Decline in Domestic Consumption Despite Tourism
Distributors focused on the FMCG segment (fast-moving consumer goods, largely imported) have experienced mixed results in 2025.
Some have recorded a drop in revenue, while others have continued to grow - partly driven by rising tobacco prices resulting from the implementation of the excise tax schedule.
Official data indicate that the pace of domestic consumption has begun to slow, a direct consequence of demographic contraction. According to INSTAT, annual household consumption grew by 3.4% in 2025, down from 4.2% the previous year. Meanwhile, distribution companies are also contending with structural changes in the domestic market.
Demographic trends remain the primary concern for operators. Emigration - particularly among the youth - and the gradual aging of the population are influencing both consumer purchasing habits and the size and structure of the market.
Companies report increasing difficulties in recruiting and retaining staff, especially for roles in sales, warehousing, transport, and logistics. Major operators report that sales of high-end products remain stable, whereas sales of lower-priced items are declining, driven by population emigration. Annual reports highlight a drop in demand across several product categories.
A key supporting factor for importers has been the weakening of the euro against the lek, a trend that has persisted for several consecutive years. This more favorable exchange rate has helped companies absorb some of the rise in import prices and mitigate the upward pressure that higher costs would otherwise have exerted on final prices.
On the other hand, Albania’s emergence as an increasingly important tourist destination has partially offset the decline in consumption linked to emigration. This effect is particularly evident during the summer months and in coastal areas, where retail chains and distributors report a significant rise in sales.
Seasonal demand from tourists has boosted turnover, particularly for beverages, food products, and fast-moving consumer goods. According to industry operators, alcoholic beverages remain among the categories experiencing the strongest sales growth in coastal tourist areas, reflecting the shift in consumption patterns during the season and the increasingly significant role tourism plays in the FMCG market. Operators estimate that without tourism, the decline in sales would have been far more dramatic.





