Iran’s Household
Cleaning Market
Despite turmoil in the region, Iran has great economic growth potential, thanks to
its young, educated workforce and a wealth of natural resources, which include
10% of the world’s oil reserves and 14% of the world’s natural gas reserves.
Farrokh B. Malihi • Fargol Research Group
THE MIDDLE EAST is a sub-region of Asia comprising the lands that ex- tend from the eastern Mediterranean Sea to the Persian Gulf. With a
population of about 350 million, it is home
to numerous ethnic groups including Persians, Turks, Arabs, Jews, Kurds and Armenians. Throughout history, the Middle East
has been a major center of world affairs,
and has been a strategically, economically,
politically, and culturally important region.
The Middle East includes relatively poor to
very wealthy nations resulting in significant differences in market development
and consumption profiles. Iran, Turkey,
Egypt and Saudi Arabia cover the largest
land area, and account for 75% of the total
population.1,2 The three largest economies
in 2008 in terms of Gross Domestic Prod-uct/Purchasing Power Parity (GDP/PPP)
were Turkey, Iran, and Saudi Arabia.2, 3
An overview of the soap and detergent
market in Middle East was presented in the
April, 2007 issue of HAPPI. 4 The following
article will cover a more in depth review
with focus on individual countries. This first
segment will focus on the Iranian market
for household cleaning products. Demo-
graphic characteristics, major product cat-
egories and key developments and trends
in this market will be reviewed.
Here’s a look at some of the products and brands that are prevalent in Iran.
Economy
According to the World Bank’s World Economic Indicators 2008 report, Islamic Republic of Iran ranked 18th among national
economies with a GDP/PPP of $844 billion.1 The economic structure has improved
during the past two decades but continues
to be influenced by high inflation and unemployment. Iran has a diversified manufacturing sector despite restrictions
imposed by other countries. The country
ranks 69 out of 139 in Global Competitiveness Report.2 Oil remains the core element
in Iranian economic performance and accounts for about 90% of total export earnings, and 45% of government’s budget.
Major increases in oil prices in recent years
has resulted in an increase in per capita income and purchasing power. With a young,
educated workforce, diversified agriculture
and manufacturing base, and a wealth of
natural resources including 10% of world
oil reserves and 14% of world natural gas
reserves, the country has great potential for
economic growth.
