State finances are improving, but crime rates are high and policy inertia is likely. The economy will exit recession in 2025 and dollarization helps to limit inflation, but the state continues to fail to attract meaningful foreign investment. Although the population is growing, low incomes and rising crime are leading to an exodus, whilst large rural dwellers also stunt social mobility. Internet use is below peers, but a new strategy is expected to boost the digital space and 5G is being deploye

Chocolate confectionery in Ecuador is expected to experience a decline in volume terms in 2025, continuing the trend of the previous year. In 2024, frequent power outages and rising crime rates discouraged individuals from spending time outside, leading to a sharp decline in impulse purchases - a key driver of sales. While the situation has begun to stabilise, consumers have been slow to regain confidence, cautiously returning to discretionary spending. At the same time, soaring global cocoa cos

Power outages and concerns about public safety have taken a toll on gum sales in Ecuador by reducing foot traffic in public spaces, limiting opportunities for impulse purchases. Although 2025 is expected to show a slight recovery from the sharp decline seen in 2024, many consumers continue to avoid staying out late or visiting small local grocers, where gum is most often purchased.

Sugar confectionery in Ecuador has been negatively impacted by a complex combination of economic instability, rising insecurity and ongoing disruptions such as power outages, all of which have limited consumer mobility and reduced opportunities for impulse purchases. However, 2025 is expected to show clear signs of recovery, as consumers search for moments of indulgence in the midst of ongoing economic and social pressures. Sugar confectionery has also become a more affordable alternative to cho

Volume sales of sweet biscuits, snack bars, and fruit snacks are expected to continue to fall in 2025, following a difficult year characterised by widespread security concerns and ongoing power outages that severely affected both shopper mobility and store operations. However, the decline will not be as marked as in 2024, reflecting a stable economic and social environment. In addition, the market is marked by relatively stable prices, as companies are under considerable pressure to maintain acc

Ecuador’s savoury snacks market is expected to see a flat performance in volume terms in 2025, following a sharp decline in the previous year, due to multiple pressures. Economic uncertainty, rising security concerns and power outages significantly impacted consumer behaviour and retail operations, particularly small local grocers which is a key channel for salty snacks. However, improved distribution, more consistent retail operations, and targeted promotional efforts by key players are helping

The retail market for snacks in Ecuador is set to make only a partial recovery in current value terms in 2025, following a significant decline in 2024. The latter was driven by a combination of factors, including power outages, concerns over public safety, and economic instability, which disrupted both consumer purchasing behaviours and the supply chain. Small local grocers, a key channel for snack sales, faced reduced operating hours due to power cuts, limiting opportunities to make impulse pur

Volume sales of ice cream in Ecuador are set to decline in 2025, continuing the trend of the previous year. Demand has been been negatively impacted by multiple factors, including political instability, economic uncertainty, and recurring power outages, which have disrupted both production and retail operations. While these power outages appear to have eased significantly since their peak in 2024, the economic environment remains fragile and consumers remain cautious when it comes to household s

The total number of cigarettes consumed in Ecuador has been gradually decreasing, although at a relatively slow pace, and this continued in 2024. This trend is due to a decline in smoking prevalence, with policies such as high taxes, health campaigns and restrictions on smoking in public spaces leading to the drop.

Wine registered a significant fall in volume sales in Ecuador in 2024. Traditionally consumed by older millennials and Gen X, these generations have been particularly affected by Ecuador’s socioeconomic challenges. This included price increases, due to an increase in VAT, and with continuing unrest, curfews were imposed for parts of the year and there was also frequent blackouts, because of a severe drought that severely cut hydroelectric production. These factors discouraged social gatherings

There was a fall in volume sales of beer in Ecuador in 2024. Both economic and social factors led to this decline. The price of beer increased, due to an increase in both the Special Consumption Tax (ICE) and VAT. ICE increased from USD13.08/l to USD13.28/l on January 1, 2024. Additionally, to address the fiscal deficit, VAT increased from 12% to 15% in April 2024. In addition, with continuing unrest, curfew were imposed for parts of the year and there was also continuous blackouts, because of

Overall, alcoholic drinks in Ecuador registered a decline in volume sales in 2024, though there was a slight increase through off-trade channels. Multiple domestic factors impacted overall consumption. Rising insecurity, unprecedented in the country’s history, led to the declaration of a state of emergency, with curfews declared during parts of the year. This insecurity deterred consumers from visiting nightlife venues such as bars, clubs, and restaurants, resulting in a sharp drop in on-trade s

Tobacco in Ecuador registered a further decline in volume sales in 2024. The landscape continued to be shaped by a steady decline in legal cigarette sales, driven by reduced smoking prevalence and growing health awareness. This reduction has been supported by public restrictions on smoking and regular health campaigns. However, the decline is slowing down, suggesting a core base of smokers continue to smoke.

