The Iran palm oil market is expected to reach USD 648.40 million by 2025, according to a new report by Grand View Research, Inc. Increasing usage in cosmetics and biodiesel industries has contributed to a significant portion of market revenue in recent years. The termination of Western sanctions followed by the agreement regarding nuclear issues has had a beneficial impact on Iran’s economy, attracting higher foreign investments in the country. Malaysia is negotiating a reduction of tariffs under a free trade agreement, which is expected to boost trade relations with Iran once again. The removal of the import quota has had an immense impact on the Iranian industry as well, further stimulating growth in recent years.
Lower palm product prices as compared to other vegetable products such as soybean, sunflower & groundnut has also led to higher substitution in the food & beverage, cosmetics, and biodiesel industries.
Crude palm oil (CPO) is expected to remain the dominant segment occupying over 88% volume share in 2015. Despite a decline in consumption levels in 2014, the product has witnessed steady recovery, gaining an edge over kernel products in the following years. CPO is widely used to derive other products such as RBD, which are then utilized in bakery, cooking and other non-food applications.
Further key findings from the report suggest:
The Iran palm oil market was USD 232.25 million in 2015 and is anticipated to reach USD 615.72 million by 2025
Refined, bleached and deodorized (RBD) oil is anticipated to emerge as the fastest growing segment, derived from CPO, with a projected CAGR of 10.2% in terms revenue from 2016 to 2025
RBD has multiple uses in the food and industrial sectors, serving as an ideal substitute to other expensive vegetable-based products
Palm kernel oil (PKO) is expected to remain a dominant sub-segment of the kernel products market, occupying over 92% of the volume share in 2015
The hydrogenated form of PKO is high in saturates and provides a good flavor release in ice cream & confectionery, leading to its demand in these food processing applications
Cosmetics is anticipated to grow at a CAGR of 7.6% in terms of revenue. Growing awareness regarding personal grooming & beauty, along with the proliferation of advertising campaigns has impacted Iran’s cosmetics sector and introduced new avenues for growth.
Key importers in the industry include Middle East Gold Star Co., Kala Gostaran Sabz Andish Co Ltd, Pars Vegetable Oil Co., Cargill, Golbarg Baharan, Savola Behshar Company, Jahan Vegetable Oil Company, Eghtsad-Andish Inc., Margarine Manufacturing Co. Ltd.
Other companies such as Farayardehaye Roghanie Iran Co., KVSGS Co., AAK-AB, AL-Khaleej Industries Sdn Bhd, Golestan Dezful Cultivation & Industry Co., Narges Shiraz Vegetable Oil Co. also have considerable presence in the region