Iran’s new opportunity, food containers
For western businesses, entrepreneurs and investors, it can be difficult to spot some merging opportunities, primarily because what is very new in Iran, is often an established, saturated market elsewhere, and the possibilities for success are simply not recognized fully. One such area in Iran is that of disposable food packaging.
In fact, this is very much a fledgling market in Iran, with just 1500 factories producing product, but demand is increasing. As the country becomes more urbanized, the traditional culture surrounding food is being replaced with a more westernized take, and even for traditional foods, this means having easy to manage, disposable containers. Demand is largely being driven by restaurants as the appetite for take-away options rises, the dairy industry and, interestingly, the confectionary industry.
There are reasons why this represents a great opportunity, with relatively low startup costs and a thriving petrochemical industry that means all raw materials can be supplied from within the country, along with growing demand within Iran itself plus established export markets in Central Asia, this is a young, profitable industry with significant room for growth.
Easy access to the raw materials and a favorable economic environment reduce many challenges new businesses often face, with established supply chains for the necessary materials being of particular help for any new business entering the market. Likewise, with government monitored standards and all businesses requiring licenses, markets in Iran are stable, with all competitors working to the same standards and operating expectations there is little risk of market disruption.
However, there is another side to this industry that could prove an even larger opportunity, and that is the nature of the disposable packaging itself. Iran has shown itself willing to embrace renewable technology, and has numerous government initiatives to diversify into renewable energy and other industries. Combine that recognition of the need for renewable processes with the emerging disposable food containers, and you have biodegradable food containers.
As a someone new concept for the market, both in Iran and to some export markets, this represents a significant opportunity in its own right, and could deliver even greater returns that the current market. In fact, renewable options for many businesses and products represent opportunity in Iran, as the leadership acknowledges the need for a greener outlook on everything from energy to business, so products that reflect that will be favorably received.
Iran is actively encouraging investment, and with an established, well educated workforce, it has everything needed for a startup to prosper and grow. For potential investors, entrepreneurs looking to launch a business directly, or innovators who wish to bring new ideas to existing production, this growing market offers incredible potential. While we discuss the opportunities relating to food packaging here, this is a story repeated in many different industries and market sectors, and as a result, Iran is full of similar openings for those with entrepreneurial spirit.