of workshops in the food and beverage industry saw a significant increase from 1393 to 1394 (2014–2015) and has remained approximately constant since 1395 (2016). With 18% of employment and 11% of the increase in the country’s industrial value, Iran’s food and beverage industry can be considered a labor-intensive industry. The value added of the food and beverage industry in 1399 appears to be lower than its peak in 1396 (2017) but higher than in 1390 (2011), and it grew at a compound growth rate of one percent during this period. Throughout the period from 1390 to 1399, the general pattern of investment in food and beverages was upward, increasing at a compound annual growth rate of 8%. The food and beverage industry is divided into two main categories: Food and Beverage, where food constitutes more than 90% of the total industry. The oil production group, with a 4% share of the workforce, creates 13% of the food industry’s value added and has the highest value creation per unit of labor. In a general overview, food and beverage exports faced a decline in both volume and value from 1397 to 1401 (2018–2022), and the higher rate of decline in export value (-15%) represents a relative decrease in the unit price of this industry’s exported goods. Six countries cumulatively account for about 80% of the total value of Iran’s food and beverage exports and 82% of its volume in 1401: Iraq, Afghanistan, Turkey, Pakistan, Russia, and Turkmenistan. Iraq and Afghanistan were attractive markets for the food and beverage industry in 1397, and with the decrease in exports to these two main destinations, the total exports of this industry declined between 1397 and 1401. Although prepared food products have been the main part of Iran’s food and beverage exports, their value faced a 48% decrease from 1397 to 1401. Exports of Iran’s prepared food products have witnessed a continuous decline, while the export volume has not changed significantly, which itself indicates the decreasing value of the exported goods. After 1397, vegetable oils and fats were almost eliminated from Iran’s oil export basket, decreasing from 53 million dollars in 1397 to 0.3 million dollars in 1401. During the period from 1397 to 1400, a downward trend was observed in both the value and volume of beverage exports; however, this trend changed between the years 1401 and 1402. Exports of milling products have seen a continuous decline from 1397 to 1401, resulting from a sharp decrease in the export of wheat products in terms of both value and volume. Based on the 1401 (2022) edition of the IMI500 ranking, the top three companies in the food and beverage industry among the top Iranian companies are Kourosh, Azadegan, and Minoo, where the main shareholder of Minoo is the Azadegan company.

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زمان مطالعه: 5 دقیقه

About the report

Industry reports have been compiled since the early 20th century by organizations, research firms, and trade associations of various industries, with the aim of collecting reliable data and providing data-driven approaches as a key pillar of informed business decision-making.

The function of industry reports has evolved over time; reports produced by leading management consulting firms such as McKinsey, Boston Consulting Group, and Bain serve as the industry’s go-to source for accurate data and operational experience, accurately reflecting the pulse of the industry.

Collection of reports IndustrialistThe industry-specific data chapter is one of the main centers for publishing industry-specific data. The first series of these reports provides an overview of seven key industries in Iran and includes four main sections: (1) An overview of Iran’s macroeconomics, (2) General industry statistics and trends, (3) Export statistics, and (4) Top players.

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A look at Iran’s macroeconomics

The share of agriculture and industry (excluding oil and gas) in GDP remained stable at around 6% and 25%, respectively, during 2011-2012, and during the same period, Iran’s services sector grew at a CAGR of 3.5%, while oil and gas declined at a CAGR of 3.8%, reducing the share of services to half of GDP. After 2020, Iran’s economy grew slightly, with the main burden (62%) being growth in the services sector.

Among the main sectors of GDP, between 2011 and 2022, the highest compound annual growth rates were in services (4%), agriculture (2%), industry and mining (1%), and oil and gas declined at a rate of -4%.

Financial intermediation, transportation, and real estate have been the main drivers of service sector growth, likely due to their immunity from international volatility as well as the high growth of the digital economy.

Between 2018 and 2022, the total volume of Iran’s non-oil exports increased at a compound annual growth rate of 1%, but at the same time, the total value of exports grew at a rate of 5%.

General food and beverage statistics and trends

In 2020, the food and beverage industry accounted for 18% of the total industrial workforce and, with a share of 10% of production value, constituted 10% of total industrial production investment.

During the period 2011-2021, the overall investment pattern was incremental, increasing at a compound annual growth rate of 8%.

To examine the food and beverage industry in more detail, it is necessary to review the ISIC classification of this industry used by the Statistics Center;

Food and beverage exports

In general, food and beverage exports have faced a decline in volume and value during the years 2018-2022, and the higher rate of decline in export value (15%) reflects the relative decrease in the unit price of this industry’s exported goods.

Six countries collectively account for about 80% of Iran’s total food and beverage export value and 82% of its volume in 1401: Iraq, Afghanistan, Turkey, Pakistan, Russia, and Turkmenistan.

In 1401, Iraq was the main destination for Iranian exports, purchasing 39% of Iran’s total export volume and accounting for 43% of the total value of Iran’s food and beverage exports, indicating the relatively higher value of Iran’s food and beverage export products to this country.

Iraq and Afghanistan were attractive markets for the food and beverage industry in 2018, and with the decline in exports to these two main destinations, the industry’s total exports have decreased between 2018 and 2022.

Significant decrease in exports to Iraq, from $0.9 billion in 2018 to $0.4 billion in 2022, was the main reason for the decline in Iran’s food and beverage exports from 2018 to 2022. Secondly, the decline in exports to Afghanistan after 2017, mainly due to political fluctuations, has significantly contributed to the decline in exports.

Top Food and Beverage Actors

The Industrial Management Institute (IMI) began ranking Iran’s top companies in 1998, and its latest edition was published in January 2023, covering the performance of 2021.

The main purpose of compiling the IMI1500 ranking is to determine and rank the level of participation of companies in the national economy, in order to promote transparency and competition in the business environment and generally improve the position of Iranian enterprises. This comparison and ranking is based on financial information published in the companies’ financial statements.

The economic effectiveness of a company’s activities at the national level is directly related to its sales volume. The Institute of Industrial Management ranks companies by considering seven main indicator categories, each of which includes specific and precise indicators:

According to IMI-500 (version 1401), the top three companies in the food and beverage industry among the top Iranian companies are Kourosh, Azadegan, and Minoo, with Minoo’s main shareholder being Azadegan Company.

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