In 2024, beauty and personal care in Oman was shaped by several key trends, with the wellness movement standing out as the most influential. This trend drove the popularity of vegan and natural ingredient-based products, particularly within colour cosmetics, skin care and deodorants. Independent brands emphasising their use of natural and vegan ingredients gained competitive advantage by appealing to increasingly health-conscious consumers.

The population of Oman is predicted to Increase by 31.2%, due to changes in net migration and natural change, standing at a total of 7.1 million citizens by 2040. The birth rate is anticipated to drop between 2024 and 2040. Young Adults (aged 18-29) will represent the largest portion of the population by 2040. Generational cohorts in Oman will continue to influence consumer expenditure based on their specific purchasing habits and unique demands.

Tissue and hygiene in Oman continued to show promising development in 2024, underpinned by rising disposable incomes, increasing urbanisation, and heightened public awareness regarding hygiene and cleanliness. These favourable fundamentals are driving growth across multiple product categories, even in the face of demographic shifts such as a declining birth rate.

Improvements have been observed in economic freedom, helped by stable state finances, but a hereditary monarch undermines democracy. Economic progress has been muted and negatively affected by significant reliance on oil, but inflation remains controlled and foreign investment is solid. Population expansion and a youthful nation will support the consumer market, but the gender gap is substantial. Advanced technologies are a focus for the state, whilst internet and mobile use is high.

Home care saw healthy growth in retail volume terms in 2024 with these products being widely available and affordable for the majority of consumers. In 2024, sales continued to be boosted by ongoing urbanisation, rising consumer hygiene awareness, the increasing number of households in the country, and a general embracing of Western consumption trends. While global players still lead sales of home care, local players and private label are proving popular thanks to more competitive pricing.

In 2024, soft drinks in Oman has been influenced by several economic factors. Inflation, at 0.74%, and a stable oil price of USD89.3 per barrel have impacted prices, including non-alcoholic drinks, which saw a 0.86% increase in their Consumer Price Index. The imports price index also rose by 3.7%, affecting the cost structure. These developments have shaped pricing strategies and consumer behaviour, with a focus on adjusting to the evolving economic landscape.

In Omani culture, hot drinks, particularly Omani coffee, are integral to hospitality. This cultural significance, coupled with a growing population, is key to driving growth in hot drinks. Coffee and tea appeal to a diverse demographic, including all age groups. Oman is seeing opportunities for local players offering Western-style coffee, which has become increasingly popular with younger consumers. Meanwhile, health and wellness trends are influencing associated ingredients like milk and sugar.

Staple foods is set to see ongoing growth in Oman in 2024. While certain categories are deemed indispensable, Omani consumers remain sensitive to pricing, which underpins ongoing support for local brands. This has been further reinforced by some consumers boycotting Western brands in response to the Israel-Hamas war. Rising consumer health consciousness and growing demand for convenience remain key influences on demand in staple foods.

Oman's cooking ingredients and meals market is seeing a continued shift towards healthier choices, which is influencing the manufacture and labelling of products. The combination of rising health awareness and traditional culinary practices means freshness remains a priority, leading to lower interest in ready meals and frozen foods than in neighbouring countries. At the same time, ever busier lifestyles in Oman’s highly urbanised society continue to support a rising demand for convenience.

Consumer health continues to grow in Oman in 2024, driven by population growth, rising GDP per capita improving brand availability and greater affordability due to increased local production and a wider range of generics. OTC categories remain popular as consumers become more proactive about health. Herbal/traditional categories are benefiting from demand for natural products and improved consumer education. Overall, consumers are taking a more holistic approach to health.

Dairy products have an established role in the daily diets of the Omani population, making demand relatively resilient. Moreover, increasingly hectic lifestyles and growth in the number of working mothers is boosting demand for packaged dairy and baby food, which are widely available via the country’s well-developed grocery retail channels. The health and wellness trend is also having a positive impact on demand and providing opportunities for manufacturers to add value through innovation.

Demand for alcoholic drinks increased in Oman in 2023 as the presence of affluent expatriates in the country supported demand. Positive growth in beer, wine and spirits is also being supported by buoyant inbound tourism flows and the rebound being seen in the numbers of expatriates living in Oman, trends which are underpinning an expansion off the consumer base for alcoholic drinks, especially beer and wine, keeping in mind the preference for avoiding alcohol among the local Muslim population.

Snacks in Oman is poised for gradual growth in 2024 due to a rising population and a recovering economy. Snack prices are slightly higher than average, but this may be offset by increased employment and purchasing power. Larger snack packages cater to a growing expat population and government initiatives boost employment.

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.

Tobacco in Oman in 2023 is expected to grow gradually due to a slight population increase and moderate inflation at 1%. The Consumer Price Index for tobacco was also higher than in the past five years in July 2023. Growth is projected to accelerate from 2024 due to rising expatriate numbers and government policies promoting investment and employment. The recovering employment rate enhances purchasing power, supporting increased tobacco sales in the coming years.

The number of households is set to increase moderately, while the average household size will shrink in Oman over 2023-2028. Couples with children will remain the dominant household type but 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 91.4% by 2028.

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

This report provides a global overview of commodity market trends from 2017 through to 2022, including price forecasts up to 2024 for the key commodities in the Agriculture, Energy and Metals sectors. Insights analyse long-term global trends that can help businesses adapt to changes in the production and supply network, and identify business opportunities.