Iran Agriculture - Industry - Market, Share and Trends 2023-2028

Summary of Agriculture

Iran’s agriculture sector is a significant contributor to the country’s economy, employing a large portion of the population and ensuring food security. Despite challenges such as water scarcity and limited arable land, the industry is characterized by a diverse range of crops, including wheat, rice, fruits, and vegetables. Government policies and investments aim to modernize farming practices, increase productivity and reduce dependency on imports. It currently has the world’s largest agricultural industry concentration, accounting for over 45% globally.

According to our estimates – we can say that the agricultural industry in Iran is forecasted to be a $156.74 Billion industry in 2029 from $91.43 Billion in 2023 with a CAGR of 9.40%

Iran has received assistance from international agencies such as: the UN Development Programme (UNDP), the Food and Agriculture Organization (FAO) and the Global Environment Facility (GEF) in transitioning to a more nature-inclusive strategy in agriculture. Initiatives include— training farmers in environmentally friendly farming techniques like agroforestry and integrated supply chain development.

A wide number of private-sector initiatives in Iran focusing on nature-inclusive agriculture is growing. These projects include— environmentally friendly agricultural technology, biofertilizers, biocontrol, integrated pest management (IPM) and water management in agriculture. Collaboration opportunities with Dutch enterprises demonstrate the growing interest in sustainable agriculture practices.

Recent Trends and Insights

In recent years, Iran’s agriculture industry has witnessed advancements in irrigation technologies, organic farming methods, and crop diversification. Sustainable agriculture practices are gaining momentum, driven by environmental concerns and consumer preferences for organic products. Furthermore— there’s a growing focus on value-added agriculture, including food processing and agro-industrial development— to enhance competitiveness in domestic and international markets.

The lifting of economic sanctions against Iran under the 2015 Joint Comprehensive Plan of Action (JCPOA) is a significant development. These sanctions – which cut off a large portion of Iran’s economy from the outside world – included fines for non-US individuals and organizations doing business with Iran as well as an embargo on food imports from Iran. The JCPOA’s sanctions were lifted upon verification that Iran was complying with the agreement, giving its economy more exposure to and access to the outside world.

Although most economic and financial activities between the US and Iran are still prohibited, the JCPOA’s agricultural provisions may have a big impact on both countries’ food production and trade. Prior to the JCPOA— exports of American agricultural products to Iran were not prohibited; nonetheless, exporters were cautious of the Iranian market due to stringent export license requirements, banking restrictions and finance limitations.

However— contracts and payments can now be done more readily under the new regulations— which may make it easier for American exports to Iran. Significant changes in Iran’s domestic food supply and demand could eventually lead to significant changes in the patterns of international agricultural commerce for a number of important commodities as Iran gains more access to Western markets for food and agricultural technologies.

Product Insights

Iran’s agricultural product portfolio encompasses a wide range of crops, reflecting the country’s diverse climate and geographical conditions. Besides traditional staples like wheat and barley, there’s increasing cultivation of high-value crops such as pistachios, saffron, and dates, catering to export markets. Livestock farming, including poultry, cattle, and sheep, also plays a significant role in meeting domestic demand for meat and dairy products.

Wheat and rice are Iran’s two considered to be the 2 main food staples. The main source of calories has historically been bread manufactured from wheat – but in recent decades – per capita consumption has stayed constant despite being among the highest in the world.

Iran’s rice consumption per capita has gradually picked up pace over the years— as rice tends to replace wheat there when incomes rise— though in recent years the growth of rice consumption has declined. Nuts, fruits, vegetables, leafy greens, and dairy products like cheese and yogurt are other significant providers of nutrients and calories. Iran’s expanding population and rising affluence have increased the country’s demand for meat products, as they do in many other developing nations.

Poultry has experienced significant growth over the past two decades– gradually surpassing beef and lamb as the primary source of animal protein. To meet this growing demand, Iran’s livestock sector has also expanded. Consequently— the demand for animal feeds—particularly corn, but also barley, wheat and soymeal—has risen over the same period.

Key Companies

Some major players within this vast domain of industry are:

• Agricultural Bank of Iran (Bank Keshavarzi)
• Iran Tractor Manufacturing Company (ITMCO)
• Behnoush Iran Company
• Saipa Group
• Iran Khodro (IKCO)
• Shirin Asal Food Industrial Group
• Iran Fisheries Organization (IFO)
• Golrang Industrial Group
• Tabiat Tazeh Tehran Company
• Razi Vaccine and Serum Research Institute

Country Analysis

Different regions within Iran exhibit distinct agricultural landscapes and specialties. The northern regions, including Gilan and Mazandaran, are known for their fertile soil and favorable climate, conducive to rice and tea cultivation. The western provinces, such as Kurdistan and Kermanshah, focus on livestock farming and dairy production. The central plateau, including areas like Isfahan and Yazd, specializes in wheat, barley, and traditional crops. Coastal regions like—Hormozgan and Khuzestan are significant for fisheries and date palm cultivation.

Iranian farmers have adopted innovative practices to promote nature-inclusive agriculture. For example— initiatives like: Parvand prioritize rainwater usage, leave fruits for wildlife and promote nature-friendly foods. Other ventures like: Farm Café and Opla City Farm showcase ecotourism and urban farming as means to engage with nature-friendly agricultural practices.

Organizations like: Cenesta and start-ups like Keshmoon are actively involved in scaling up nature-inclusive agriculture through activities such as enhancing seed quality, promoting water-efficient production, offering vocational training, consulting services and supporting environmentally friendly practices like: irrigation through ancient underground Persian Qanats.

Iran is using a multifaceted strategy to achieving nature-inclusive agriculture, involving the government, business sector, international cooperation, creative farming methods and efforts to expand sustainable agricultural practices. These initiatives show a determined commitment to support environmental resilience and sustainability in the agriculture industry.

Market segmentation

By Type:

• Crop farming
• Livestock farming
• Mixed farming (combination of crop and livestock)
• Aquaculture (farming of fish and other aquatic organisms)
• Horticulture (cultivation of fruits, vegetables, and ornamental plants)
• Forestry (management and cultivation of forests)

By End User:

• Commercial farmers
• Small-scale farmers
• Agribusinesses and cooperatives
• Government and research organizations
• Retailers and distributors of agricultural products

By Sub-Sector:

• Arable farming (crops like wheat, corn, rice, etc.)
• Dairy farming (production of milk and dairy products)
• Poultry farming (raising chickens, ducks, and other birds)
• Viticulture (cultivation of grapes for wine production)
• Floriculture (cultivation of flowers)
• Specialty crops (such as herbs, spices, and niche products)

Our Methodology

We have offered a well-founded review of Iran’s agriculture market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.