Key to Success in Global Trade
In today’s business world, non-oil exports are recognized as one of the main pillars of economic prosperity for countries. Among these, food industries have always been in the spotlight due to their high export potential. Pasta, as a product with widespread consumption around the world, has provided an excellent opportunity for Iranian producers to enter global markets.
Importance of Non-Oil Exports
Relying solely on oil revenues for the economy always exposes the country to vulnerabilities arising from sanctions and fluctuations in the global oil market. Developing non-oil exports, in addition to reducing dependence on oil revenues, leads to earning foreign currency, creating employment, reviving production, and ultimately, the growth and dynamism of the country’s economy.
Pasta’s Place in Consumers’ Food Baskets
Due to its ease and speed of preparation, delicious taste, suitable nutritional value, and affordable price, pasta has found a special place in the food baskets of consumers around the world. This product, with its high diversity in shape, taste, and color, can satisfy different tastes.
Global Pasta Market: Boom and Potential
The global pasta market is a booming and growing market. The value of this market reached about $25 billion in 2023 and is expected to reach over $30 billion by 2028 with a significant growth. These statistics show the high export potential of pasta for Iranian producers.
Key Players in Global Pasta Exports
Italy, China, South Korea, Turkey, and Thailand are currently recognized as the top pasta exporters in the world. A significant portion of the world’s pasta production is also consumed in the European Union, the United States, and Canada. However, there are also suitable opportunities for Iranian producers to enter the markets of these countries.
Benefits of Pasta Exports
Pasta exports have many advantages for Iranian producers:
- Easy transportation: Pasta is easy to transport to different parts of the world due to its light weight and suitable volume.
- High shelf life: This product has a high shelf life and can be stored for a long time without losing quality.
- Variety in taste and shape: Pasta is produced in various flavors and shapes, which increases the choice for consumers.
- Mass production capability: With modern technologies, mass production of pasta is possible at low cost.
Identifying Pasta Export Target Markets
Choosing the right target markets is one of the key steps to success in pasta exports. In this regard, target markets can be divided into three general categories:
- Neighboring countries: Traditional export markets of Iran
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- Iraq: Iraq, as one of the largest pasta consumption markets in the region, has provided an excellent opportunity for exporting this product from Iran. Geographical proximity, cultural commonalities, and Iraq’s urgent need for food are among the advantages of exporting pasta to this country.
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- Afghanistan: Afghanistan, as another traditional export market for Iranian pasta, has considerable potential to absorb this product.
- Central Asia: The countries of Central Asia are also among the target markets for pasta exports from Iran.
Countries with high population and growing pasta consumption
- China: China, as the most populous country in the world, has a huge consumer market for pasta. Despite the fierce competition in this market, there is high potential for exporting Iranian pasta to China.
- India: India, as the second most populous country in the world, is also among the target markets for pasta exports from Iran.
- Africa: The continent of Africa, with its growing population and increasing pasta consumption, has provided suitable opportunities for exporting this product from Iran.
Competitive markets: Entering a new arena
- European countries: European countries, as the cradle of pasta production and consumption, are a competitive but attractive market for exporting this product from Iran.
- America: The United States of America is also among the target markets for pasta exports from Iran.
- Canada: Canada, as a country with high per capita pasta consumption, has considerable potential to absorb this product from Iran.
Competition in the Global Pasta Market: Key Success Factors
To succeed in the global pasta market, it is essential to pay attention to the following key factors:
- High quality: High quality is the first word in the global pasta competition. Using high-quality raw materials, strictly adhering to production standards, and using modern technologies are among the factors effective in improving the quality of Iranian pasta.
- Competitive price: Competitive price is one of the important factors in attracting customers in the global pasta market. Iranian producers should offer a competitive price for their products by optimizing production costs.
- Attractive packaging: Attractive and customer-oriented packaging plays a significant role in attracting their attention on store shelves.
- Effective marketing and branding: Effective marketing and branding are essential for visibility and memorability in the global pasta market. Presence in international exhibitions, targeted advertising, and use of social networks are among the effective tools in marketing Iranian pasta.
