Although economic freedom has improved, the rule of law remains challenging and the executive branch is increasingly authoritarian. Economic momentum has moderated and remittances face pressure, but inflation is contained. Urbanisation could raise the appeal of the consumer market, but the gender gap is significant and population expansion is muted. Mobile subscribers are set to rise strongly and connectivity will be boosted, but e-commerce is underdeveloped.

Retail sales of hot drinks rose in both value and volume terms in 2025. The economy in El Salvador experienced some stability with inflation under control, although growth was slow with World Bank projections predicting GDP growth of 2.7% for 2025, one of the lowest rates in the region. This scenario left little scope for the premiumisation of hot drinks consumption. While value sales growth was positive, the positive performance was largely due to price increases, mainly of coffee in internatio

Retail volume sales of soft drinks rose in 2025, with the soft drinks market showing a positive, albeit moderate, performance. While the Salvadoran economy was showing stability with controlled inflation levels, it continues to face the challenge of reducing poverty indicators. Reports from the Central Reserve Bank of El Salvador (BCR) in the Multiple Purpose Household Survey (EHPM) indicated that the percentage of people living in some form of poverty was estimated to be close to one-third of t

Fears around the cessation of remittances and high food prices negatively affect consumer spending

Sales of cooking ingredients and meals are set to rise marginally in value terms in 2025. Despite a drop in inflation, external issues such as soaring freight prices, have stimulated price hikes on end products and subsequently heightened consumer price sensitivity. This in turn is boosting demand for cheaper products, especially as many people live in poverty in El Salvador. Nevertheless, demand is remaining steady for products with a healthy positioning, such as better for you, reduced sugar a

The Salvadoran economy in 2025 showed sustained, although moderate, growth. According to projections by the International Monetary Fund, this country's GDP growth is projected to be close to 2.5%. In turn, remittances constitute an important source of income for this country's economy. As of June 2025, the Central Reserve Bank (BCR) reported that these funds reached almost USD4.8 billion, an increase of almost 18% compared to the previous year. This source of income is important for populations

Value sales of dairy products and alternatives are expected to register marginal growth in 2025. In 2024, general and year-on-year inflation in El Salvador was 0.30% according to the Central Reserve Bank (BCR). The Consumer Price Index (IPC) for food and non-alcoholic beverages showed a decline in prices of 0.50%. In terms of remittances, upon which El Salvador is heavily reliant, family remittances to El Salvador surpassed USD7.56 billion from January to November 2023. President Trump, elected

This report assesses the business environment in El Salvador, 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 El Salvador and provides information on major monetary indicators, foreign trade and government finance. The economy expanded in real terms in 2024, driven by private consumption, government spending and investments. 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.

Current value sales of snacks rose at a moderate rate in El Salvador in 2024. General and year-on-year inflation in El Salvador was 0.30% according to the Central Reserve Bank (BCR). The Consumer Price Index (IPC) for food and non-alcoholic beverages shows a decline in prices of 0.50%. In 2025, the industry, however, faces several price hikes including a higher global price of chocolate and glucose which affected snacks prices and manufacturing companies.

According to the International Monetary Fund (IMF), the Salvadoran economy grew by 3% in 2024. This is supported by the positive performance of activities, such as construction and tourism, which have compensated for the drop in manufacturing and the reduction in external demand, mainly from the United States, the leading destination for exports.

El Salvador is one of the countries with the lowest inflationary pressures worldwide. In 2024, according to figures from the Central Reserve Bank (BCR), this indicator closed at 0.3%. The government implemented several measures to control the increase in prices and the cost of living in the country, such as the opening of 55 farmers’ markets that have the functionality of selling food directly from the producer to the final consumer. Also important were subsidy plans for electricity and drinking

The number of households is set to increase slightly, while the average household size will remain unchanged in El Salvador over 2024-2029. Couples with children 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 79.3% by 2029.

This report covers the retail sector in Central America and the Caribbean. Euromonitor International’s definition of the region includes the following countries:

Sales of beauty and personal care in El Salvador rose at a moderate rate in 2024. The inflation rate in El Salvador is among the lowest in the world and according to data from the Central Reserve Bank (BCR) this country closed with a CPI of 0.3%, being the lowest in the previous four years. Although the country showed macroeconomic stability, it continued to face challenges in social development. According to World Bank data, it is estimated that about 25% of its population lives in poverty.

The population of El Salvador is predicted to increase by 4.8%, due to changes in net migration and natural change, standing at a total of 6.6 million citizens by 2040. Demographic changes, economic conditions and social trends are all contributing to negative net migration. The birth rate in El Salvador is anticipated to fall between 2024 and 2040. Young adults (aged 18-29) will represent the largest portion of the population by 2040.

Sales of tissue and hygiene rose at a moderate level in both retail value and volume terms in 2024. The Salvadoran market experienced some price stability across most tissue and hygiene product categories. However, consumers continued to be impacted by a higher cumulative cost of living that had developed over the previous two years, which led to a continuation in cautious purchasing behaviour and a prioritisation of expenditure.

Home care sales experienced conservative growth in 2024, as despite a fall in inflation, consumers remained cautious in their spending. El Salvador relies heavily on imports to meet domestic demand therefore rising global commodity prices were reflected in higher retail prices. Consumer price sensitivity benefited multi-purpose products, larger pack sizes and private label while low washing machine and dishwasher ownership rates and significant underemployment hampered market sales.