The Bolivian market for other dairy products is expected to experience a sharp decline in volume sales in 2025. This category has been heavily impacted by rising prices, driven largely by increasing costs for condensed and evaporated milk, which remains heavily reliant on imports to meet domestic demand. A shortage of US dollars in the Bolivian economy has directly affected the final prices of these offerings, causing consumers to reconsider their purchases and ultimately leading to a drop in sa

Baby food is set to register a significant contraction in volume sales in Bolivia in 2025. The ongoing shortage of US dollars has made imports more expensive, leading to sharp price increases for essential externally-sourced products, including milk formula. This has prompted many families to shift to more affordable alternatives, replacing specialised formulas with general-purpose products. However, prepared and dried baby food have been the most affected, with several primarily imported brands

Volume sales of drinking milk products in Bolivia are expected to decline further in 2025, due to a combination of lower domestic raw milk production and a decline in consumer purchasing power. Rising production costs - driven by increased prices for feed, fuel, and imported inputs - have made dairy farming less viable, especially for small and medium-sized producers. At the same time, prolonged droughts and changing climate conditions have reduced the availability of water and forage, further s

Cheese is among the dairy products in Boliva most severely affected by the ongoing economic crisis. The low availability of raw milk, driven by factors such as prolonged drought and rising input costs, has forced many producers to either halt manufacturing or reduce their portfolios. All cheese varieties are showing a decline in volume sales, with the effect especially pronounced in the case of imported products, due the US dollar shortage, which has led to a hike in retail prices.

The market for yoghurt and sour milk products in Bolivia is expected to maintain a downward trend in volume terms in 2025, mainly due to the sustained increase in retail prices, a direct result of rising raw material costs. This situation has been exacerbated by the reduced availability of fresh milk, prompting companies to shift their focus towards higher-turnover products, leading to the discontinuation or temporary suspension of certain varieties. At the same, consumers have becoming more cau

The market for butter and spreads in Bolivia is expected to see positive volume growth in 2025, despite ongoing economic pressures. However, consumers are adjusting their purchasing habits, favouring margarine and other cost-effective spreads over butter, which has become increasingly expensive. This is due to a decline in domestic milk production driven by several interrelated factors including prolonged drought conditions which have reduced pasture availability and milk yields; rising input co

In the context of a challenging macroeconomic environment, retail sales of dairy products and alternatives in Bolivia are set to register a decline in current value terms in 2024. Persistent inflationary pressures have reduced household spending capacity while simultaneously increasing production and distribution costs. The limited availability of US dollars, due largely to declining gas production, has made imported goods more expensive, critically affecting sectors highly dependent on external

Plant-based dairy in Bolivia is expected to continue to shrink in volume terms in 2025. Following a climate-driven drop in soy production in 2024, the industry has also been impacted by an energy crisis, disrupting multiple points along the supply chain and limiting product availability at points of sale. In addition, the market has not been immune to rising prices, both for locally produced and imported products.

This report assesses the business environment in Bolivia, 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.

The report examines the economic landscape of Bolivia and provides information on major monetary indicators, foreign trade and government finance. The economy expanded in real terms in 2023, driven by private consumption. However 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.

Chocolate confectionery is expected to see volume sales fall by about a tenth, as soaring inflation weakens demand, with some consumers even struggling to buy essential food stuffs. This is also being exasperated by rising prices of cocoa globally, due to weak harvests caused by climate change. On the domestic side, a decline in milk production is also having a negative impact. Chocolate pouches and bags is expected to register the highest current value growth in 2025. There is also expected to

While both current and constant value sales are expected to rise, volume sales are expected to see a decline. Soaring inflation, as well as a shortage of US dollars, is dampening volume sales and is particularly impacting imported brands. In this challenging context, larger companies have coped better and are strategically restructuring their product portfolios. By prioritising higher-margin and faster-moving items, they aim to protect profitability. Meanwhile, smaller players with less brand st

