Tissue and hygiene in Ethiopia in 2025 exhibited resilient retail value growth, although at a moderate pace as inflation eased from 21% in 2024 to 13% in 2025. However, persistent affordability challenges continue to affect the category despite the country’s large and expanding population of 136 million. The environment remains attractive for companies with strong local manufacturing and adaptive strategies, as local brands can leverage cost advantages and product innovation, while multinationa

Menstrual care in Ethiopia in 2025 continued to demonstrate robust retail value growth, reaching ETB1.3 billion in 2025, an increase of 16% on the previous year, while retail volume expanded by 6% to 184 million units. This performance stands out within the regional context, where price inflation and currency devaluation have had a profound effect on affordability and access, echoing broader trends across Africa, but with Ethiopia experiencing sharper retail value price hikes than many of its ne

Nappies/diapers/pants in 2025 saw robust retail value and volume growth in Ethiopia, outpacing many regional peers. Retail volume reached 1.6 billion units, marking a year-on-year increase of 8%. Retail value sales soared to ETB28.5 billion, which is a 17% rise on 2024, supported by both higher demand and a sharp increase in unit prices. This acceleration came despite Ethiopia’s inflation easing from the previous year to 13% in 2025. The rate of value growth for nappies/diapers/pants in Ethiopia

In 2025, wipes in Ethiopia achieved strong value growth, with retail value sales reaching ETB264,000, a 25% increase on the previous year. This robust performance is notably above-average for the region, reflecting both heightened hygiene awareness and the persistent influence of economic pressures. The population’s continued expansion also created a wide consumer base for affordable hygiene products. However, this growth was underpinned by significant price sensitivity, as ongoing inflation of

Retail tissue in Ethiopia continued to experience both retail value and volume growth in 2025, though the pace softened compared to the previous year. Retail volume rose to 5,400 tonnes in 2025, reflecting a 6% increase, while retail value sales reached ETB1.7 billion, which is a 19% increase. This performance is set against a backdrop of moderating inflation. Economic shifts and an expanding Ethiopian population have directly influenced purchasing behaviour, as consumers remain highly price-se

Away-from-home tissue and hygiene in Ethiopia delivered a robust performance in 2025, with value sales msp rising to ETB535 million, marking a 23% increase on the previous year. This occurred in the context of high inflation, which reached 13% in 2025, and ongoing economic pressure that kept institutional budgets tight across offices, healthcare, schools and NGOs. As a result, cost-conscious purchasing dominated, with institutions favouring locally produced, affordable bulk tissue solutions ove

Home care recorded strong growth in 2025, driven by the dominance of local brands, evolving product formats and multifunctionality demand, though persistent inflation and currency depreciation constrain consumer purchasing power. Liquid format adoption is accelerating as Ajax transitions from bar to liquid dishwashing while Largo strengthens position through multipurpose applications spanning laundry care, surface care, and toilet care. Competition remains fragmented with Repi Soap & Detergent S

Laundry care recorded 14% current value growth in 2025 to reach ETB2,602 million, driven primarily by Ethiopian-produced products dominating the market amid heightened affordability pressures. The majority of laundry care products sold are manufactured by Ethiopian firms, with two distinct producer types: small-scale manufacturers producing from homes and selling in neighbourhoods, and large-scale manufacturers including Repi-Wilmar, Unilever, 555, Azzy, and East African Trading Group. The marke

Dishwashing recorded 9% current value growth in 2025 to reach ETB182 million, sustained by good levels of volume and value performance as the category experienced lower substitution impact compared to other home care formats. The majority of Ethiopians do not use dishwashing soaps as multi-purpose detergents, reducing the tendency to substitute dishwashing products with alternative cleaning formats used in the market. Hand dishwashing remains the largest category, accounting for the entire retai

In Ethiopia, surface care recorded 5% current value growth in 2025 to reach ETB315 million, driven by sustained inflation-led price increases across the category. Drain openers emerged as the best-performing category with 9% growth to reach ETB51 million, driven by sustained demand for specialised drain cleaning solutions. Price increases in surface care products proved the most significant trend affecting the market, with locally produced scouring powders recording high price increases, rising

Bleach recorded 10% current value growth in 2025 to reach ETB969 million, supported by a modest volume expansion of 15,164 tonnes. This growth is driven by the multifunctionality of bleach products, sustained by demand across diverse applications, including toilet cleaning, laundry care for white clothes, hospital disinfection and all-purpose household cleaning. Persistent inflation and rising costs of imported chemical inputs place pressure on retail pricing; however, the dominance of local pro

The toilet care category in Ethiopia recorded retail value sales of ETB57 million in 2025, representing 5% growth from the previous year, driven by increasing urbanisation and rising household incomes that supported greater consumer investment in hygiene and cleaning products. The urban population in Ethiopia reached 33 million in 2025, up from 31 million in 2024, with this expanding urban base generating growing demand for toilet care products as living standards and hygiene awareness improved.

