food processingInvest in Armenia’s2025
Enhancing FlavorAdvancing Industry
introduction Armenia’s food production sector stands as a pillar of economic growth, offering significant opportunities for investment. With a well-established manufacturing base and a strong emphasis on quality production, the sector has gained prominence both domestically and internationally. The country’s strategic location, expanding trade networks, and government-backed initiatives create a favorable environment for food industry investors. This guide explores the key factors driving the sector’s growth, highlighting opportunities for businesses looking to establish or expand operations in Armenia’s thriving food market.2
Why Invest in Armenia3Macroeconomic StabilityReliable financial sector and open-door policy for foreign investorsExport Market AccessPreferential conditions for access to large markets, including EAEU and Asian Arab regionsSkilled WorkforceArmenia boasts well-educated, and cost-efficient talent, with low business costsIncentives and Low Costs Comprehensive fiscal and financial incentives, favorable taxation, and low business expenses123454 Free economic zones “Alliance”“Myler” “Ecos”“Meghri”
advantages for investment4Robust Economic GrowthArmenia has demonstrated consistent economic expansion, with a 5.9% GDP growth in 2024, surpassing the 10 trillion dram threshold.Tourism GrowthThe manufacturing industry reached $5.4 billion in 2024, with food production accounting for 32.6% and beverage production for 10.2% of this output.Strategic Trade PartnershipsArmenia's total exports amounted to $13.09 billion in 2024, with processed food exports contributing $954.2 million, reflecting a 6.9% growth from the previous year.Government Support and ReformsThe Armenian government is implementing comprehensive reforms to enhance the business environment of RA, offering favorable conditions and incentives for foreign investors.
Gateway to Major Markets5Access to the EAEU, a market of 184 million consumersFTAs with Vietnam, Singapore, Serbia, and Iran (Interim FTA)FTAs with CIS countries and GeorgiaGSP regime with the USA, Japan, Canada, Switzerland, and Norway covering over 3,500 productsLocal market of 3 million consumers
EQUAL TREATMENT OWNERSHIPNO RESTRICTIONS LAND OWNERSHIP Unrestricted repatriationof profitsFree exchangeof foreign currenciesNo restrictions on staff recruitmentNo restrictionson remittances fdi LEGISLATION6100% Ownership of residentlegal entities is permittedto foreignersRights to land ownership for companies registered by foreign citizens, with long-term lease contracts for foreign nationalsUnrestricted access to almost any sector and geographic location within the countryEqual treatment under the law, ensuring foreign investors enjoy the same rights as Armenian nationals
country RATINGsECONOMIC FREEDOMINDEX 202447AMONG 176 COUNTRIESBB-BBINVESTMENT FREEDOMINDEX 202430175COUNTRIESAMONGthth7
Long established tradition of high-quality food production Access to major marketsDeveloped logistic and distribution servicesFavorable climate conditions and fertile soil10.2% (552,3 $)Beverage Production32.6% (1,6$)Food Production9.2% (441,4$)Tobacco Products PRODUCTION FOOD5.4$ blnManufacturing8
2019-2023 PRODUCTIONGROWTH VOLUMESPRODUCTION BY20.7%PRODUCTION 1.78$ billion in 20249
VoLUmES IN YEARS (USD)PRODUCTION 2024020040060080010001200201820192020202120221.78bln1.09bln1.1bln1.04bln1.1 bln1.5bln1020231.6bln
PRODUCTION VoLUmES Tavush Kotayk ShirakLori Aragatsotn 5.6%3.5%3.2%3.0%5.7%GegharkunikArmavirAraratVayots DzorSyunik0.6%2.0% 6.2%1.7% 5.6% 62.9% YerevanBY REGIONSЕvnАragatsotn Lori ShirakTavush Kotayk GegharkunikArmavirАraratVаyots DzorSyunik11
STRUCTURE OF Ice cream and Popsicles Bakery and Grain ProductsCheese and Dairy Products Meat ProductsBeveragesSaltFOOD PROCESSING 422.230 tons1242.771 tons103.734 tons344.845 liters21.364 tons9940 tonsChocolate and Confectionary 7334 tons
