The population of Tanzania is predicted to increase by 51.7%, due to changes in net migration and natural change, standing at a total of 104 million citizens by 2040. Demographic changes, economic conditions and social trends are all contributing to negative net migration. The birth rate in Tanzania is anticipated to fall between 2024 and 2040. Young adults (aged 18-29) will represent the largest portion of the population by 2040.

Sustainable state finances typify Tanzania and corruption is slowly being tackled, although economic freedom remains challenging and one party continues to dominate politics. Economic performance continues to be solid and inflation is contained, but foreign investment is below potential. Ageing is not a concern, but inequality is substantial and adds to gender disparity. Although internet use is low, mobile adoption is strong, connectivity has improved, and mobile money has gained traction.

Home care in Tanzania saw demand rise in 2024, fuelled by robust trends: an expanding middle class, urbanisation, population growth and greater awareness of products and their uses and benefits for hygiene and cleanliness. Nonetheless, inflationary pressures and price rises saw many consumers choose cheaper brands or small packs. Some consumers used eco-facing, milder or natural options for health and safety reasons. A strong local and international presence offered a broad choice to consumers.

Tax increases placed upward pressure on prices in 2024, but an uptick in economic activity and the ongoing expansion of the affluent urban middle-class continued to underpin sales growth. Investment in infrastructure has also led to improvements in the distribution of soft drinks. The government has also been encouraging businesses to invest in the local market. Nonetheless, on-trade sales remain underdeveloped, despite seeing steady growth in 2024.

Tax increases placed upward pressure on prices since 2023, but an uptick in economic activity and the ongoing expansion of the affluent urban middle-class continued to underpin sales growth, while investment in infrastructure has underpinned improvements in the distribution of hot drinks. The government has also been encouraging businesses to invest in the local market. Nonetheless, on-trade sales remain underdeveloped with most consumers preferring to consume hot drinks at home.

The growth in the demand for cooking ingredients and meals in Tanzania in 2024 was supported by population growth, a developing middle class and wider distribution. However, high prices, unpackaged and home-made alternatives and a strong informal market hindered growth potential. Nonetheless, the growing presence of local brands increased the affordability of packaged products in a still tough economic climate, aided by government support for local production to reduce a reliance on imports.

In 2024, staple foods faced challenges in Tanzania related to rising product prices in the context of broader pressures on consumer budgets. This reinforced the reliance of several product areas, including packaged bread and breakfast cereals, on affluent urban consumers. At the same time, severe weather conditions have impacted local production. The government is seeking to strengthen local production of crops such as wheat, while maintaining imports to ensure food security and affordability.

Categories such as analgesics, cough, cold and allergy (hay fever) remedies, and digestive remedies, remain popular in Tanzania. However, high inflation in 2024 favoured lower-priced generics over pricey international brands. Despite unit price increases, demand for essential categories remains consistent across consumer groups. Nevertheless, lower-income earners reduced their purchases of consumer health products to prioritise food instead or opted for cheaper herbal/traditional products.

In 2023, the majority of Tanzanian households were couples with children, although a decreasing birth rate was observed, driven by urbanisation, and improved education and healthcare. Over the period to 2028, the number of households is predicted to increase by 16.7%, with single person households increasing the fastest. Furthermore, urbanisation is projected to continue, influencing family structures, fertility rates and gender roles, while the digital landscape and housing demand are also set

Dar es Salaam and Mbeya are Tanzania’s most economically vibrant cities. Meanwhile, Dodoma 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, Tanzania’s cities are set to face burdens on infrastructure, due to large and increasing populations.

Tanzania’s dairy products and alternatives continues to benefit from government investment in local dairy production and the raising of import taxes. The country’s large, affluent middle class underpins demand for more expensive value-added dairy products and alternatives. However, although inflation remains lower than in other countries in Africa, prices are still increasing, leading to a shift in consumer consumption habits.

In 2023, Tanzania’s average gross income ranked second lowest among Middle East and Africa countries, due to a dependence on the informal market and large rural populations. However, per capita disposable income is projected to grow by 8.6% over 2023-2028, driven by the 45-49 age group. Despite this growth, income inequality remains a major concern, with a widening income gap expected by 2028. Spending on discretionary goods and services are also projected to remain above the regional average.

In 2023, beauty and personal care (BPC) products in Tanzania has witnessed significant price increases. The main reasons for this have been global fuel price hikes, which raised transportation costs, and high local taxes on BPC products, whether imported or locally made. Foreign exchange fluctuations have also played a role, as the Tanzanian shilling weakened against the US dollar, making imports more expensive. These factors have caused prices to rise across all BPC categories, affecting both c

Over 2024, retail volume sales of snacks in Tanzania are set to grow marginally faster than in 2023, supported by a fuller return to pre-COVID-19 lifestyles, population growth, urbanisation, a wider offer and distribution and unit price stabilisation. However, prices are significantly higher than in the early-to-mid-review period and affordability remains a key constraint on demand. Thus, promotions, and smaller packs, remain important demand drivers, if slowing retail current value growth.

In 2023, Tanzania's GDP grew by 5.3%, driven by increased private and public spending, and broadened tax collection. GDP per capita remained lower than the regional average however. Tanzania's economy is expected to expand at a CAGR of 6.2% over 2023-2028, largely due to government efforts to enhance the mining industry and infrastructure. Current trade trends indicate a shift towards increased self-reliance and a focus on high-value commodity exports.

In 2023, alcoholic drinks in Tanzania has been facing significant shifts due to the steep rise in the cost of living. Many consumers have down-traded from premium to lower-priced brands to manage their budgets, while mid to higher-income individuals have continued to afford their preferred beers, maintaining stability in that category. Manufacturers and distributors have increased prices to counter rising production, taxation, energy, fuel, and transportation costs, hence passing these expenses

In 2023, Tanzania was recognised as the second-largest producer of tobacco in Africa, according to Minister for Agriculture Hussein Bashe. Despite this high production level, smoking prevalence in the country continues to decline. This downward trend is driven by increased public awareness of health risks associated with smoking and rising costs due to government-imposed tax hikes. The government annually raises excise duties on cigarettes and tobacco products to protect citizens' health, impact

In 2023, tissue and hygiene in Tanzania is experiencing robust growth driven by an expanding urban population, rising numbers of mid-to-high income earners, and increased demand from foreigners. Notably, local companies like DRAFCO Group T Ltd and NN General Supplies are contributing innovative adult incontinence products. Such trends underscore the cultural shift towards embracing retail tissue products, highlighting a promising trajectory for the industry in Tanzania.