In 2024, Portugal’s tobacco market benefited from by a positive economic environment, influenced by legislative reforms, including reductions in personal income tax that positively impacted net salaries. These measures were accompanied by wage increases in the private sector and salary adjustments across various public sector roles. However, rising housing prices and high cost of living made consumers more cautious in their spending habits, with a shift towards lower-priced options.

Cigarette sales in Portugal continued to decline in volume terms in 2024, driven by high prices, growing consumer health concerns, and, most notably, a shift towards non-combustible alternatives - particularly heated tobacco products. Despite a slowdown in inflation, excise tax revisions during the year led to notable price increases, placing additional pressure on companies competing for consumer loyalty through pricing strategies. The rise in prices also accelerated downtrading, with consumers

The market for smokeless tobacco, e-vapour products, and heated tobacco in Portugal recorded another year of robust volume growth in 2024. The industry is accelerating its investment in non-combustible alternatives, with heated tobacco - the largest category - delivering a particularly strong performance. During the year, traditional tobacco products faced significant price increases due to inflation, rising production costs, and revised taxation. This impacted not only cigarettes but also lower

The market for cigars, cigarillos, and smoking tobacco experienced a decline in volume terms in 2024, contrasting with the positive performance observed throughout the rest of the review period. In previous years, sales benefited from the high prices of cigarettes, with consumers either switching to or supplementing their consumption with these more affordable options, thanks to their tax advantages.

Although less dynamic than other beauty and personal care categories in Portugal, bath and shower continued to record positive retail value growth in 2024, driven by increasing consumer interest in skin care. New product developments focused on offering enhanced hydration and longer-lasting effects, often paired with sustainable packaging and biodegradable formulations. At the same time, family-sized formats showed a strong performance, as consumers increasingly sought the best value for money.

In 2024, fragrances in Portugal recorded remarkable, double-digit growth, fuelled by a surge in consumer demand across the different price segments. Mass market and low-cost product ranges saw a substantial increase in popularity, reflecting a growing appetite for accessible and affordable options. In addition, the premium segment also expanded significantly, with niche luxury fragrances capturing greater attention and share. This dual dynamic underscores a broader trend of polarisation in consu

In 2024, the hair care in Portugal experienced a slight uplift in retail value growth, driven by strong consumer engagement and product innovation. For example, Laboratoire Nuxe launched the Hair Prodigieux range, a four-step routine designed to repair and enhance hair shine. The range features a key innovation, fermented pink camellia oil, developed through a patented process that boosts nourishment and improves texture. All products in the range are vegan, silicone-free, and made with high per

In 2024, value sales of men’s grooming in Portugal recorded positive growth, despite a poor performance in shaving. Shaving has lost value across all its segments, largely influenced by the ongoing trend for beards. As more men embrace facial hair, traditional shaving routines are being replaced by beard maintenance and styling solutions.

In 2024, value sales of skin care increased in skin care in Portugal, recording one of the strongest performances in Beauty and Personal Care in 2024. Increased awareness of skin care, whether to delay signs of ageing or address issues like sun exposure, is shifting consumer behaviour and redefining market dynamics. With the rise of new social media platforms, younger consumers are increasingly discovering cosmetics brands and products through influencers, which has significantly boosted sales.

In 2024, value sales of sun care products increased in Portugal, supported by high levels of outdoor activity and a strong rebound in tourism. Additional drivers included growing awareness of skin health, ongoing product innovation, and the success of targeted digital marketing strategies. However, despite these positive indicators, growth remained flat compared to 2023. This was largely due to a challenging first half of the year, marked by poor weather conditions, following an exceptionally wa

In 2024, value sales of deodorants increased in Portugal, with both the men’s and women’s segments showing steady growth. Brands that placed greater emphasis on fragranced formulations outperformed, reflecting consumer preference for products that combine efficacy with a fragrant scent.

