Retail value sales of snacks in Ethiopia rose in 2025, supported by a combination of expanded local manufacturing capacity, rising urbanisation, and the growing availability of packaged snack options in regional markets. However, growth was tempered by persistent inflation, a weakening currency, and low wage progression, which collectively placed pressure on household budgets. These economic challenges prompted many consumers to reduce consumption frequency or shift towards more affordable formats and pack sizes.
Rising production costs and currency devaluation led to widespread price increases across most snack categories in 2025. These pressures stemmed primarily from higher foreign exchange rates – given that many snack producers rely on imported ingredients such as flavourings, oils, or packaging – as well as domestic inflation affecting fuel and transport. With minimal wage growth to offset these cost-of-living increases, consumers became more selective in their purchases, often choosing lower-cost options or reducing discretionary snacking altogether. This dynamic created a challenging environment for premium or imported brands, while simultaneously reinforcing the importance of pricing strategies and portion control.
PepsiCo was one of the leading companies within snacks overall in 2025. The company produces the Sun Chips, Cheetos, and Shola Ice Cream brands, present in the savoury snacks and ice cream categories. Its market leadership is supported by robust manufacturing infrastructure, including a local production facility that helps offset import-related price volatility. PepsiCo’s ability to produce high-demand snacks such as Cheetos and Sun Chips at scale, along with the breadth of its distribution network, contributed to its dominant position. Meanwhile, MIDROC Group remains a key competitor, leveraging its ownership of both Loli Chips and Shola Ice Cream to secure a strong foothold across multiple snack categories.
Traditional grocery retailers were the leading distribution channel within snacks overall in 2025, with the channel’s value share remaining stable during the year. These outlets remain the primary point of purchase for most snack products across both urban and rural areas, especially for impulse items like biscuits, confectionery, and potato chips. However, the availability of specific product types can vary: for instance, take-home ice cream remains largely confined to supermarkets, while imported premium snacks are primarily sold through modern retail outlets catering to wealthier urban consumers. Traditional channels benefit from widespread accessibility and consumer trust but may face growing competition as modern retail formats slowly expand in Ethiopia’s urban centres.
Value sales of snacks are set to rise over the forecast period, supported by both increased demand and gradual volume recovery across key categories. Much of this growth will stem from Ethiopia’s continued urbanisation and a growing appetite for packaged convenience foods among city dwellers. Rising internet penetration and social media usage – particularly platforms like TikTok and Instagram – will continue to influence snack preferences, encourage trial of new products, and shape consumer aspirations.
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Understand the latest market trends and future growth opportunities for the Snacks industry in Ethiopia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Snacks research and analysis database.
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