A falling birth rate is expected to lead to a decline in volume sales of baby food in Azerbaijan in 2025. With inflation still an issue, consumers continue to be price sensitive, and trade down as much as possible. As such, prepared baby food is expected to register steeper volume decline, as it is more expensive than dried baby food. Within milk formula, special baby milk formula is expected to be the best performer, registering both current value and volume growth. Parents prioritise baby’s he

Other dairy is expected to register both positive current value and volume growth in Azerbaijan in 2025, partly supported by population growth. Consumers are showing growing interest in a broader range of dairy products beyond traditional milk and yoghurt, including cream, condensed milk and dairy desserts. Fromage frais continues to account for most volume sales, and is used in many traditional recipes. In addition, in recent years, it has also been benefitting from the high-protein trend. Howe

Drinking milk products in Azerbaijan is expected to register moderate current value and volume growth in 2025, partly supported by population growth. Interestingly, one factor driving increasing volume sales is the increasing consumption of breakfast cereals. The continuing expansion of modern grocery retailers is driving growth in breakfast cereals, which in turn is positively impacting drinking milk. Shelf stable still accounts for most volume sales and the production and sale of fresh milk is

In terms of volume growth, yoghurt and sour milk products is expected to be the best performing dairy product in Azerbaijan in 2025. While yoghurt and sour milk products have always been a key part of the local diet, there is increasing demand, as consumers are increasingly health conscious and appreciate the natural health benefits of yoghurt and sour milk products, in terms of its range of nutritional benefits, including aiding digestion. Sour milk products are more popular than yoghurt and ar

Cheese in Azerbaijan is expected to register both healthy current value and volume growth in 2025, partly supported by continuing population growth. Cheese is a common ingredient in many traditional dishes and is also enjoyed as a standalone snack or appetizer and this continues to support value sales. Soft cheese account for most value and volume sales and is also expected to register the highest growth. It is more affordable than hard cheese and it is also a much more common ingredient in loc

Butter and spreads continue to be a popular dairy product in Azerbaijan in 2025, and registers healthy current value growth. However, significant price rises dampen volume sales to an extent. While margarine and spreads account for most volume sales, butter accounts for most value sales, and is also expected to register the highest current value and volume growth in 2025, This growth is supported by a wider selection of butters. That being said, consumers are still price sensitive and butter fro

Overall, it is expected to be a positive picture for dairy products and alternatives in Azerbaijan in 2025, with both healthy current value and moderate volume growth. Factors such as population growth and a stable economy support growth. The only dairy product that is expected to see volume sales is baby food, due to a falling birth rate. Local producers also make gains, as quality improves, particularly in products such as sour cream, fromage frais and drinking milk.

The report examines the economic landscape of Azerbaijan and provides information on major monetary indicators, foreign trade and government finance. The economy expanded in real terms in 2024, driven by private consumption, and government spending. However, a global economic slowdown, rising geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.

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.

Sugar confectionery is expected to register both healthy current value and volume growth in Azerbaijan in 2025, supported by continuing population growth. The affordability of sugar confectionery also supports value sales, especially in light of significant price hikes for chocolate confectionery, due to shortages of cocoa beans.

Gum in Azerbaijan is expected to register both healthy current value and volume growth in 2025, supported by continuing population growth. In addition, expanding distribution, strong marketing support, and increasing consumer interest in products associated with fresh breath and oral care, are also expected to support value sales. Chewing gum accounts for most value sales and is also is expected to register higher value and volume growth in 2025. Increasing product placement at checkouts support

While chocolate confectionery in Azerbaijan in 2025 is expected to register healthy current value growth, volume growth is expected to be minimal, as soaring global prices of cocoa beans lead to significant price rises and dampen demand. This was due to poor harvests across the globe. Chocolate pouches and bags are expected to gain the most value share in 2025, as consumers switch to cheaper offerings such as chocolate pouches and bags rather than premium chocolate. That being said, there was an

Sweet biscuits, snacks bars and fruit snacks is expected to register healthy current value and volume growth in Azerbaijan in 2025, partly supported by continuing population growth. Affordability also supports value growth. In addition, the expansion of modern grocery retailers, including supermarkets and convenience stores, makes such snacks more readily available to consumers. Cereal bars are expected to register the highest value growth, largely due to their healthier positioning. Cereal bars

