Plastic industry in Iran

Iran’s plastic industry, a vital part of its petrochemical sector, harnesses abundant oil and gas reserves to produce diverse products like packaging and industrial components. Originating in the 1950s, it has grown significantly, with Tehran as a central hub hosting the Iran Poly Sky Tech Exhibition to boost trade. Despite challenges like sanctions, pollution, and microplastics, the industry is embracing biodegradable plastics and recycling. This blog delves into its history, key companies, products, trade dynamics, challenges, and sustainable future trends.

History and Development of Iran’s plastic industry Tehran

The history and development of Iran’s plastic industry are deeply intertwined with its petrochemical sector, which emerged as a cornerstone of the economy due to abundant oil and gas reserves. The industry’s roots trace back to the 1950s, when the concept of petrochemical production was embedded in national laws and planning.

In 1963, the first petrochemical complex was established in Shiraz for fertilizer production, marking the formal inception of the sector under the National Iranian Petrochemical Company (NIPC). By the late 1960s, Iran’s petrochemical output reached 12.5 million metric tons annually, contributing about 1.5% to GDP, with plastics forming a key segment through polymer production. Pre-1979 Islamic Revolution, development occurred in three phases, focusing on basic chemicals and expanding to downstream products like plastics for packaging and manufacturing.

Post-revolution, despite challenges like the Iran-Iraq War (1980-1988), the industry rebounded with privatization efforts and export-oriented growth. The 1990s saw a boom after the discovery of vast natural gas reserves in the late 1980s, boosting polymer output and making Iran a major exporter of methanol, a feedstock for ethylene and propylene—essential for plastics. By the 2000s, plastic derivatives became vital for economic diversification amid sanctions, with annual supply growing at 3.2% since 2002. In 2022, plastics exports reached $5.81 billion, underscoring its role in non-oil revenues.

Tehran plays a pivotal role as an industrial and commercial hub. The city hosts major events like the Iran Poly Sky Tech Exhibition, which promotes downstream growth and attracts international participants. Tehran is home to numerous factories and associations, such as the Iranian Masterbatch and Compound Producers Association, fostering collaborations like the 2025 MOU with China’s Shenzhen Plastics Association. Production lines for containers and innovative materials have proliferated here, driven by urban demand and population growth.

Recent developments emphasize sustainability amid global plastic pollution concerns. Iran’s Seventh Development Plan targets increased petrochemical capacity while shifting toward eco-friendly polymers and recycling technologies, including AI-driven innovations and biodegradable materials. However, economic reliance—contributing nearly 2% to GDP—has led Iran to oppose UN treaty production curbs. Today, the sector employs thousands, supports key industries like packaging and automotive, and positions Tehran as a regional plastics powerhouse, with ongoing investments in vertical integration and exports.

Major Plastic Manufacturing Companies in Iran

• National Petrochemical Company (NPC)
• Persian Gulf Petrochemical Industries Company
• Jam Petrochemical Company
• Shazand Petrochemical Company
• Aria Polymer Pishgam
• Padena Polymer Co.
• PETRO POLYPLAST
• Arta Plast
• Tebplastic

• Niam Plastic
• SupraPol Company
• POLFILM
• Hofmann UPVC Profile Producer
• Sazeplast
• Shamsplastteb
• Lakan Plastic Industries Co.
• Gharb Lastic & MFG Co.
• Iran Masterbatch

Iran’s plastic industry products

• Polyethylene (PE) Films (LDPE, HDPE, LLDPE)
• Plastic Pallets
• Plastic Waste Containers
• Box Pallets
• PET Preforms
• Plastic Bottles (for beverages, chemicals)
• Polypropylene (PP) Sheets
• PVC Pipes and Fittings
• Agricultural Films
• Packaging Films (for food, industrial use)
• Plastic Bags (shopping, garbage, freezer)
• Injection-Molded Containers (17-1000 liters)
• Blow-Molded Products (e.g., bottles, containers)
• Disposable Tablecloths
• Industrial Components (e.g., automotive parts)
• PE Compounds (for bags, films, molding)
• PVC Granules
• Plastic Furniture (outdoor, household)
• Corrugated Hollow PP Sheets
• Flame-Retardant Polymer Compounds

Export and Import Statistics for Iranian Plastics

Iran’s plastic industry, classified under HS Code 39 (Plastics and articles thereof), plays a significant role in the country’s non-oil exports, contributing to economic diversification amid international sanctions. Based on data from UN Comtrade and other sources, exports have shown volatility, peaking in 2021 before declining due to geopolitical pressures and reduced global demand. In 2023, plastics accounted for approximately 16.9% of Iran’s total exports, valued at $2.23 billion out of $13.2 billion overall.

