By Ariane Gottlieb, Research Associate  

Iran, with its population of nearly 80 million people and recent relief from sanctions, offers significant opportunities for growth, international investment and modernization in its already strong food and beverage industry. Currently, 90% of food and beverage sales are conducted through traditional small grocery outlets and local bakeries. In 2014, 96% of bakery sales were for staples like bread. But, in a country where 65% of the population is under the age of 35, tastes are changing and companies are modernizing and targeting younger consumers by rebranding or adding new products and flavors.  

By Sarah Bryn Witmer, Research Associate

There are many factors that have led to a thriving tech industry in Iran, including abundant resources, lifted sanctions, and a youthful, highly educated population.  Perhaps somewhat surprisingly, the industry has also benefited in large part due to active support from the Iranian government. Over a decade ago in 2005, the Islamic Republic released a “20 Year National Vision” statement, known as Vision 2025, describing the state’s intentions to achieve “first place in the areas of economy, science, and technology in the Western South Asia region,” specifically in “high tech [software knowledge] production.”  

Iran has long had its share of environmental issues including air pollution, water management, and the effects of climate change. But in 2016, major developments in environmental policy in Iran helped boost the country’s “green” status. For instance, Iran passed the Clean Air Bill, imposing fines on excess air pollution, and became the 106th nation to ratify the Paris Agreement in early November 2016.  Additionally, the Iranian Department of Environment endorsed several successful environmental campaigns such as “Car-Free Tuesday” and a plan to protect the Persian Leopard.

Iran fosters a thriving domestic tech scene that hosts multi-million dollar companies like Café Bazaar and Aparat and appears ripe for further growth after sanctions relief from the JCPOA.  Around two-thirds of Iran’s population is under the age of 35, while 42% are under 24. In addition to a sizeable young, tech-savvy population, there are roughly 56 million Internet users in Iran, forming a substantial potential customer base for cutting-edge tech startups.

“The government will never be a good manager in industry, including the car industry. The sector should be completely privatized and competitive. The partnership [with foreign carmakers] will drive us ahead.” 

With these words, President Hassan Rouhani, in a nationally broadcast speech, invited foreign investment to participate in Iran’s auto industry. Following years of devastating sanctions on manufacturing, analysts believe Iran’s auto parts industry, the nation's second largest economic sector, is ripe for growth. 

Following last year’s implementation of the nuclear deal, companies around the world have taken a serious interest in the Iranian telecommunications industry.  The population of Iran, the second-largest in the Middle East, is mostly young – over 60% of Iranians are below the age of 30 – and, therefore, more likely to consume new technologies, cellular devices, and electronics. Thanks to deregulation, the introduction of 3G and 4G network services, and a robust start-up culture, Iran’s telecom industry offers a promising, and highly lucrative, new frontier for the global economy.