Savoury snacks is expected to be the best performing snack in Azerbaijan in 2025, registering both healthy current value and volume growth. Rapid urbanisation, along with busier lives, are driving the demand for convenient, ready-to-eat savoury snacks. Spicy flavours are also on the rise, with brands expanding their portfolios in this direction. Meat-inspired flavours are also gaining popularity, particularly for snack consumption in bars and restaurants. However, in 2025, nuts. seeds and trails

Overall, it is expected to be a positive picture for snacks in Azerbaijan in 2025, with both healthy current value and moderate volume growth. Continuing population growth, the expansion of modern grocery retailers, and consumers leading increasingly busy lives, all support increasing value sales of snacks, including on-the-go offerings. As such, new brands continue to launch and there is constant innovation.

Ice cream in Azerbaijan is expected to register healthy current value and volume growth in 2025. Continuing population growth supports value sales. In addition, the continuing expansion of modern grocery retailers, as well as specialised ice cream parlours, make ice cream accessible to more consumers. While take-home ice cream accounts for more value sales, single portion ice cream is expected to register the highest value growth in 2025, It is increasingly popular as an on-the-go refreshing sna

In 2024, Azerbaijan’s tobacco market remained relatively stable, despite ongoing shifts in consumer preferences, rising excise taxes, and regulatory developments. While smoking prevalence stayed largely unchanged and continued to be the main driver of cigarette sales, the legal cigarette market declined, mainly due to a significant increase in illicit trade. At the same time, alternative nicotine products, including e-vapour and heated tobacco, gained momentum, supported by new entrants and expa

Despite government efforts to raise excise taxes, ban advertising, and impose restrictions, smoking prevalence in Azerbaijan saw only a slight decline in 2024. While the consumption of legal cigarettes decreased, there was a sharp rise in illicit trade in the year. In the capital, it remains relatively easy to purchase cigarettes without excise stamps. In response, border control services have intensified efforts to combat illegal imports, including shipments arriving via the Caspian Sea.

Cigars and cigarillos continued to record modest growth in Azerbaijan in 2024, although both categories remain niche. The cigar smoking culture is limited, with cigars generally perceived as luxury items, which restricts their accessibility - especially outside major urban centres - due to relatively high prices. While demand for premium cigarettes is growing, offering consumers a more accessible form of "luxury", cigars and cigarillos retain only a small share of the market. Their growth is fur

E-vapour products in Azerbaijan continued to grow rapidly in 2024, driven primarily by the expansion of closed system single use. Despite a significant excise tax increase - AZN0.25 to AZN2.00 per unit - the category maintained strong momentum. Unlike countries such as Kazakhstan and Uzbekistan, where e-vapour products have been officially banned, Azerbaijan has not implemented such restrictions, although discussions about regulations are ongoing. For now, e-vapour products remain widely availab

Although wine in Azerbaijan performed positively on the whole in 2024, growth in total volume sales fell below that recorded in 2023. This was due to slowing demand at the on-trade level as many consumers continued to exercise greater caution in their spending habits following the spike in the cost of living towards the end of the review period. However, the downturn was mitigated by rising inbound tourist numbers and the easing of inflationary pressures, which supported a nascent recovery in pu

Growth in total volume sales of beer in Azerbaijan in 2024 was up on that recorded in 2023. This was primarily thanks to the alleviation of pricing pressures and increased discretionary spending by consumers amidst falling inflation and other favourable macroeconomic indicators. Frequent new launches, sustained investment in marketing activities and improvements in distribution coverage for various brands also helped to lift overall demand. These factors had a particularly positive impact on on-

While alcoholic drinks in Azerbaijan saw growth in total volume sales pick up in 2024, growth in total current value sales fell well below that recorded in 2023. The slowdown in value terms was primarily explained by greater price stability as the recent spike in inflation rapidly receded. However, the resultant easing of cost-of-living pressures strengthened confidence and purchasing power among local consumers, and this helped to buoy demand across the market, particularly at the retail level.

Total volume sales of cider/perry in Azerbaijan declined at a high double-digit rate in 2024. The collapse in demand – which began in 2023 – was mainly explained by reduced investment in the distribution and promotion of Somersby, the dominant brand. With interest having remained low throughout the review period, manufacturer Carlsberg scaled back support for the brand in order to focus more on other areas of the local alcoholic drinks market with better growth prospects. That Somersby and rival