Lebanon continued to be impacted by elevated inflation in 2024 which led to a sharp rise in the cost of living. High unemployment and a lack of trust in the local currency and the local banking system also continued to undermine consumer confidence which negatively impacted spending on non-essential purchases. Additionally, the spillover effect from the Israel-Hamas war in the south of Lebanon also harmed the local economy.

The population of Lebanon is predicted to increase by 14.0%, due to changes in net migration and natural change, standing at a total of 6.6 million citizens by 2040. Demographic changes, economic conditions and social trends are all contributing to negative net migration. Lebanon’s birth rate is also expected to fall between 2024 and 2040. By 2040, the largest cohort of people will be middle-aged (aged 45-64).

Tissue and hygiene saw strong growth in current value terms in Lebanon in 2024, but this was due to high inflation and rising prices rather than an increase in demand with sales declining in retail volume terms. A number of factors were behind the drop in volume sales including the country’s declining disposable income, economic challenges, and Lebanon’s declining birth rate.

Home care saw volume sales decline in Lebanon in 2024. Demand remained under pressure from a contracting population due to a high rate of emigration, and the reluctance of cash-strapped consumers to spend on products that were seen as non-essential. Within the context of the socioeconomic crisis, this meant that most consumers stuck to the absolute basics. Consumers also shifted to multi-functional products that were see as offering good value for money, such as multi-purpose surface cleaners.

Lebanon remains embroiled in an economic crisis with elevated inflation and a weak local currency negatively impacting consumer purchasing power, while local businesses have seen their margins squeezed. Added to this, political instability and deteriorating infrastructure continues to present challenges with homes and businesses having to rely on generators for electricity. Despite this, hot drinks saw strong growth in volume terms in 2024 with coffee remaining a popular hot drinks option.

Lebanon remains embroiled in an economic crisis with elevated inflation and a weak local currency negatively impacting consumer purchasing power, while local businesses have seen their margins squeezed.. Added to this, political instability and deteriorating infrastructure continues to present challenges with homes and businesses having to rely on generators for electricity. Despite this, soft drinks saw strong growth in volume terms in 2024 with bottled water a necessity in Lebanon.

Lebanon remains embroiled in an economic crisis with elevated inflation and a weak local currency negatively impacting consumer purchasing power, while local businesses have seen their margins squeezed.. Added to this, political instability and deteriorating infrastructure continues to present challenges with homes and businesses having to rely on generators for electricity.

Lebanon remains embroiled in an economic crisis with elevated inflation and a weak local currency negatively impacting consumer purchasing power with many consumers struggling to afford basic essentials, while local businesses have seen their margins squeezed.. Added to this, political instability and deteriorating infrastructure continues to present challenges with homes and businesses having to rely on generators for electricity while roads and transport have been neglected.

Soaring inflation and a sharp decline in the exchange rate of the local currency have severely affected Lebanon’s economy. Political instability combined with the Israel-Hamas War is impacting the development of consumer health. The country remains without a president or fully-functioning government, which is paralysing reform progress and thus blocking foreign financial assistance. Imported consumer health products continue to suffer from frequent shortages and persistent supply problems caused

While Lebanon has faced a severe economic crisis and the negative impact of the Israel-Hamas War, dairy has remained resilient due to its established place in the local diet and status as key to Lebanon’s agriculture sector. Although dairy remains part of the daily diet of almost all Lebanese people, the frequency of consumption has fallen as incomes have dropped. In 2024, the economic situation has stabilised, though the consumer base has become increasingly polarised.

Volume sales of snacks in Lebanon increased modestly in 2024 as consumer spending recovered somewhat amidst a slight easing of the socioeconomic crisis and inbound tourism boomed. Numerous local manufacturers have benefited from the unavailability and unaffordability of imported products and international brands, carving out strong positions in key categories such as potato chips, nuts, seeds and trail mixes, sweet biscuits and ice cream by appealing to demand for high quality at low prices.

The two major trends in alcoholic drinks in Lebanon in 2023 were falling off-trade volume sales and rising on-trade demand. While the socioeconomic crisis has curbed spending, many local people are socialising in bars and restaurants more often and this, combined with buoyant inbound tourist arrivals, is supporting a shift in consumption from the off-trade to the on-trade. Local brands also benefit from their huge price advantage over imported rivals, although huge challenges remain due to the a

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.

2023 saw demand for tobacco continue to rise, despite the impact of Lebanon’s ongoing socioeconomic crisis. Cigarettes are seen as an affordable luxury, with the low prices charged for local brand Cedars a crucial factor in the category’s enduring popularity. Smoking tobacco is also growing for similar reasons, while e-vapour products are emerging as the tobacco products of choice for younger adults. Demand for cigars remains under pressure however due to the high prices of these products.

The number of households is set to decrease moderately, while the average household size will remain unchanged in Lebanon over 2023-2028. Couples with children will remain the dominant household type BLANK the fastest household expenditure growth is forecast to be recorded by BLANK. In addition, the share of households living in urban areas is projected to expand to 90.7% by 2028.

The report examines the economic landscape of Lebanon and provides information on major monetary indicators, foreign trade and government finance. The economy contracted in real terms in 2023. Global economic slowdown, rising geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.

Corruption and political instability are impeding economic freedom, whilst the public-debt-to-GDP ratio is one of the highest globally. Although the economy is relatively well diversified, uncertainty could hamper its development and hyperinflation is severely impacting consumers. Most of the population is experiencing poverty, which is hastening brain drain, whilst refugees face discrimination. Internet use is solid, but mobile subscriptions have fallen and could delay 5G penetration.