Value sales of other dairy are seeing positive growth in Latvia in 2025, thanks to the popularity of cream and fromage frais. Cream is a traditional part of local cuisine, being used as an ingredient or sauce. It is used mainly as a full fat product, with this perceived as a healthy addition to the cuisine. While cream is high in calories and saturated fat, it also contains essential nutrients like calcium, vitamin A and vitamin D.

Retail value sales of baby food have fallen into a negative decline in Latvia in 2025, attributed mainly to the decline seen in birth rates in the country. This affects baseline demand.

Cheese is seeing positive value sales in Latvia in 2025, albeit at a low level. Meanwhile, volume sales are seeing marginal positive growth, indicating solid baseline demand. Indeed, cheese remains a staple product in consumers’ homes in the country, with a wide variety of local and imported cheese options available across different price points. This widespread offer of cheese enables accessibility for a full range of consumers. More cheese is also being used for cooking, therefore, more grated

Retail value sales of drinking milk products are seeing a positive performance in Latvia in 2025, with retail volume also showing marginally-positive growth. This indicates stable baseline demand in the category, demonstrating the popularity of traditional drinking milk products in the country. Full fat fresh milk is popular in Latvia, being perceived as a staple product. However, this also means the category is mature and saturated, limiting potentially stronger growth prospects. The most signi

Value sales of yoghurt and sour milk products remain positive in Latvia in 2025, with sour milk products faring well. In general, the category has a good reputation among consumers due to such products offering good nutrition value and having a probiotic effect. Added to which, sour milk products like kefir have a strong historical tradition of consumption in the country, also being an ingredient of a very popular cold soup during the summer months. Meanwhile, flavoured and drinking yoghurts are

Butter and spreads is seeing healthy retail value growth in Latvia in 2025, with volume also seeing a similarly positive performance. While the high prices of raw materials add uncertainty while supporting value sales, volume remains supported by the fact that butter is a staple product in Latvian diets. Added to which, butter has overcome its previous negative reputation for being unhealthy due to its fat content. Rather, such products are now seen as more natural than processed alternatives, s

Retail value sales of dairy products and alternatives are maintaining positive growth in Latvia in 2025, albeit at a lower level of growth than seen in 2024. The majority of dairy products are seen as staples in Latvia, thus supporting baseline demand but also restricting growth prospects due to a level of maturity. In general, dairy has a good reputation in Latvia, with such products perceived as a good source for protein, minerals, vitamins, calcium, and potassium. Indeed, large categories, su

Plant-based dairy is seeing the strongest value growth in dairy and alternatives in Latvia in 2025. However, plant-based dairy remains somewhat niche, with a rather limited consumer base, due to the popularity of cow’s milk and full fat products in the country. This means growth remains limited and the category is reaching its potential. One of the challenges is that plant-based products are generally perceived as “less natural” and “more processed” than traditional dairy options.

The report examines the economic landscape of Latvia and provides information on major monetary indicators, foreign trade and government finance. The economy contracted in real terms in 2024, dragged down by less exports and lack of investments. Furthermore, a global economic slowdown, increasing geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.

The number of households is set to slightly decrease, while the average household size will shrink in Latvia over 2024-2029. Single person households will remain the dominant household type and the fastest household expenditure growth is forecast to be recorded by single person households. In addition, the share of households living in urban areas is projected to expand to 73.9% by 2029.

Sugar confectionery is expected to register moderate current value and minimal volume growth in Latvia in 2025. Population decline, as well as a slight increase in inflation is expected to dampen volume sales. It is a product area with little innovation, with the most popular offerings being gummies and jellies, chewy candies and medicated confectionery. Boiled sweets in particular are losing popularity, as they are considered very unhealthy, due to their high sugar content. In 2025, gummies and

Though chocolate confectionery continues to be Latvia’s most popular snack in 2025, it is expected to see a fall in volume sales, due to significant price rises. A surge in cocoa prices globally, driven by poor harvests and limited supply, is feeding into hefty price hikes for chocolate confectionery and dampening volume sales. One of the better performing products is expected to be seasonal chocolate. While it is relatively small in terms of value sales, players invest in significant marketing

