Iraq tipped by industry experts for future potential
Although question marks remain over the reliability of the supply chain, this market opportunity is increasingly becoming a target for Gulf-based food suppliers.
The packaged foods market in the MENA region was estimated to have grown at a rate of 4.8% from 2004 to 2009, according to Grail Research’s 2009 study titled ‘Middle East Packaged Foods Market – The Iraq Opportunity’.
Grail Research, a division of Integreon, found a variety of economic and demographic reasons for the demand for packaged food in Iraq, but with most of the demand being met by imported produce, there was huge untapped potential for companies to set up production in the country.
Fellow research body TNS MENA, one of the world’s largest custom market research organisations, also unveiled the results of a recent study, titled ‘Iraqi As Consumer 2012 (IRAC)’ - a public opinion and marketing research investigation that was aimed towards unveiling a deeper understanding of what makes the Iraqi consumer tick. Steve Hamilton-Clark, CEO of TNS MENA, goes as far as to describe the market as “the next big one”, especially as the political situation improves.
“Considering the economic slowdown in the developed world, more and more clients would like to enter the Iraqi market which has intrigued marketers for years, however until now there has been very little information available,” said Hamilton-Clark.
The IRAC 2012 study reiterated that this high level of demand is still viable and, as confidence grows in the region, consumer needs could start to be met by companies operating within Iraq rather than a reliance on imported goods.
Hamilton-Clark said: “We found that over 50 per cent of Iraqi consumers feel that the nation is headed in the right direction and have an optimistic view about the economic and political situation in the country which highlights the potential for marketers.”
The TNS MENA study also provided an insight into socio-cultural and economic factors, identified emerging trends and their impact on consumer behaviour and attitudes, as well as revealing an in-depth understanding of consumer lifestyles.
“This enables brands to find the best way to connect with their relevant consumer, using different media touch points and generating new communication channels. To get the supply chain in line with Iraqi consumer demands, marketers must take time to dig deep and look across various profile groups to ensure desires, wants and needs are accurately met,” Hamilton-Clark concluded.
