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Coffee products industry

Coffee is a bitter beverage with a sweet profit and its consumption is on the rise in Iran. But the coffee industry in Iran is still fairly new. A couple years ago, the government restricted the imports of foreign coffee brands. The import of foreign coffee became more difficult and now, it is no longer economically justified.

This led industry participants to move toward production to meet domestic demand. In general, Iran’s coffee industry and market are rather fragmented which is a reflection of how tea continues to be more popular. Much of the oversight for this industry comes from the Food and Drug Administration and the national Coffee Union. Coffee shop licenses are also issue by regional Juice, Ice Cream, and Coffee Shop Unions. In 2017, this union issued some 1500 operation permits nationwide. Recent figures have not been published and that number is likely much higher this year. The Ministry of Agriculture has carried out several feasibility studies for the cultivation of coffee. The results suggest that natural cultivation of coffee is not cost effective because Iran small pockets of spaces with ideal climatic conditions.

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