In 2024, Turkey ranked 17th in Western Europe for average gross income, reflecting lower productivity levels. Despite this, per capita disposable income grew by 3.7%, driven by a reduction in unemployment and a nominal minimum wage rise. Moreover, the government's social welfare programmes and wage subsidies are expected to boost income growth by 14.3% over 2024-2029, although income inequality and the gender gap remain significant challenges.

Turkey's business and regulatory environment declined, with weaker monetary freedom, judicial effectiveness and government efficiency, causing a drop in business confidence in 2024. The financial and investment outlook shows only slight improvement amid high interest rates and low bank claims on the private sector. While digital infrastructure has progressed, further efforts are needed to enhance innovation in the country.

Turkey’s GDP growth eased to 3.2% in 2024, outperforming Western Europe’s 1.3% average. Inflation hit 58.5%, driven by high energy and import costs. The value of goods exported by Turkey increased. Strong domestic demand, fiscal discipline and rising exports are set to fuel 3.4% annual growth through 2029, keeping Turkey regionally competitive.

Volume sales of computers and peripherals have rebounded into positive growth in Turkey in 2025, following a double-digit slump seen in 2024. Meanwhile, value sales are stronger, being supported by high prices due to high inflation. Computers is the best-performing category of the two main categories, with this in part attributed to the ongoing popularity of gaming, notably in relation to the culturally specific “brotherhood purchasing” phenomenon, a peer-influenced behaviour where one individua

Volume sales of home audio and cinema remain in a negative slump in Turkey in 2025. This is due to ongoing competition from other in-home entertainment options. For example, hi-fi systems and digital media player docks face diminishing popularity, as they are increasingly viewed as outdated by consumers. In contrast, there is a growing preference for advanced televisions equipped with integrated sound systems, which provide a more streamlined and modern entertainment solution. As these advanced

Volume sales of in-car entertainment remain in a negative slump in Turkey in 2025, continuing an ongoing trend. This poor performance is being heavily influenced by the widespread use of smartphones across the country, with these ubiquitous devices offering advanced and user-friendly navigation and media functions that make standalone in-car devices largely redundant. Furthermore, the increasing penetration of modern vehicles equipped with built-in infotainment systems reduces consumer demand fo

Sales of mobile phones are achieving marginal volume growth in Turkey in 2025, driven by baseline demand for smartphones. Smartphones are deemed necessary devices for consumers, which are valued for their multifunctionality. However, growth rates in smartphones are slowing down, as the local market has reached a high level of penetration. Thus, the category has reached a point of saturation, resulting in diminished growth opportunities. As a result, smartphone manufacturers face challenges in st

Volume sales of portable players are seeing a positive performance in Turkey in 2025. E-readers is seeing particularly robust growth, and wireless speakers is also faring well.

Volume sales of consumer electronics are seeing positive growth in Turkey in 2025, with value in significant double-digit figures. This indicates stable baseline demand midst high unit prices driven by double-digit inflation. However, sale performances differ across the categories in consumer electronics.

Imaging devices remain in a negative slump in Turkey in 2025, due to the ongoing decline of interest in light of the photography capabilities of smartphones. Indeed, ubiquitous and multi-use smartphones continue to see strong developments in camera quality, including editing capabilities and other features. This means that standalone imaging devices are increasingly being seen as unnecessary, beyond a niche of professional photographers and influencers. Within this, digital camcorders is seeing

Sales of wearable electronics are seeing strong volume growth in Turkey in 2025, driven by demand for all-but-one categories within wearable electronics, which are all seeing similar growth, with smart wearables showing the most dynamic performance. Only activity bands is in a small volume decline.

Volume sales of home video remain in a negative slump in Turkey in 2025, albeit at a low rate of decline than seen in 2024. Meanwhile, value sales are showing robust growth, driven by high unit prices causes by ongoing inflationary pressures. Within this environment, many budget-conscious consumers continue to postpone big-ticket purchases, such as on products in home video.