Volume sales of spirits fell in Ecuador in 2024. Extended blackouts and social unrest have disrupted nightlife and social gatherings, directly impacting the consumption of spirits in bars, restaurants, and clubs in particular. Additionally, the broader economic difficulties have affected consumer purchasing power, making premium and mid-tier spirits less accessible to many. Aggravating these issues is the high penetration of illicit alcohol, including contraband and unregulated locally manufact

In 2024, cigars and cigarillos continued to be a niche tobacco product in Ecuador, primarily consumed by tourists or expats. However, there was a slump in tourist numbers in 2024, due to blackouts and security concerns, and this had an adverse impact on cigars and cigarillos, as they are often purchased by travellers, especially in tourist hotspots such as Quito, Guayaquil, and the Galápagos Islands. Volume sales of smoking tobacco continued to be negligible in Ecuador in 2024.

E-vapour products are a burgeoning product in Ecuador and registered significant current value growth in 2024. The sale of legal e-vapour products has experienced a substantial increase during the review period, reflecting a notable shift in consumer preferences. This growth has been particularly driven by the rise of closed system single use e-vapour products, which have become increasingly popular due to their affordability, ease of use, and wide availability. These products are especially tre

After several years of significant growth, volume sales of RTDs fell in 2024, as the product area showed a degree of maturity. Additionally, security issues and frequent blackouts also disrupted sales, in particular as it made it difficult to keep RTDs chilled, a critical factor for purchases.

Bath and shower saw retail value sales decline in current terms in Ecuador in 2024. The bath and shower category is suffering from consumers moving further away from pandemic-driven hygiene habits. During the COVID-19 crisis, frequent handwashing and overall hygiene awareness surged, leading to increased demand for bath and shower products. However, as people have completely shifted back to pre-pandemic routines, the urgency around cleansing has faded. In addition, categories such as intimate wa

Deodorants saw current value growth in Ecuador in 2024, despite being a mature category. This growth was largely driven by the availability of affordable product presentations that cater to a broad range of consumers. Smaller packaging sizes, such as roll-ons, sachets and tube options, allow for lower spending per purchase, making them accessible to budget conscious shoppers. Additionally, demand was supported by increased consumer awareness of hygiene and personal care, which was heightened by

Skin care saw current value growth in Ecuador in 2024. However, after experiencing strong growth in previous years, the skin care category is now moderating, as economic constraints impact consumer spending. Consumers are becoming more selective, often prioritising multi-functional or affordable premium options over luxury alternatives. Despite this slowdown, brands continue to invest in promotions and value packs to maintain sales, with promotions at point of sale also proving important.

Sun care registered current value growth in Ecuador in 2024, albeit at a more moderate rate than in previous years when it saw a significant boom. However, it continues to gain traction as consumers become increasingly aware of the importance of sun protection for skin health and anti-ageing benefits. Dermocosmetics performed strongly performing during the review period, as consumers increasingly prioritised effective, dermatologist-recommended solutions that provide reliable protection. Brands

Hair care remains the largest and one of the most established categories in Ecuador’s beauty and personal care industry. Despite being a mature category, it continues to grow steadily as Ecuadorians place a high value on hair health and appearance. Consumers are willing to invest in multiple products to maintain strong, healthy, and well-groomed hair. Innovations in natural ingredients, sulphate-free formulae, and specialised treatments are driving interest, while premium and salon brands are ex

Fragrances saw current value growth in Ecuador in 2024. A focus on self-esteem has significantly influenced consumer purchasing decisions across fragrances in the country. Fragrances are seen as an expression of personal identity, confidence, and social status, making them integral to self-care routines. Whether through high-end perfumes symbolising sophistication or affordable mass fragrances enhancing everyday confidence, the emotional connection to scent is a powerful motivator.

Men’s grooming registered current value growth in Ecuador in 2024, as more men are prioritised personal care. There is a noticeable shift from basic hygiene products to specialised grooming items such as shampoos, beard oils, and skin care solutions. The influence of social media has played a key role in encouraging men to adopt more comprehensive grooming routines. Brands are responding by expanding their product lines to meet this demand, offering affordable yet high-quality options that cater