Value sales of dairy products and alternatives in Uganda rose in 2025, supported by strong government backing for the dairy industry and increased investment in processing and distribution infrastructure. The sector remains a cornerstone of Uganda’s Vision 2040 and National Development Plan III, both of which position dairy as a key pillar of agro-industrialisation. Growth has been fuelled by the government’s targeted initiatives, including the provision of cold chain facilities and milk collect

In 2024, couples with children were the leading household type in Uganda, reflecting traditional family values and a preference for larger families. However, the birth rate is declining, due to urbanisation, and improved education and healthcare. Over 2024-2029, the number of households is forecast to grow by 19.9%, with single person households expanding the fastest. Urban areas are facing increased pressure on infrastructure and services.

Value sales of consumer health in Uganda rose in 2025, largely supported by urbanisation and the spending power of affluent consumers who account for the majority of packaged consumer health purchases. Urban areas remain the key source of sales, as low-income earners in rural regions often cannot afford pharmaceuticals and instead turn to traditional or natural medicine.

In 2024, Uganda ranked 140th globally and 29th in Sub-Saharan Africa in the Index of Economic Freedom. While progress was made in business registration and FDI, spurred by major oil projects, its score declined due to reduced trade freedom and weakened government integrity. Persistent issues with judicial effectiveness and corruption continue to hinder competitiveness and investor confidence.

Uganda’s economy grew by 6.1% in 2024, outpacing the regional average with stronger spending and a 26% export surge. Yet, per capita GDP remains below peers, highlighting the need for broader growth. While deficits and debt rose, the country still has a significant fiscal space. Uganda’s focus on oil development and fiscal reforms is expected to support economic growth in the years ahead.

In 2024, Uganda ranked 24th in the Middle East and Africa for average gross income, with a significant decline in per capita disposable income and productivity. In addition, the minimum wage fell, exacerbating financial strain. However, the government's 2024/2025 budget, focusing on monetisation and the Parish Development Model, forecasts a 28% increase in per capita disposable income by 2029, highlighting potential for economic diversification and social mobility.

Retail value sales of snacks are set to grow significantly in Uganda in current terms in 2025. Growth will be supported by the presence of local manufacturers in the country, with the prices of imported products being notably affected by taxes. Government policies to promote the adding of value to raw materials before export, which aim to increase export earnings, create jobs, and foster economic growth, will continue to spur the development of local manufacturers, creating favourable competitiv

Sales of alcoholic drinks in Uganda continued to experience strong growth in total volume terms in 2024, backed by a more stable rate of inflation. Growth was also boosted by an increase in disposable income, although rising prices, particularly in spirits, still dampened growth rates in 2024.

Tobacco in 2024: The big picture

In 2024, beauty and personal care in Uganda saw strong growth in retail volume and current value sales. Personal care led the industry. There have been a number of key developments in Uganda's beauty and personal care industry. For example, a growth in demand for natural and local products. Consumers increasingly became interested in natural and locally sourced beauty products, driven by a desire for authenticity and sustainability.

Growth in the tissue and hygiene sales is being supported by increasing product availability through importers and distributors, despite challenges such as rising import taxes and environmental concerns over non-biodegradable products.

The population of Uganda is predicted to increase by 44.0%, due to changes in net migration and natural change, standing at a total of 72.0 million citizens by 2040. Demographic changes, economic conditions and social trends are all contributing to negative net migration. The birth rate in Uganda is anticipated to fall between 2024 and 2040. Young Adults (aged 18-29) will represent the largest portion of the population by 2040.

In 2024, staple foods in Uganda has witnessed growth due to the rising population and urbanisation. However, there is a continued focus on affordability. The majority low-income consumer group in the country looks for the lowest prices, and favours smaller pack sizes, with retailers thus offering compact references. Urban areas continue to see the highest demand, as many people in rural areas still consume traditional foods, make their own bread, and purchase fresh/unpackaged variants of staple

Home care in Uganda saw fast retail volume and current value growth in 2024. Demand rose amid heightened hygiene standards in the wake of outbreaks of COVID-19 and diseases. Lower inflation, population growth, retailing development and urbanisation also spurred popularity. However, these products were expensive for many consumers, with distribution and demand focused on urban areas. Thus, many consumers still used traditional or home-made alternatives, rather than specialised home care products.

Cooking ingredients and meals in Uganda performed well in 2024, supported by urbanisation, population growth, improving economic conditions and wider distribution. Rising prices shaped demand, as consumers prioritised lower-priced, including unpackaged, options. Meanwhile, the government continued to invest in local production, especially in edible oils, to offer more affordable options to local consumers. However, many product types remained expensive and lacked wide awareness or availability.

Uganda remains ‘mostly unfree’ for economic freedom, corruption is rife, and peace is frequently disturbed by protests, but state finances are on a sound footing. The economy continues to grow robustly, driven by solid exports, but inflation is increasing again. As a young country, ageing is not an issue and the populace is growing strongly, but the gender gap is meaningful and poverty persists. Although mobile subscriptions are rising, internet use remains low, but innovation could be boosted.

This report covers the retail sector in frontier markets in Sub-Saharan Africa. Euromonitor International’s definition of the region includes the following countries: Angola, Côte d’Ivoire, Ethiopia, Ghana, Kenya, Cameroon, Tanzania and Uganda. Frontier markets in Sub-Saharan Africa exclude South Africa and Nigeria.

Uganda is a major exporter of tea and coffee, with these being by far the most popular hot drinks in the country. Demand for other hot drinks remains confined to the affluent urban middle class. Unpackaged tea poses challenges, with this being the only affordable option for low-income consumers. Urbanisation, population growth, rising incomes and expanding distribution are fuelling growth, but the lack of a tea aggregation centre continues to hinder the development of packaged tea.

Soft drinks recorded strong growth in retail volume terms in Uganda in 2024 backed by rapid population growth, urbanisation and relative stability in the economy. While inflation remained elevated in 2024 the prices of soft drinks saw only moderate growth with consumers being price sensitive when it comes to shopping for non-alcoholic drinks. As such, rather than risk losing sales to their competitors most players tried to keep their prices stable.

Masaka and Lugazi are Uganda’s most economically vibrant cities, with Masaka also expected to see the fastest future economic growth. However, challenges for the country’s cities will persist in the near term due to the continuing global economic slowdown and the impact of tight financial conditions. In the longer run, Uganda’s cities are set to face burdens on infrastructure, due to large and increasing populations.