While both current and constant value sales are expected to rise, volume sales are expected to see a sharp decline. Soaring inflation, as well as a shortage of US dollars, is dampening volume sales and is particularly impacting imported brands. In this context, larger companies are coping better, as they are better positioned to absorb some of the rising costs. Gum also remains heavily dependent on imported products, with Chinese-origin chewing gum being especially prevalent. In light of the inf

Savoury snacks is the only snack in Bolivia that is expected to see an increase in volume sales in 2024, be it only a small increase. Inflation influences consumer behaviour, with local brands benefitting, as dwindling foreign reserves adds extra costs to imports. Puffed snacks is expected to register the highest volume growth, as it has positioned itself as a more affordable snack. Also, in a context where consumers are increasingly price-sensitive and household budgets are under pressure, thes

Sweet biscuits, snacks bars and fruit snacks is expected to register a moderate fall in volume sales in Bolivia in 2025, though not as pronounced as most other snacks products. All the same, soaring inflation is having an effect, and in particularly impacting imported brands, with local brands in a better position to compete.

While value sales for snacks are set to increase in Bolivia in 2025, there is expected to be a significant fall in volume sales. An economic crisis is unfolding as the country runs out of its own supply of natural gas, which in turn is significantly reducing exports. With less revenue from exports, foreign currency reserves are falling, leading to a shortage of US dollars, and driving up costs. As a result, inflation is surging, with many consumers even struggling to afford basis food stuffs. As

While both current and constant value sales are expected to rise, volume sales are expected to see a decline. Soaring inflation is dampening volume sales and on top of this, there has been a shortage of milk, a fundamental ingredient for ice cream manufacturing. This is due to the decline of small-scale dairy producers, affected by higher operational costs and government-regulated pricing policies. Impulse ice cream continues to account for most volume sales While mainly focusing on affordabili

Beer sales in Bolivia experienced strong volume growth in 2024, driven by a reduction in contraband and consumer migration from other alcoholic drinks. With the high exchange rate, the illegal market lost its price advantage, leading to a significant decline in smuggled beer across all segments - from premium to economy brands. As the cost of acquiring US dollars rose, smuggling became less profitable, prompting many informal operators to reduce their activity or exit the market altogether. Lega

The Bolivian market for cider/perry continued to see positive volume growth in 2024, albeit at a slower rate than the alcoholic drinks market as a whole. This is due to the fact that consumption is centred around the end-of-year holidays, peaking during Christmas and New Year. However, its affordable pricing makes cider widely accessible across all socioeconomic segments, making it a popular option for celebratory toasts during the festive season. Cider is also a staple in the “canastón” - a fes

The Bolivian wine market experienced modest volume growth in 2024, driven by a significant reduction in contraband. This decline was linked to ongoing economic challenges, which caused the parallel exchange rate to surge to over 50% above the official rate due to a shortage of US dollars in the market. As a result, prices rose across the board - including in the illegal market - particularly for wines smuggled from Argentina. This squeezed profit margins for contraband, making illegal trade far

Alcoholic drinks in Bolivia experienced robust volume growth in 2024, despite a challenging macroeconomic environment. The year was marked by a series of economic challenges that significantly impacted operational costs for many businesses, due to the persistent scarcity of US dollars in the country. This shortage led to widespread price hikes across multiple sectors, affecting domestic production - which depends heavily on imported materials - and raising the cost of imported goods. As a result

Spirits in Bolivia experienced healthy volume growth in 2024, despite rising prices, as a decline in contraband activity allowed legal brands to regain ground - particularly in widely consumed drinks like liqueurs. Price increases were a defining trend across the category, largely driven by the rising US dollar exchange rate. Since most spirits are imported, higher import costs directly impacted retail prices. While some consumers shifted towards more affordable options, such as beer, many conti

The market for RTDs Bolivia continued to register a positive performance in 2024. Local manufacturers have played a crucial role in fuelling volume growth by innovating with new flavours and packaging designs, particularly in canned presentations. Additionally, rising prices of spirits have encouraged many young consumers to opt for RTDs as a more affordable way to enjoy cocktail flavours conveniently and on the go, fuelling further expansion in this category.