Hard Seltzer - Latvia

The Hard Seltzer market in Latvia has witnessed significant growth in recent years, driven by changing consumer preferences and a growing demand for healthier alcoholic beverages.

Customer preferences: Latvian consumers are increasingly seeking out low-calorie and low-sugar alternatives to traditional alcoholic beverages. This shift in consumer preferences is largely driven by a growing health-consciousness and a desire for more balanced lifestyles. Hard Seltzers, with their lower calorie and sugar content compared to beer and other alcoholic beverages, have emerged as a popular choice among health-conscious consumers in Latvia. Additionally, the refreshing and fruity flavors of Hard Seltzers have also appealed to younger consumers who are looking for a more enjoyable drinking experience.

Trends in the market: One of the key trends in the Hard Seltzer market in Latvia is the introduction of locally produced brands. While international brands initially dominated the market, local breweries and distilleries have started to tap into the growing demand for Hard Seltzers. These local brands often incorporate unique flavors and ingredients that are popular among Latvian consumers, giving them a competitive edge in the market. Another trend in the market is the increasing availability of Hard Seltzers in various retail channels. Initially, Hard Seltzers were primarily sold in specialty liquor stores and bars. However, as the market has grown, these products have become more widely available in supermarkets and convenience stores. This increased accessibility has further fueled the demand for Hard Seltzers in Latvia.

Local special circumstances: Latvia has a vibrant craft beer culture, with a growing number of microbreweries and craft beer bars across the country. This culture of experimentation and innovation has spilled over into the Hard Seltzer market, with local breweries and distilleries creating unique and creative flavors to cater to the diverse tastes of Latvian consumers. This local touch has resonated well with consumers, who appreciate the authenticity and craftsmanship behind these locally produced Hard Seltzers.

Underlying macroeconomic factors: The growing popularity of Hard Seltzers in Latvia can also be attributed to broader macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income among consumers. This has allowed them to spend more on premium and niche products, such as Hard Seltzers. Additionally, the rising influence of Western culture and the growing trend of international travel have also contributed to the demand for Hard Seltzers, as Latvian consumers are exposed to new and innovative products from around the world. In conclusion, the Hard Seltzer market in Latvia is experiencing significant growth, driven by changing consumer preferences, the introduction of local brands, increasing availability in retail channels, and broader macroeconomic factors. As consumers continue to prioritize healthier and more enjoyable drinking options, the demand for Hard Seltzers is expected to grow further in the coming years.

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.