Soft Drinks in Iran
Euromonitor International's Soft 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: 24 | Publication date: Oct 2006
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Executive summary
Soft drinks shows huge potential in Iran
Since the 1979 Iranian government ban on alcoholic drinks, soft drinks have developed a huge potential. Low consumer awareness regarding carbonates, low quality drinking water, hot summers, and a low per capita consumption of just 54 litres have created a big potential for the soft drinks market in the country.
Throughout the review period, volume and value sales continued to show significant growth; however, value growth was negatively affected by inflation and negative growth rates in constant value terms.
The cholera outbeak impacts the market
The growth of the soft drinks market in 2005 was influenced by a number of factors: the cholera outbreak, increased advertising on TV, new brands and greater consumer awareness of health issues. The cholera outbreak in 2005 was one of the most significant external factors that affected the soft drinks market in Iran.
The Ministry of Health in Iran warned the population, through the media, that a cholera outbreak was a serious possibility in the summer of 2005. Most Iranian people traditionally drank natural fruit juice, bought unpacked from independent food stores such as corner shops, especially in hot weather. However, the government banned the sale of natural fruit juice from the street as a means of controlling disease. As a result, people switched to bottled water, carbonates and fruit/vegetable juice from cartons more than before in summer 2005.
Even though there is a wide range of soft drinks in the Iranian market and the urban consumer is highly accustomed to these products, consumer awareness of the benefits of soft drinks is not fully realised. At the end of the review period, following the government’s campaign aimed at increasing awareness of the potential health risks of drinking water and unpacked fruit juice, soft drinks became increasingly attractive to consumers. Consumers became familiar with the benefits of bottled water and fruit/vegetable juice in cartons due to media announcements.
Double standards
Government organisations put pressure on domestic manufacturers to insert the price on the bottle or package of all fruit/vegetable juice and concentrates products. Fruit/vegetable juice production standards are government-controlled as all manufactured juice must be certified, registered, and approved by official bodies.
However, imported fruit/vegetable juice products are not under government control yet. This situation created a crisis for the Iranian fruit/vegetable juice industry in 2005. It meant that salesmen could increase prices for imported products, while the government is tightly controlling the domestic products price range, without investigating the prices or even the quality of foreign products. In 2005, most domestic manufacturers asked the government to control foreign brand prices and production standards and to provide this information to consumers.
A potential market for imported brands
In spite of the high quality of domestic fruit juice, a wide variety of fruit juice and new packaging technology, consumers are showing an increasing interest in imported fruit juice. Unfortunately, government organisations do not promote the quality of domestic fruit juice over that of foreign fruit juice. This lack of awareness among consumers could open a potential market for foreign brands.
Table of contents
SOFT DRINKS IN IRAN : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. TOTAL SOFT DRINKS SALES
2.1 Market Performance
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2000-2005
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2000-2005
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2000-2005
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2000-2005
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2005
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2005
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2005
Table 9 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2005-2010
Table 10 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2005-2010
Table 11 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2005-2010
Table 12 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2005-2010
3. OFF-TRADE SOFT DRINKS SALES
3.1 Market Performance
Table 13 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2000-2005
Table 14 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2000-2005
Table 15 Off-trade Sales of Soft Drinks by Sector: Value 2000-2005
Table 16 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2000-2005
3.2 Competitive Environment
Table 17 Company Shares of Off-trade Soft Drinks by Value 2001-2005
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2002-2005
3.3 Leading Company Profile – Zamzam Beverage Co
3.4 Leading Company Profile – Takdaneh Co
3.5 New Product Launches
Summary 1 Major New Product Launches 2004-2005
3.6 Off-Trade Distribution
Table 19 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2005
3.7 Retailer Activity and Private Label Trends
3.8 Forecast Market Performance
Table 20 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005-2010
Table 21 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2005-2010
Table 22 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2005-2010
Table 23 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2005-2010
4. DEFINITIONS