Although Latvia enjoys solid rankings for economic freedom and corruption, politics is polarised and the threat from Russia persists. Inflation has been rising and economic momentum is weak, but foreign investment is returning to the country. Incomes growth will be extremely strong, but a declining populace will lower the appeal of the consumer market. Robust internet use is a boon for e-commerce, whilst advanced technologies are a major strength, but rural digital infrastructure is lacking.

Demand for concentrates in Latvia is supported by their ease of use and convenience. Liquid concentrates is the main driver of growth, due to the versatility and cost efficiency of these offerings. Powder concentrates meanwhile, face challenges due to perceptions of unhealthiest and lower quality. Premium offerings, such as those from Very Berry and private labels like Rimi’s I Love Eco, resonate with wellness- and sustainability-conscious consumers. Upcoming excise changes may further shift dem

Demand for RTD coffee in Latvia is rising steadily, despite an unseasonably cold summer. The category benefits from strong consumer loyalty and a rising demand for convenient, lower-sugar alternatives to carbonated soft drinks. Innovations, including cold brew coffee, nitro coffee, plant-based formats, and unique flavour combinations, are generating interest. Supermarkets remains the main off-trade channel, with discounters and e-commerce gradually expanding their share. Upcoming excise tax chan

Demand for bottled water in Latvia has been negatively impacted by cold summer weather, prompting widespread price promotions. Functional water shows the strongest momentum but remains niche, with new lines supporting early-stage development. Longer-term prospects are constrained by market saturation and consumers’ perception of water as a basic commodity. However, upcoming excise changes may redirect attention towards still bottled water as a cost-efficient, untaxed alternative.

Demand for carbonates in Latvia has been impacted by cold summer weather and competition from newer added-value beverage options, such as energy drinks. Reduced sugar cola carbonates remains the most resilient category, as shifting health priorities continue to influence consumer choices. Upcoming excise changes are set to further elevate interest in lower-sugar alternatives across all retail channels.

RTD tea in Latvia continues to face declining off-trade volumes, constrained by competition from carbonates, energy drinks, and sports drinks, as well as perceptions of high sugar content. Reduced-sugar still variants offer the most resilience, catering to health-conscious consumers, while functional and premium innovations - including antioxidant-enriched, sparkling, and kombucha options - seek to maintain consumer interest. Forthcoming excise tax changes are likely to accelerate shifts towards

Latvia’s soft drinks industry is facing multiple challenges. Cold summer weather has impacted demand across both retail and foodservice channels, while juice sales remain constrained by global supply challenges. Added-value categories - especially energy drinks – are gaining momentum, supported by innovation by leading players. Looking forward, upcoming excise changes and rising consumer health concerns are set to redirect preferences towards lower-sugar options.

Demand for energy drinks in Latvia is expanding rapidly, in keeping with the needs of an increasingly fast-paced society. Reduced sugar variants are particularly appealing, reflecting rising levels of health consciousness among younger consumers. Innovation focuses on natural ingredients, functional additives, and convenient packaging formats. Leading brands, including Monster and Red Bull, combine strong distribution with high-profile marketing and event sponsorships. Upcoming excise changes ma

Demand for sports drinks in Latvia has been negatively impacted by cold summer weather, relatively high prices, and a limited product range. Reduced-sugar options show the strongest appeal, reflecting growing consumer interest in functional hydration with lower sugar content. Local brands such as Cido are expanding their presence through targeted offerings and digital marketing, while established players maintain broad retail coverage. Forthcoming excise changes may accelerate shifts towards low

Demand for juice Latvia is being impacted by supply-driven price pressures, shifting consumer preferences, and strong competition from more contemporary soft drinks. Global shortages of key raw materials have strained affordability and reduced shelf presence, prompting retailers and shoppers to favour functional and energy-oriented alternatives. Not from concentrate 100% juice options show the greatest stability, while forthcoming excise changes are set to shift innovation and consumption toward

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.