Soft Drinks - Latvia

The Soft Drinks market in Latvia has experienced significant growth in recent years, driven by changing customer preferences and trends in the market.

Customer preferences: Latvian consumers have shown a growing preference for healthier beverage options, leading to an increased demand for low-sugar and natural ingredient soft drinks. This shift in consumer preferences can be attributed to a growing awareness of the health risks associated with excessive sugar consumption. As a result, soft drink manufacturers have introduced a wide range of low-sugar and natural ingredient beverages to cater to this demand.

Trends in the market: One of the key trends in the Soft Drinks market in Latvia is the rising popularity of functional beverages. Functional beverages are drinks that offer additional health benefits beyond basic hydration. These beverages often contain added vitamins, minerals, or other bioactive ingredients that are believed to have a positive impact on health. The increasing interest in functional beverages can be attributed to the growing health-consciousness among Latvian consumers. Another trend in the market is the growing popularity of premium soft drinks. Latvian consumers are increasingly willing to pay a premium for high-quality soft drinks that offer unique flavors and ingredients. This trend can be attributed to the desire for a more sophisticated and indulgent drinking experience. Soft drink manufacturers have responded to this trend by launching innovative and premium products to cater to the demand for unique and high-quality beverages.

Local special circumstances: Latvia has a strong tradition of herbal and natural remedies, which has influenced consumer preferences in the Soft Drinks market. Latvian consumers have a preference for soft drinks that are made from natural ingredients and have a traditional or herbal flavor profile. This preference for natural and herbal beverages has created opportunities for local soft drink manufacturers to develop products that cater to this specific demand.

Underlying macroeconomic factors: The growing Soft Drinks market in Latvia can also be attributed to favorable macroeconomic factors. Latvia has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. As a result, consumers have more purchasing power to spend on non-essential items such as soft drinks. Additionally, the tourism industry in Latvia has been growing, attracting both domestic and international tourists. This has created a larger consumer base for soft drink manufacturers, further driving market growth. Overall, the Soft Drinks market in Latvia is evolving to meet changing customer preferences and market trends. The shift towards healthier and more premium beverages, as well as the influence of local traditions and favorable macroeconomic factors, are driving the growth of the market. Soft drink manufacturers in Latvia have the opportunity to capitalize on these trends by offering innovative, natural, and high-quality products that cater to the specific preferences of Latvian consumers.

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.