Latvia’s tea industry is shaped by an ageing consumer base and strong competition from coffee, which appeals to a broader demographic. Black tea remains dominant but is experiencing saturation and limited opportunities for innovation. Fruit and herbal teas benefit from health and wellness trends, particularly functional products linked to relaxation, immunity, and seasonal cold remedies. Supermarkets remains the central distribution channel, while discounters and e-commerce are gaining traction.

Latvia’s coffee industry is being shaped by global price volatility, which continues to influence consumer purchasing behaviour. Higher costs have intensified price sensitivity, increasing reliance on discounts and everyday low-price strategies from key retailers. Fresh coffee formats – notably beans and pods - are gaining traction, reflecting a shift towards quality-driven consumption, while instant coffee is losing relevance among its core users. An expanding discounter presence and rising onl

Demand for other hot drinks in Latvia is constrained by strong competition from coffee and ready-to-drink alternatives. Traditional chicory- and barley-based drinks rely on an ageing audience, while chocolate-based powdered drinks are subject to heightened parental concern over high sugar content, restricting consumption. Health and wellness trends are influencing purchasing decisions, particularly for newer, plant-based options. Supermarkets remains the main channel, while discounters and e-com

Latvia’s hot drinks market faces limited growth potential due to saturation, a shrinking consumer base, and ongoing substitution towards coffee at the expense of tea and other categories. Inflation-driven price rises have strained purchasing power, softening real demand despite nominal current value gains. In coffee, heavy reliance on promotions continues to distort purchasing behaviour, while tea remains weighed down by an ageing consumer base. Over the forecast period, overall performance is e

Baked goods in Latvia remains largely stagnant in 2025, with bread showing limited growth and niche innovations only partially helping. Unpackaged pastries are the main growth driver, supported by in-store bakery sections in major retailers. Supermarkets dominate distribution, while e-commerce grows slowly as consumers continue to prioritise freshness and daily store visits.

The breakfast cereals category in Latvia is largely stagnant, with RTE cereals mainly consumed by children and little tradition of adult consumption. Sweet options continue to dominate, while healthier innovations have struggled to gain traction despite rising health awareness.

In 2025, the rice, pasta, and noodles category in Latvia remains largely stagnant in volume terms, with dry pasta and rice stable and instant noodles in cups declining due to higher prices. Going forward, premium and healthier alternatives, such as wholegrain or legume-based pasta, are anticipated to see modest interest. Dobeles Dzirnavnieks AS leads the market, while Maxima’s Well Done private label range remains a dynamic competitor.

While fresh produce continues to dominate consumer preferences, processed fruit and vegetables are seeing a stable performance in 2025, supported by their convenience and demand in winter, when fresh vegetables are less appealing in terms of taste and quality than during summer. Consumers are increasingly turning to private label offerings for their affordability and acceptable quality as living costs rise and there is low brand loyalty in the category.

In 2025, staple foods in Latvia is seeing a more typical performance following the disruptions caused by historic price spikes. Most categories are well-established daily staples, and products such as bread, pasta, and rice primarily compete for consumers’ daily carbohydrate intake, which limits overall category growth as they largely cannibalise each other. Processed vegetables are commonly consumed on a daily basis but offer limited growth potential. With rising concerns over nutritional value

Latvia’s processed meat, seafood, and alternatives market is shaped by increasing health awareness and rising demand for minimally processed options, and convenient ready-to-cook options. A colder-than-usual summer weakened barbecue-related meat sales. Processed meat and seafood will remain essential components of the Latvian diet; however, healthier alternatives products will continue to gain traction over the forecast years.

The unusually cold summer in Latvia in 2025 impacts sales of barbecue-related products, including ketchup and barbecue sauces. Private label continues to expand its market share the year, spurred by increasing competition among major retailers, including Lidl and Maxima.

While remaining niche, olive oil is benefiting from being increasingly perceived as a healthier option, as well as declining prices following a significant spike in 2024. However, sunflower and rapeseed oils retain their dominant positions as they are economical and versatile oils, and have an entrenched role in Latvian cooking.

