The move indicates a strong commitment by the company to the MENA country, which has been in the global spotlight as a potential future growth market of late as it economy develops and its sociopolitical system shows signs of stabilising.
The opening was described by the company as “heralding a new and exciting chapter for Croda’s long-standing relationship with Iran.”
Iran in focus
According to a recent market report on the country by Euromonitor International, Iran’s beauty market in particular has been enjoying a period of growth and development.
The firm pins this on two key factors: young consumers and the economic growth possibilities offered across the board by increased stability in the economic situation.
Some commentators have suggested, however, that the county’s growth potential is currently being hindered by various stumbling blocks, with a report in The Economist noting that the biggest problem is lack of finance.
The news outlet also criticises the bureaucracy in Iran, noting it “frustrates everyone”, with the environment for foreign nationals hoping to live and work in the country depicted as fairly hostile. Indeed, beauty giant Shiseido announced last month that it is delaying its planned expansion in the country, citing that the right conditions are not yet in place.
Croda is one player within beauty and personal care, on the other hand, apparently confident in Iran’s capacity to grow.
“According to the Iranian Trade Association, Iran’s economic future is really about engaging and investing to unleash the innovative potential.
“This strategy for an innovation led economy matches the fundamental drive of Croda’s business, particularly with the “Four T’s” that the Iranian government are said to be focused on; Trade, Talent, Tourism, Technology.”
The firm says it intends to capture growth in core markets to Croda’s business, such as polymer additives, geo technologies, lubricants and crop care.