Edible oils and fats form essential ingredients of cooking and daily food consumption across the world. Edible vegetable oils find myriad cooking applications such as in frying and baking, including their uses for various food preparations and flavorings. The rising population across Iraq, particularly in Baghdad, coupled with increasing purchasing power of consumers, are the key factors driving the growth of edible oils and fats market in Iraq. Changing dietary habits focused on a healthy lifestyle have led to the demand for premium quality edible oil. Furthermore, growing opportunities of tourism and trade in Iraq have stimulated the demand for edible oils and fats in the region. According to a research report by Transparency Market Research, the Iraq edible oils and fats market was valued at US$1.3 bn in 2015 and is anticipated to reach US$2.3 bn by 2025, registering a CAGR of 6.0%. By volume, the market is forecast to expand at a 3.3% CAGR from 2016 to 2025.
Government Initiatives Open Up Exciting Opportunities in Iraq Edible Oils and Fats Market
The current political instability in Iraq and prevailing turmoil in the Middle East have led to retarded economic activity and an unfavorable balance of payments in the country. This has led to a slump in the growth of the edible oils and fats market. The impact is, however, temporary and the implications are short-lived; considerable support from the Iraqi government to set up new production plants of different cooking oils such as soya, palm, and sunflower oils is expected to revive the market growth. In addition, significant increase in investments by players to manufacture high quality edible oils will spur the consumer demand for healthier alternatives in the edible oils and fats market in the country.
The manufacturers face considerable constraint of capital that may be required for various processes related to extraction of edible oils from plants and animals; processes such as mechanical extraction, solvent extraction, and hydrogenation call for substantial investment. Moreover, high cost of raw material is a significant factor that may hinder the growth of the edible oils and fats market. The impact of these restraining factors is likely to be offset––to a great extent––by the support of the Trade Ministry of Iraq to switch to local production. To this end, the Iraqi government is actively involved in revamping many old operating units of edible oils and fats. Sustained government initiatives are focused on reducing the dependency on import of these edible oils and fats from countries such as Kuwait, Turkey, and Azerbaijan. This has led key market players to set up massive refineries in the major cities of Iraq, contributing to the enhanced local production of oils. To tap into the array of emerging opportunities, prominent oil producing companies such as Aves A.S. and Etihad Food Industries have intended to set up edible oil refineries in the region.
Iraq Edible Oils and Fats Market: Segmentation and Shares of Leading Segments
The Iraq edible oils and fats market is majorly segmented on the basis of product type and region. On the basis of different product types, the market is classified into vegetable and seed oil, cooking fats, spreadable oils and fats, and others; the vegetable and seed oil segment is projected to retain its dominance in the market throughout the forecast period. The vegetable and seed oil segment is further fragmented into soybean, sunflower oil, palm oil, corn oil, canola oil, and others, with the segment dominated by sunflower oil. Cooking fats mainly include animal ghee and vegetable ghee, with the latter contributing the major share in the Iraq edible oils and fats market. When the revenue share and size of the market is analyzed on the basis of distribution channels, B2C was estimated to occupy the major market share in 2015; the segment is expected to retain its lead throughout the forecast period.
Browse the full Iraq Edible Oils and Fat Market report http://www.mrrse.com/edible-oils-fats-market
Based on geography, the Iraq edible oils and fats market is segmented into Baghdad, Babil, Basra, Al- Qadisiyyah, Dhi Qar, Diyala, Muthanna, Karbala, Maysan, Erbil, Najaf, Sulaymania, Kirkuk, Wasit, and others. Baghdad occupied the largest market share. In terms of volume, the edible oils and fats market in Baghdad is expected to reach 268.3 thousand tons by the end of the forecast period, expanding at an annual growth of 3.5% from 2010 to 2025. Since Baghdad, the largest city in Iraq, accounts for about 40% of the total GDP of Iraq, the Iraq edible oils and fats market is anticipated to witness promising growth prospects through the forecast period. Other regions that will contribute to the growth of the Iraq edible oils and fats market are Muthanna and Maysan; these segments are anticipated to witness impressive CAGR between 2016 and 2025.