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FMCG Market in Iran

FMCG market stands for Fast-Moving consumer Goods market, which means the products that are sold quickly and don’t have a long shelf life at relatively low cost. They are also called CPG (Consumer Packaged Product).

Dairy products, Processed foods, Toiletries  and Over-the-counter drugs can be categorized as FMCG.

it also includes other products such as household cleaning goods , chocolate and biscuits, pre-packaged foods, and other similar products, that are highly demanded  with longer shelf life.

FMCG market is very big and many some of the biggest companies in the world work in this sector.

FMCG in IranFMCG market in Iran

Iran itself, has many FMCG companies active in food & beverage sector, cleaning products and chocolate & biscuits.

With the change of Iranian life-style and moving toward a modern society, FMCG market in Ira is growing very fast.

Here are the main drivers for FMCG market growth in Iran:

  • High rate of urbanisation, according to Iran Census 2016 urban population is growing

  • More women are in work than before, which is an important reason that the consumption of fast food, pre-packaged food, processed foods have raised.

  • Expansion of retail channels and chain stores. The main channel to sell the products in Iran market, are retail shops. 91,8% of FMCG products are sold in these so called “traditional shops” and only 8,2% of their total sale is in modern stores- chain stores. But the number of chain stores and hyper markets is increasing very fast, thanks to the recent international investments.

FMCG in Iran
Branding in Iran FMCG market

Branding can be a winner card in a high competition FMCG market. A research by Emarketer shows that the amount of branding advertisement in FMCG market will grow 13,5% by year 2020.

The brand name of any FMCG company is very effective on its sales amount. That is the main reason that pharmaceutical and cleaning goods companies (in FMCG industry) are investing a lot of money in making strong brand names.

Having a good digital marketing plan is another key factor in the branding of FMCG in Iran market since the media penetration rate in Iran is above 66%

Iranian most Famous FMCG companies in Iran’s retailed market are:

Paksaan, Sehat, AEPC Laboratories (Cinere)and Firuz, are Iranian Companies in retail of cleansing products and Toiletries.

In the Field of Food and beverage, there are companies like, Iran milk Industry(Pegah), Sina Food Industry (pak,Zamzam,…) and Solico group (kalleh, Sorbon,Pemina,…),and Behnoush.Minoo

Iran Daroo and Dr. Abidi companies are the top Iranian companies in the retail sale of over the counter drugs.

Some of the world class FMCG companies are also active in Iran FMCG market, such as Uniliver

Difficulties of international companies in Iran FMCG Market

Banking system and payment problems are still the main issue in doing business with Iran

Another problem is  the old fashioned retail shops, which are not applying the modern sales policies.

Cramped and messy shelves are the number one reason, why people won’t buy your stuff, unless there is no other way to get the product.

This is the retail shop problem, but the main costs, are paid by FMCG companies, that they lose the market share

This problem is shrinking more and more, since so many chain stores are now showing up in Iran sales Market, retail shops and grocery stores are trying to renew their shops, to stay in the business.

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