During the last few years, Iraq’s dairy industry has been on a dream run. With an expected CAGR of 8% by 2025, the country’s dairy sector is presenting lucrative prospects for its participants—national or international.
The demand for dairy products in this post-war era is expected to grow, especially as a result of supporting plans by large international organization such as UNDP, UNIDO, World Bank, IMF, USAID, FAO, and WHO.
It is estimated that the average per capita consumption of milk will increase from less than 52 liter to over 60 liter within next 3 years and then to near 90 liters by 2025.
This increasing demand for dairy products in the country is unlocking more than $4 billion investment opportunity, particularly for international players, as they bring in advanced technologies to leverage the sector and enhance productivity. Their entry in Iraq is expected to lower the import of dairy products significantly as the country has been importing over 85% of its needs from its neighbors at present.
Due to this, Iraqi companies are seeking partnership with global companies to benefit from their best practices in diary industry, as the country is in dire need of investment in cooling and hygienic handling facilities for milk, large chain stores for local producers, cold storage and warehousing facilities and proper refrigerated transport and logistics, among others.
For instance, the sector immediately requires more than $2 million to develop proper warehousing and distribution and transportation facilities including refrigerated trucks, cold storages and so on. Similarly, establishment of large and western style chain stores and hypermarkets in large cities and renovation of existing & establishment of new plant are also seeking investment immediately.
Moreover, the growing population of Iraq is another vital factor to drive the dairy industry. Country’s population is expected to boom reaching over 47 million by 2025. Additionally, large composition of young population, rise on GDP per capita, and security stabilization are expected to boost Iraq’s dairy market further.
About the author
Ali Mirmohammad is a Senior Consultant & Business Development Manager at Frost & Sullivan and he can be reached at email@example.com.