The demand for dairy products in Iraq is expected to rise at a compound annual growth rate (CAGR) of 8 percent by 2025, according to a recent study conducted by Frost & Sullivan, a business consulting firm involved in market research and analysis.
The dairy industry in Iraq holds lucrative prospects for global players and investors as a result of post-war, growing population and new economic reforms said the report, titled ‘Dairy Perception and Opportunities in Iraq’.
The country’s gross domestic product (GDP) and household disposable income are expected to grow at CAGR of 6 percent between 2018 and 2025, it added.
A high percentage of the youth population is one of the economic strengths of the country, and with almost 60 percent of the population under the age of 25, Iraq is uniquely positioned to harness the potential of its young generation to promote prosperity despite the multiple challenges it faces.
Ali Mirmohammad, senior consultant and business development manager at Frost & Sullivan, said: “In the post-war era, the demand for dairy products is expected to grow, with supporting plans by large international organisation such as United Nations Development Programme, United Nations Industrial Development Organization, World Bank, International Monetary Fund, United States Agency for International Development (USAID), Food and Agriculture Organization and World Health Organization.”
“It is estimated that the average per capita consumption of dairy products will increase from 52 liters to above 60 liters within the next three years and then to over 90 liters by 2025,” he added.
Iraq holds immense business opportunities for market participants, especially international players, with advanced technology upgrades that will help to expand the sector and enhance productivity.
Moreover, local companies seek to partner with global companies to benefit from their best practices in the dairy industry.
Mirmohammad continued: “The dairy market in Iraq opens up more than 4 billion investment opportunities in cattle breeding farms, and plant management to improve production capacity, storage, and distribution logistics, utility and transportation facilities, technology upgrading as well as retailing.”
Iraq’s dairy market is highly import-dependent as the country’s local manufacturers are only capable to meet less than 10 percent of the domestic demand. Also, the country is also among the biggest importers of powdered milk in the Middle East to produce reconstituted milk as it contributes to 75 percent of the country’s market, said the report.
Increasing population and urbanization combined with limited best practices among local players in the industry make the Iraqi dairy industry a booming opportunity for international players and investors, it added.
TradeArabia News Service