In 2024, value sales of depilatories increased in Portugal, however, growth was low. Although sales still exhibit a seasonal pattern, with peaks during the summer months, there are emerging signs that this seasonality is beginning to diminish. Portugal's mild climate and increasingly frequent periods of good weather contribute to more consistent hair removal throughout the year. In addition, another factor driving this change is the rising popularity of long-term hair removal solutions, particul

Value sales of oral care in Portugal recorded a strong, single-digit uplift in 2024, despite its already high market penetration. This continued growth can be attributed to constant innovation across the category, with brands introducing new technologies and more effective formulations to meet evolving consumer needs. As consumers place greater emphasis on both health and sustainability, oral care has seen a shift towards eco-friendly packaging and products with cleaner ingredients, further boos

In 2024, value sales of beauty and personal care rose in Portugal, supported by strong growth in fragrances, colour cosmetics and oral care. Consumers were acquiring more beauty and personal care products, while allocating a higher share of their disposable income to these categories. There was a rising trend of consumers using multiple products to enhance their skin, hair or beauty routines, supported by a wider range of available options, as channels developed and competition intensified.

In 2024, value sales of baby and child-specific products increased in Portugal, largely due to growing awareness and focus on babies' health and well-being. Parents and caregivers are becoming more educated about the specific health needs of their infants. Issues such as rashes, respiratory difficulties, allergies, and birth complications have led to a greater emphasis on choosing products that are gentle, safe, and specifically formulated for babies sensitive skin and delicate health conditions

In 2024, value sales of colour cosmetics recorded a double-digit increase in Portugal, with strong and sustained growth, driven by rising consumer engagement. Shoppers are increasingly well-informed about brands, product formats and purposes, and ingredients, which is encouraging experimentation and sales. This trend is reinforced by a growing variety of offerings across different price points and skin tones, making colour cosmetics more inclusive and dynamic. Social media remained a powerful ca

In 2024, value sales of mass beauty and personal care in Portugal experienced robust single-digit growth. This increase was driven by several factors, with the rise of increasingly sophisticated private label products playing a key role. A major contributor to this shift was the continued expansion of Mercadona, the grocery retailer, which has solidified its position as a key player in the Portuguese market. The growing availability of high-quality private label products not only catered to risi

In 2024, value sales of premium beauty and personal care in Portugal experienced strong single-digit growth. This growth can be attributed to increased availability, heightened competition among specialist retailers, and a more informed consumer base that prioritises quality, performance, and exclusivity. The rise of premium beauty products has been steadily increasing over the review period, thriving even amid economic challenges. Brands that successfully combine innovation, luxury, and sustain

Value sales of dog food look set to increase in 2025. Growth in value terms continues to outpace volume, reflecting price increases in line with inflation and the ongoing trend toward premiumisation. Portuguese pet owners are increasingly attentive to the ingredients in their pets’ food, prioritising options made with fresh, less processed, and locally sourced components. The desire to prevent disease and extend the lifespan of pets is driving demand for nutritionally balanced and transparent pr

Retail value sales of other pet food rose in 2025. However, this modest growth was primarily driven by inflation and routine price adjustments, rather than increased demand. The volume of sales declined slightly, reflecting a broader shift away from non-traditional pet ownership. Portuguese consumers continue to show a strong preference for cats and dogs, which are increasingly considered family members. In contrast, interest in birds, fish and small mammals is waning. These pets require special

Retail value sales of cat food increased in current terms in 2025. Growth was supported by the rising number of cats in Portuguese households, leading to greater demand for specialised pet nutrition. In addition to inflation-related price increases, the category benefited from ongoing premiumisation. Consumers are increasingly choosing natural, minimally processed cat food products that promise health benefits and disease prevention. Cats are notoriously selective eaters, prompting manufacturers

Value and volume sales of pet care are set to rise in 2025. Pet care in Portugal continues to expand, underpinned by three key factors. First, the number of pets — particularly small-breed dogs and cats — has increased, reflecting their suitability for apartment living. Cats, in particular, are favoured for their independence, and their population has grown significantly. Legal requirements for the registration of pets, including stray animals collected by municipalities, have also improved the

Retail value sales of pet products increased in 2025. Growth was primarily driven by rising demand for dietary supplements and health-oriented products, reflecting pet owners’ growing focus on disease prevention and animal longevity. As pets continue to be viewed as family members, their wellbeing is becoming an increasing priority. This shift is evident in the rising popularity of supplements that support immune health, joint mobility, and skin condition. Additionally, grooming trends have cont

The population of Portugal is predicted to decline by 3.3%, due to changes in net migration and natural change, standing at a total of 10.3 million citizens by 2040. The birth rate in Portugal is anticipated to increase between 2024 and 2040. Mid-Lifers (aged 45-64) will represent the largest portion of the population by 2040. The ageing population will continue to impact the future consumer market.