EXPORT OF PROCESSEDFOOD IN 2024Fish Products 9719 tons/58 544 K $Dairy Products 1781 tons/11 642 KMutton or Goat's fresh, cooled or frozen Products565 tons/3946 K $Crustaceans83 tons/743 K $Salted, dried or smoked Meat or Offal, flour and meal Products13 tons/191 K $Meat, edible Offal of Domestic Poultry83 tons/743 K $Edible Offal of Domestic Animals 46 tons/471 K $Exported Processed Food Total Export137,2%Processed Food (2024)13.09$ Bln
1510.96.45.86.13.61050 EXPORT (in 2023)VoLUmES OFExported Processed FoodCheeseMeat productsFruits and vegetablesproducts Alcoholic andnon-alcoholic beveragesOther14MLN USD
FOOD PROCESSINGCOMPANIES 74Meat Processing 47Tea and Coffee Production212Confectionery & Pasta Production69Fruit and Vegetable Processing350Dried Fruits Producers150Milk Processing, Dairy Products 10Fish ProductsEAEU, FDA, ISO, HACCP15CERTIFICATES1600More thanFood Processing Companies
FOR SUSTAINABLE DEVELOPMENT State support program16EMPLOYER At least 80% of the turnover for each reporting period of the year preceding the date of submission of the application should be formed from activities included in the \"C Manufacturing\"classifier groupTo provide compensation to the employer in the sum of the income tax for the period of 12 months per employeeNo criteria are set for persons forcibly displaced from Nagorno-KarabakhMust not have worked in the manufacturing industry in the three years preceding the employment relationshipEMPLOYEE REQUIREMENTSAIM
Agricultural Raw MaterialsLOAN SUBSIDY PROGRAMThe aim of the program is to increase the accessibility of loans and ensure the short-term payment of procured raw materials by subsidizing the interest rates of targeted loans provided to existing agricultural raw material processing legal entities and individual entrepreneursTHE LOAN ISFOLLOWING PURPOSES PROVIDED FOR THEPROGRAM CONDITIONSIn the areas of border communities, the state subsidizes 12% per year of the interest rate of the loanThe state subsidizes 9% per year of the interest rate of the loanPURCHASE OFMilk17GrapesChinchillas Fruits and vegetablesLivestock by slaughterhouses
DEVELOPMENT PROGRAM GREENHOUSE ECONOMY18For greenhouse construction loans (about 4 hectares)Required for each complete greenhouse Of the provided loan's interest rate will be subsidized by the stateThe maximum term for greenhouse construction10%11.5 yearsHA or more15 The project's goal is to expand greenhouse farms in the Republic of Armenia, increase production and exports, enhance product competitiveness, and boost farmers' incomes through state-supported affordable credit resourcesBLN AMD
Intensive Horticulture19DEVELOPMENT PROGRAMIn case of construction or expansion of modern irrigation systems or reservoirs, as well as partial reimbursement of costsTHE PROGRAM IS IMPLEMENTEDPartial subsidy of loan interest ratesCultivated Grape Plantation Establishment (only with technical grapevine varieties)Intensive Orchards EstablishmentOrchards EstablishmentCultivation of Non-traditional High-value Crops,Implementation of Modern Irrigation Systems and Hail Protection NetworksState support for entrepreneurs creating intensive gardensIN TWO COMPONENTSWithin the framework of the program, state support is provided to businessmen for the following types of activities
conclusion20Armenia’s food production industry continues to evolve, supported by steady growth, increasing exports, and a commitment to innovation. As the sector benefits from government incentives and expanding global partnerships, it remains an attractive destination for investment. With a focus on high-quality production and market expansion, Armenia presents a compelling opportunity for investors looking to capitalize on a dynamic and growing food industry.
ENTERPRISEARMENIA5a, Mher Mkrtchyan St.0010 Yerevan, [email protected]