In 2024, tissue and hygiene sales rose in value terms. Sales are being driven by urbanisation, rising hygiene awareness, and expanding retail access, while economic pressures are pushing consumers towards affordable, value-orientated products. The market is growing steadily, with nappies/diapers/pants and toilet paper being among the most popular.

Sales of beauty and personal care in Ethiopia rose substantially in 2024 in current value terms and somewhat more moderately in volume terms. The overall growth of the market was shaped by a mixture of rising awareness and consumer interest, inflationary pressures, and exchange rate liberalisation. Social media continued to play an instrumental role in shaping product awareness and driving trends across categories, with influencers providing skin, hair, and fragrance recommendations that impacte

The population of Ethiopia is predicted to decline by 42.7%, due to changes in net migration and natural change, standing at a total of 188 million citizens by 2040. By 2040, young adults (aged 18-29) will make up most of the population. Ethiopia’s birth rate is expected to fall between 2024 and 2040. Generational cohorts will continue to influence consumer expenditure based on their specific purchasing habits and unique demands.

The group of major emerging economies, BRICS, has seen a rapid rise in economic power during recent decades. As the group expanded further to include more members in recent years, its growing economic and demographic influence is reshaping global trade, investment and consumer market dynamics. This report explores the implications of BRICS expansion for the global economic and consumer landscapes, highlighting key risks and opportunities for businesses.

High inflation and currency depreciation have driven price increases across staple foods in Ethiopia in 2024, forcing consumers to prioritise essentials like grains, pulses, and edible oils. Political instability and climate crises have worsened food insecurity, especially in Tigray. Informal markets remain dominant due to affordability, though formal retail is expanding in urban areas. Government efforts to boost local production, particularly in wheat and rice, aim to reduce import reliance an

Challenges remain for economic freedom and conflicts have severely dented peace, but external help is backing state finances. The economy continues to exhibit strength and, although still high, inflation has fallen, but reliance on agriculture is a key risk. Income inequality is widening and the gender gap is meaningful, but a large children’s cohort will support spending in related items. Whilst mobile usage is growing strongly, internet penetration is low, but e-governance is making progress.

Cooking ingredients and meals returned to total volume growth in Ethiopia in 2024. The edible oils category continued to dominate sales during the year. As essential products, edible oils are resilient in times of economic difficulties, such as those seen in the second half of the review period. Meanwhile, stock cubes and powders and tomato pastes and purées continued to dominate sauces, dips and condiments, but demand for cooking and table sauces grew as local diets became more Westernised.

In 2024, home care in Ethiopia has faced rising prices due to high inflation and a foreign exchange shortage, limiting consumer demand. Small-scale manufacturers of liquid detergents have grown, meeting price-sensitive needs, while private label products have gained traction as affordable alternatives to premium brands. Consumers prefer multi-purpose and larger-sized products for cost efficiency, while liquid detergents continue to outpace bars. Security issues in Amhara and Oromia have hindered

Coffee continued to shape the performance of hot drinks in Ethiopia in 2024, as a traditional and very popular beverage in the country. While most coffee is sold unpackaged via informal retailing, packaged fresh coffee products continued to gain popularity in urban areas. The consumption of packaged tea also rose in 2024. Black tea remained most popular, although fruit/herbal tea gained traction. On the other hand, other hot drinks remained a negligible category at the end of the review period.

In 2024, all significant categories of soft drinks in Ethiopia saw good total volume growth, supported by fast urbanisation and population growth, improving economic indicators, stronger distribution, advertising and company activity. Bottled water, with by far the fastest total volume growth in 2024, continued to gain from the concerns over the quality and safety of tap water. However, hikes in operational costs and product prices still constrained the production and consumption of soft drinks.

In 2024, inflation remained high in Ethiopia, boosting current value sales of dairy products but hindering retail volume growth, which was modest overall. Packaged butter and spreads experienced marginal decline, as many opted for lower-priced unpackaged butter. Baby food saw retail volume growth, benefiting from a high birth rate. The worst drought in 40 years was the main cause of the high inflation, which has pushed up local food prices, while currency depreciation made imports more costly.

