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BMI View: The Iranian food and drink industry will offer strong growth opportunities throughout our
forecast period to 2020. This is amid a young and sizeable consumer base, existing taste for Western
products and improving macroeconomic conditions. Multinational food and drink manufacturers -
especially from Europe and the Gulf - will ramp up investment. However, we caution that the operating
environment remains challenging due to a largely informal food retail sector and a tough business
Key Trends & Industry Developments
? The lifting of sanctions in Q1 2016 will give a strong impetus to the Iranian food and drink industry, as it
has a positive impact on macroeconomic conditions. It also results in an uptick in foreign direct
investment in the sector.
? Strong Iranian manufacturers dominate the food industry. They developed successfully under the
sanctions era and drove the consumption of packaged food. We expect competition to increase
throughout the coming years, as multinational companies increase investment in the country.