Although the market is full of home-made products and you can hardly find foreign pastry, chocolate and ice cream, the production lines of these three are in the hands of imported ingredients. Every year the country spends billions of dollars on importing essential raw materials of producing pastry, chocolate, and ice cream.
In addition to ingredients, Iran imports some necessary raw materials like ice cream stick, some ice cream containers, and packaging materials. Ice cream stick is imported because Iran has neither the suitable wood nor the producing technology. In 2016, Iran spent $ 993,000 on importing ice cream stick mostly from China, Denmark, and UAE.
The increasing household’s expenditures on sweets reflect the growing demand side of the market. The demand, however, is not constant over the time but changes seasonally. For example, more people ask for ice cream in the summer while the peak of demand for chocolate and pastry are new year holidays.
While the market is facing with supply surpluses and exports the exceeded amounts to the foreign markets, it is facing with a large deficiency in needed ingredients and raw materials.
The supply gap of necessary ingredients for making the pastry, chocolate, and ice cream are the best opportunity for foreign suppliers to enter the market. So, the market would warmly welcome providers of fat and oil, sugar, cocoa, etc. especially those who offer better prices for high-quality products.