Market Insights Consumer Alcoholic Drinks

Spirits - Latvia

Latvia

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to US$354.2m in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$92.5m in 2024.
Revenue, combined amounts to US$446.7m in 2024.
The revenue, at home is expected to grow annually by 4.09% (CAGR 2024-2028).
In global comparison, most revenue, at home is generated in China (US$150,400m in 2024).
In relation to total population figures, the average revenue per capita, at home of US$195.70 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 15.9m L by 2024.
Volume, out-of-home is expected to amount to 1,587.0k L in 2024.
Volume, combined is expected to amount to 17.4m L in 2024.
The Spirits market is expected to show a volume growth, at home of 0.2% in 2025.
The average volume per person, at home in the Spirits market is expected to amount to 8.76L in 2024.

Key regions: Australia, Singapore, India, Worldwide, United States

Definition:

The Spirits market includes alcoholic beverages that have been produced through the distillation of wine, fermented fruits, or grains. Due to the distillation process, the alcohol content of spirits is much higher than that of most wines and beers, typically ranging from 20% to 50% alcohol by volume (ABV).

Structure:

The Spirits market is divided into 8 markets:

The Whisky market encompasses spirits on a grain basis that have been aged in wooden casks for a duration of at least three years.
The Vodka market encompasses spirits based on grain and/or potatoes.
The Rum market encompasses spirits based on sugar cane.
The Gin market encompasses spirits based on juniper berries.
The Brandy market encompasses spirits based on fermented fruit juice.
The Tequila market encompasses spirits made primarily from the blue agave plant (Agave tequilana) in Mexico.
The Soju market encompasses the Korean distilled beverage, Soju, which is traditionally made from rice, barley, or sweet potatoes.
The Liqueurs & Other Spirits market encompasses all other spirits not previously mentioned as well as Ready-to-Drink (RTD) cocktails.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per liter, as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Diageo (e.g., Johnnie Walker, Smirnoff, and Tanqueray), Pernod Ricard, and Kweichow Moutai.

Market

Region

Region comparison

Currency

Analyst Opinion

The Spirits market in Latvia has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in Latvia have shifted towards premium and craft spirits, as consumers increasingly value quality and unique flavors. This trend is in line with the global market, where there is a growing demand for premium spirits. Consumers are willing to pay a higher price for spirits that are made with high-quality ingredients and have a distinct taste. This preference for premium and craft spirits can be attributed to a desire for a more sophisticated drinking experience and a willingness to explore new flavors. In addition to premium spirits, there is also a rising demand for flavored spirits in Latvia. Flavored spirits offer a variety of options and allow consumers to experiment with different tastes. This trend is driven by a younger demographic who are more adventurous and open to trying new and innovative products. Flavored spirits also appeal to consumers who prefer sweeter and fruitier drinks. One of the key trends in the Spirits market in Latvia is the increasing popularity of local and artisanal spirits. Latvia has a rich tradition of distilling spirits, and consumers are showing a growing interest in supporting local producers. This trend is also influenced by the global movement towards supporting local businesses and reducing carbon footprints. Local and artisanal spirits offer a unique and authentic experience, and consumers are willing to pay a premium for these products. Local special circumstances in Latvia also contribute to the development of the Spirits market. The country has a strong drinking culture, with spirits being an integral part of social gatherings and celebrations. This cultural aspect drives the demand for spirits and creates a favorable environment for the growth of the market. Additionally, Latvia is a popular tourist destination, attracting visitors from around the world. Tourists often seek out local spirits as souvenirs, further boosting the market. Underlying macroeconomic factors also play a role in the development of the Spirits market in Latvia. The country has experienced steady economic growth in recent years, leading to increased disposable income and higher consumer spending. This economic stability provides consumers with the financial means to indulge in premium and craft spirits. Additionally, the government has implemented favorable policies to support the growth of the spirits industry, such as reducing taxes and regulations on local producers. In conclusion, the Spirits market in Latvia is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for premium and craft spirits, flavored spirits, and local and artisanal spirits is driving the market forward. With a strong drinking culture, a growing economy, and supportive government policies, the Spirits market in Latvia is poised for further expansion in the coming years.

Methodology

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 alcoholic beverages, 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 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.