This report assesses the business environment in Estonia, 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 consumer health in Estonia rose in 2025, driven by a busy respiratory illness season, premiumisation, and improved product availability. Gut health became a halo across categories, with probiotics and synbiotics linking digestion to immunity, mood, sleep, and even skin health, while “beauty-from-within” gained traction. Sports nutrition continued its move into the mainstream via protein RTDs and everyday energy formats, while the rise of weight loss drugs dampened classic OTC appe

Rising demand for herbal/traditional products in Estonia in 2025 was buoyed by a practical “self-care first” mindset and a continued preference for gentler, plant-based options when treating common ailments. A heavier cold/flu season and a noticeable allergy cycle kept households replenishing herbal cough and cold lines, while pharmacists’ recommendations and strong in-store visibility sustained trust. At the same time, manufacturers focused on flavour improvements, reduced-sugar syrups and conv

Growth of sports nutrition in 2025 was supported by high sports participation and gym attendance, and protein moved further into mainstream “everyday wellness” baskets. Consumers traded up to formats that combine taste with efficacy - most notably larger tubs of protein and multipacks of bars - while remaining price-sensitive. Retailers and international brands widened assortments and improved on-shelf availability, and promotions were used more selectively to protect margins. E-commerce and cli

Estonia’s digestive remedies market continues to expand in 2025 as reflux sufferers have shifted from withdrawn H2 blockers to PPIs and antacids, making these the main engines of value growth. Also, population ageing is lifting steady demand for laxatives and digestive enzymes as older adults manage constipation and digestive insufficiency. In addition, the recovery of travel is supporting incidental purchases of diarrhoeal remedies and motion sickness products, while easy access through license

Value sales of wound care in Estonia returned to steady growth in 2025 as everyday injuries and self-care stayed elevated while price inflation eased. The rebound was broad-based, but gauze, tape and other wound care was the most dynamic category, helped by greater home first aid kit replenishment (due to more DIY/sports/outdoor use) and by pharmacies pushing multipurpose dressings for deeper cuts and post-procedure aftercare. Sticking plasters/adhesive bandages also grew as consumers traded up

Estonia experienced a significant uptick in paediatric respiratory illnesses in early 2025, with influenza cases jumping 39% in the first weeks of January and affecting all age groups - children 0–7 being among the hardest hit. As a result, the cough, cold and allergy market is on a steady upswing in the year, with consumers increasingly favouring multi-symptom combination remedies. While paediatric formulations are benefiting from young families’ willingness to spend more on gentle, age-appropr

Dermatologicals continued to increase in Estonia in 2025, with growth concentrated in everyday infection and irritation care. The strongest uplifts were in topical germicidals/antiseptics, haemorrhoid treatments and cold sore treatments, helped by a hygiene mindset that persisted post-pandemic, more people engaging in sporting activities and sauna usage, ageing, and more sedentary work patterns. Vaginal antifungals outperformed topical antifungals as women sought fast, targeted therapies and pha

Estonia’s analgesics market continued to record modest growth in 2025, driven by systemic adult and paediatric ibuprofen, while topical anaesthetics plateau. Retail distribution is shifting as grocery and discount chains expand private label offerings, prompting branded players to lean on pharmacy loyalty programmes and smaller-pack promotions. Intense price sensitivity is driving both brands and retailers toward added-value bundles and enriched formulations rather than competing solely on price

In 2025, Estonians maintained supplements in their daily routines but adopted a more pragmatic shopping approach following two inflationary years, resulting in steady rather than spectacular growth. Probiotics and eye-health formulas both expanded faster than the market. Non-herbal supplements remained the backbone of the category, while herbal/traditional remedies recorded modest gains thanks to their natural positioning. In contrast, minerals sales were flat as consumers switched to multinutri

Weight management and wellbeing posted low single-digit growth in 2025 as health-conscious consumers looked for convenient, structured ways to manage weight without medical intervention. Demand was led by meal replacement products, which benefited from stronger placement in pharmacies and leading grocers, wider flavour ranges and ready-to-drink/powder sachet formats that suit busy lifestyles. In contrast, weight loss supplements were flat as shoppers became more selective, prioritising products

The standout trend of the Estonian Vitamin market in 2025 is the shift to benefit-led products. Immune-supporting vitamin C is outpacing the market in 2025, while more commoditised categories like vitamin D are declining. This reflects Estonians’ willingness to invest in vitamins that promise clear, credible outcomes - especially those offering higher concentrations and convenient formats. Amidst busy lifestyles and economic pressures, consumers are prioritising targeted health benefits.

