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.

In 2024, consumer health in Uganda reflects a shift driven by inflation and economic conditions. Consumers are prioritising essential, affordable health products, often opting for local brands over imported ones due to higher taxes on the latter. Many rely on pharmacists for recommendations, frequently bypassing doctor consultations. Local pharmaceutical companies benefit from tax incentives and lower operational costs, enhancing their competitiveness. This landscape indicates a growing preferen

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.

In 2024, dairy products and alternatives in Uganda sees stable demand despite declining inflation and lower milk prices. Small local grocers dominate distribution, with shelf-stable products leading sales. As more mothers join the workforce, demand for convenient baby food and formula is growing, although overall dairy consumption remains steady. Inflation has eased, with the Consumer Price Index (CPI) dropping to 3.3%, but consumer behaviour has not shifted significantly, reflecting sustained p

In 2023, Uganda’s GDP growth slowed to 4.6%, but still surpassed the average in the Middle East and Africa. The country’s economic performance was driven by increased private and public spending, and a surge in exports, particularly coffee and gold. However, future economic growth is threatened by the revocation of Uganda’s qualification under the Africa Growth & Opportunity Act and the World Bank’s decision to withhold funding, due to prejudiced laws.