Hot Drinks in Iran

Euromonitor International's Hot Drinks in Iran market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

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Tables: 59  |  Publication date: Sep 2009
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GBP400.00

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  • Get insight into trends in market performance
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Product coverage

Coffee; Other hot drinks; Tea

Executive summary

Good growth as consumer interest in hot drinks increases

Hot drinks saw a good growth during the review period as a whole, being buoyed by a number of factors. Coffee notably benefited from the emergence of specialist coffee shops in the country, with these having been banned prior to the review period. This trend resulted in coffee having an increasingly fashionable and westernised image in Iran, becoming particularly popular with young adults and teenagers. Tea meanwhile benefited from media coverage of its health benefits towards the end of the review period while “other” hot drinks benefited from strong price competition, with these products becoming more affordable as a consequence.

Domestic tea producers continue to face challenge

Tea is traditionally popular and benefits from strong production in Iran. Sales achieved a good growth in 2008 over the previous year, boosted by media coverage of its health benefits. However, domestic tea production continued to suffer towards the end of the review period. Players struggled due to the presence of smuggled products and counterfeits, along with the increasing range of low-priced legitimate imports on offer. In addition, many stated concerns about the government’s attitude to tea, with the Iranian tea association being disbanded in 2004 and little being done to help tea producers’ plight during the review period. In 2007, the government drew attention to the large quantity of counterfeit Ahmad tea on offer. However, instead of tackling the issue of counterfeiting, the government banned the sale of Ahmad in response, with this leading brand thus seeing a sharp decline in share.

Tea players lead sales

Tea dominates sales of hot drinks in Iran, benefiting from the traditional popularity of this drink. Consequently, the leading domestic tea producers also lead overall hot drinks sales. The leading player in 2008 was Golestan, which saw a further gain in share in the year thanks to expanded distribution for its premium Twinings brand, which it represents for Associated British Foods Plc (ABF). Akbar Bros ranked second, thanks to its strength in black tea. Meanwhile, third-ranked Ahmad Tea London Ltd led sales of hot drinks at the start of the review period but continued to lose share in 2008 over the previous year due to counterfeiting issues and a government ban on its off-trade sale.

Supermarkets/hypermarkets gain share from independent small grocers

Supermarkets/hypermarkets was the leading off-trade distribution channel in 2008, having gained share from independent small grocers during the review period. Supermarkets/hypermarkets benefits from offering a wide range of hot drinks and also using frequent price promotions to attract consumers. This channel also benefited from the outlet expansion of supermarkets/hypermarkets during the review period.

Continued growth with an increasing focus on quality and health

Hot drinks is expected to see slowing volume growth during the forecast period, with many products areas showing signs of maturity. However, while the review period saw constant value decline due to price competition and high inflation, the forecast period is expected to see constant value growth. This will be driven by an increasing focus on quality. There is expected to be a shift to fresh coffee within coffee, for example, with consumers seeking to replicate the premium drinks they enjoy in specialist coffee shops. Within tea, meanwhile, premium products are expected to gain share such as black speciality tea, while healthy green tea will see the most dynamic growth.

Table of contents

HOT DRINKS IN IRAN : MARKET INSIGHT

EXECUTIVE SUMMARY

Good growth as consumer interest in hot drinks increases

Domestic tea producers continue to face challenge

Tea players lead sales

Supermarkets/hypermarkets gain share from independent small grocers

Continued growth with an increasing focus on quality and health

MARKET DATA

Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008

Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008

Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008

Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008

Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008

Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008

Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008

Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008

Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008

Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008

Table 11 Hot Drinks Company Shares by Value 2004-2008

Table 12 Hot Drinks Brand Shares by Value 2005-2008

Table 13 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008

Table 14 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008

Table 15 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013

Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013

Table 17 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013

Table 18 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013

Table 19 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013

Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013

Table 21 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013

Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013

Table 23 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013

Table 24 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013

DEFINITIONS

Summary 1 Research Sources

COFFEE

Headlines

Trends

Competitive Landscape

Prospects

Sector Data

Table 25 Retail Sales of Coffee by Type: Volume 2003-2008

Table 26 Retail Sales of Coffee by Type: Value 2003-2008

Table 27 Retail Sales of Coffee by Type: % Volume Growth 2003-2008

Table 28 Retail Sales of Coffee by Type: % Value Growth 2003-2008

Table 29 Coffee Company Shares 2004-2008

Table 30 Coffee Brand Shares 2005-2008

Table 31 Forecast Retail Sales of Coffee by Type: Volume 2008-2013

Table 32 Forecast Retail Sales of Coffee by Type: Value 2008-2013

Table 33 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013

Table 34 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013

TEA

Headlines

Trends

Competitive Landscape

Prospects

Sector Data

Table 35 Retail Sales of Tea by Subsector: Volume 2003-2008

Table 36 Retail Sales of Tea by Subsector: Value 2003-2008

Table 37 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008

Table 38 Retail Sales of Tea by Subsector: % Value Growth 2003-2008

Table 39 Tea Company Shares 2004-2008

Table 40 Tea Brand Shares 2005-2008

Table 41 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013

Table 42 Forecast Retail Sales of Tea by Subsector: Value 2008-2013

Table 43 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013

Table 44 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013

OTHER HOT DRINKS

Headlines

Trends

Competitive Landscape

Prospects

Sector Data

Table 45 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008

Table 46 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008

Table 47 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008

Table 48 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008

Table 49 Other Hot Drinks Company Shares 2004-2008

Table 50 Other Hot Drinks Brand Shares 2005-2008

Table 51 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013

Table 52 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013

Table 53 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013

Table 54 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013

GOLESTAN CO

Strategic Direction

Key Facts

Summary 2 Golestan Co: Key Facts

Company Background

Production

Competitive Positioning

Summary 3 Golestan Co: Competitive Position 2008

PARAND CHOCOLATE CO

Strategic Direction

Key Facts

Summary 4 Parand Chocolate Co: Key Facts

Company Background

Production

Competitive Positioning

Summary 5 Parand Chocolate Co: Competitive Position 2008