The worst drought in 40 years pushed local food prices up while Russia’s war in Ukraine has led to further price pressures. To curb inflation, interest rates were raised and the currency depreciated making imports more expensive.
Ethiopia has been experiencing a severe shortage of foreign currency during the last few years of the review period with this being linked to the Tigray War which lasted from November 2020 to November 2022. This shortage of foreign currency has resulted in queues in the country’s banks as people and businesses have looked to get a letter of credit to be able to import products.
Most Ethiopian people eat three main meals per day – breakfast, lunch and dinner. Snacking is not particularly popular and is common only among young people.
Russia’s war in Ukraine continued to impact the local food market in Ethiopia with further price increases for edible oils and wheat. Both Ukraine and Russia are major suppliers of wheat, which is a major raw ingredient for the production of several packaged staple foods made in or imported into Ethiopia.
As a landlocked country, Ethiopia relies heavily on the port of neighbouring Djibouti for the import and export of goods. Port Sudan in neighbouring Sudan and Berbera in neighbouring Somalia are used to a lesser degree.
The shift from informal to modern retailing, especially in cities like Addis Ababa where modern retailers are concentrated, is also expected to boost demand for packaged food products away from informal and unpackaged varieties. It is also expected that once inflation stabilises consumers will have more disposable income which will boost sales.
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Understand the latest market trends and future growth opportunities for the Staple Foods industry in Ethiopia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Staple Foods
NOTE: Couscous, polenta and quinoa are excluded from staple foods.
See All of Our DefinitionsThis report originates from Passport, our Staple Foods research and analysis database.
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