Tissue and hygiene in Paraguay delivered robust value growth in 2025, well above the rates seen in recent years, propelled by accelerating economic expansion, controlled inflation, and improved consumer purchasing power. This performance stands out in the region, as the sector rebounded from a prior contraction linked to cross-border smuggling, with renewed household demand and a shift toward higher-quality products. While price sensitivity remains a defining characteristic, especially in toilet

Menstrual care in Paraguay in 2025 experienced notable growth, with retail volume reaching 370 million units, representing a 4% increase from the previous year. This performance was underpinned by the country's economic expansion and a narrowing of the price gap with Argentina, which reduced smuggling activity and encouraged more domestic purchases. In value terms, retail sales grew by 8% to PYG351 billion, outpacing the regional average and reflecting the ongoing premiumisation trend.

Nappies/diapers/pants in Paraguay experienced a slight fall in retail volume in 2025, reaching 112 million units, a decline of 1% compared to the previous year. This performance sits within a broader Latin American context where overall economic growth and increased disposable income have supported consumer goods, yet the category continues to face headwinds from a declining birth rate. Sales in value terms paint a different picture, with retail value increasing by 4% to reach PYG243 billion, i

Retail adult incontinence in Paraguay delivered a robust performance in 2025, with total retail volume reaching 9.6 million units and value sales at PYG55.1 billion, representing growth rates of 3% and 7% respectively from the previous year. This positive trajectory is underpinned by four key drivers: a recovery in economic growth, a significant reduction in inflation, a narrowing of cross-border price gaps with Argentina which reduced smuggling, and shifting social attitudes, especially among m

The performance of wipes in 2025 in Paraguay was shaped by the interplay between affordability, premiumisation, and a flat volume environment, contrasting with some regional peers that saw more dynamic volume gains. Retail value for wipes grew by 4% to PYG29.1 billion, but this masked a near-flat performance in personal wipes volume, which accounted for the bulk of sales and stood at 68.9 million sheets, declining by 1% from the previous year. Volume stagnation was driven by a declining birth ra

Away-from-home tissue and hygiene in 2025 demonstrates robust current value growth in Paraguay, driven by affordability and shifting purchasing behaviours, even as the formal retail volume contracts slightly. Total value sales for away-from-home tissue and hygiene rises by 3% in 2025 to PYG158 billion, with the dynamic especially pronounced in the toilet paper and paper towels segments of away-from-home tissue. The formal retail volume declines due to an increase in sales through informal chann

Paraguay's home care market experienced growth in 2025, driven by steady economic expansion and changing consumer behaviours. The country's economy grew in 2025, supporting consumer spending on home care products. With a median disposable income per household increasing to PYG91 million in 2025, consumers are driving demand for premium and sustainable products. The market is attractive due to its stable economic environment and growing urban population. To succeed, brands should focus on premi

In 2025, laundry care sales in Paraguay experienced a slight decline in retail volume terms. This contraction was largely attributed to an unusually cold winter, which led many Paraguayans to wash their clothes less frequently than usual. Seasonal factors have a significant impact on laundry habits in Paraguay, as colder weather typically reduces clothing changes and the need for frequent washing.

The dishwashing category in Paraguay saw an 8% growth in 2025, driven in part by evolving product formats, with retail value sales reaching PYG142.1 billion in current terms. Concentrated hand dishwashing products have become increasingly popular, as they offer the benefit of prolonged product usage. Consumers continue to show interest in innovations within dishwashing, with smaller pack sizes and concentrated options playing a key role in demand. The rise of concentrated formats is likely linke

The surface care category in Paraguay recorded a retail value of PYG133.0 billion in 2025, representing 7% growth on the previous year. The median disposable income per household increased from PYG86 million in 2024 to PYG91 million in 2025, indicating a steady increase in household income, which likely contributed to the growth in surface care sales.

