Despite ongoing turmoil in the Middle East, PepsiCo is doubling down on expanding its regional production, with Iraq emerging as a strong focus market
The war in Iran has dominated news throughout 2026, but with no end to the conflict in sight, life and business as usual has been moving ahead in other parts of the region.
One such example is neighbouring Iraq, which was a longstanding centre of conflict-related news throughout the 2000s. Despite its proximity to the centre of the war in Iran, this country is slowly emerging as a potential new manufacturing centre, receiving attention even from major brands such as PepsiCo.
After weakening by over 82% against the US dollar over the past decade, the Egyptian pound is finally seeing some stability and even significant growth in its food exports
As of August 2026, the Egyptian pound (EGP) is hovering at around EGP50 per US$, finally seeing signs of stabilisation after experiencing massive dips at the beginning of the year, seeing a record low of over EGP54 per US$ in March 2026.
The weather event will be the largest in living memory, according to the UK’s Met Office
The current El Niño has already been predicted as a ‘super El Niño’. But even this could be an understatement.
2026’s El Niño, which has already started, is likely to develop into the largest in living memory, the UK’s Met Office has said, and perhaps even the largest since the 19th century.
“We should be clear that this is an unprecedented event,” said Professor Adam Scaife, head of long range forecasting at the Met Office.
As demand grows for high-protein and clean-label snacks, Zenko is betting roasted edamame can offer consumers a natural alternative to processed protein products
“We have a large customer base in the Middle East. It’s not the best time to be doing business there right now, but the health and wellness trend is growing rapidly. In countries such as Kuwait, Saudi Arabia, the UAE and Qatar, there are many gym-goers and strong interest in protein products, but consumers have fewer options. Once market conditions improve, we’ll work with our partners to launch there,” said Zenko founder Wouter Duyck.
“We also have a strong retail presence in Europe, and we believe there is potential in that market as well. But for now, our priority is Asia, followed by the Middle East when conditions improve.”
The aluminium market is likely to remain volatile through the rest of 2026 with tariffs, capacity and elevated pricing likely to hit beverage manufacturers.
Procurement intelligence firm Beroe has warned that drinks companies need to avoid treating the current market as either a “temporary crisis” or a “permanent shortage” and advises them to secure core volumes while preserving flexibility.
The aluminium market has been under pressure with increased tariffs as well as the impact of the Iran war on exports.
