Iraq Edible Oils and Fats Market: Trends and Opportunities
Edible oils, also known as consumable oils form an imperative part of the cooking process since these are used for frying, baking and other forms of cooking. Additionally, edible oils also find application in non food purposes as well such as manufacturing of washing powders, personal care products, soaps and bio-fuels.
Increasing demand for high quality edible oils is the primary factor pushing the growth of the market in Iraq. Over time, consumers have become extremely conscious about their health and about maintaining a healthy and active lifestyle. Due this factor consumers are shifting their focus towards the consumption of high quality edible oils. This factor has led the major manufacturers operating in this field to resort to extensive research and development activities in order to manufacture high quality edible oils that would cater to the health requirements of the consumers. High quality edible oils include high amounts of vitamin E, mono-unsaturated and poly-unsaturated fatty acids (MUFA’s and PUFA’s) and Omega 3. Further, high quality edible oils have a high smoking point which means they can retain their nutritional contents at higher temperatures.
However, the current economic and political condition of Iraq is a major factor hindering the growth of the edible oils market. Decline in the economic activity, balance of payments and public finance is a direct result of the current political condition in Iraq. Further, the GDP of Iraq has witnessed a sharp decline between 2014 and 2015 due to the political and economic instability. Moreover, the non oil economy in Iraq has seen a sharp decline between 2014 and 2015. These factors are barring the growth of the edible oils and fats market in Iraq, but the impact of this restraint is likely to reduce by the end of the forecast period.
However, the switch to local production of edible oils and fats is likely to pose as a suitable opportunity for the growth of the market in the future. Companies such as Aves A.S. and Etihad Food Industries are expected to open their edible oil refineries in Iraq, which is expected to increase the local production of edible oils and fats in the country. Further, the Iraqi trade ministry is taking the initiative to re-furbish some of the old factories of edible oils and fats in order to make them fully operational. This is expected to reduce the country’s dependency on imported products thus enabling the consumers to buy high quality edible oils at an affordable price, thereby boosting the demand for the edible oils and fats industry in Iraq.
Iraq Edible Oils and Fats Market: Segmentation
The market has been bifurcated on the basis of product types into vegetable and seed oil, spreadable oils and fats, cooking fats and others. Vegetable and seed oil dominated the market and is expected to continue dominating the market throughout the forecast period. Vegetable and seed oils have been further bifurcated into sunflower oil, soybean, corn oil, palm oil, canola oil and others. Sunflower oil dominated the vegetable and seed oils segment and is expected to continue dominating throughout the forecast period. Spreadable oils and fats have been bifurcated into butter and margarine. Butter dominated this segment and is anticipated to continue dominating this segment throughout the forecast period. Cooking fats have been bifurcated into animal ghee and vegetable ghee. Vegetable ghee accounted for the largest market share.
By distribution channel, B2C held the major market share in 2015 and is expected retain market dominance throughout the forecast period. B2C has been further bifurcated into pubic distribution system (PDS) scheme and others. Public distribution system (PDS) is a food security system which involves the distribution of staple foods such as wheat, edible oil and fats, rice, sugar and kerosene among others through a series of ration shops (also known as fair price shops). Public distribution shops distribute rations at a reduced price to the residents falling in the BPL (Below Poverty Line) level. The B2B segment has been bifurcated into HoReCa and others.
The edible oils and fats market in Iraq has been bifurcated on the basis of region into Babil, Baghdad, Basra, Dhi Qar, Al- Qadisiyyah, Diyala, Karbala, Maysan, Muthanna, Najaf, Wasit, Erbil, Kirkuk, Sulaymania and others. Baghdad held the maximum market share. Baghdad is the largest city in Iraq and accounts for 40% of the total GDP of Iraq.
Iraq Edible Oils and Fats Market: Competitive Landscape
The edible oils and fats market in Iraq is marked by some intense competition from some of the major players operating in this market. The companies operating in this field are engaged in extensive research and development activities to bring out new offerings for its customers. Further, mergers and acquisitions, geographical expansions, joint ventures and partnerships are some of the key strategies adopted by these players to sustain in this market. Marsan Gida San Ve Tic A.S., Anadolu Group, Zer Group, Altunkaya Group of Companies, Aves A.S. are some of the key players operating in this market.
Iraq Edible Oils and Fats Market: Scope and Methodology
The report has been segmented by product type, and region and it includes drivers, restraints and opportunities (DRO’s), impacting the edible oils and fats market. The study highlights current market trends and provides forecasts from 2016 to 2025 with 2015 as base year. Further, historical data has been provided from 2010 to 2014. Additional analyses include local production, import and export, and price trends. We have featured the current market scenario for the Iraq edible oils and fats market and identified future trends that will impact demand for edible oils and fats during the forecast period.
The edible oils and fats market in Iraq has been segmented on the basis of product types and region. The report provides the current market size and anticipates its status over the forecast period.
The report also analyzes factors driving and inhibiting growth of the edible oils and fats market. The report will help manufacturers, suppliers, and distributors to understand the present and future trends in this market and formulate strategies accordingly.
The report segments the edible oils and fats market as:
Iraq Edible Oils and Fats Market, by Product Type:
Iraq Edible Oils and Fats Market, by Region:
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