Alcoholic Drinks - Latvia

The Alcoholic Drinks market in Latvia has experienced steady growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in the Alcoholic Drinks market in Latvia have shifted towards premium and craft products. Consumers are increasingly seeking out high-quality and unique beverages, opting for craft beers, artisanal spirits, and premium wines. This trend is driven by a desire for more authentic and distinctive drinking experiences, as well as a growing interest in supporting local producers. Additionally, health-conscious consumers are seeking out low-alcohol and non-alcoholic options, leading to an increase in the availability and variety of these products in the market. One of the key trends in the Alcoholic Drinks market in Latvia is the rise of craft beer. Craft breweries have been popping up across the country, offering a wide range of unique and flavorful beers. This trend is fueled by the growing popularity of craft beer globally, as well as the increasing demand for locally-produced and artisanal products. Craft beer festivals and events have also gained traction in Latvia, providing a platform for breweries to showcase their offerings and attract new customers. Another trend in the market is the growing interest in premium and imported wines. Latvian consumers are becoming more knowledgeable about wine and are willing to spend more on higher-quality bottles. This trend is driven by a desire for sophistication and a taste for international flavors. Wine bars and specialized wine shops have emerged to cater to this demand, offering a curated selection of wines from around the world. Local special circumstances also play a role in shaping the Alcoholic Drinks market in Latvia. The country has a long-standing tradition of brewing and distilling, with a rich history of producing beer, vodka, and other spirits. This heritage contributes to the strong presence of local brands and the popularity of traditional drinks. Additionally, Latvia's geographical location and climate have an impact on the market, with seasonal variations in consumption patterns. For example, the demand for beer tends to be higher during the summer months, while spirits are more popular during the winter holidays. Underlying macroeconomic factors also influence the development of the Alcoholic Drinks market in Latvia. The country's stable economic growth and rising disposable incomes have contributed to increased consumer spending on alcoholic beverages. Additionally, the growing tourism industry in Latvia has boosted the demand for alcoholic drinks, as visitors seek to experience the local drinking culture and try traditional beverages. In conclusion, the Alcoholic Drinks market in Latvia is evolving to meet changing customer preferences, with a focus on premium and craft products. The rise of craft beer, the growing interest in premium wines, and the influence of local special circumstances are key trends driving the market. These trends are supported by underlying macroeconomic factors such as economic growth and tourism.

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.