The polishes category in Ethiopia recorded retail value sales of ETB198 million in 2025, representing 9% growth from the previous year, driven by rising household incomes and an expanding urban population that supported greater consumer spending on home maintenance and personal care products. The median disposable income per household reached ETB288,958 in 2025, up from ETB241,520 in 2024, enabling consumers to spend more on products that maintain and enhance their living standards. The urban po

The air care category in Ethiopia recorded retail value sales of ETB303 million in 2025, representing 8% growth from the previous year, driven by an expanding urban population and rising household incomes that supported greater consumer spending on products improving indoor air quality. The urban population in Ethiopia reached 33 million in 2025, up from 31 million in 2024, with urban households demonstrating growing awareness of the benefits of air care products and an increasing willingness to

Home insecticides recorded 6% current value growth in 2025 to reach ETB406 million, driven by increased urban pest control needs as rodent and insect populations expanded across Ethiopian cities. Persistent inflation and currency depreciation are constraining consumer purchasing power, though the availability of cheaper locally-produced insecticides provides affordable alternatives to imported products. Spray/aerosol insecticides continue as both the largest and fastest-growing category, record

Ethiopia remains ‘repressed’ for economic freedom and instability could rise ahead of the 2026 election, but state finances are improving. Economic momentum is extremely robust, supported by exports, and inflation is falling, but the economic base is undiversified. Poverty has reduced and strong population growth could lead to a demographic dividend, but humanitarian needs are high. A new strategy should boost digital transformation, but low internet use has prevented e-commerce development.

In 2025, demand for soft drinks in Ethiopia was positively influenced by population growth, urbanisation and the accelerating momentum of wellness-focused lifestyles. At the same time, improved access to foreign currency and easing import procedures strengthened supply conditions, supporting a wider and more diversified range of offerings. Bottled water was the best-performing category, as pressure on existing water infrastructure sustained demand in cities. However, overall performance remained

In 2025, retail sales of hot drinks in Ethiopia registered dynamic growth in current value terms, driven mainly by rising prices, which boosted demand for affordable local coffee and tea. Coffee remained a key driver, supported by cultural traditions and expanding premium café experiences, while tea benefited from wellness trends. Small local grocers dominated volume sales, with supermarkets and forecourt retailers growing in urban areas. Moving forward, urbanisation, modern coffee chains, and g

In spite of high inflation, staples registered healthy volume growth in 2025. Local brands also benefitted, as a weak currency made imports particularly expensive. There is also rising health consciousness and wariness about ultra-processed foods.

Inflation was the dominant force in the market for cooking ingredients and meals in Ethiopia in 2025: It drove a surge in retail current value sales, but growth in retail volume sales was much more modest. This underpinned an increase in sales of contraband cooking oil. Meanwhile, sales of honey continued to rise, as social media helped to spread awareness of its health and wellness benefits, while urbanisation and Westernisation boosted demand for ketchup and mayonnaise, albeit from quite a low

Ethiopia’s economy grew by 6.9% in 2024, surpassing the regional average, driven by private spending and exports, though public investment lagged. Growth is projected to average 7.6% annually over the period to 2029, among the fastest rate globally, while inflation is set to ease to 16.2% in 2025, but remain high, hitting the vulnerable hardest. Fiscal consolidation continues as the government pursues stability, but humanitarian needs have deepened following the temporary suspension of US aid.

Ethiopia's business environment showed mixed progress from 2019 to 2024, with significant improvements in business and trade freedom, but setbacks in labour and monetary freedom. In addition, the country's judicial effectiveness and corruption issues pose risks to investor confidence. Furthermore, despite these challenges, technological advancements and a stable banking sector offer potential opportunities for economic growth and innovation.

Value sales of dairy products and alternatives in Ethiopia rose in 2025, supported by strong underlying demand, population growth, and the increasing modernisation of Ethiopia’s food system. However, growth was constrained by persistent challenges around affordability, inflation, and supply disruptions. Prices of dairy products surged by 30-40% compared with the previous year, making many products unaffordable for the majority of households. Inflation in animal feed, coupled with foreign exchang

Elevated inflation has significantly impacted the purchasing power of local consumers, making them more price sensitive when it comes to consumer health. Currency depreciation has served to push up import costs, undermining affordability. This has also boosted demand for domestically produced products, as well as imports from relatively low-cost countries, such as India.