Economic freedom in Portugal has improved and public debt is lower, but the country continues to be in the throes of an unstable political landscape. Although inflation is above the eurozone target, economic performance has been better than peers, fuelled by solid tourism activity. Discretionary spending will be supported by older groups, but the country is ageing rapidly and immigration is being tightened. Data centres are expected to boost the economy, but innovation capacity lags competitors.

In 2024, couples with children were the most common household type in Portugal, reflecting traditional family lifestyles, but the trend towards smaller family sizes continued, due to the unchanged low birth rate and cost-of-living challenges. Over 2024-2029, the number of households is forecast to grow by 1.0%, with single-parent families expanding the fastest. Additionally, the average household size is predicted to shrink, and the urbanisation rate to increase, driven by economic and demograph

Portugal's business environment showed both progress and setbacks over 2019-2024. Judicial effectiveness and property rights improved, but political instability hindered business freedom. Foreign investment grew due to favourable conditions such as low interest rates, while skills shortages remained a challenge. The labour market became more flexible, and digital infrastructure improved, though digital tools adoption by businesses was still low.

Retail value sales of drinking milk products increased in 2025, though at a slower pace than in previous years. Cow’s milk remains the largest subcategory, and any change in its performance significantly affects overall category dynamics. Although retail prices rose, high production costs prompted many producers to redirect raw milk towards higher value-added products such as cheese and yoghurt. Volume sales of drinking milk products declined, contributing to the slower value growth. At the same

Value sales of baby food in Portugal increased in 2025, though growth slowed compared to the previous year. Several key developments contributed to the category’s continued positive performance, including ongoing product innovation and a shift in fiscal policy. The launch of Cerelac Pedacinhos helped revitalise interest in dried baby food by offering a differentiated option with added texture, targeting older babies. In the snacks segment, brands such as Gerber introduced new options including G

Value sales of other dairy in Portugal increased in 2025, with all subcategories recording growth in current terms, largely due to price inflation. However, not all areas performed equally in volume terms. Shelf stable dairy desserts and coffee whiteners saw a decline in volume sales, as these products are not traditionally embedded in Portuguese consumer habits and receive limited focus from manufacturers and retailers. Likewise, sales of condensed and evaporated milk continued to fall in volum

Value sales of cheese increased in 2025, supported by both rising unit prices and growing consumption. The upward trend in prices was largely driven by higher production costs, with drought conditions contributing to reduced availability and elevated costs of animal feed. As a result, dairy producers prioritised cheese over butter, given the higher added value and stronger domestic demand for cheese. At the same time, consumption increased in both retail and foodservice settings, with cheese rem

Value sales of yoghurt and sour milk products increased in 2025, supported by growing consumer interest in health and well-being. The trend towards functional foods continued to shape category performance, with products such as kefir and protein-enriched yoghurts recording particularly strong results. Portuguese consumers are increasingly looking for products that support gut health – where kefir plays a central role – and for options that aid in muscle development and fat reduction, often in co

Value sales of butter and spreads increased in 2025, driven largely by rising unit prices and limited production volumes. Although volume sales declined, the overall value performance remained positive due to higher retail prices and shifts in production priorities. Reduced availability of milk for butter production meant that manufacturers placed greater emphasis on cheese, which offers higher added value and has experienced growing demand. At the same time, changing consumer habits contributed

Value sales of dairy products and alternatives in Portugal rose in 2025 and are expected to continue expanding over the forecast period, albeit at a slower pace than during the historical review period. This positive performance was primarily driven by plant-based dairy, baby food, and yoghurt and sour milk products. Within plant-based dairy, growth was supported by increased segmentation, with brands introducing a wider array of alternatives including protein-enriched products such as Alpro’s p

Value sales of plant-based dairy in Portugal increased in 2025, with the category posting double-digit growth in current terms. Plant-based milk has become firmly integrated into Portuguese consumer habits, with oat milk leading growth among the available varieties. New brands continue to enter the market through exclusive retail agreements. These include both private label brands such as Sonae’s Good Health and smaller Spanish suppliers like Frias, which are often introduced through broader dis

Retail volume sales of in-car entertainment in Portugal declined sharply in 2025, continuing the long-term downward trend. The category’s performance remains hampered by the rising penetration of factory-installed audio systems, integrated navigation units, and multimedia capabilities in both new and second-hand vehicles. Even pre-owned cars now frequently feature modern sound systems and dashboard media players, reducing the need for aftermarket upgrades. With most demand now limited to replace

