Rice, Pasta and Noodles in Latvia

PROSPECTS

Move towards higher quality boosts value over volume performance

The rice, pasta and noodles category saw negative growth in volume terms in 2019, while increasing in current value terms. This was due to growing consumer interest in more premium products.

Lifestyle trends benefit noodles, premium products increasingly in evidence

Consumers’ increasingly hectic lifestyles and growing demand for convenience benefit the development of instant noodles in both volume and value terms. As disposable incomes rise and the price aspect becomes less important in instant noodles, development of more premium noodles is evident.

Wide variety of products maintains consumer interest in rice

Rice saw continued growth in Latvia in 2019, with an improvement in volume terms compared with the previous year. The major contributor to this performance is expanding product diversity and quality of rice.

COMPETITIVE LANDSCAPE

Rimi strengthens position in rice, introduces new products

Despite the observed premiumisation trend, price remains a very important factor for a significant part of the population in Latvia. It is unsurprising that private label products offered by Rimi Latvia led the category.

Competition set to constrain value growth potential

Plain noodles offer potential for growth in coming years as this category is currently represented by only a few products, and more NPDs should be expected. Interest in foreign cuisine is growing, with Asian-style food represents a major trend.

Rigas Dzirnavnieks and Dobeles Dzirnavnieks expected to improve positions

More intense development of domestic players is expected in the category in coming years. For instance Rigas Dzirnavnieks and Dobeles Dzirnavnieks are constantly expanding their product ranges, and cover a diverse range of cereal products, as well as rice and pasta.

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