Wireless headphones is the winning category in consumer electronics in Turkey in 2025, seeing slightly stronger volume growth than the well-performing wearable electronics. Within this, TWS earbuds is seeing the overall strongest growth. Demand for True Wireless Stereo (TWS) earbuds is primarily driven by young consumers who prioritise convenience and advanced features such as noise cancellation and high-resolution audio playback. TWS earbuds offer an unparalleled audio experience, making them t

Although economic freedom is weak and the state is more authoritarian, public finances are on a solid footing. Higher tourism targets will support the economy and, whilst it remains a risk, inflation has been falling rapidly. Turkey continues to host large refugee numbers that are a strain on its services, but the consumer market will be driven by its substantial population and lower poverty rates. Internet use is below peers, but the mobile market is massive and 5G rollout is within reach.

The increasing consumer preference for healthier and more natural food options is driving significant growth within other dairy in Turkey, mirroring global trends. For instance, more parents are opting for chilled snacks over chocolate for their children, with Turkish parents increasingly seeking healthier snack alternatives within the dairy aisle. Yogurt-based snacks, fruit-infused labneh, and smaller portions of natural cheese are gaining popularity as nutritious options for kids. Labneh, whic

Sales of cheese in Turkey have continued to see strong growth in retail volume terms in 2025, supported by resilient consumer demand and evolving consumption habits. While the average retail unit price of cheese has risen significantly due to ongoing high inflation and the devaluation of the Turkish lira, the increase has been milder than in 2024. While rising production, packaging, and distribution costs have maintained upward pressure on prices, consumer interest in cheese has remained strong.

The strong performance of drinking milk products in the on-trade channel in 2025 is being significantly boosted by the continued popularity and expansion of cafés and chained specialist coffee shops across Istanbul and other urban centres. The number of cafés remains exceptionally high, catering to a wide range of social needs, while the number of specialist coffee shops continues its rapid increase, reflecting the deepening coffee culture in Turkey. A key development driving this trend is the i

Turkey’s baby food market has been shaped by a combination of global brand activity, economic pressures, and demographic shifts. Leading international companies like Nestlé, Danone, and Hipp have continued to invest in Turkey through expanded product lines and partnerships with local distributors, with the aim of capturing a growing base of health-conscious, urban consumers. As developed markets face saturation, these players are focusing their innovation and marketing efforts in emerging market

The increasing consumer focus on digestive health and immunity has significantly boosted demand for probiotic-rich dairy products in Turkey. Yoghurt and sour milk products, which naturally contain live probiotic cultures such as Lactobacillus and Bifidobacterium, are increasingly preferred as everyday functional foods. These products are seen as more accessible and natural compared to dietary supplements, making them a top choice among health-conscious consumers. Turkish dairy producers like Süt

Butter and spreads in Turkey continues to see steady growth in retail volume terms in 2025. Milk production in Turkey increased significantly in 2024, performing beyond initial projections. This created considerable challenges for the dairy industry. Companies were compelled to absorb and process the surplus milk, with much of it being diverted into butter and cream production products that are more stable and easier to store or export.

With inflation remaining high and the country’s GDP still in recovery, Turkish consumers continue to adopt a cautious and conservative approach to spending in 2025. Economic uncertainty has shaped more budget-conscious behaviour, particularly in essential categories such as dairy products and alternatives. Although inflation in 2025 is lower than in 2024, it is still having a significant impact on purchasing power. This has led many households to prioritise affordable products, with some switchi

Plant-based dairy continues to see significant advancement in the Turkish market, a country with a deep-rooted tradition of consuming animal-derived dairy products. The market is experiencing increasing diversification, with a wider array of plant-based milk and plant-based cheese alternatives becoming readily available. This growth is being fuelled by the rising number of vegans and vegetarians, increased health consciousness, and growing concerns around sustainability and animal welfare, as we

While sugar confectionery in Turkey is set to post high double-digit growth in current value terms in 2025, this is primarily due to elevated inflationary pressures. The rate should be well below that recorded in 2024, as inflation has recently eased somewhat. With disposable incomes falling and health concerns prompting more people to moderate their sugar intake, volume growth is also projected to slow from the previous year. However, demand remains robust on the whole thanks to favourable demo

High domestic inflation means gum in Turkey is set to record another double-digit increase in current value sales in 2025. However, with inflationary pressures gradually receding, the rate should be considerably lower than in 2024. While remaining modest due to maturity, volume growth is expected to be unchanged on the previous year, as these products are highly conducive to impulse purchases and still seen as inexpensive by most consumers despite rising prices and falling disposable incomes. St