Imports, meanwhile, have remained relatively stable but are projected to decrease gradually, reflecting efforts toward domestic production and import substitution. Key export products include polyethylene and polypropylene, while imports focus on raw materials and specialized plastics. Top export destinations in recent years include China (around 56% of plastics exports), Iraq, Turkey, Afghanistan, and India.

Major import sources are the United Arab Emirates, China, Turkey, and Germany. Volume data is less consistently reported, but value figures dominate trade statistics. As of September 2025, full 2024 data is not yet comprehensively available from global databases, but preliminary estimates suggest a slight rebound in exports amid regional demand. Projections indicate imports could fall to $1.3 billion by 2028.

Net trade balance for plastics remains positive, with exports exceeding imports by about $0.73 billion in 2023, highlighting Iran’s competitive edge in polymer production from abundant natural gas reserves. However, sanctions continue to constrain growth, limiting access to technology and markets. For volume, 2023 exports were approximately 3-4 million metric tons (estimated from value and average prices), but exact figures vary by source.

Challenges of Iran’s plastic industry

Iran’s plastic industry, integral to its petrochemical sector, encounters formidable obstacles that impede its progress and environmental sustainability. Key challenges include international sanctions, widespread plastic pollution, and the pervasive issue of microplastics, each exacerbated by the country’s high plastic consumption and economic dependencies.

• Sanctions

International sanctions, particularly from the United States, have significantly disrupted Iran’s plastic industry by limiting access to global markets, technology, and financial systems. These measures have made it difficult for manufacturers to receive payments and import essential machinery, severely impacting operations. Sanctions have led to an average 3.2% decrease in energy use efficiency across industrial sub-sectors, including plastics.

In the initial months following intensified sanctions, petrochemical exports, which include plastics, dropped by 18%. Furthermore, sanctions have caused a 16.4 percentage point decline in manufacturing employment growth, affecting the rubber and plastics sector. While Iran has sought self-sufficiency, these restrictions increase production costs and environmental strain, making economic activities more burdensome.

• Pollution

Plastic pollution in Iran stems from high consumption and inadequate waste management, posing severe environmental challenges. The country consumes approximately 500,000 tons of plastic annually, ranking fifth globally in plastic usage. Over 1 million tons of plastic bags are produced each year, with 96% ending up in trash. Tehran alone generated over 7,500 tons of waste daily before the COVID-19 pandemic, much of it plastic.

Iran is among the top producers of mismanaged plastic waste, leading to accumulation in landfills, waterways, and coastal areas like the Persian Gulf. Plastic packaging constitutes 95.6% of plastic waste, highlighting mismanagement as a primary source of pollution. Efforts to address this include prioritizing waste management, but economic priorities often delay comprehensive solutions.

• Microplastics

Microplastics (MPs), resulting from plastic degradation and industrial activities, represent an emerging environmental and health threat in Iran. Studies have detected MPs in various environments, including urban soils in Tehran, where concentrations range from 68 to 212 particles per 100 grams in incinerator samples. In southwest Iran’s industrial and urban areas, MPs are ubiquitous, primarily as tiny black fibers from sources like agricultural films and wastewater. MPs have infiltrated the food chain, with an average of 19.9 particles per liter found in popular Iranian soft drinks.

Table salt and bottled water also show contamination, posing risks to human health and ecosystems. High plastic consumption contributes to this issue, with MPs threatening marine life in the Persian Gulf and requiring urgent research and mitigation strategies. Addressing these challenges requires balanced policies that promote technological innovation, improved waste management, and sustainable practices to safeguard Iran’s plastic industry’s future while mitigating environmental harm.

Future Trends of Iran’s plastic industry

Iran’s plastic industry is shifting toward biodegradable plastics and sustainability to meet global environmental demands while sustaining its economic role. These trends address high plastic consumption and waste challenges.

• Biodegradable Plastics

Iran consumes 500,000 tons of plastics annually, driving interest in biodegradable options like polyhydroxyalkanoates (PHA) and starch-based films. Companies like Aria Polymer Pishgam develop compostable packaging and agricultural films to reduce environmental impact. The Seventh Development Plan prioritizes bio-based polymers, but high costs and limited infrastructure hinder progress. Innovations using agricultural waste offer sustainable alternatives without relying on food crops.

• Sustainability Initiatives

Iran produces 1 million tons of plastic bags yearly, with 96% ending in landfills. Recycling programs in Tehran and AI-driven waste sorting are emerging, but economic reliance on petrochemicals (2% of GDP) slows adoption. Partnerships, like the 2025 MOU with China’s Shenzhen Plastics Association, aim to advance sustainable practices.

Iran Poly Sky Tech Exhibition: A Key Opportunity to access Iran’s plastic industry

The Iran Poly Sky Tech Exhibition (December 3-6, 2025, Tehran) is a key platform to explore these trends, showcasing biodegradable materials and recycling tech with over 750 companies. It offers networking and innovation opportunities, helping Iran’s industry align with global sustainability goals.