Ready-to-Drink (RTD) Coffee & Tea - Latvia

The Ready-to-Drink (RTD) Coffee & Tea market in Latvia has been experiencing significant growth in recent years. Customer preferences have shifted towards convenient and on-the-go beverage options, driving the demand for RTD coffee and tea products.

Customer preferences: Latvian consumers have increasingly busy lifestyles and are seeking convenient and time-saving options when it comes to beverages. RTD coffee and tea products offer a quick and easy solution for those who want to enjoy their favorite drinks without the hassle of brewing or preparing them. Additionally, the younger generation in Latvia has shown a preference for trendy and innovative beverage options, and RTD coffee and tea products align with these preferences.

Trends in the market: One of the key trends in the RTD coffee and tea market in Latvia is the rise of premium and specialty products. Consumers are willing to pay a premium for high-quality and unique flavors, as they seek a more indulgent and elevated beverage experience. This trend is driven by the growing influence of global coffee and tea culture, as well as the desire for variety and novelty among consumers. Another trend in the market is the increasing popularity of healthier and functional RTD coffee and tea products. Consumers are becoming more health-conscious and are looking for beverages that offer nutritional benefits or specific functionalities, such as energy-boosting or stress-relieving properties. This has led to the introduction of RTD coffee and tea products that are low in sugar, fortified with vitamins and minerals, or infused with natural ingredients known for their health benefits.

Local special circumstances: Latvia has a strong coffee and tea culture, with a significant portion of the population being regular coffee and tea drinkers. This cultural affinity towards coffee and tea has created a favorable environment for the growth of the RTD coffee and tea market. Additionally, the growing number of cafes and coffee shops in Latvia has contributed to the popularity of RTD coffee and tea products, as consumers are exposed to these beverages in various settings.

Underlying macroeconomic factors: Latvia has experienced stable economic growth in recent years, which has positively impacted consumer spending power. As disposable incomes increase, consumers are more willing to spend on convenience and premium products, including RTD coffee and tea. This economic stability has also attracted international coffee and tea brands to enter the Latvian market, further fueling the growth of the RTD coffee and tea market. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Latvia is growing due to changing customer preferences for convenient and on-the-go beverage options. The rise of premium and specialty products, as well as the demand for healthier and functional beverages, are key trends in the market. The strong coffee and tea culture in Latvia, along with stable economic growth, are local special circumstances that contribute to the development of the RTD coffee and tea market in the country.

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.