In 2025, the bleach category in Paraguay demonstrated a positive performance, with a retail value of PYG121.3 billion. This represents 9% growth compared to the previous year. Amidst stabilising inflation rates, the median disposable income per household in Paraguay has been steadily increasing, reaching PYG91 million in 2025, up from PYG86 million in 2024. This rise in household income is likely to have contributed to the growth in the bleach category, as consumers have more disposable income t

In 2025, the toilet care category in Paraguay demonstrated robust performance, growing by 8% to reach PYG20.7 billion in value sales. The median disposable income in Paraguay increased from PYG86 million in 2024 to PYG91 million in 2025, indicating growing consumer purchasing power and therefore leading to consumers pursuing convenient and effective toilet cleaning solutions. Furthermore, the urban population in Paraguay is increasing, showing a steady rise that has likely contributed to the gro

In 2025, the polishes market in Paraguay recorded a retail value of PYG23.8 billion, representing 4% growth from the previous year. Amidst stabilising inflation rates, the median disposable income per household in Paraguay increased from PYG86 million in 2024 to PYG91 million in 2025. This rise in disposable income likely contributed to the growth in the polishes market as consumers had more money to spend on home care products. The growth in the polishes market is also reflective of a broader t

The air care market in Paraguay demonstrated robust performance in 2025, with a retail value of PYG51.5 billion, representing 7% growth on the previous year. The median disposable income per household in Paraguay grew from PYG86 million in 2024 to PYG91 million in 2025, indicating a steady increase in consumer purchasing power. The growing urban population, with higher incomes and a greater demand for air care products in smaller homes, is also likely to have had a positive impact on the air car

In 2025, the home insecticides market in Paraguay increased by 10% on the previous year to reach a retail value of PYG290.6 billion, driven by increasing demand for effective and convenient pest control solutions due to rising urbanisation and disposable incomes. As the urban population grows, so does the need for products that can effectively manage pests in densely populated areas. The growth in median disposable income per household, from PYG86 million in 2024 to PYG91 million in 2025, has en

The country’s GDP grew 3.6% in 2025, placing it among the strongest economies in the region. In this regard, the World Bank (WB) updated its global economic projections and placed Paraguay as the second-fastest-growing economy in the year, behind Argentina. Consequently, income levels rose and living standards improved, resulting in further expansion of the middle class and a further erosion of poverty. These positive economic indicators boosted purchasing power and an expansion of middle and up

The country’s GDP grew 3.6% in 2025, placing Paraguay among the strongest economies in the region. In this regard, the World Bank (WB) updated its global economic projections and placed Paraguay as the second-fastest-growing economy in the year, behind Argentina. Consequently, income levels rose and living standards improved once more, resulting in further expansion of the middle class and a further erosion of poverty. Meanwhile, soft drinks sales experienced moderate growth during 2025. In addi

Economic freedom has improved markedly and state finances are solid, but corruption remains endemic. The economy is set to outpace peers and will be supported by a strong investment pipeline, but exposure to commodities creates risks for the external sector. Poverty greatly afflicts indigenous peoples and the rural populace is relatively large, but Paraguay is ageing more slowly than counterparts. Data centres hold great potential and 5G has been launched, but innovation could be enhanced.

Overall, sales of staple foods witnessed a positive performance in 2025, mainly triggered by economic strength and the continued decline in smuggling activity from Argentina, which started in 2024. In fact, all categories envisaged an increase in sales in 2025. Paraguay’s GDP climbed by almost 4% year on year in the period. At the same time, the country’s inflation decelerated for the third consecutive year and posted the lowest record since 2020. Consequently, people’s disposable income increas

Overall, retail value sales of cooking ingredients and meals are expected to rise in 2025, mainly triggered by economic strength and the ongoing reduction in smuggling activity from Argentina, which started in 2024. Paraguay’s GDP is set to rise by 4% in 2025, while inflation in the country decelerated for the third consecutive year and posted the lowest record since 2020. Consequently, disposable incomes have increased. In fact, all categories – except dried ready meals – are expected to see an

The country’s GDP is expected to climb 3.6% in 2025, placing it among the strongest economies in the region. In this regard, the World Bank (WB) updated its global economic projections with Paraguay now expected to be placed as the second fastest growing economy in 2025, behind Argentina. Consequently, income levels will rise and living standards will improve once more, resulting in further expansion of the middle class and a further erosion of poverty.

The country’s GDP is expected to climb 3.6% in 2025, placing it among the strongest economies in the region. In this regard, the World Bank (WB) updated its global economic projections and placed Paraguay as the second-fastest-growing economy in 2025, behind Argentina. Consequently, income levels will rise and living standards will improve once more, resulting in the further expansion of the middle class and a further erosion of poverty.

The report examines the economic landscape of Paraguay 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, investments. However, global economic slowdown, increasing geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.

This report assesses the business environment in Paraguay, 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.