Estonia’s paediatric consumer health market saw another increase 2025, with growth largely driven by a heavier respiratory illness season and the return to routine mixing in schools and day-care settings, which led to more symptom-driven purchases. This prompted parents to return to pharmacies for syrups, decongestants, and throat soothers for children. Fever-related purchases followed a similar trend, though with a more gradual rise. Pharmacists commonly advised keeping both paracetamol and ibu

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

Volume growth of cheese is expected to slow to stagnation in Estonia in 2025. Rising prices - driven in part by the increased VAT rate - are limiting its expansion. Nevertheless, Estonians show no signs of giving up cheese, which continues to enjoy strong cultural and culinary relevance. Packaged hard cheese remains the most popular category, due to its versatility in cooking and snacking, which helps support stable demand. The growing availability of pre-sliced cheeses, often priced similarly t

Other dairy is expected to register a solid performance in current value terms in Estonia in 2025. However, this stems primarily from significant price increases rather than a rise in consumer demand. Inflationary pressures, including higher production costs and increased VAT, have pushed up retail prices upwards across most categories.

Volume sales of drinking milk products are expected to remain stable in Estonia in 2025, continuing the trend of the previous year. The market is dominated by full fat fresh milk, which is a staple for the majority of households. Local consumers continue to overwhelmingly prefer fresh milk to shelf stable products as the former is considered to be healthier and contain fewer preservatives. Demand for shelf stable milk products is further depressed by the fact that most homes in Estonia have refr

Retail sales of baby food in Estonia are expected to continue declining in volume terms in 2025. The primary driver behind this trend is the country’s falling birth rate, which significantly reduces the consumer base for these products. Even rising prices - partly driven by a 2% VAT increase in July 2025 - have not been able to offset the drop in volume sales. In fact, the price hikes have likely actually discouraged bulk purchases among budget-conscious families.

Volume sales of yoghurt and sour milk products in Estonia are expected to decline in 2025. The market has become largely saturated, with limited room for further expansion. Sour milk products, especially kefir, which dominates the category - are long-established staples in the local diet. While kefir maintains a solid reputation for its probiotic benefits, it is relatively mature and shows only modest growth potential. Flavoured yoghurt also continues to face challenges, largely due to its high

The market for butter and spreads in Estonia is expected to see a decline in volume sales in 2024, while current value sales will continue to rise. This trend is being driven by a consumer shift towards butter, which is perceived as a healthier and more premium product. Although margarine and spreads are more affordable, growing health concerns - particularly over trans fats, which have been linked to heart disease - have led consumers to favour butter. Cooking fats are also experiencing a conti

The market for dairy products and alternatives in Estonia is expected to see a flat performance in volume terms in 2025. Despite early signs of economic recovery, a VAT increase, implemented in July, has led to a noticeable rise in retail prices across most food categories, including dairy. As a result, consumers are becoming more cautious with their spending, prioritising essentials and cutting back on discretionary purchases.

While sales of plant-based dairy products in Estonia remain modest compared to regular dairy offerings, the market is expected to continue seeing robust growth in both volume and current value terms in 2025. This will be driven primarily by the rising popularity of plant-based milk, which has expanded beyond traditional soy milk to include oat, almond, coconut, and other nut-based variants. The growth is particularly supported by younger, urban consumers, many of whom perceive plant-based option

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.

Current value growth for sugar confectionery in Estonia in 2025 is projected to be much stronger than in 2024, when sales only increased marginally. This is primarily because cost pressures are driving up unit prices, though the category also looks set to record a lower rate of decline in volume terms than it did the previous year. Overall demand has improved slightly thanks to a substantial drop in domestic inflation, which has bolstered confidence among the population and made people somewhat