Executive Summary

Aug 2019
Prospects
Players focus on Christmas chocolate, while low-calorie products attract growing consumer interest

The chocolate confectionery category is seasonal, with demand spikes during major holidays (Christmas, New year, Easter). However, the greatest impact comes in the summer, when the category sees increased competition from ice cream.

Manufacturers react to consumers’ growing interest in more sophisticated products

Consumers demonstrate an increasing preference for quality, excellence and value added benefits. This favours foreign brands in particular, which more commonly offer such benefits than the domestic alternatives.

Introduction of chocolate-coated fruit underpinned by snacking and health trends

A new product category emerged recently with the introduction of chocolate-covered fruit and berries. While this was driven by chocolate confectionery players, producers of fruit snacks were also key, seeking to compete with and differentiate their products from increasingly popular health-orientated snacks and snack bars.

Competitive Landscape
Orkla Confectionery & Snacks Latvija invests in extensive new production plant

The leading players in the category generally focus on their core brands. More shelf space is dedicated to the leading players than their smaller counterparts, and the product assortment is widening under core brands.

Less price-sensitivity regarding seasonal or healthy chocolate confectionery

The premiumisation trend is observed in product diversity, packaging, and new product developments. Companies are focusing on premium products to gain a competitive advantage and sustain growth in this category.

Smaller players struggle to compete with financial strength of giants Orkla and Mondelez

The two leading brands in the chocolate confectionery category, Laima and Milka, have utilised considerable economies of scale to consolidate their respective positions and raise the barriers to entry for potential new players. This has been achieved through frequent new product launches, supported by the ability to react quickly changing consumer demands, such as increased interest in healthier chocolate confectionery offerings, or removing unwanted products.

Prospects
Mature gum category mainly targets adults

A rise in impulse purchases as a result of increased purchasing power prevented the gum category from demonstrating a decline in 2019. The category is also facing maturity and a very high level of concentration.

Gum benefits from convenient snack positioning and weight-loss associations

Due to hectic lifestyles, consumers are increasingly opting for products that can be consumed on the go. Sugar-free chewing gum meets this requirement, allowing consumers to enjoy what is perceived as a snack product in a relatively cheap, quick and healthy way.

While competition will increase, gum demand set to be maintained by innovation

Gum is facing competition from sugar confectionery, particularly pastilles, gums, jellies and chews. Many sugar confectionery brands are seeking to appeal to a young audience by offering colourful and chewable products in flexible plastic bags.

Competitive Landscape
Mars’ Extra/Orbit maintains dominance

Mars’ Extra/Orbit maintained its category dominance in 2019. Extra/Orbit is a well-established brand and enjoys widespread consumer awareness, with this also linked to its strong advertising support as well as wide distribution, making the brand available almost everywhere.

Dirol rests on laurels and loses share

Second-placed Dirol from Cadbury Nederland BV also continued to hold a strong share in Latvia but saw share declines over 2018-2019. The brand’s share is mainly due to past advertising campaigns, with those prior to the review period having built up awareness.

Smaller players opt for targeted innovation, while leaders offer larger value packs

The competitive landscape of gum is concentrated in Latvia. While the rankings of the leading players are unlikely to be challenged in the foreseeable future, their shares may be eroded by smaller companies offering innovative new products.

Prospects
Sugar confectionery suffers maturity and competition from chocolate confectionery

The sugar confectionery category faces maturity, while at the same time consumers remain conservative in their preferences. Even the successful development of players such as Roshen, which witnessed very significant growth over last five years and continued share gain in 2019, was mainly the result of the competitive pricing of company’s products, and targeting the most traditional and average Latvian consumer of sugar confectionery.

Health trend influences shift to other categories such as cereal bars

With the development of the health and wellness trend in Latvia, sugar confectionery faces more pressure as a result of consumers’ willingness to reduce consumption of sugar and sweet products in general. Although producers have attempted to respond to the growing health and wellness trend, these products account for only a marginal share of overall sales.

Larger packs sizes set to gain popularity due to convenience and price benefits

In addition to its influence in terms of new product developments, in sugar confectionery the health trend has had most impact on impulse purchases. While boiled sweets and lollipops face ongoing maturity and a weak performance in coming years, pastilles, gums, chews, and jellies and toffees, caramels and nougat, are set to see higher levels of retail volume and value growth over the forecast period.

Competitive Landscape
Stable players and traditional products result in few upheavals

The sugar confectionery competitive landscape is stable, with limited changes in value share in 2019. Most of the category is represented by standard sugar confectionery products offered by well-established and well-known brands.

Healthy products targeting children may appeal to parents

In order to succeed in terms of category development producers may try to focus more on children, as this segment is under-represented in Latvia. Haribo and Rend Band are two major brands in this consumer segment, and benefit from a long-standing presence and economies of scale.

Advertising and promotional investments may prove ineffective and costly

Fewer changes are expected in the category in terms of competition in coming years. Although the health trend is becoming increasingly important in the country, and players in sugar confectionery are trying to offer healthier products, these are not expected to gain much traction.

