Iran’s Confectionery Industry Operating at 50% Capacity Amid Supply Chain Challenges

Despite its significant export potential, Iran’s confectionery, chocolate and biscuit industry is facing multiple pressures, including raw material supply constraints, foreign exchange challenges, regulatory complexities and energy disruptions, which have affected production capacity.

Industry estimates indicate that many production units are currently operating at around 50% of their capacity, mainly due to difficulties in securing raw materials, limited working capital, administrative barriers and energy-related challenges.

A key priority for the industry is enabling greater private-sector participation in sourcing essential inputs. Efforts to facilitate direct wheat imports for industrial use and expand alternative supply channels are being pursued to strengthen production continuity and reduce supply risks.

Beyond external sanctions, manufacturers are also dealing with domestic regulatory obstacles, including registration restrictions and administrative procedures that increase the cost and complexity of international trade. Industry stakeholders emphasize that more predictable foreign exchange and trade policies are essential to maintaining competitiveness.

With strong export potential in regional markets, the future growth of Iran’s confectionery sector depends on a more resilient supply chain, stable access to raw materials and balanced policies that support both agricultural producers and downstream food industries.