Myanmar's economy is undergoing a significant transformation, with technology, urbanization, and a growing middle class playing key roles in shaping the market. Consumer expectations are evolving faster than ever, driving demand across various sectors.
Fast-Moving Consumer Goods (FMCG) According to recent market studies, the FMCG sector continues to experience steady growth, with food, groceries, household products, and personal care items accounting for nearly 50% of average monthly consumer expenditures. The expansion of modern retail channels and e-commerce platforms has contributed to the sector’s resilience despite economic fluctuations.
Automotive Industry Myanmar's automotive market has shown gradual but steady growth. While challenges such as import restrictions and currency fluctuations have affected the industry, the market remains promising. According to recent reports, the demand for new vehicles is increasing, particularly in urban areas, with the sector expected to grow in alignment with infrastructure development and rising disposable incomes.
Middle-Class Growth & Consumer Demand Myanmar’s middle class is expanding, fueling demand for high-quality products and modern retail experiences. As of 2024, an estimated 12 million people (approximately 22% of the total population) belong to the middle class, with this number projected to rise further in the coming years. This demographic shift is driving higher consumption, particularly in food, beverages, and personal care products.
Urbanization & Retail Sector Myanmar is undergoing rapid urbanization, with approximately 19 million people (about 35% of the total population) living in urban areas. This figure is expected to reach 40% by 2030 as infrastructure projects and economic zones continue to develop. Retail in Myanmar is still dominated by traditional trade, accounting for approximately 85-90% of total sales. However, the modern retail sector, including supermarkets and convenience stores, is growing at an annual rate of 8-10%. The rise of digital payments and online shopping platforms is further accelerating this shift.
Retail Industry Outlook The Myanmar Retailers Association projects that the retail industry will continue to grow, supported by economic recovery, rising consumer spending, and lifestyle changes. While economic challenges remain, e-commerce, mobile payments, and modern trade formats are expected to drive retail growth over the next five years.
Sources: World Retail Congress, Asian Development Bank, McKinsey Global Institute, Euromonitor International, Food Export Association of the Midwest USA & Northeast, Asia Food Journal, SCB EIC, Inside Retail, Myanmar Business Today, Myanmar Retailers Association.
