Non-Alcoholic Drinks - Latvia

The Non-Alcoholic Drinks market in Latvia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Latvian consumers have shown a growing preference for healthier beverage options, leading to an increased demand for non-alcoholic drinks. This shift in consumer behavior can be attributed to a rising awareness of the health benefits associated with reducing alcohol consumption and adopting a more balanced lifestyle. As a result, there has been a surge in the consumption of non-alcoholic beverages such as flavored water, herbal teas, and functional drinks that offer various health benefits.

Trends in the market: One notable trend in the Non-Alcoholic Drinks market in Latvia is the increasing popularity of craft and artisanal beverages. Consumers are seeking unique and high-quality products that offer a more personalized and premium experience. This trend has led to the emergence of local craft beverage producers who focus on creating small-batch, handcrafted drinks using locally sourced ingredients. These niche products cater to the growing demand for authenticity and sustainability in the market. Another trend in the market is the growing demand for functional beverages. Consumers are looking for drinks that not only quench their thirst but also provide additional health benefits. Functional beverages, such as energy drinks, sports drinks, and probiotic beverages, have gained popularity due to their perceived ability to enhance performance, support overall well-being, and improve gut health. This trend is driven by the increasing health consciousness among Latvian consumers and their desire for beverages that can contribute to their daily nutritional needs.

Local special circumstances: Latvia's geographical location and climate have influenced the Non-Alcoholic Drinks market in unique ways. The country's abundance of natural resources, including mineral-rich water sources and herbal flora, has fostered the development of a diverse range of non-alcoholic beverages. Latvian consumers have a strong affinity for natural and locally sourced products, which has created opportunities for local producers to thrive and cater to this demand. Additionally, the country's rich cultural heritage and traditions have also played a role in shaping consumer preferences, with traditional Latvian herbal teas and infusions remaining popular choices among the population.

Underlying macroeconomic factors: The growth of the Non-Alcoholic Drinks market in Latvia can also be attributed to favorable macroeconomic factors. The country's stable economic environment, increasing disposable income, and improving living standards have contributed to the rising demand for non-alcoholic beverages. As consumers have more purchasing power, they are willing to spend on premium and healthier beverage options. Furthermore, the government's focus on promoting a healthy lifestyle and supporting local businesses has created a conducive environment for the development and expansion of the Non-Alcoholic Drinks market in Latvia. In conclusion, the Non-Alcoholic Drinks market in Latvia is witnessing significant growth due to changing customer preferences, emerging trends, local special circumstances, and favorable macroeconomic factors. The increasing demand for healthier options, the popularity of craft and artisanal beverages, and the growing interest in functional drinks are driving the market's development. Moreover, Latvia's unique geographical location, cultural heritage, and favorable economic conditions have further contributed to the growth of the market.

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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.