The Angolan central bank forecasts an inflation rate of 17.5% for 2025, anticipating improvements in the supply of goods and services as well as better monetary conditions for economic activity. Starting in May 2024, a process of slowing monthly inflation rates has been observed; however, the prices of goods and services remain high.

Beauty and personal care in 2024: The big picture

The population of Angola is predicted to increase by 55.6%, due to changes in net migration and natural change, standing at a total of 59.0 million citizens by 2040. The birth rate in Angola is anticipated to fall between 2024 and 2040. Young adults (aged 18-29) will represent the largest portion of the population by 2040. Generational cohorts in Angola will continue to influence consumer expenditure based on their specific purchasing habits and unique demands.

Inflation in Luanda soared to 42%, marking an increase of 31 percentage points compared to the same period in 2023. Across Angola, inflation accelerated to 30% in May 2024, the highest level since June 2017. These inflationary pressures have had a significant impact on the tissue and hygiene industry, reducing consumer purchasing power and creating financial difficulties for both manufacturers and importers.

In 2024, home care in Angola is influenced by persistent inflation, rising production costs, and financial struggles, particularly among domestic producers. National brands are gaining traction due to affordability, with consumers prioritising value over premium imported options. Informal markets dominate retail, offering lower prices, especially for low-income consumers. Although eco-friendly products have limited appeal, sustainability remains a growing concern. Increased reliance on locally s

Although economic freedom is improving in Angola, it remains challenging and the state is increasingly authoritarian, but fiscal balances could improve. The economy is set to rally, but inflationary pressures remain substantial and oil dependence is extremely high. Although population growth will somewhat support the consumer market, high poverty levels and inequality will hamper consumer spending. Internet use is lower than more advanced regional peers, but mobile penetration is increasing.

In 2024, the staple foods market in Angola faced challenges due to inflation and fluctuations in currency exchange rates. An insufficient supply of locally produced raw materials maintained the importance of imports and contributed to rising prices. Economic challenges encouraged shifts in consumer behaviour, including reduced purchases of products that are deemed to be non-essential, such as breakfast cereals, trading down in essential categories, and increased interest in the informal market.

High prices hindered the demand for cooking ingredients and meals in Angola in 2024. However, more local products spurred interest. More consumers bought edible oils in bulk and split purchases to offset higher prices. Meals and soups remained underdeveloped, with low interest in packaged options. Meanwhile, street food and Western trends boosted sauces and condiments. Sweet spreads suffered from high prices, and substitutes, although wider availability and cheaper local brands supported sales.

Despite another year of elevated inflation sales of soft drinks still saw steady growth in retail volume terms in 2024. Access to low-priced domestically produced products ensured that demand remained stable in the key categories of bottled water and carbonates, with the government keen to encourage investment in local manufacturing. The depreciation of the local currency impacted the prices of imports, while increasing health concerns also influenced purchasing decisions.

Angola continued to experience elevated inflation in 2024 fuelled in part by the depreciation of the local currency. Despite this sales of hot drinks saw robust growth in retail volume terms backed by the availability of affordable local brands which have benefited from the challenges facing imported products. Government investment in the local production of tea and coffee has also provided a boost to the category, with this helping to boost the local supply chain and keep prices stable.

Luanda and Lubango are Angola’s most economically vibrant cities, achieving the highest GDP per capita of all Angolan cities, while Luanda holds the highest potential for future economic growth. However, challenges for the country’s cities will persist in the near term due to the continuing global economic slowdown and the impact of tight financial conditions. In the longer run, Angola’s cities are set to face burdens on infrastructure, due to large and increasing populations.

Consumer health continues to grow in 2024, however, this is most likely due to persistent inflation, which has remained at 10% as seen in 2023. High inflation has impacted both the supply and demand for imported medications, given the country's reliance on these imports. Self-medication remains a major driver of demand, with consumers increasingly seeking value amidst rising prices. This trend has boosted the popularity of generics and affordable local and Asian brands, reflecting a shift toward

In 2024, all categories of dairy products and alternatives in Angola continue to face obstacles amid inflationary pressures on production, transportation and product prices. Nonetheless, still high birth rates, population growth, urbanisation, modern retailing advances and government investments in domestic manufacturing and infrastructure continue to pave the way for development and growth. The offer of more local products increases affordability for consumers and reduces costs for companies.

In 2023, traditional family households drove the domination of the couples with children household type in Angola, despite a falling birth rate. By 2028, these households are expected to decrease slightly, with single person households rising the fastest due to societal changes. Furthermore, urbanisation is projected to increase, leading to a decrease in average household sizes and a reduction in income inequality between rural and urban populations.

Sales of snacks in Angola are set to contract in 2024 as demand drops in several snacks categories, despite their wide range of products available across the price spectrum. The robust expansion of local manufacturing due to government incentives and improving trading conditions and the wide range of savoury snacks such as potato chips available at affordable prices, is being negated by the strength of informal channels offering unpackaged products, thereby hindering the market’s development.

The commodities country overview provides comprehensive data on production, consumption and price trends on key commodities markets. The commodities overview in Angola covers production and consumption trends in agricultural commodities, energy products, electricity as well as an overview of key economic and business environment trends.

In 2023, alcoholic drinks in Angola has faced challenges amidst fluctuating inflation and a high cost of living. Despite these hurdles, demand for national brands surged, due to greater availability and affordability. Spirits is also poised for significant value growth, driven by a new tax decree. This decree mandates tax stamps on alcoholic beverages above 15% volume, with non-compliance carrying financial penalties. Consequently, production costs have escalated, leading to higher prices for co

In 2023, Angola experienced an economic slowdown, with a decrease in per capita disposable income and falling labour productivity. Despite projections of a 5.5% increase in disposable income over 2023-2028, income inequality and a persistently high poverty rate pose significant challenges to the country’s future development. Furthermore, the consumer market is expected to expand by 21.6% over the same period, but the growth potential may be limited by economic factors affecting the broader consu

In 2023, Angola’s real GDP growth slowed to 1.2%, hindered by a drop in oil revenues, as well as subdued domestic demand. Moreover, inflation rebounded in the second half of 2023, largely due to the removal of fuel subsidies and a depreciating national currency. In the medium term, the economy is projected to recover, driven by increasing hydrocarbon production and World Bank support aimed at promoting economic diversification and job creation.