Beer - Latvia

The Beer market in Latvia has been experiencing significant growth over the past few years.

Customer preferences: Latvian consumers have shown a strong preference for beer, making it the most popular alcoholic beverage in the country. This can be attributed to the cultural significance of beer in Latvia, where it is often enjoyed during social gatherings and celebrations. Additionally, the affordability and wide variety of beer options available in the market have also contributed to its popularity among consumers.

Trends in the market: One of the key trends in the Latvian Beer market is the increasing demand for craft beer. Craft breweries have been gaining popularity in recent years, offering consumers a unique and diverse range of flavors and styles. This trend can be attributed to the growing interest in premium and high-quality products, as well as the desire for more personalized and unique drinking experiences. Another trend in the market is the growing popularity of low-alcohol and non-alcoholic beers. Health-conscious consumers are increasingly opting for these alternatives, as they offer a lighter and less calorific option compared to traditional beers. This trend is also influenced by changing consumer attitudes towards alcohol consumption and a desire for moderation.

Local special circumstances: The Latvian Beer market is unique due to the presence of traditional beer brands that have a long history and strong brand loyalty among consumers. These brands often have deep-rooted connections to Latvian culture and heritage, which resonates with local consumers. As a result, these traditional beer brands continue to dominate the market despite the emergence of new players.

Underlying macroeconomic factors: The growth of the Beer market in Latvia can be attributed to several macroeconomic factors. Firstly, the country's strong economic growth and rising disposable incomes have contributed to increased consumer spending on beer. Additionally, the growing tourism industry in Latvia has also played a role in driving the demand for beer, as tourists often seek to experience and taste local beverages. Furthermore, the government's efforts to promote the beer industry through favorable regulations and policies have also supported the growth of the market. For example, the government has implemented measures to encourage the establishment of craft breweries and support the development of the beer tourism sector. In conclusion, the Beer market in Latvia has been growing steadily, driven by consumer preferences for beer, the emergence of craft breweries, the popularity of low-alcohol and non-alcoholic beers, and the presence of traditional beer brands. These trends are supported by underlying macroeconomic factors such as strong economic growth, rising disposable incomes, and government support for the industry.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.