Sales of beauty and personal care in Myanmar rose at a double-digit rate in 2024 in value terms and somewhat more moderately in volume terms. Inflationary pressures, a lingering consequence of the 2021 coup in Myanmar, persisted throughout 2024, with the Asian Development Bank forecasting around 20.7% inflation for the year. The Myanmar Kyat remained sharply depreciated against major currencies such as the US dollar, making imported goods more expensive and fuelling overall inflation.

The population of Myanmar is predicted to increase by 6.7%, due to changes in net migration and natural change, standing at a total of 58.2 million citizens by 2040. Demographic changes, economic conditions and social trends are all contributing to negative net migration. The birth rate is anticipated to drop between 2024 and 2040. Middle Youth (aged 30-44) will represent the largest portion of the population by 2040.

Inflationary pressures, a lingering consequence of the 2021 coup in Myanmar, continued to shape economic conditions in 2024. The Asian Development Bank forecasted inflation at approximately 20.7%, with the Myanmar Kyat experiencing sharp depreciation against major currencies such as the US dollar. This currency instability made imports more expensive, fuelling inflation and leading to price increases across multiple categories, including tissue and hygiene.

Economic freedom in Myanmar is classed as ‘repressed’, whilst the ongoing civil conflict is considerably reducing peace in the country. The economy is set to significantly underperform peers, as conflict rages on that is exacerbating inflation and negatively impacting trade. Emigration continues to be a challenge, as is increasing food insecurity, but population growth will somewhat support the consumer market. Internet use is below peers, but mobile adoption has resumed its upward trajectory.

Home care in Myanmar experienced slower retail volume and value sales growth in 2024. This deceleration is primarily attributed to the continuing internal conflict and macroeconomic instability, which have led to further retail price increases across all home care categories. These challenging circumstances have created significant hurdles for both established brands and companies attempting to enter the market. Consumer behaviour has been significantly impacted by the economic climate, with pri

In 2024, soft drink manufacturers in Myanmar have introduced low-volume pack sizes and low-cost product variants, alongside marketing initiatives such as price discounts and lucky draws, in an effort to sustain sales volumes amidst the continued decline in household income levels and consumer spending. These challenges have been exacerbated by inflationary pressures and the ongoing devaluation of the Myanmar currency, significantly impacting purchasing power.

Coffee, tea, and other hot drinks have maintained steady volume sales in Myanmar in 2024, given their status as daily essentials for the majority of consumers with regular consumption habits. However, category growth rates have yet to recover to pre-pandemic levels due to the persistent challenges facing Myanmar's economy. In response to these difficulties, hot drinks players have introduced low-volume pack sizes and cost-effective product variants, while also employing marketing incentives to s

Overall volume sales of cooking ingredients and meals categories continued to increase steadily in 2024 as the economy continued to recover from the pandemic and post-coup economic downturn. Sales were driven by habitual consumption, distribution channel expansion and product innovation. Meanwhile, challenges include high inflation, ongoing political instabilities and continued local currency depreciation, all of which acted as drags on category growth.

Myanmar's post-coup economic crisis deepened in 2024 with prices of staple foods rising steeply due to a fall in Myanmar’s currency, product shortages and government mismanagement. In an effort to control prices, the military government introduced subsidies on rice, while cracking down on businesses, which led to even higher prices and greater volatility. As a result, sales of some staple foods contracted as household budgets tightened amidst declining income levels and rising prices.

Consumer health is benefiting from rising investment in Myanmar. Local pharmaceutical companies are investing in manufacturing essential OTC products, as retail prices of imported products have further increased due to the weakening of the local currency. Meanwhile, supply shortages of medicines continue due to macroenvironmental factors including currency depreciation and import restrictions by the State Administration Council (SAC).

Mandalay and Monywa are Myanmar’s most economically vibrant cities. Meanwhile, Yangon 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, Myanmar’s cities are set to face burdens on infrastructure, due to large and increasing populations.

