Uruguay’s economy remained relatively stable in 2024, in contrast to ongoing economic turmoil in neighbouring Argentina. Despite this, the country’s tobacco industry continued to face considerable challenges, including stringent tobacco control legislation and a high tax burden. These factors drove a notable rise in illicit cigarette consumption, with illegal products accounting for over one third of total cigarette volume sales in 2024 - a marked increase compared to previous years. However, th

Uruguay’s economy remained relatively stable in 2024, in contrast to ongoing economic turmoil in neighbouring Argentina. Despite this, the country’s tobacco industry continued to face considerable challenges, including stringent tobacco control legislation and a high tax burden. These factors drove a notable rise in illicit cigarette consumption, with illegal products accounting for over one third of total cigarette volume sales in 2024 - a marked increase compared to previous years. However, th

Sales of cigars, cigarillos, and smoking tobacco experienced positive volume growth in Uruguay in 2024. Cigarillos benefitted from the appreciation of the Argentine peso, which led to a decline in small-scale contraband from Argentina. Additionally, the increasingly negative social perception of cigarette smokers contributed to some consumers shifting towards cigarillos, which are often viewed as more socially acceptable or sophisticated.

The market for smokeless tobacco, e-vapour products and heated tobacco failed to record any measurable sales in Uruguay in 2024. Heated tobacco products were still unavailable in the country, despite receiving a regulatory green light in March 2021. Uruguay's strict anti-tobacco legislation, small market size, and low regional demand have made the country a less attractive destination for major multinational companies such as Philip Morris International and British American Tobacco. Moreover, al

The number of households is set to increase slightly, while the average household size will remain unchanged in Uruguay over 2024-2029. Single person households will remain the dominant household type but the fastest household expenditure growth is forecast to be recorded by couples without children. In addition, the share of households living in urban areas is projected to expand to 96.3% by 2029.

Having declined in 2023, retail current value sales of hair care rebounded sharply in 2024, with shampoos remaining both the largest and most dynamic category, with demand for standard shampoos particularly strong. Demand was boosted by an increase in disposable income and easing inflationary pressure, as well as a decrease in cross-border shopping and smuggling from neighbouring Argentina after the government of the latter country initiated a reform of its exchange-rate regime. There was a noti

Retail current value sales of colour cosmetics continued to surge in Uruguay during 2024. A key factor behind this was a decrease in purchases by Uruguayan consumers in neighbouring Argentina, along with a reduction in smuggling from Argentina to Uruguay. This decline in contraband purchases can be attributed to an exchange rate adjustment made by the Argentine government, which significantly reduced the incentive for Uruguayan consumers to buy products from abroad or those illegally imported fr

Retail current value sales of fragrances accelerated sharply in 2024, making the category the top performer across beauty and personal care in Uruguay. Thanks to the country's economic stability, real household incomes expanded during the year. This has had a particularly beneficial impact on premium fragrances. There is also a trend towards more personalised products, with a growing number of local consumers seeking customisable fragrance options that allow them to create scents tailored to ind

Having declined sharply in 2023, retail current value sales of skin care rebounded strongly in 2024. This was driven in large part by a shift in the exchange-rate regime in neighbouring Argentina, which made cross-border shopping for skin care products less appealing to Uruguayan consumers. Moreover, local consumers are increasingly performing facial and body beauty routines at home. They are also becoming more aware of the best and most effective ingredients for their skin. Even when faced with

Having declined during the previous year, retail current value sales of sun care surged in 2024. A change in neighbouring Argentina’s exchange-rate regime narrowed the price differential for sun care between the two countries, which led to declines in both cross-border shopping by Uruguayan consumers and purchases of products smuggled into the country from Argentina, as demand was redirected to licit channels.

The rate of growth in retail current value sales of depilatories accelerated sharply in 2024, with hair removers/bleaches remaining both the largest and most dynamic category. A key driver of this growth was a decrease in purchases by Uruguayan consumers in neighbouring Argentina, along with a reduction in smuggling from Argentina to Uruguay. This decline in contraband purchases can be attributed to an exchange rate adjustment made by the Argentine government, which significantly reduced the inc

The rate of growth in retail current value sales of beauty and personal care in Uruguay accelerated sharply in 2024. A key factor driving growth was the decrease in cross-border shopping by Uruguayan consumers in neighbouring Argentina, along with a reduction in smuggling from Argentina to Uruguay. This decline in contraband purchases can be attributed to an exchange rate adjustment made by the Argentine government, which significantly reduced the incentive for Uruguayan consumers to buy beauty

