Brief Introduction of Iran Market
Iran, with a population of over 80 million and located at the center of the Middle East, Russia, and CIS region, is the optimal place for a manufacturing base of Tobacco Products with high potential marketing, sales and distribution to a sizable and rapid growing market.
Iran has a major role as a region hub for neighboring and CIS countries. Lack of manufacturing in most countries in the region due to existing limitations has brought upon a unique opportunity for Iran’s production. This area covers more than 200 million people creating a vast market for any business. Iran benefits from easy transport to these countries through land, rail and sea freight.
Government Regulation Drives Local Manufacturing Boom
In 2014 according to Clause 3 of Article 102 of the Fifth Development Plan of Iran, all legal importers were obliged to make their own manufacturing lines inside the country. In addition, with implementation of Article 44, the monopoly in tobacco industry has been broken and this has facilitated cigarette production inside Iran and all major international tobacco companies are racing to gain their share from this potential market. As a direct result, President of “State Center for Tobacco Planning and Supervision” states that there has been a 53 percent increase in the production of cigarette in Iran in the past year.
Priority Market For Big Tobacco Companies
All interested cigarettes manufacturing or distributing companies, which are interested in Iran market, can participate in this great market and be sure about significant results of it. British American Tobacco (BAT), which produces the Kent, Pall Mall and Lucky Strike labels, named Iran a “first priority” market.
Industry Friendly Marketing and Advertising Regulations
Iran regulations are suited for advertising and illustration of cigarettes into the supermarkets, free shops, groceries and other hot spots, which are most favorable places to introduce new and existing brands to entire consumers. There is no legal inhibition or ban to advertise and present cigarettes for end users. Therefore, it is reasonable to think about a practical solution that offer direct selling of fresh, original, duty free cigarettes from manufacturer to end user consumers.
Sizeable Local Market
Iran has a huge consumption of cigarette; the official reports and statistics published by Ministry of Health estimated consumption of 55 billion sticks per year, and reported from Ministry of Industry, Mine & Trade an amount of 70 billion. However, unofficial data shows that the number exceeds 90 billion.
The Best Selection for Regional Production And Distribution Base
Iran has major role in economy and politics of some countries in region that makes the market of these countries totally more than 200 million people. In addition, with the political circumstances between Russia and western countries, total in access market covers 400 million population. According to Iran’s export law, there is no need to obtain a license for exporting cigarettes and other tobacco product to encourage manufacturers to expand their production and reach international markets.
Parsian Tobacco Company’s strategy is to play a significant role in boosting local production of Iran Tobacco Products through co-operation with International Tobacco Companies