In 2024, baby food in Myanmar remains affected by negative macroeconomic conditions, such as rises in the average unit price amid high inflation and subsequent strong pressure on household income levels. The economic situation poses challenges particularly to premium and mid-priced baby food brands, as many parents prioritise products that offer both affordability and quality simultaneously.

In 2023, Myanmar had the lowest average gross income in the Asia Pacific region, with economic slowdown and increased taxes contributing to this decline. Despite economic challenges, the country's economy showed resilience, with a projected increase in per capita disposable income from 2023 to 2028. However, income inequality and a significant gender gap exacerbated economic disparities, with the middle class particularly affected.

In 2024, snacks in Myanmar see a rebound in volume sales driven by adaptations to consumer demands and lifestyle changes. Companies are introducing smaller packs and innovative flavours, catering to evolving tastes. Increased mobility has led to more impulse purchases, with e-commerce becoming a popular distribution channel. These changes in consumer behaviour and strategic adjustments by brands help rejuvenate the product area.

Alcoholic drinks in Myanmar has experienced a robust recovery in 2023 as the pandemic has finally come to an end. On-trade sales have rebounded significantly in urban centres, tourist destinations, and stable regions. The off-trade channel is also expanding, particularly through alcohol specialist retailers and convenience stores, which has further supported growth. However, inflation and currency depreciation are posing challenges and inhibiting consumption rates. Despite these economic hurdles

Positive growth was seen in tobacco in Myanmar in 2023 as official retail volume sales of cigarettes continued to rise. However, much tobacco use stems from informal sales of betel quids and hand-rolled cheroots, as well as illicit sales of smuggled cigarettes and parallel imports. The biggest trend is the shift towards the novel and unregulated category of e-vapour products, especially among young adults, with all sales currently falling outside the scope of Euromonitor International research.

In 2023, Myanmar’s real GDP growth slowed to 2.8%, due to the continued civil conflict. The blocking of trade routes is having a dramatic impact on exports of textiles and apparel, while the military government is having little success in attracting foreign direct investment. Looking ahead, the economy is expected to continue to grow only slowly over 2023-2028, at an annual rate of 2.8%, as high inflation and political instability will continue to create significant challenges.

The number of households is set to increase moderately in Myanmar over 2022-2027, with couples with children remaining the dominant household type. In 2022, household spending was affected by inflation, which stood at 18.3%, elevating living costs. Urbanisation is set to intensify, yet Myanmar will still rank among the bottom third countries in Asia Pacific by 2027 in terms of urbanisation, while access to water and sanitation remains a pressing issue.

Asia Pacific remained the largest global producer of food, beverages and tobacco in 2021, with sales valued at USD3,809 billion. With the release of pent-up demand, the industry’s turnover witnessed an increase in 2021. Going forward, expanding domestic markets and rising productivity are expected to stimulate the industry’s growth. However, with tightening global food supplies amid climate change and geopolitical conflicts, challenges persist, especially for major regional food importers.

With a turnover of USD365.8 billion in 2021, Asia Pacific was the world’s second largest region for recreation, entertainment and arts. Over the next decade, the region’s entertainment industry is poised to grow at the fastest rate, nearly closing the gap with Western European turnover levels by 2030. Recovering tourism, growing investments and economic expansion are set to drive the entertainment industry’s growth in Asia Pacific, with China remaining in the lead.

The report examines key factors in supply chain risks in metals, energy and agricultural commodities. Production, market supply concentration and political risks analysis can help to better identify potential risks and prepare for potential disruptions. The briefing also identifies key industrial sectors and countries that are most vulnerable to commodity supply disruptions.

Emerging Asia has been one of the most exciting regions in emerging markets during the last two decades and this trend is expected to continue, though the pace of growth has slowed down as the economies transform and mature. By 2040, emerging Asia will account for almost a third of global GDP and more than a quarter of consumer spending, highlighting huge opportunities for business and investors. Risks will remain, requiring business to be agile to identify sweet spots and overcome challenges.