While current value sales is expected to increase moderately for gum in Latvia in 2025, volume sales is expected to fall slightly. This is due to both continuing population decline, as well a slight increase in inflation, which is expected to further dampen volume sales. However, gum also increasingly has a bad reputation, and is seen as bad for dental health, especially those that are high in sugar. Its non-biodegradable properties are also seen as a negative. All these factors are expected to

Overall, sweet biscuits, snacks bars and fruits snacks is expected to register a fall in volume sales in Latvia in 2025. The poor performance is mainly due to sweet biscuits, especially chocolate coated biscuits, as with prices of cocoa beans soaring, there is significant price hikes for chocolate coated biscuits. This leads to a big drop in volume sales. Fruit snacks and snacks bars are expected to fare better, registering a slight increase in volume sales. Snacks bars and in particular protei

There is expected to be little dynamism within savoury snacks in Latvia in 2025, with volume sales unchanged. The leading local brand Adazu from Orkla continues to have a commanding lead and held on to value share, by offering frequent promotions, with other competitors unable to match the steep discounts. Savoury biscuits is expected to be the strongest performer, registering both positive current value and volume growth. While value sales are relatively low, there is increasing interest from c

It is expected to be a muted picture for snacks in Latvia in 2025. While value sales are expected to register double-digit value growth, volume sales are expected to fall slightly, partly due to continuing population decline. However, with inflation on the rise in 2025, this is also expected to have a dampening effect. While there was a fall in inflation in 2024, it is set to rebound in 2025 as the deflationary impact from lower energy prices lessen. As such, increasing offerings of multipacks,

Ice cream is expected to be the best performer of all snacks in Latvia in terms of volume growth in 2025, with volume sales increasing slightly. A long hot summer supports value sales. In addition, with high cocoa bean prices leading to significant price hikes for both chocolate confectionery and chocolate coated biscuits, consumers opt for the affordable indulgence of ice cream. Single portion ice cream accounts for most value sales and also registers the highest value growth and there are regu

Insight into income, wealth and expenditure of consumers and households is vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

In 2024, beer, the largest alcoholic drinks category in Latvia, experienced a modest recovery, with total volume growth improving over the previous year. Growth was underpinned by promotions from major players, including Aldaris AS and Cesu Alus AS, who offered multipacks and competitive pricing to drive volume. Consumers found these promotions particularly attractive in grocery channels, as rising prices and inflation made them seek better value. The category also benefited from mild weather co

Wine in Latvia saw a relatively stable performance in 2024, against the backdrop of economic challenges. This stability was supported consistent demand in off-trade channels and a gradual return of consumers to on-trade venues. It was further underpinned by promotions in grocery chains, where discounted multi-bottle offers and seasonal campaigns, particularly around holidays like Christmas and Easter, encouraged purchases. Imported wine brands used targeted promotions in key retailers to maintai

In 2024, Latvia’s alcoholic drinks market started to find its footing again, with a modest uptick in growth compared to the previous year. The industry has been slowly bouncing back from the disruptions of the pandemic and economic turbulence of recent years. While overall growth remained fairly modest, off-trade channels saw a noticeable boost as shoppers returned to more familiar buying patterns. Retailers responded by ramping up promotions and offering value-focused multipacks, which drew in

Cider and perry experienced further volume decline in Latvia in 2024 due to shifting consumer spending and increased competition from white wine, cocktails and beer. Despite the decline, promotions and seasonal campaigns kept cider visible in both retail and on-trade settings, and major producers leveraged summer festivals and cross-promotions with food brands to maintain consumer interest.

Traditional spirits like vodka and brandy continues to underperform in 2024, weighing down the overall category. These beverages remain primarily favoured by older consumers and are typically consumed as shots.

RTDs experienced further volume decline in 2024, impacted by price sensitivity and cautious consumer spending. However, the category demonstrated resilience, supported by targeted promotions and the convenience factor that RTDs offer. Summer-focused marketing campaigns, in-store activations, and limited-edition launches by key players such as Latvijas Balzams AS helped maintain consumer interest, even amid intensifying competition from other drinks categories.