Financial Tribune - Iran�s palm oil market is expected to reach $648.4 million by 2025, according to a new report by US-based market research and consulting company Grand View Research, Inc.

Its increasing usage in cosmetics and biodiesel industries has contributed to a significant portion of market revenue in recent years. The termination of western sanctions followed by the agreement regarding nuclear issues has had a beneficial impact on Iran�s economy, attracting higher foreign investments in the country.

Malaysia is negotiating a reduction of tariffs under a free trade agreement, which is expected to boost trade relations with Iran once again. The removal of import quota has had an immense impact on the Iranian industry as well, further stimulating growth in recent years, PR Newswire reported.

Lower palm product prices, compared to other vegetable products such as soybean, sunflower and groundnut, have also led to higher substitution in the food, beverage, cosmetics and biodiesel industries.

Crude palm oil is expected to remain the dominant segment occupying over 88% volume share in 2015. Despite a decline in consumption levels in 2014, the product has witnessed steady recovery, gaining an edge over kernel products in the following years.

CPO is widely used to derive other products such as RBD, which are then utilized in bakery, cooking and other non-food applications.

Further key findings from the Grand View Research report suggest:

-The Iran palm oil market was $232.25 million in 2015 and is anticipated to reach $615.72 million by 2025

- Refined, bleached and deodorized oil is anticipated to emerge as the fastest growing segment, derived from CPO, with a projected CAGR of 10.2% in terms revenue from 2016 to 2025

- RBD has multiple uses in the food and industrial sectors, serving as an ideal substitute to other expensive vegetable-based products

- Palm kernel oil is expected to remain a dominant sub-segment of the kernel products market, occupying over 92% of the volume share in 2015

- The hydrogenated form of PKO is high in saturates and provides a good flavor release in ice cream and confectionery, leading to its demand in these food processing applications

Cosmetics is anticipated to grow at a compound annual growth rate of 7.6% in terms of revenue. Growing awareness regarding personal grooming and beauty, along with the proliferation of advertising campaigns has impacted Iran�s cosmetics sector and introduced new avenues for growth.

Key importers in the industry include Middle East Gold Star Co., Kala Gostaran Sabz Andish Co. Ltd., Pars Vegetable Oil Co., Cargill, Golbarg Baharan, Savola Behshar Company, Jahan Vegetable Oil Company, Eghtesad-Andish Inc. and Margarine Manufacturing Co. Ltd.