The Iraq edible oils and fats market is predicted to be worth $2.3 billion by the end of 2025, rising at 6.0 per cent CAGR between 2017 and 2025, according to a market study by Transparency Market Research. The demand in the market was valued at $1.4 billion in 2017.

VEGETABLE AND SEED OIL

The Iraq edible oils and fats market is segmented on the basis of product type, distribution channel, and region. Under the product type,  it is divided into segments such as vegetable and seed oil, spreadable oils and fats and cooking fats. Of these, vegetable and seed oil dominated the overall market in the past years; the segment is predicted to hold the leading share of 51.3 per cent of the overall market by 2025.

The vegetable and seed oil segment is further sub-segmented into soybean, sunflower oil, palm oil, corn oil, and canola oil. Vis-à-vis revenue and volume, sunflower oil is expected to retain dominance through 2025.

Spreadable oils and fats segment is anticipated to display a marked increase in its market share by 2025. This segment is further bifurcated into butter and margarine; of the two, butter currently holds the leading market share.

Vis-à-vis revenue, cooking fats segment of the market is anticipated to be valued at $385.0 million by the end of 2025. Cooking fats segment has been bifurcated into animal ghee and vegetable ghee, where the latter holds dominance in terms of both revenue and volume.

In terms of distribution channel, B2B and B2C are the segments into which the Iraq edible oils and fats market is divided. Of the two, B2C leads in terms of revenue contribution to the overall market.

BAGHDAD LEADING REGION

Region-wise, the Iraq edible oils and fats market has been bifurcated into Babil, Basra, Baghdad, Dhi Qar, Al- Qadisiyyah, Diyala, Maysan, Karbala, Najaf, Muthanna, Wasit, Arbil, Kirkuk, Sulaymania, and others. Baghdad is anticipated to account for the leading revenue contribution to the Iraq edible oils and fats market through 2025. Baghdad being the largest city along with high population and substantial GDP are key factors behind the growth of Baghdad edible oils and fats segment. Sulaymania, Basra, and Babil are other key regions to account for significant share of the Iraq edible oils and fats market.

SUBSTANTIAL R&D

Primarily, fuelling the Iraq edible oils and fats market is increasing demand for high quality edible oil. High quality edible oils are rich in vitamin E, monounsaturated and polyunsaturated fatty acids, and omega-3. They have a high smoking point which helps retain nutritional value at higher temperatures. To cater to this demand, large companies involved in the production of edible oils in the country are engaged in research and development (R&D) to manufacture high quality products. These companies are also making efforts to develop edible oils and fats for health savvy consumers.

The increasing consumption of processed food which are mainly oil based has also been a key factor behind the growth of Iraq edible oils and fats market. Changing lifestyle and changing eating habits are fuelling demand for ready-to-eat packaged food, further favouring the growth of Iraq edible oils and fats market.

CHALLENGING MARKET

However, factors such as decades of war and political instability leading to weak economic growth is challenging the growth of this market.  Political disturbances and economic upheavals are a key restraint to the growth of Iraq edible oils and fats market.

Nevertheless, with economic revival and growth of the tourism sector, the Iraq edible oils and fats market is predicted to receive a boost.