In 2023, Ethiopia's dominant household type was couples with children, with a high prevalence of traditional family lifestyles. Despite a decrease in the birth rate, Ethiopia's birth rate remained above the global average due to factors such as urbanisation and improved access to education. Furthermore, societal norms and economic conditions are changing, with an increase in single-parent families and a focus on education and financial independence among women.

In 2024, consumer health in Ethiopia faces challenges from high inflation and foreign exchange shortages, impacting the availability and affordability of pharmaceuticals. While inflation is easing, private pharmacies see significant price hikes, and local manufacturers struggle with raw material costs. Government initiatives aim to support local production and reduce import dependence.

In 2024, snacks in Ethiopia faces inflation-driven price hikes, with non-essential categories like boxed assortments experiencing volume declines. However, potato chips and filled biscuits are resilient, maintaining strong demand due to affordability. PepsiCo's USD40m investment highlights the potential for local snack production. Urban consumers drive growth, supported by rising incomes and expanding modern retail. Nevertheless, economic challenges and poverty continue to limit widespread snack

Mekele and Hawassa are Ethiopia’s most economically vibrant cities achieving the highest GDP per capita, while Dire Dawa 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, Ethiopia’s cities are set to face burdens on infrastructure, due to large and increasing populations.

In 2023, Ethiopia ranked 23rd out of 25 Middle East and Africa countries in terms of average gross income, as the majority of Ethiopians find themselves in low-paid agricultural jobs. While disposable income increased thanks to a truce in hostilities, economic challenges continued such as high inflation and lack of foreign currency. Looking ahead over 2023-2028, Ethiopia's per capita disposable income is projected to increase by 21.5%, indicating a more positive economic challenge.

Alcoholic drinks is facing significant challenges amidst Ethiopia's economic turmoil in 2023, with inflation soaring at 30% driven by the global economic aftershocks of the COVID-19 pandemic. As a result, local breweries have hiked wholesale beer prices by three times as much as seen in previous years. This inflationary trend, compounded by political unrest in Ethiopia, has hindered alcohol consumption levels in 2023, reflecting broader economic uncertainties.

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

In 2023, Ethiopia's tobacco industry is primarily dominated by cigarettes, with higher consumption observed in eastern regions such as Somali, Afar, and Jigjiga. However, this area is also marked by a prevalence of illicit cigarettes smuggled across the border. Despite anti-smoking efforts including public area bans, high excise taxes, and stringent packaging requirements, the effectiveness of the campaign remains limited due to various factors.

In 2023, Ethiopia’s GDP grew by 6.1% in real terms, but its GDP per capita remained lower than the regional average. The country’s economic growth was driven by an increase in private spending, although sluggish public consumption, and weak gross fixed capital formation and exports remained major negative factors. Furthermore, despite a slight decrease in inflation, Ethiopia continues to grapple with rapidly rising prices, along with a lack of hard currency and rising external debt repayments.

The briefing examines how the coffee commodity is performing globally and in the largest countries in terms of supply and production. The report also provides data and analysis on coffee price dynamics, as well as analysing trends across key commodity consuming industries.

The global economy is facing weaker growth and increasing fragmentation, as a result of rising geopolitical tensions, especially due to the war in Ukraine and the US-China strategic rivalry. Protectionism, industrial policy and a focus on resilience are altering the global trade and foreign direct investment landscapes, creating considerable risks. Yet, the changing global operating environment also comes with new growth opportunities in the years ahead, especially in the Asia Pacific region.

Cities are hubs for spending, with 80% of expenditure expected to be generated by urban areas in 2023. Spending growth in 2023 will, however, be sluggish, as cost of living challenges force consumers to be more conservative in their expenditure. Over the next 3-4 years, inflation is predicted to fall, shifting the balance of spending back towards non-necessities; however, consumers are likely to display more conscious consumption habits, valuing sustainability and quality over quantity.

This briefing examines how the wood commodity is performing globally and in the largest countries in terms of wood supply and consumption. The report also provides data and analysis for wood prices, imports, exports and top consuming industries as well as global economic forecasts. The supply, consumption and main consuming industries overview provides benchmarks against other countries globally.