Iraq Food Packaging Market Overview
Iraq's food packaging market is valued at approximately USD 3.2 billion in 2025, with rigid plastic packaging for edible fats and oils representing a growing segment as the country transitions from imported to domestically produced and packaged products. Iraq's GDP of approximately USD 270 billion supports a population of 43 million with robust margarine and vegetable ghee consumption. Major brands include Zwan, Al-Sabah, Dalal, and imported Turkish and Saudi brands. The Iraqi government's import substitution policy encourages domestic food packaging production, with the Investment Law No. 13 of 2006 providing customs duty exemptions for manufacturing equipment. The Kurdistan Region of Iraq (KRI) has attracted particular investment in food processing and packaging. PP resin is imported from Saudi Arabia, Iran, and Turkey at approximately USD 1,100 to 1,350 per metric ton CIF Umm Qasr. The packaging machinery market is dominated by Chinese and Turkish suppliers. Baghdad, Erbil, Sulaymaniyah, and Basra host the majority of food packaging converters. Iraq's young, growing population with a median age of 20 years drives increasing consumption volumes.
IML mold system for margarine container production
Key Opportunities: Margarine Container Sector
Iraq's margarine and vegetable ghee container market is estimated at 350 to 500 million units annually, covering retail margarine tubs, cooking fat containers, and vegetable ghee packaging in formats from 250 grams to 2 kilograms. The 500-gram and 1-kilogram rectangular containers with printed or IML decoration are the dominant formats. Part weights range from 20 to 30 grams at 0.5 mm wall thickness in food-grade PP. IML adoption is growing, particularly in the Kurdistan Region where modern retail penetration is higher and consumer expectations for packaging quality have increased. Baghdad's expanding supermarket sector, including Carrefour Iraq, Lulu Hypermarket, and local chains, is also driving demand for IML-decorated containers. Many Iraqi converters currently produce margarine containers with post-mold printing or paper labels, and the upgrade to IML represents a significant quality and margin improvement. The replacement of imported pre-packaged margarine with domestically packaged products is a key growth driver, as Iraqi producers seek to capture value currently flowing to Turkish, Saudi, and Iranian exporters.
Import Regulations and Certification Requirements
Injection molding machines enter Iraq under HS code 8477.10, with import duties of 5 to 8% that can be waived under the Investment Law for licensed manufacturing projects. VAT of 0 to 5% applies. The Kurdistan Region may apply different tariff schedules. Food-contact packaging must comply with Iraqi Standards (IQS) referencing Codex Alimentarius guidelines, though enforcement varies by region. For margarine containers, PP material must demonstrate fat resistance and migration compliance. CE certification on HWAMDA machines is recognized and valued. HWAMDA provides documentation in English and Arabic. Customs clearance at Umm Qasr port takes 7 to 14 working days, while import through the Kurdistan Region via Turkey may follow different procedures. HWAMDA supports Iraqi buyers in preparing investment license applications that qualify equipment for duty exemptions, providing detailed technical specifications and projected production capacity documentation required by the National Investment Commission or Kurdistan Board of Investment.
Key Specs
- •Injection molding machines enter Iraq under HS code 8477.10, with import duties of 5 to 8% that can be waived under the Investment Law for licensed manufacturing projects.
- •VAT of 0 to 5% applies.
Label magazine feeding system for consistent IML decoration
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HWAMDA Equipment for the Iraq Market
For Iraqi margarine container production, HWAMDA recommends the SPV5-400 (4,000 kN) with 4-cavity IML molds for 250-gram to 500-gram tubs and the SPV5-450 (4,500 kN) for 1 to 2-kilogram containers. The SPV5-400 produces 500-gram rectangular margarine containers at 22 to 28 grams with 0.5 mm wall thickness, achieving 6 to 8 second cycle times for 1,800 to 2,400 containers per hour. The SWITEK IML system applies labels with plus or minus 0.1 mm accuracy for premium retail presentation. The machine's robust servo-hydraulic system tolerates Iraq's variable power quality and ambient temperatures up to 50 degrees Celsius with appropriately sized cooling. The INOVA controller supports Arabic-language interface and provides real-time process monitoring. HWAMDA recommends backup generator integration for production continuity in areas with grid instability, with the generator sized at minimum 1.3 times the machine's connected load. For Iraqi startups entering the margarine packaging market, HWAMDA can supply a simpler non-IML configuration initially, with the machine and mold designed for future IML upgrade.
Logistics and After-Sales Support
HWAMDA ships to Iraq via ocean freight from Ningbo to Umm Qasr port (20 to 25 days) for southern and central Iraq, or coordinates overland routing via Turkey for Kurdistan Region customers through the Ibrahim Khalil border crossing. HWAMDA's agents in Baghdad and Erbil provide Arabic and Kurdish language installation, commissioning, and operator training. For IML-specific operations, the commissioning includes comprehensive label handling training, static charge management, quality inspection procedures, and cavity-by-cavity weight verification to ensure balanced IML container production. Spare parts consignments are maintained with both agents, covering valve gate nozzles, hydraulic seals, IML robot components, and general wear items for immediate availability. Remote diagnostics via the INOVA controller enable troubleshooting from HWAMDA's engineering center in Ningbo, though internet connectivity quality varies by location across Iraq. HWAMDA provides 12-month warranty from commissioning with an option to extend to 18 months for customers in areas with longer logistics lead times for spare parts. The Baghdad agent also supports IML label sourcing from regional printers in Turkey, Iran, and the UAE for customers who do not have established label supply chains.
Servo motor driven IML system for precision label placement
Getting Started: Investment and ROI
A complete HWAMDA margarine container IML line for Iraq, including SPV5-400, 4-cavity IML mold, SWITEK IML system, and auxiliaries, represents USD 180,000 to 280,000 CIF Umm Qasr. Investment license holders import duty-free, saving 5 to 8% on CIF value. A non-IML starter configuration is available from USD 130,000 to 190,000 for budget-conscious operators. Production cost per 500-gram IML container runs approximately USD 0.04 to 0.06 including PP at USD 1,200 per metric ton, IML label, energy, labor, and mold amortization. Market selling prices of USD 0.08 to 0.14 support gross margins of 45 to 60%. At 85% utilization, monthly revenue reaches approximately USD 65,000 to 110,000. Most Iraqi operators achieve ROI within 12 to 18 months. The import substitution trend ensures growing domestic demand as Iraqi-produced margarine displaces imports. Equipment cost per container averages USD 0.002 to 0.003 amortized over 5 years.
Frequently Asked Questions
Yes, HWAMDA offers a starter configuration without IML automation, starting from USD 130,000 to 190,000. The machine and mold are designed with IML-ready specifications so the SWITEK IML system can be added later as the business grows. Non-IML containers use post-mold paper labels or heat-shrink sleeves. This phased approach reduces initial investment while preserving the upgrade path to premium IML production when market demand justifies it.
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