Currency depreciation during 2022 lead to price hikes that shocked the market, interrupting the flow of imports and harming the operations of local manufacturers. Consumers now have more limited choices as purchasing power is falling.
While volume growth in snacks was positive during 2022, demand is under pressure due to inflation and the rising cost of living, which are in turn due to the declining exchange value of the Iraqi dinar against benchmark global currencies. In addition to price hikes across all categories of snacks, this has also eroded consumer purchasing power generally as the cost of a wide range of essential goods and services has risen substantially in recent years.
Children remain the main consumers of snacks in Iraq. While this presented challenges during 2020 and 2021 as the closure of all Iraqi schools for much of 2020 and for extended periods during 2021 meant a drastic decline in consumption opportunities, 2022 saw the country’s children attending school in person on a permanent, full-time basis, supporting a recovery in demand for snacks.
Iraq has one of the fastest growing and youngest populations in the world, with only 3.5% of the population aged over 65 years and a median age of 21.
At the end of the review period, one of the most missing challenges faced by companies operating in Iraq was the differences that exist between the semiautonomous region of the country administered by the Kurdistan Regional Government (KRG) and the Iraqi Federal government, which administers the rest of the country. The Iraqi government and the KRG are in constant conflict, with the government of Iraq frequently accusing the KRG of failing to abide by its national import policies, which often creates discrepancies in taxation regimes.
The forecast period is expected to see strong development in the operations of local snacks producers, with the massive manufacturers are slated for a significantly higher share of the market. However, it is unlikely that many of these local manufacturers will develop the operations beyond producing cheap, basic products that are in many cases lacking in quality and this is likely to place them at a disadvantage in a market that is questioning oriented towards high quality and added value.
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Understand the latest market trends and future growth opportunities for the Snacks industry in Iraq with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Snacks industry in Iraq, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Snacks research and analysis database.
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