The edible oils and fats market in Iraq possesses immense potential for growth and is majorly captured by prominent international companies such as Anadolu Group, Altunkaya Group of Companies, Marsan Gida San Ve Tic A.S., Aves A.S., and Zer Group. These companies accounted for an approximate market share of 90% in 2015, and have used an array of strategies to attain an oligopoly in the market. They have invested in the research and development of various technologies, established joint ventures, expanded their business, and have even acquired regional traders. Despite the proven success of these companies, local firms such as Etihad Food Industries are on the verge of beginning operations in the Iraq oil and fats market. Consequentially, the locally produced oils and fats are expected to witness an escalating demand, estimates TMR.
The market for edible oils and fats in Iraq is estimated to be valued at US$2.3 bn by 2025 as compared to US$1.3 bn in 2015, registering a CAGR of 6.0% over the forecast period from 2016 to 2025. In terms of volume, the edible oil and fats market in Iraq is prophesied to register a CAGR of a 3.3% during the forecast period.
The cumulative volume of edible oil and fats in Baghdad is expected to scale up to 268.3 thousand tons in 2025 from 190.9 thousand tons in 2015. This shall take the annual growth rate of edible oils and fats between 2010 and 2025 in Baghdad to 3.5%. Other regions expected to register a substantial CAGR for edible oils and fats market are Muthanna and Maysan. In terms of distribution channel, B2C dominated the market share in 2015 and is forecasted to hold the highest market share over the forecast period as well.
Rising Population Expands Edible Oils and Fats Market
The population of Iraq has been on a steady rise lately. There was a 3.9% increase in the overall population of Iraq over 2010-2015 and is expected to steadily rise over the forecast period as well. The purchasing power of the consumers in Iraq is also touching new heights, which has, in turn, resulted in people becoming increasingly health conscious. This has led to a significant rise in demand for high quality edible oils and fats, which has contributed to the growth of the oil and fats market in Iraq.
Moreover, the infrastructural fettle of Iraq has seen some progress in recent times, which has encouraged tourism to the country. The country is also a prominent pilgrimage destination for a major faith of the world, which has kept its tourism industry highly functional. Steady rise of the tourism sector in the past years and a fine growth potential in the future years is expected to accentuate the demand for foods, which would subsequently fuel the edible oils and fats market in the country.
Feeble Economy Hinders Market Growth
Owing to the period of military siege that witnessed extreme entropy and unrest in Iraq, the economic activities in the country have been despairingly low. This has affected the overall GDP of the country and the adverse effects have trickled down to all other markets including the edible oils and fats market. Furthermore, the balance of payments situation is grim and there is meagre public finance, which slacks progress and underhandedly contributes to the low growth of the oils and fats market.
The review is based on a report by TMR titled “Edible Oils and Fats Market (Product Type - Vegetable and Seed Oil (Soybean Oil, Sunflower Oil, Corn Oil, Palm Oil, Canola Oil), Spreadable Oils and Fats (Butter, Margarine), and Cooking Fats (Animal Ghee and Vegetable Ghee); Distribution Channel (B2B and B2C) ) - Iraq Industry Analysis, Size, Share, Growth, Trends and Forecast 2016–2024.”
Edible Oils and Fats Market- based on distribution channel
Edible Oils and Fats Market- based on product type
- Vegetable and seed oil
- Sunflower Oil
- Corn Oil
- Palm Oil
- Canola Oil
- Spreadable Oils and Fats
- Cooking fats
Edible Oils and Fats Market- based on region
- Dhi Qar
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