Operational Steps for Entering Target Markets
To enter the target markets for pasta exports, the following operational steps must be followed:
- Market research: Conducting thorough market research is the first step in identifying the needs, tastes, and preferences of customers in the target market. This helps in choosing the right strategy for pasta exports.
- Obtaining the necessary licenses: To export pasta, it is necessary to obtain the necessary licenses from relevant organizations such as the Food and Drug Administration, Customs, and the Ministry of Jihad Agriculture.
- Choosing the export method: Pasta can be exported directly or indirectly. In the direct method, the exporter himself takes the steps to export. In the indirect method, exports are carried out through intermediary companies.
- Participation in international exhibitions: Participation in international exhibitions related to the food industry is an excellent opportunity to introduce products to global traders and buyers.
Challenges of Pasta Exports
Pasta exports, like any other business activity, face challenges:
- Severe competition with leading countries: Severe competition with leading countries in pasta production and export is one of the main challenges facing Iranian exporters.
- Currency fluctuations and their impact on the final price: Fluctuations in the exchange rate can have a negative impact on the final price of exported pasta and reduce its competitiveness in global markets.
- Complex administrative bureaucracy in exports: The complex and time-consuming administrative bureaucracy in the export process can prevent Iranian exporters from having a quick and effective presence in global markets.
Strategies to Deal with Export Challenges
To deal with the challenges of pasta exports, the following strategies can be employed:
- Improving production quality using modern technology: Improving production quality using modern technologies can increase the competitiveness of Iranian pasta in global markets.
- Optimizing production costs: Optimizing production costs, including raw material prices, wages, and transportation costs, can help reduce the final price of exported pasta and increase its profitability.
- Finding reputable business partners in target countries: Finding reputable business partners in target countries can facilitate the export process and contribute to a more effective presence in target markets.
Future of Iran’s Pasta Exports: A Positive Outlook
Despite the existing challenges, the future outlook for Iran’s pasta exports is positive.
- High production capacity in Iran: Iran ranks among the top countries in the world in terms of pasta production capacity. This high capacity, along with the availability of raw materials and skilled labor, provides a suitable basis for increasing pasta exports.
- Growing demand for pasta in global markets: The global demand for pasta is expected to continue to grow in the coming years, driven by factors such as population growth, urbanization, and busy lifestyles. This growth in demand provides an opportunity for Iranian exporters to increase their share of the global pasta market.
- Government support for non-oil exports: The Iranian government has implemented various policies to support non-oil exports, including providing financial assistance, simplifying export procedures, and promoting Iranian products in international markets. This government support can be a factor in the success of Iranian pasta exporters.
Conclusion
Pasta exports can be considered one of the effective solutions for developing non-oil exports and reviving the country’s economy. By identifying target markets, paying attention to key success factors, adopting an appropriate strategy, and striving to address the challenges, a significant share of the global pasta market can be achieved.
FAQ
- What type of pasta is more suitable for export?
For export, pasta with high quality and in accordance with the taste and preferences of the target market should be selected. The type of pasta that is popular in the target market and has a longer shelf life is more suitable for export.
- What licenses are required for pasta export?
To export pasta, it is necessary to obtain the necessary licenses from the Food and Drug Administration, Customs, and the Ministry of Jihad Agriculture. These licenses ensure that the exported pasta meets the required quality and health standards.
- What is the best method for exporting pasta?
The best method for exporting pasta depends on various factors such as export volume, exporter experience, and target market. In the direct method, the exporter himself handles the export process, which can provide more control and profit. However, the indirect method, through intermediary companies, can be less complex and risky, especially for new exporters.
- What are the main challenges of pasta exports?
Severe competition with leading countries, currency fluctuations, and complex administrative bureaucracy are among the main challenges of pasta exports. Iranian exporters need to adopt effective strategies to overcome these challenges and gain a competitive edge in the global pasta market.
- How to compete in the global pasta market?
To compete in the global pasta markets, one must focus on improving production quality, optimizing costs, finding reliable business partners, and effective marketing.