What’s Next for Europe’s Retail Sector In 2025?

0.1%—that’s the real increase in food sales when adjusted for inflation in Europe. Despite marking the first sector-wide growth since the COVID-19 crisis in 2020, the retail industry still faces mounting challenges. With profitability under pressure and growth set to remain minimal in 2025, retailers must navigate a complex economic landscape.

Key Facts

Grocery sales grew by 2.4% in 2024, according to a report by McKinsey & Company and EuroCommerce, which represents 28 national trade associations and over 5 million companies.
This 2.4% growth barely outpaced food price inflation (2.3%), leaving a real gain of just 0.1%.
Consumers, squeezed by ongoing economic pressures, remain cautious in their spending, though retail executives express optimism for 2025.
The report indicates little change in consumer behavior from 2024, suggesting spending patterns are stabilizing.
While some markets show early signs of recovery, long-term forecasts remain bleak: the European retail sector is expected to grow just 0.2% annually through 2030, while retailers battle rising inflation and labor shortages.

Retailers Brace For A Tough Road Ahead

Despite the modest rebound, the retail sector’s path forward remains fraught with challenges. As costs continue to rise and growth remains sluggish, retailers will need to find new ways to drive efficiency and sustain profitability in an increasingly competitive landscape.

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Cyprus Ranks Among The EU’s Fastest-Growing Populations In 2025

by THEFUTURE.TEAM

July 22, 2026

Cyprus Emerges As A Demographic Outlier In Europe

Cyprus recorded one of the fastest-growing populations in the European Union in 2025, according to the latest Eurostat data. With population growth of 13.7 per 1,000 inhabitants, the island ranked second among the bloc’s 27 member states, behind only Malta (24.1) and ahead of Luxembourg (13.1).

The figures set Cyprus apart at a time when much of Europe is facing ageing populations, declining birth rates and mounting labour shortages.

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A Different Demographic Story

Population growth across the EU remained modest in 2025, increasing by just 1.6 per 1,000 people. The picture, however, was far from uniform. Sixteen member states recorded population gains, while eleven experienced declines.

Malta, Cyprus and Luxembourg posted the strongest growth rates, while Latvia (-8.3), Estonia (-6.8) and Hungary (-5.4) recorded the steepest population losses.

As of January 1, 2026, Cyprus had a population of 996,600. While one of the EU’s smallest member states, it continues to outperform many larger economies on demographic growth.

Growth Driven By Births And Migration

Cyprus stands out because its population is expanding through both natural increase and migration, a combination that has become increasingly uncommon across Europe.

The country was one of only six EU member states where births exceeded deaths in 2025, joining Denmark, Ireland, Luxembourg, Malta and Sweden. Across the EU as a whole, the opposite was true: 4.81 million deaths were recorded against 3.46 million births, leaving the bloc with a natural population decline of roughly 1.35 million people.

Migration more than compensated for that shortfall. Net migration added around 2.05 million people across the EU in 2025, reinforcing its role as the bloc’s primary source of population growth.

Cyprus ranked among the strongest performers here as well. Net migration reached 11.3 people per 1,000 inhabitants, trailing only Malta (23.9) and Spain (11.8).

Why The Numbers Matter

Demographic trends increasingly shape economic performance. Population growth influences labour supply, consumer demand and the long-term sustainability of pension systems and public finances.

For most European countries, migration has become essential to offset declining birth rates. Cyprus is unusual because it combines strong inward migration with positive natural population growth, giving it a demographic profile that few EU members currently share.

Whether that advantage translates into stronger long-term economic performance will depend on how effectively the country integrates new residents, expands its workforce and converts population growth into higher productivity.

As Europe searches for ways to sustain growth despite an ageing population, Cyprus offers an early example of how demographic resilience can become an economic advantage.

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