In 2025, dairy products and alternatives in Laos is expected to see retail volume and current value sales grow strongly. However, retail current value growth is driven by still high, if much lower than in 2022-2024, inflation. At constant 2025 prices, retail value sales are set to fall. On the other hand, lower inflationary pressure on prices is supporting affordability and demand. More consumers in Laos are focusing on their health and prefer products with clear health benefits, such as probiot

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

This report assesses the business environment in Laos, focusing on the regulatory environment, stability of the financial system, FDI intake, labour market flexibility and skillset, trade openness, mobility infrastructure, ICT adoption and innovative capabilities. Companies can evaluate these factors to understand the strengths and weaknesses of a country’s business environment for better strategic investment decisions.

Value sales of snacks in Laos rose in 2025. The snack industry in Lao PDR experienced steady growth driven by evolving consumer lifestyles, greater exposure to digital media, and an expanding retail infrastructure. Urbanisation and rising disposable incomes fuelled demand for a wider variety of snacks, as consumers increasingly sought experiential, premium, and shareable products. Snack consumption was not only motivated by hunger but also by the desire for convenience, indulgence, and social sh

Total volume sales of alcoholic drinks in Laos rose strongly in 2024, albeit at a slower rate than in 2023. In total current value terms, alcoholic drinks saw strong double-digit growth, albeit supported by high inflationary pressure on prices. The growth in industry was driven by enhanced marketing campaigns, increased promotional activities, faster inbound tourism flows and the popularity of foodservice.

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.

In 2024, total volume sales of tobacco experienced moderate growth despite increasing health concerns and government efforts to reduce smoking prevalence via information campaigns, taxation and regulation. A 2023 decree imposed higher taxes on cigarettes and other tobacco products and forms a key plank of tobacco control efforts, as does the ban on e-vapour products.

The number of households is set to increase moderately, while the average household size will shrink in Laos over 2024-2029. Extended ("Other") households will remain the dominant household type but the fastest household expenditure growth is forecast to be recorded by single person households. In addition, the share of households living in urban areas is projected to expand to 44.9% by 2029.

Value sales of beauty and personal care in Laos grew strongly in 2024. However, a reliance on imported beauty and personal care products, combined with ongoing economic instability and currency fluctuations, has created challenges. Price fluctuations have become common, leading to unpredictable pricing on all beauty and personal care products. Small local grocers are particularly affected, with many reducing their stock levels due to these economic pressures.

The population of Laos is predicted to increase by 18.0%, due to changes in net migration and natural change, standing at a total of 9.2 million citizens by 2040. Demographic changes, economic conditions and social trends are all contributing to negative net migration. The birth rate is anticipated to drop between 2024 and 2040. Middle Youth (aged 30-44) will represent the largest portion of the population by 2040.

In 2024, tissue and hygiene in Laos experienced significant value growth, driven by several factors. Rising disposable incomes, the gradual expansion of the middle class, and improved hygiene and sanitation practices contributed to increased sales. International organisations, particularly UN agencies working in Laos such as UNICEF and WHO, have advocated for improved hygiene and sanitation. Raising awareness is therefore, helping to improve hygiene in the surrounding communities, including in h

Home care in Laos in 2024 experienced robust growth driven by heightened hygiene awareness, rapid urbanisation, expansion of modern housing, and increased retail penetration. However, persistent high inflation and currency depreciation posed challenges, impacting consumer spending and prompting a shift towards value-driven options. Despite these economic headwinds, the market witnessed the emergence of new brands, with online platforms playing an increasingly important role in product distributi

Although a one-party state creates political stability, corruption remains a major issue and the threat of a sovereign debt default persists. Whilst foreign investment is driving the economy, inflation remains very high and has been exacerbated by currency depreciation. A growing populace and reduction in poverty will support the consumer market, but the rural cohort is substantial. Internet penetration is rising well and 5G has been rolled out, but mobile technology faces challenges.

Hot drinks in Laos faced economic challenges in 2024, with price adjustments occurring two to three times due to inflation. International brands such as Café Amazon have seen declining popularity, as consumers favour affordable local brands like Treeknoff, known for quality. Nescafé and Dao Coffee retain strong market positions with diverse offerings, while the tea market grows modestly, led by local brands like Mai Savanh Lao, gaining appeal through high-quality products and modern trade channe

In 2024, soft drinks in Laos faced threats from high inflationary pressure on consumer spending power. Economic instability hindered the demand for perceived non-essential goods, such as soft drinks. Supply issues remained, but logistics continued to improve. Companies looked to offer more affordable and healthier options and packaging change to meet consumer needs. Other growth factors included urbanisation, the development of modern retailing, faster tourism flows and marketing and promotion.

This report covers the retail sector in frontier markets in Southeast Asia. Euromonitor International’s definition of the region includes the following countries: Cambodia, Laos and Myanmar.

In 2024, cooking ingredients and meals in Laos continued to be hampered by high inflationary pressure on fuel and product prices as well as an urban-centric demand. Nonetheless, growth opportunities were derived from population increases, urbanisation, a rising middle-to-high-income population, improved logistics/infrastructure, lifestyle changes and faster tourism flows. Meanwhile, competition intensified with more imported products introduced in big cities, alongside modern retail development.

Staple foods in Laos saw healthy retail volume growth during 2024. However, increases remain constrained by a strong preference for widely available and cheaper unpackaged or fresh products. In addition, still high inflation and currency depreciation hiked product prices, limiting consumers’ purchasing power and their demand for packaged options. Nonetheless, improving economic conditions, population growth, urbanisation and improving logistics and infrastructure fostered further demand growth.

In 2024, consumer health in Laos exhibits growth despite challenges from high inflation and currency depreciation, which have pressured household healthcare spending. Analgesics remain the top-selling category, followed by cough, cold, and allergy remedies, as well as vitamins and dietary supplements. Trade promotion events have introduced innovative health products, notably from Korean companies, enhancing product availability. Additionally, the pilot of an online registration system, LAOREG, s

Asia Pacific remained the largest global producer of food, beverages and tobacco in 2021, with sales valued at USD3,809 billion. With the release of pent-up demand, the industry’s turnover witnessed an increase in 2021. Going forward, expanding domestic markets and rising productivity are expected to stimulate the industry’s growth. However, with tightening global food supplies amid climate change and geopolitical conflicts, challenges persist, especially for major regional food importers.

With a turnover of USD365.8 billion in 2021, Asia Pacific was the world’s second largest region for recreation, entertainment and arts. Over the next decade, the region’s entertainment industry is poised to grow at the fastest rate, nearly closing the gap with Western European turnover levels by 2030. Recovering tourism, growing investments and economic expansion are set to drive the entertainment industry’s growth in Asia Pacific, with China remaining in the lead.

Emerging Asia has been one of the most exciting regions in emerging markets during the last two decades and this trend is expected to continue, though the pace of growth has slowed down as the economies transform and mature. By 2040, emerging Asia will account for almost a third of global GDP and more than a quarter of consumer spending, highlighting huge opportunities for business and investors. Risks will remain, requiring business to be agile to identify sweet spots and overcome challenges.