There is a significant relationship between the development of monetary incomes and consumer spending on food. Therefore, changing economic indicators affect buyers’ decision-making process and their behavior in the food market. More income leads to more demand for food products and more imported food products in a country.
In Iraq, the turnaround in oil markets has significantly impacted Iraq’s economy, and GDP growth has been projected to reach 8.9 in 2022.
Demand for vegetables, potatoes, and tuberous plants decreases when monetary income increases and vice versa. On the other hand, by increasing GDP, high-value food products including meat and fruit get a significant palace in people’s food baskets. This effect can be seen in the trend of imported food products in Iraq.
Tourism, Population growth, and food product demand
According to the increasing population of Iraq and projected GDP, it is expected that food product consumption increases in the future in Iraq. In fact, population and its development are impacted by various indicators while monetary income is a key indicator that influences the access to the standard of living and expenditure on food products.
Furthermore, to explain the budget people spend on food products, the impact of income and other sociodemographic factors should be analyzed.
Moreover, increasing the number of tourists coming from the neighboring countries has made changes in consumer behavior and the food product market of Iraq.
International tourism spends expenditures on goods and services including payments for food products. In addition, international tourists can affect local consumers’ behavior. For example, the increased number of tourists in the northern region of Iraq has caused the opening of more fast-food restaurants in these areas in recent years.
How can GIIRAC help you?
GIIRAC helps you to identify the changes and development in consumer behavior of the population in the food market in Iraq, measuring the market size, identifying the trends, and the ability to predict future development.