Having contracted in 2023, retail current value sales of oral care rebounded strongly in 2024. Demand was boosted by the return of some local consumers to the formal market, as they previously purchased oral care products in Argentina or on the informal market. Due to recent adjustments in Argentina’s exchange rate regime that diminished the price differential for oral care between the two countries, Uruguayan consumers no longer have as strong an incentive to engage in cross-border shopping. Or

Having declined marginally in 2023, retail current value sales of deodorants rebounded in 2024. A key driver of this was a decrease in purchases by Uruguayan consumers in neighbouring Argentina, along with a reduction in smuggling from Argentina to Uruguay. This decline in contraband purchases can be attributed to an exchange rate adjustment made by the Argentine government, which significantly reduced the incentive for Uruguayan consumers to buy products from abroad or those illegally imported

The rate of growth in retail current value sales of baby and child-specific products accelerated sharply in 2024. A key factor behind this acceleration was a decrease in purchases by Uruguayan consumers in neighbouring Argentina, along with a reduction in smuggling from Argentina to Uruguay. This decline in contraband purchases can be attributed to an exchange rate adjustment made by the Argentine government, which significantly reduced the incentive for Uruguayan consumers to buy products from

Having declined in 2023, retail current value sales of bath and shower rebounded in 2024. However, in retail constant value terms, the recovery was fairly modest. A key factor behind the rebound was a decrease in purchases by Uruguayan consumers in neighbouring Argentina, along with a reduction in smuggling from Argentina to Uruguay. This decline in contraband purchases can be attributed to an exchange rate adjustment made by the Argentine government, which significantly reduced the incentive fo

The rate of growth in retail current value sales of men's grooming accelerated sharply in 2024. This was due in part to a decline in cross-border shopping and smuggling from neighbouring Argentina, after the Argentine government initiated a reform of its exchange-rate policy that diminished the price differential for men’s grooming between the two countries. Demand was further boosted by rising household disposable income and easing inflationary pressure. Increased local consumer awareness of gl

Having declined in 2023, retail current value sales of mass beauty and personal care rebounded strongly in Uruguay during 2024. A key factor driving growth was the decrease in purchases by Uruguayan consumers in neighbouring Argentina, along with a reduction in smuggling from Argentina to Uruguay. This decline in contraband purchases can be attributed to an exchange rate adjustment made by the Argentine government, which significantly reduced the incentive for Uruguayan consumers to buy products

Retail current value sales of premium beauty and personal care surged in Uruguay during 2024. A key factor driving growth was the decrease in purchases by Uruguayan consumers in neighbouring Argentina, along with a reduction in smuggling from Argentina to Uruguay. This decline in contraband purchases can be attributed to an exchange rate adjustment made by the Argentine government, which significantly reduced the incentive for Uruguayan consumers to buy products from abroad or those illegally im

The population of Uruguay is predicted to decline by 2.7%, due to changes in net migration and natural change, standing at a total of 3.3 million citizens by 2040. Demographic changes, economic conditions and social trends are all contributing to negative net migration. Uruguay’s birth rate is expected to fall between 2024 and 2040. The fertility rate will be lower than the average in the region. Mid-Lifers (aged 45-64) will represent the largest portion of the population by 2040.

Away-from hygiene registered modest current growth in Uruguay in 2024, though constant value sales were unchanged. AFH paper towels accounted for most value sales and also registered the highest current value and volume growth. Paper towels benefitted from the sharp reduction in cross-border shopping, due to the appreciation of the Argentine peso. On the other hand, AFH toilet paper was impacted by the availability of low-priced Brazilian toilet paper, both through formal and informal channels,

It was a positive year for tissue and hygiene in Uruguay in 2024, with healthy current value growth, supported by an improving economy and the continuing easing of inflation. In addition, there has been a significant fall off in cross-border shopping in Argentina, as well as less smuggling, and this boosted overall volume sales. This was due to a steep currency appreciation of the peso in Argentina at the end of 2023, after the election of new president Javier Milei. The newly appreciated curren

Wipes registered both healthy current value and volume growth in Uruguay in 2024. One key factor that contributed to the positive performance was a significant drop in cross-border shopping into Argentina, due to the appreciation of the Argentine peso. There was also a significant decline in smuggling into Uruguay.

Nappies/diapers/pants register a healthy increase in both current value and volume sales in Uruguay in 2024, despite a lowering birth rate. Part of the reason for the positive performance was the uptick in sales as a result of less cross-border shopping into Argentina. This was because the Argentine peso sharply appreciated in 2024, and thus narrowed the price differential between cheaper Argentine goods and local goods. However, in the case of nappies/diapers/pants, this was not as significant