Gum in Iran is being held back by smuggled goods which compete with official brands in both quality and unit price, says Euromonitor. "It is very common to go to a typical hypermarket or supermarket in Tehran and see shelves full of smuggled products, sometimes even more than official imports," the research firm said in an executive summary of the Confectionery in Iran report.
The weak Iranian economy also limits purchasing power, the company said.
Pars Minoo Industrial Company is a key domestic supplier and one of the leading gum players in the Iranian gum market for 2016, with its sugarised Chic and sugar-free White products both being very popular. The Chic brand has almost 100% penetration in retail, making it the best-selling gum in Iran. Retailers also use Chic gum as small change when they have no coins, a practice that is common in many countries where the smallest denominations are hard to find but still required.
The sugar-free White brand for gum by Pars Minoo is very similar to Orbit in terms of quality and packaging and has convinced many fans of Orbit to switch their loyalty to White because it is more affordable.
According to Euromonitor, the gum market outlook is promising. The leading domestic players are expected to expand their activities every year, resulting in stronger consumer awareness of local gumm brands and boosting gum sales. Smaller gum suppliers will also continue to maintain their small share in a highly competitive environment.
Interested?
Buy the Euromonitor Confectionery in Iran report (December 2016)