On pressure and opportunity in rebuilding Syria’s consumer goods market
How would you describe the evolution of Syria’s fast-moving consumer good (FMCG) market from the pre-war years to the post-conflict period?
FIRAS SHAMMAS: In the mid-2000s, the Syrian market was increasingly driven by quality, brand selection and consumer aspiration. Syrian consumers were well educated and eager to access international-standard products. Purchasing power was relatively strong and demand was moving away from an availability-driven model toward a value-driven one. During the war years, this dynamic reversed. Market behaviour became shaped primarily by availability due to logistical disruptions, financial sanctions and currency constraints. Many importers had to reduce their portfolios significantly. In our case, we focused on essential goods such as infant foods alongside locally manufactured personal care products to maintain continuity. The market is now transitioning again. Goods are broadly available, Customs duties remain reasonable in principle and competition has intensified. We are seeing a gradual return to consumer choice and brand differentiation. While purchasing power is still evolving, the era of scarcity-driven consumption is largely behind us and the market is becoming selection-based once more.
In what ways has the reopening of the market affected local manufacturers and competition within FMCG?
SHAMMAS: The reopening of the market has created both pressure and opportunity. Local manufacturers that survived the conflict are now required to compete directly with imported goods. This means enhancing quality, improving efficiency and reducing costs. Some sectors, particularly those that were completely destroyed during the war, face significant rebuilding challenges because infrastructure must be recreated from the ground up. However, there are still strong local champions, especially in pharmaceuticals and certain cosmetics segments. The competition can ultimately strengthen the industrial base if it is accompanied by adequate stability and supportive policy frameworks. The key issue is whether companies have access to infrastructure, logistics and a predictable regulatory environment that allows them to modernise and scale.
From your perspective, where do the most promising market entry opportunities lie for foreign companies?
SHAMMAS: The most promising opportunities are closely linked to agriculture and local value creation. Industries that use Syrian agricultural products such as raw materials can be particularly attractive because they require relatively moderate investment and can serve both domestic and export markets. Olive oil is a clear example. Syria has significant agricultural capacity and value-added processing can generate export potential. With efficient logistics, proximity to European markets and competitive labour costs, export-oriented production can become a driver of recovery. For this to materialise fully, trade frameworks and international market access will play an important role. More broadly, the optimal formula combines local manufacturing, local value-added inputs – whether raw materials, labour or utilities – and access to international markets. Export-oriented projects benefit from competitive production costs and new regulatory incentives, including zero-tax treatment for certain export activities. This creates a foundation for sustainable, outward-looking growth.
Looking ahead, what is your assessment of Syria’s medium-term outlook, and what advice would you give foreign companies considering entering the market?
SHAMMAS: The outlook depends on stability, infrastructure rebuilding and improved market awareness. From outside Syria, perceptions may remain cautious. However, conditions on the ground are sufficiently stable to begin serious feasibility studies and project planning. There has been noticeable improvement in recent years, particularly in terms of market openness and regulatory adjustments. Infrastructure gaps remain, especially in storage, cold chain and logistics. Modern governance systems, communication channels and self-reporting mechanisms also require strengthening. These are areas where foreign expertise and business-to-business service providers can contribute meaningfully.
My advice to foreign companies is not to focus exclusively on high-end reconstruction projects. Mid-tier real estate, infrastructure and export-oriented manufacturing offer substantial demand and long-term potential. Syria’s geographic location enables it to function as a regional trade and services centre at competitive cost levels. With the right local partnerships and a clear long-term perspective, opportunities can be structured around sustainable local value creation and integration into international markets.
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