Ready-to-Drink (RTD) Coffee - Latvia

The Ready-to-Drink (RTD) Coffee market in Latvia has been experiencing significant growth in recent years.

Customer preferences: Latvian consumers have shown a growing preference for convenience and on-the-go consumption, which has contributed to the rise in popularity of RTD coffee products. The busy lifestyles of many Latvians have led to an increased demand for ready-to-drink beverages that can be consumed quickly and easily. Additionally, the younger generation in Latvia has shown a particular affinity for coffee, and RTD coffee products provide a convenient and accessible way for them to enjoy their favorite beverage.

Trends in the market: One of the key trends in the RTD coffee market in Latvia is the increasing variety of product offerings. Manufacturers are constantly innovating and introducing new flavors, ingredients, and packaging formats to cater to the evolving preferences of consumers. This has resulted in a wider range of options for Latvian consumers, allowing them to choose products that best suit their tastes and preferences. Another trend in the market is the growing demand for healthier and more natural RTD coffee options. As consumers become more health-conscious, they are seeking out products that are made with natural ingredients, have reduced sugar content, and are free from artificial additives. Manufacturers are responding to this demand by introducing healthier alternatives that still deliver on taste and convenience.

Local special circumstances: Latvia has a strong coffee culture, with coffee consumption being an integral part of daily life for many Latvians. This cultural preference for coffee has created a favorable environment for the growth of the RTD coffee market. Latvians appreciate the convenience of RTD coffee products, as it allows them to enjoy their favorite beverage even when they are on the go or do not have access to a coffee shop.

Underlying macroeconomic factors: The growing RTD coffee market in Latvia is also influenced by broader macroeconomic factors. The country has experienced steady economic growth in recent years, which has resulted in increased disposable incomes for consumers. This has allowed Latvians to spend more on indulgent and convenient products like RTD coffee. Furthermore, the tourism industry in Latvia has been flourishing, with an increasing number of international visitors coming to the country. This has created a demand for RTD coffee products in hotels, cafes, and other establishments catering to tourists. The presence of tourists has also contributed to the exposure and popularity of RTD coffee among the local population. In conclusion, the Ready-to-Drink (RTD) Coffee market in Latvia is developing due to the growing preference for convenience, the introduction of new product offerings, the demand for healthier options, the strong coffee culture, and the positive macroeconomic factors. These factors have created a favorable environment for the growth of the RTD coffee market in Latvia, and the trend is expected to continue 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 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.