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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
You have no recently viewed reports.
Why not browse through our Featured or Trending Reports to see what we have to offer?
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:
Our market research reports answer questions such as:
Why buy this report?
This industry report originates from Passport, our Packaged Food market research database.