Investing in chocolate production for marketing in Iran

Category: Blog Published: Tuesday, 19 June 2018 Print Email
Investing in chocolate production for marketing in Iran

 According to world statistics, the value of the market for sweets and chocolates in the Middle East and Central Asia region is estimated around 10 billion dollars, with Iranian markets share of this market being 5% and, given the vacancy capacity of this figure, could increase by 20%. According to statistics provided by the secretary of the Association of Confectionery and Chocolate Producers, the amount of chocolate and sweets production in 2012 was about 596 million tons, of which 240 thousand tons worth $ 598 million for marketing in Iran.

The statistics show that only about 13 percent of the product produced in the Iranian market’s chocolate and sweets factories was exported last year; a share that experts consider to be much lower than the capacity for marketing in Iran, especially compared to the main rivals of this lucrative industry, Turkey was one of the most successful markets out of other markets. In 2013, only one of Turkey's sweets and chocolate producers has tripled its exports to 110 countries worldwide, as well as sweets and chocolates. Investments in the country's sweets and chocolate industry have started to work seriously for about 15 years, so that in the mid-1980s the number of candy and chocolate factories in the country was more, and the number of members of the Association of Confectionery producers in the Iranian market's chocolate has grown from 95 companies to about 300 companies. Of course, the largest amount of investment in this field was in Tabriz and East Azarbaijan Province, where it turned the city into a chocolate capital of the country for marketing in Iran.
About 50% of Iran's biscuits and chocolates are produced in Tabriz, with more than 850 units of sweets and chocolates in the city and their products are exported to more than 50 countries out of Iranian market. It is important to note that the export of sweets and chocolates has always been in the first place in the food industry for marketing in Iran, where it brings about $ 600 million annually to the country. Also, according to the export figures, this product is twice as much as exports of car and handmade Iranian carpets. In the first quarter of the year 1395, 47.7 thousand tons of sweets, sweets and biscuits worth 115 million dollars were exported to other countries out of Iranian market, up from 3 percent last year and 4.4 percent, with exports rising.
6 billion Tomans are required for investment
Farhad Zafari, a university lecturer and food industry specialist, said that about 360 production units are working in the chocolate industry in Iranian market, says raw material used in the cocoa industry, which is fully imported from other countries for marketing in Iran with or without advertising in Iran. Currently, the world's 10 largest companies operate exclusively on cocoa trade, the main source of cocoa imports from Cote d'Ivoire to the Ivory Coast via intermediaries, reaching 20,000 tonnes last year. "Chocolate is, in fact, all cocoa-based foods that are generally derived from the combination of milk, sugar, cocoa butter, cocoa powder and all kinds of brains and extracts of some fruits, which, by changing the amount of each Which model components and chocolate tastes vary. Zafari criticized Iranian market's chocolates for exporting to the European markets, adding that Armenia, Syria, Uzbekistan, Kazakhstan, Iraq, and Afghanistan were among the main export markets in Iran, saying that Iranian exports of chocolates only to neighboring countries are not even exports to the UAE, because it is a part of Swiss and French market.
What are the manufacturer's concerns?
Jafar Davoodi Mehr, director of Davoudi Food Industries, said that the lack of liquidity, working capital and the recession affecting the society are the main problems of chocolate producers for marketing in Iran, he emphasizes the need for government support for this industry and says: production costs in this industry is high, and with increasing prices, our competitive power with foreign brands in the Iranian market is decreasing, and since most of these products are smuggled into the Iranian market, these smuggling products systematically replace the consumption of manufactured goods They enter. Unfortunately, Iranian culture is a foreign-friendly culture. Many Iranian products have high qualities, but people are willing to buy foreign chocolates with more money. In this regard, it should be noted that the sale of foreign chocolates in chain stores promotes the culture of consumption of foreign goods for marketing in Iran.
"The other issue is the margin of chocolate sales," he adds. "Perhaps this margin for Iranian chocolates is limited for foreign chocolates, which makes it possible to see the large distribution network of foreign chocolates in stores across the country out of Iranian market." Another issue to be mentioned is the expiration of the time spent on some foreign chocolates and smuggling for marketing in Iran. It has been seen that retailers will recycle them by manipulating the date of use of such chocolates. The lack of careful monitoring of these cases is one of the major problems facing the industry. Davoudi Mehr adds: The country's sweets and chocolate industry has a very favorable position, so that many of the Iranian products are exported from Iranian market. The domestic production chocolates can be fully responsive for marketing in Iran, but unfortunately, the presence of foreign chocolates with the deceptive packaging of the buyer brings him to his side. "It will require at least 5 billion Tomans to invest in the industry, with the consumption of cake and biscuits for marketing in Iran without advertising in Iran," the manufacturer said, adding that investment in the sweet and chocolate industry would be very lucrative and immediate.

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