Machinery trade

Iran ranks among the three largest sales markets for process and packaging machinery in the Middle East

Iran heavily invests in the modernization of its food and beverage industry.

The growing demand for processed and packaged food and beverages is reflected by the rapidly increasing demand for food and beverage processing and packaging machinery.

Iranian imports in this sector increased by 14.6% annually over the past five years, reaching 317 million Euro in 2016.

Iranian imports of food processing and packaging machinery and equipment are sharply rising

Source: VDMA

Vera Fritsche, VDMA Food Processing and Food Packaging Machinery on the Iranian Food Industry

For manufacturers of food processing and packaging machines, Iran is one of the most important sales markets in the Middle East.

16.5 million tons of packaged foods had been sold in Iran in 2015. The demand is expected to rise by 3 percent till 2020. Baked goods are by far the largest segment within the packaged food category. Sales in 2015 amounted to 8.6 million tonnes. Especially packaged bread is gaining popularity in Iran. This sector has benefited greatly from the elimination of subsidies for artisanal bread. It is expected that packaged bread will grow by 19 percent until 2020.

The second largest segment are dairy products with a sales volume of 4 million tons in 2015. Demand will increase by 12 percent till 2020.

The demand for processed meat and seafood is also gaining momentum. Even if the actual annual per capital consumption with 4.2 kg (2015) is comparatively small it will however rise by 24 percent until 2020.

Iranian consumers like it sweet. With a total volume of 180,000 tons (2015), Iran is the largest confectionery market in the Middle East and one of the most important sales markets worldwide. It is expected that the demand will rise by 6 percent until 2020.

The growing demand for processed and packaged food and beverages is reflected by the demand for food processing and packaging machinery. Iran is the third largest sales market for food processing and packaging machinery in the Middle East. Global exports to Iran reached 279 million euros in 2015, a plus of 4.5 percent compared with the previous year. Exports of food, beverage and packaging technology, from the EU-28 countries alone, rose by 34% to EUR 211 million in 2016, compared to EUR 157.5 million in 2015.