Dorita Yiannakou
Cyprus’ supermarket sector closed out 2025 on a strong note, underscoring its resilience even in a fiercely competitive market. Both locals and foreign residents continue to make regular trips to retail chains, a trend clearly reflected in supermarket revenues. Despite intense competition, overall performance across the sector remained at excellent levels, according to market officials.
Steady consumer demand, especially for essential goods, helped boost revenues and confirmed that supermarkets remain one of the most stable pillars of the Cypriot economy. Looking ahead, prospects for this year suggest consumers are likely to push supermarket profits even higher, supported by an improving economic climate, stronger purchasing power, and targeted promotions by retail chains.
Still, industry representatives caution that rising expectations for 2026 come with challenges. Among the biggest hurdles are staff shortages, inflexible operating costs, intensifying competition, and the ongoing need to maintain high service standards.
The numbers
Supermarket turnover in Cyprus reached €2.4 billion in 2025, marking a 5% increase compared with 2024. Data from the Pancyprian Supermarkets Association show noticeable swings in consumer activity throughout the year, with May and December emerging as the strongest months.
May benefited from increased tourism and a higher number of foreign residents in coastal cities, which drove up demand for everyday goods and services. December, traditionally one of retail’s busiest months, was fueled by holiday shopping, widespread promotions, and heavy foot traffic in supermarkets across the island. Together, these two months played a decisive role in shaping the sector’s positive annual performance.
Regional trends and outlook
All districts recorded year-on-year growth, the association said, with Limassol and Nicosia accounting for the largest shares of supermarket turnover, about 40% and 30%, respectively. The remaining 30% was divided among Paphos, Larnaca, and the Famagusta district.
Limassol in particular is seeing strong activity, largely attributed to its large foreign population. The city’s multinational demographic mix and steady influx of new residents are driving demand and lifting supermarket revenues. At the same time, a growing trend toward eating at home, especially noticeable during the summer, has also boosted store traffic and sales.
Consumer habits in Nicosia show a different pattern. Residents of the capital tend to handle their household shopping themselves, a behavior linked both to lifestyle and to the concentration of shops and services within the city, which makes frequent supermarket visits more convenient.
Early indicators for 2026 are also promising. According to the association, profits this year are expected to surpass last year’s levels, with particularly encouraging results already recorded in the first two months for supermarkets larger than 500 square meters. Industry estimates point to a highly profitable year, driven in part by consumers choosing home-cooked meals over dining out.
Market data backs the trend
The shift is echoed in findings from the latest K Trends survey conducted last November, which found that consumers are steadily increasing their food budgets. Average household spending on groceries rose to €481, while 35% of respondents said they spend more than €501 per month to cover their food needs.
Official statistics also support the upward trajectory. The value of retail trade turnover in 2025 rose 6.1% year-on-year, while volume increased 7.9%. For the January–December period, the retail value index climbed, reflecting sustained growth in consumer activity, while the volume index rose even more sharply, indicating a real expansion in sales rather than price-driven gains.