Sweet spreads in Latvia is characterised by a diverse range of offerings from local, regional, and international brands, which collectively contribute to a highly competitive and fragmented market landscape. Amid ongoing economic pressures, private label products continue to gain traction, appealing to consumers seeking affordable yet reliable alternatives to branded goods.

The overall performance of cooking ingredients and meals can be described as stable following the turbulent period of 2022-2024, when prices fluctuated significantly across various categories, including ready meals, sauces, and condiments. As a result, 2025 marks a return to a more balanced market environment.

While Latvian consumers value convenience, home-cooked meals remain far more popular, limiting the growth potential of ready meals and soups. Economic factors, particularly concerns about purchasing power, also constrain a sharper rise in demand.

This report assesses the business environment in Latvia, focusing on the regulatory environment, stability of the financial system, FDI intake, labour market flexibility and skillset, trade openness, mobility infrastructure, ICT adoption and innovative capabilities. Companies can evaluate these factors to understand the strengths and weaknesses of a country’s business environment for better strategic investment decisions.

Cough, cold and allergy (hay fever) remedies is expected to register healthy current value growth in Latvia in 2025. There was a high level of cough and colds early in the year, and then spring arrived early, which boosted sales of allergy remedies. In particular healthy value growth is expected in cough remedies, pharyngeal preparations, systemic antihistamines and paediatrics offerings, while decongestants and classic combination packs are expected to see more muted growth. Pharyngeal preparat

Consumer health in Latvia is expected to register healthy current value growth in 2025, largely supported by a strong performance in dietary supplements, which is a popular consumer health product. A high incidence of cough and colds is also expected to support value sales, including for analgesics. A degree of premiumisation also supports growth, supported by specialist ingredients and convenient formats.

Analgesics is expected to register positive current value growth in Latvia in 2025. Performance was driven by strong gains in single ingredient systemic products, notably adult ibuprofen, which is expected to register the highest value growth, along with paediatric ibuprofen, ketoprofen and acetaminophen and also to a lesser extent topical analgesics. On the other hand, adult aspirin and adult combination analgesics is expected to see value sales fall. Global brands are working on increasing foo

Wound care is expected to return to growth in Latvia in 2025, with both current value and volume sales increasing. Sticking plasters/adhesive bandages continue to account for most volume sales. Such offerings are competitively priced and benefit from a wider range, including waterproof options, as well as offerings designed for sports, such as plasters with hydrocolloid gel for blisters, with moisture absorbing particles and thick cushioning. There is also a large range targeted at children, whi

Digestive remedies is expected to register healthy value growth in Latvia in 2025. Value growth is supported by several factors, including higher demand for more expensive offerings such as such as antacids, proton pump inhibitors and laxatives. In particular, on a more granular level, proton pump inhibitor is expected to register the highest value and volume growth, as proton pump inhibitors are seen as more effective in treating reflux than H2 blockers, which are expected to see further volume

Sports nutrition is expected to be the best performing consumer health product in Lativa in 2025, with current value sales increasing by over a fifth. Its performance is supported by a growing fitness culture. Sports protein powder continues to account for most value sales and in 2025, consumers trade up to higher concentrate offerings and larger, better value tubs. However, sports non-protein products are expected to register the highest value growth. This includes products containing creatine,

Performance is expected to be muted for herbal/traditional products in Latvia in 2025, with a slight increase in current value sales, but with constant value sales falling. A degree of maturity dampens value sales. Herbal/traditional cough, cold and allergy (have fever) remedies account for most value sales and is also expected to register the highest value growth in 2025. A significant incidence of cough and colds supports value sales of offerings such as honey-, thyme-, elderberry- and eucalyp

Dermatologicals is expected to register modest current value growth in Latvia in 2025. It is led by antifungals, with vaginal antifungals driving growth due to strong visibility in pharmacy chains. Momentum is also being driven by simple one-day and short-course treatments containing clotrimazole. In addition, they are also heavily advertised in online channels, which eliminates the potential embarrassment of having to ask for such product in brick-and-mortar stores. Hair-loss treatments and med