Home audio and cinema continued its long-term decline in Portugal in 2025, with most categories struggling to maintain relevance in the face of more convenient, portable, wearable, and technologically advanced alternatives. Streaming services have reshaped music consumption, accelerating the shift towards individual listening experiences via smartphones and headphones rather than shared listening through traditional home systems. Wireless soundbars, which were previously one of the few growth ar

Following Portugal’s positive economic performance in 2024, driven by stronger private consumption supported by tax reductions, rising incomes, public and private investment under the Recovery and Resilience Plan, and a low unemployment rate, the consumer electronics industry entered 2025 in a more stable position. However, category performance varied, resulting in an overall stabilisation in volume sales. Categories that had seen a surge in 2024, such as televisions boosted by major sporting ev

Retail volume sales of mobile phones in Portugal increased in 2025, but the pace of growth slowed compared with the strong performance of the previous year. This reflects a combination of market maturity, a high penetration rate, and longer replacement cycles among certain consumer groups. Nonetheless, innovation – particularly the integration of artificial intelligence – remains a key driver of upgrades, boosting demand for the latest smartphones. AI-powered devices are appealing to consumers l

After a positive performance in 2024, retail volume sales of imaging devices in Portugal fell again in 2025. The market was impacted by the high number of purchases made in the previous year, which limited immediate replacement demand, as well as by a challenging economic climate. The biggest factor, however, continues to be the increasingly advanced photographic capabilities of smartphones, which for many consumers remove the need to own a separate camera or camcorder. Longer replacement cycles

Retail volume sales of portable players in Portugal continued to grow in 2025, supported primarily by the strong performance of wireless speakers and renewed interest in e-readers. Wireless speakers, while moving closer to maturity, maintained positive momentum thanks to their convenience, wide range of price points, and continuous product launches. Segments designed for parties and events continued to stand out, attracting consumers looking for portable yet powerful sound solutions. E-readers,

Home video in Portugal registered a decline in retail volume sales in 2025, following a stronger performance in 2024 that was boosted by major sports events and heightened promotional activity. Last year’s wave of purchases, which saw many households replacing older models, contributed to the softer demand seen this year. The market is also increasingly mature, with televisions having long replacement cycles, meaning fewer opportunities for annual growth. Despite this, category value increased,

After a positive performance in 2024, the computers and peripherals category in Portugal maintained volume growth in 2025, despite a challenging global economic backdrop and persistent price increases. The end of the replacement cycle initiated during the pandemic, the scheduled end of Windows 10 support in October 2025, and ongoing advances in processing power all contributed to positive demand. However, rising prices and subdued consumer confidence prevented even stronger growth. Value sales i

Wearable electronics in Portugal maintained positive volume growth in 2025, driven by rising penetration as new consumers entered the category, attracted by expanding health-monitoring capabilities and greater affordability. Replacement purchases also contributed to performance, with AI-enhanced features, longer battery life, and increasingly diverse product ranges encouraging upgrades. Strong promotional activity helped brands capture attention, while innovation in health and sports tracking co

Volume sales of wireless headphones in Portugal continued to grow in 2025, supported by their versatility across multiple usage occasions, from physical exercise and outdoor activities to gaming, music streaming, and remote working. The category benefits from an increasingly wide assortment of models and brands, spanning both premium and affordable segments, which makes wireless headphones accessible to a broad consumer base. Competitive pricing, frequent promotional activity, and improved produ

Sugar confectionery is experiencing current value growth, accompanied by a stagnation in volume sales. The category continues to see notably lower demand for traditional offerings such as boiled sweets and toffees, caramels and nougat, with this downward trend reflected in sales. Generally, these segments lack innovation, resulting in stable consumption patterns among established customers familiar with existing products and brands. For example, Penha brand caramels, which were introduced 50 yea

Current value and volume sales of chewing gum continue to rise in 2025, albeit at a slower pace than the previous year of the review period. This growth is primarily driven by an increase in consumption occasions, as local consumers dine out more frequently post-pandemic.

Chocolate confectionery is projected to experience significant current value growth in Portugal in 2025, exceeding rates observed during the review period. This acceleration can be primarily attributed to a substantial increase in cocoa prices. Manufacturers are actively implementing strategies to mitigate the impact of these cost increases on unit prices and are stimulating demand through discount promotions and other marketing initiatives. For instance, in March 2025, Mondelez’s Milka brand la