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Confectionery in Latvia

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Overview

Discover the latest market trends and uncover sources of future market growth for the Confectionery industry in Latvia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Confectionery industry in Latvia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Confectionery in Latvia market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Confectionery in Latvia?
  • What are the major brands in Latvia?
  • With economic recovery far from guaranteed, are consumers cutting back on impulse and indulgence food items like confectionery?
  • How are manufacturers addressing consumer concerns over health and obesity?
  • What does the future hold for ethically sourced products?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Confectionery in Latvia - Category analysis

Chocolate Confectionery

HEADLINES

PROSPECTS

Players focus on Christmas chocolate, while low-calorie products attract growing consumer interest
Manufacturers react to consumers’ growing interest in more sophisticated products
Introduction of chocolate-coated fruit underpinned by snacking and health trends

COMPETITIVE LANDSCAPE

Orkla Confectionery & Snacks Latvija invests in extensive new production plant
Less price-sensitivity regarding seasonal or healthy chocolate confectionery
Smaller players struggle to compete with financial strength of giants Orkla and Mondelez

CATEGORY DATA

Table 1 Sales of Chocolate Confectionery by Category: Volume 2014-2019
Table 2 Sales of Chocolate Confectionery by Category: Value 2014-2019
Table 3 Sales of Chocolate Confectionery by Category: % Volume Growth 2014-2019
Table 4 Sales of Chocolate Confectionery by Category: % Value Growth 2014-2019
Table 5 Sales of Chocolate Tablets by Type: % Value 2014-2019
Table 6 NBO Company Shares of Chocolate Confectionery: % Value 2015-2019
Table 7 LBN Brand Shares of Chocolate Confectionery: % Value 2016-2019
Table 8 Distribution of Chocolate Confectionery by Format: % Value 2014-2019
Table 9 Forecast Sales of Chocolate Confectionery by Category: Volume 2019-2024
Table 10 Forecast Sales of Chocolate Confectionery by Category: Value 2019-2024
Table 11 Forecast Sales of Chocolate Confectionery by Category: % Volume Growth 2019-2024
Table 12 Forecast Sales of Chocolate Confectionery by Category: % Value Growth 2019-2024

Gum

HEADLINES

PROSPECTS

Mature gum category mainly targets adults
Gum benefits from convenient snack positioning and weight-loss associations
While competition will increase, gum demand set to be maintained by innovation

COMPETITIVE LANDSCAPE

Mars’ Extra/Orbit maintains dominance
Dirol rests on laurels and loses share
Smaller players opt for targeted innovation, while leaders offer larger value packs

CATEGORY DATA

Table 13 Sales of Gum by Category: Volume 2014-2019
Table 14 Sales of Gum by Category: Value 2014-2019
Table 15 Sales of Gum by Category: % Volume Growth 2014-2019
Table 16 Sales of Gum by Category: % Value Growth 2014-2019
Table 17 NBO Company Shares of Gum: % Value 2015-2019
Table 18 LBN Brand Shares of Gum: % Value 2016-2019
Table 19 Distribution of Gum by Format: % Value 2014-2019
Table 20 Forecast Sales of Gum by Category: Volume 2019-2024
Table 21 Forecast Sales of Gum by Category: Value 2019-2024
Table 22 Forecast Sales of Gum by Category: % Volume Growth 2019-2024
Table 23 Forecast Sales of Gum by Category: % Value Growth 2019-2024

Sugar Confectionery

HEADLINES

PROSPECTS

Sugar confectionery suffers maturity and competition from chocolate confectionery
Health trend influences shift to other categories such as cereal bars
Larger packs sizes set to gain popularity due to convenience and price benefits

COMPETITIVE LANDSCAPE

Stable players and traditional products result in few upheavals
Healthy products targeting children may appeal to parents
Advertising and promotional investments may prove ineffective and costly

CATEGORY DATA

Table 24 Sales of Sugar Confectionery by Category: Volume 2014-2019
Table 25 Sales of Sugar Confectionery by Category: Value 2014-2019
Table 26 Sales of Sugar Confectionery by Category: % Volume Growth 2014-2019
Table 27 Sales of Sugar Confectionery by Category: % Value Growth 2014-2019
Table 28 Sales of Pastilles, Gums, Jellies and Chews by Type: % Value 2014-2019
Table 29 NBO Company Shares of Sugar Confectionery: % Value 2015-2019
Table 30 LBN Brand Shares of Sugar Confectionery: % Value 2016-2019
Table 31 Distribution of Sugar Confectionery by Format: % Value 2014-2019
Table 32 Forecast Sales of Sugar Confectionery by Category: Volume 2019-2024
Table 33 Forecast Sales of Sugar Confectionery by Category: Value 2019-2024
Table 34 Forecast Sales of Sugar Confectionery by Category: % Volume Growth 2019-2024
Table 35 Forecast Sales of Sugar Confectionery by Category: % Value Growth 2019-2024

Packaged Food in Latvia - Industry Overview

EXECUTIVE SUMMARY

Lifestyle trends underpin market shifts, with increasing demand for convenience, healthy products, and more environmentally-friendly packaging
Frozen fruit, muesli and granola, artisanal products benefit from health trend
Players with their own retail networks gain strength, private labels remain popular despite premiumisation trend
Cooperatives popular due to cost savings, while the growth of hypermarkets is evident across the country
Players seek to reduce costs, health and environmental issues to influence consumer choice

FOODSERVICE

Sales to Foodservice
Convenience and on-the-go consumption trends evident in foodservice
Consumers interested in more upmarket products and foreign cuisine
Increased demand for vegetarian and vegan offerings set to influence foodservice development, but currently limited to the Latvian capital

CATEGORY DATA

Table 36 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 37 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 38 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 39 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 40 Sales of Packaged Food by Category: Volume 2014-2019
Table 41 Sales of Packaged Food by Category: Value 2014-2019
Table 42 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 43 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 44 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 45 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 46 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 47 Penetration of Private Label by Category: % Value 2014-2019
Table 48 Distribution of Packaged Food by Format: % Value 2014-2019
Table 49 Distribution of Packaged Food by Format and Category: % Value 2019
Table 50 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 51 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 52 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 53 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources