According to Inter-American Development Bank (IADB), the Honduran economy grew by 3.5% in 2024, supported by an improvement in internal consumption and the positive performance of financial services, private construction, hotels and restaurants, and internal commerce. On the other hand, primary activities such as agriculture, livestock, forestry, and fishing declined.

Honduras faces a complex economic scenario, being one of the countries with the highest poverty rates in the region. It is estimated that nearly three-quarters of its population lives below the national poverty the country's inflation rate in 2024 was more controlled than in the previous two years, standing at 3.9% according to the Central Bank of Honduras (BCH), this was not reflected in noticeable improvements in consumers' purchasing power. Prices for everyday items did not decreas

The number of households is set to increase moderately, while the average household size will shrink in Honduras over 2024-2029. Extended ("Other") households will remain the dominant household type and the fastest household expenditure growth is forecast to be recorded by extended ("other") households. In addition, the share of households living in urban areas is projected to expand to 66.1% by 2029.

Sales of beauty and personal care rose in 2024 during a year in which the Honduran economy registered growth of 3.6%, and inflation reached 3.9%, according to reports from the Central Bank of Honduras (BCH). Although inflationary pressures were lower than in the previous two years, the accumulated cost of living continued to impact purchasing behaviour in a country with high poverty rates. It is estimated that nearly three-quarters of the population live below the national poverty line. This eco

The population of Honduras is predicted to increase by 24.6%, due to changes in net migration and natural change, standing at a total of 13.5 million citizens by 2040. Demographic changes, economic conditions and social trends are all contributing to negative net migration. The birth rate in Honduras is anticipated to fall between 2024 and 2040. Young Adults (aged 18-29) will represent the largest portion of the population by 2040.

In 2024, the tissue and hygiene market in Honduras experienced steady growth in both value and volume sales mainly thanks to a more stable economic context influenced by lower inflationary pressures. According to data from the Central Bank of Honduras (BCH), the consumer price index (CPI) closed at 3.8%, the lowest recorded in the previous eight years.

Despite a drop in inflation, a higher accumulated cost of living hampered consumer purchasing power. This in turn stimulated a trend towards multifunctionality with multi-purpose surface cleaners replacing the need for separate purchases of disinfectants, floor polishes and even air fresheners. The country has a high poverty rate and is one of the economies with the lowest per capita incomes in Central America, all of which prevent the premiumisation of the home care market.

Whilst state finances remain sound and crime has somewhat reduced, relations with the US are worsening and corruption remains rife. Falling inflation is accompanied by steady economic progress, but reliance on the US and agriculture is meaningful. Solid population expansion will support the consumer market and Honduras is young, but poverty and inequality remain major concerns. Internet use is one of the lowest in Latin America and 5G is proving to be elusive, but schools are better connected.

Hot drinks saw moderate growth in retail volume sales in 2024. Coffee is the largest category thanks to local cultivation and the popularity of specialist coffee shops. As coffee already has high levels of penetration, its growth tends to be organic. Sales are driven by affordability and instant coffee mixes and the widening availability of premium brands via growth in modern grocery retailing. Tea is hampered by a lack of tradition while other hot drinks remains limited to children.

The soft drinks industry maintained positive growth in volume terms in 2024, although growth was stagnant from the previous year, as inflationary pressure constrained disposable incomes. Consumers remained cautious in their spending forgoing products considered as non-essential. Nevertheless, for some households, rather than eschew soft drinks entirely, many opted for smaller pack sizes or traded down to lower cost alternatives, such as concentrates.

Volume sales of staple foods saw slow growth in 2024 due to ongoing, if lessening, inflationary pressures. Brands continued to make price adjustments and used promotions to increase sales. Freight prices, which had decreased at the beginning of 2023, began to rise again in 2024. Shelf stable fruit and vegetables are perceived as being less healthy and more expensive alternatives to fresh fruit and vegetables, while consumption of rice is highly relevant in the Honduran daily diet.

Cooking ingredients and meals registered value sales growth across the market in 2024 due to rising prices while volume sales growth was modest. Inflationary pressures encouraged consumers to seek out lower priced options such as private label and stand-up pouches, while industry players engaged in promotions in a bid to attract consumers. The full resumption of society and recovery of tourism in the wake of the pandemic boosted foodservice, while supply problems stabilised.

Consumer health is being shaped by rising prices, which is stimulating a change in consumer priorities in El Salvador in 2024. Lower cost options, especially in analgesics and digestive remedies, are benefiting, while preventive health categories, such as vitamins and dietary supplements have regained some popularity after losing ground in the immediate aftermath of the pandemic. Climate change is leading to rising instances of allergies and seasonal ailments, boosting the popularity of OTC.

Inflation rose substantially towards the end of the review period, prompting consumers to seek promotions and offers. Despite ongoing inflation in 2024, supply issues have stabilised, with brands adjusting prices and leveraging promotions to boost sales. Local dairy suffered from droughts in 2023, impacting milk production. Smaller package sizes are thriving as consumers prioritise savings. Tourism recovery supports dairy sales, and efficient distribution remains crucial. Fresh cheese and shelf-

During 2024 sales of snacks suffered from inflationary pressures which dampened growth in volume sales. Imported brands lost competitiveness due to their higher prices as constraints on disposable income stimulated consumer caution in their spending and boosted demand for products on promotion. Nonetheless, recovery of tourism proved a boon for local snacks and flavours. Products offering indulgence also proved attractive to consumers seeking moments of pleasure in their busy lives.

Insight into income, wealth and expenditure of consumers and households is vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

The report examines the economic landscape of Honduras and provides information on major monetary indicators, foreign trade and government finance. The economy expanded in real terms in 2023, driven by private consumption, government spending. However global economic slowdown, rising geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.

Ageing, urbanisation and migration continue to be major factors shaping the global population. The number of seniors around the world kept expanding in 2021 and is expected to grow further in the years to 2040. The number of small children is systematically falling globally due to decreasing fertility rates, later marriages and other factors influencing the change in lifestyles. Containment of the pandemic, gradual lift of the restrictions and political unrest encourage greater mobility and migr

While Latin America’s digital landscape is less well developed than other regions globally, most measures continue to improve, with Coronavirus (COVID-19) also having served to drive the digital landscape development in 2020. With locked-down consumers working and learning at home, as well as shopping and entertaining themselves a lot more in an online environment, they were increasingly turning to digital solutions during the pandemic.