Press release
Accelerating at 6.0% Iraq Edible Oils and Fats Market to Grow Due to Demand for High Quality Edible Oil
In a highly consolidated business landscape, top five companies in the Iraq edible oils & fats market hold 70% of the overall market, states Transparency Market Research (TMR) in a new report. Marsan Gida San Ve Tic A.S. – the holding company which owns five brands in the edible oil and fats category is a key factor for its high market share. Heavy investments for research & development, joint ventures, and mergers and acquisitions have been key competitive strategies adopted by key players in this market. Expanding production facility in cost-effective regions has also been on the growth chart of leading players in the Iraq edible oils & fats market.
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Political Instability and Weak Economic Growth Challenges Market
On the downside, political disturbances and economic upheavals are a key restraint to the growth of Iraq edible oils & fats market. Weak economic condition of large population along with rising population living below the poverty line due to the ongoing conflict have been the reasons International Monetary Fund has provided grant.
Moreover, high costs of extraction of various types of cooking oils is restricting the entry of new players. This is slowing the growth of Iraq edible oils & fats market.
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Substantial R&D to Develop High Quality Products to Benefit Market
Primarily fuelling the Iraq edible oils & fats market is increasing demand for high quality edible oil. High quality edible oils are rich in vitamin E, monounsaturated and polyunsaturated fatty acids, and omega-3. They have a high smoking point which helps retain nutritional value at higher temperatures. To cater to this demand, large companies involved in the production of edible oils in the country are engaged in research and development to manufacture high quality products. These companies are also making efforts to develop edible oils & fats for health savvy consumers.
The increasing consumption of processed food which are mainly oil based has also been a key factor behind the growth of Iraq edible oils & fats market. Changing lifestyle and changing eating habits are fuelling demand for ready-to-eat packaged food. This is favoring the growth of Iraq edible oils & fats market.
The growth of the tourism sector holds potential for the growth of Iraq edible oils & fats market. Due to decades of war, closed regimes, and recurrent political instability the Iraqi tourism sector is currently underdeveloped and neglected. However, as political stability and economic development gains momentum, Iraq has the potential to emerge as a global tourist destination. Long considered a destination for pilgrims, leisure tourism is pacing up albeit in low numbers. This is likely to indirectly benefit the edible oils & fats market.
Apart from this, rising population leading to the increase in per capita consumption of edible oils is spiking the growth of Iraq edible oils & fats market. This, along with increasing disposable income of consumers which has led to increased spending on dining out and purchase of ready-to-eat foods.
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