This report assesses the business environment in Guatemala, 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 Guatemala 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, government spending and investments. However, a global economic slowdown, increasing geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.

In late 2024 and in 2025, the global cocoa crisis led to soaring prices in Central American countries. Manufacturers sought to absorb the costs, adjust product recipes, or were forced to pass on the cost to consumers. While prices for cocoa began to decline in 2025, manufacturers do not believe prices will reduce to their 2023 level. The local manufacturer Chocolates Granada, as well as other players who work with chocolate, have been impacted by this development. In addition, international impo

Moderate volume growth in sugar confectionery in 2025 is driven largely by demand from children and parents organising birthday parties. Bulk packages have become increasingly popular for such occasions and filling piñatas, offering both convenience and value. The most widely distributed brand that offers this is Colombina.

In 2025, flavour options for gum in Guatemala remain limited to mint, bubble gum, and fruit varieties. However, there is potential for growth through flavour innovation. Manufacturers could attract more consumer interest by introducing gum inspired by popular soft drinks or sugar confectionery. While core flavours like mint, bubble gum, and fruit are expected to remain dominant, slight expansion in the flavour range is anticipated. Seasonal limited-edition offerings and new flavours that mirror

Savoury snacks remain popular in Guatemala and continue their upward trajectory in 2025. Consumers are increasingly looking for bold or different flavours, with a strong international influence on flavours. Local brands are incorporating globally inspired flavours such as spicy blends, extra cheese, BBQ, and gourmet-style seasonings. At the same time, local and spicy flavours are also trending. Examples include Lay’s Campero, Chip’s Habanero, and Diana Palitos Chililimon.

Sweet biscuits, snack bars and fruit snacks is registering further value and volume growth in Guatemala in 2025.

Guatemala’s inflation rate closed 2024 at 1.7%, the lowest in 14 years; however, many argue it fails to reflect the true cost of living. In 2025, the snacks market is experiencing several price hikes, including the global price of chocolate and glucose, which is affecting snacks prices and manufacturers.

Ice cream continues to record growth in 2025, driven by a rising number of ice cream fans in Guatemala. Traditionally, Guatemalans have not been major dairy consumers, but dairy products are gradually becoming more common in their diets. Additionally, limited access to freezers in some areas of the country has historically restricted availability, though this is slowly improving. Ice cream sales in Guatemala remain heavily dependent on the weather, with a notable increase during the hotter summe

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.

Beer remains the most widely consumed alcoholic beverage in Guatemala. Its broad price range makes it accessible to consumers across all income levels, while a variety of styles - from lighter to stronger options - caters to diverse tastes and preferences. Additionally, the country’s warm climate reinforces beer’s popularity, making it a refreshing and versatile choice for nearly any occasion.

Volume sales of spirits in Guatemala continued to expand in 2024, driven largely by strong growth in aguardiente sales. A strong, anise-flavoured spirit typically made from sugarcane Aguardiente is widely consumed across the country, primarily due to its affordability, making it accessible to a broad segment of the population. In addition to its low price point, aguardiente comes in a wide range of varieties, including fruit-flavoured versions.

Wine in Guatemala saw decline in volume sales in 2024, primarily driven by red wine, which remains the dominant category. Still white wine also recorded a contraction, while still rosé wine showed a slight increase -although it continues to represent a very small share of the market. All wine consumed in the country is imported, mainly from Chile, Argentina, Spain, Italy, and the US. The category is highly segmented, with consumers showing interest in exploring a wide variety of styles and origi

Volume sales of alcoholic drinks in Guatemala saw healthy growth in 2024, marking a significant improvement over the previous year. In 2023, the market faced several challenges, including heightened political uncertainty surrounding the presidential elections, which led to more cautious consumer spending. In addition, a global shortage of glass affected supply chains, particularly in the first quarter, disrupted the availability of many bottled alcoholic beverages. By contrast, 2024 benefited fr

Cider/perry has a niche profile in Guatemala, primarily sold through modern retail channels but with limited shelf space and visibility. These beverages are mostly consumed during Christmas, New Year, and at certain special celebrations when some consumers choose cider or perry as a more affordable alternative to sparkling wine or champagne. Many brands are also available through wholesalers, where customers purchase in larger quantities for parties and special events. While volume sales grew st

RTDs experienced dynamic volume growth in Guatemala in 2024, reflecting a rising consumer preference for lower-alcohol alternatives. The market is primarily concentrated in spirit-based RTDs, which recorded the strongest performance within the category. These products are especially targeted at younger consumers, with major brands investing heavily in promotional activities. With their lower price points, spirit-based RTDs have also widened the consumer base for spirits such as rum and vodka, an

Volume sales of cigarettes in Guatemala recorded further decline in 2024; however, estimates indicate that illicit trade in cigarettes rose. This increase appears to be part of a broader regional trend across Central America, where illicit cigarette trade is on the rise. Whilst the government is expected to introduce new measures to tackle the issue more effectively, concrete actions have yet to materialise.

The Guatemalan economy experienced growth in 2024, with real GDP reaching 3.4%. Several sectors benefitted from this performance, including financial services and tourism, and overall economic activity was positive. However, as inflation rose to nearly 3% - a higher rate than in 2023 – price increases impacted the consumption of certain products, including tobacco. Looking ahead to 2025, the macroeconomic outlook is looking favourable, with real GDP growth projected to be around 4%, coupled with

Cigars recorded further modest growth in 2024, but remained a niche category in Guatemala, with consumption largely limited to the capital and more urbanised areas. High-quality imported cigars, particularly those from Cuba, are often purchased by international visitors. While some are consumed locally, many are bought as gifts or souvenirs to take home. The appeal is especially strong for visitors from the US as premium Cuban cigars are not available back home, prompting travellers to take adva

E-vapour products continued to perform well in Guatemala in 2024, driven by growing consumer demand. The relatively flexible regulatory environment has allowed retailers to operate and sell these products with minimal restrictions. However, concerns have been raised about minors’ access, particularly to e-cigarettes, which are available through vending machines across the country. Despite ongoing controversy over youth access and the ease of purchasing these products via machines, no new regulat

The number of households is set to increase moderately, while the average household size will shrink in Guatemala over 2024-2029. Couples with children will remain the dominant household type but the fastest household expenditure growth is forecast to be recorded by extended ("other") households. In addition, the share of households living in urban areas is projected to expand to 62.9% 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 products in Guatemala experienced positive growth in current value terms in 2024. Although the annual inflation rate eased from the high levels seen in 2022 and 2023, consumers still felt the effects of reduced purchasing power due to the effects of cumulative increases in the cost of living. This led to more cautious spending, especially amongst lower-income groups, who increasingly prioritised value-for-money options. Consumers increasingly opted for family-si

Colour cosmetics in Guatemala recorded growth in both current value and volume terms in 2024, demonstrating the resilience of the category even during times of economic uncertainty. For many Guatemalan women, the use of colour cosmetics is closely tied to expressions of identity, self-confidence and emotional wellbeing. Despite the increased cost of living experienced in the country over the past few years, beauty rituals remain part of the daily routine for women across different income levels.