Sauces, Dressings and Condiments in Latvia

PROSPECTS

Premiumisation drives growth of mature products, benefitting from rising consumer spending power

Different trends drive sauces, dressings and condiments. The maturity and development phase represented major factors influencing trends.

Health trend has knock-on effects, even for products with no particular health benefits

The increasingly cosmopolitan nature of Latvians’ tastes, resulting from factors such as increased international travel, an expanding range of cuisines offered by restaurants, and greater internet access, has a growing influence on the development of the sauces, dressings and condiments category. One of the most notable examples of foreign cuisine affecting demand is the expansion of barbecue sauces, which saw continued growth in 2019 due to the increasing popularity of grilling, hamburgers and other American-style foods.

Packaging convenience also appeals to increasingly time-poor consumers

Convenience is an increasingly important factor influencing the performance of the sauces, dressings and condiments category. As consumer lifestyles accelerate and boost demand for packaged food products that are easy to use and save time, the category is set to see innovations focus on enhancing the convenience of packaging.

COMPETITIVE LANDSCAPE

Spilva brand bolsters lead, continues to expand range

Domestic brands dominate sales, Spilva is the major contributor to strong performance of the domestic names. However, since 2015 Spilva has been part of Orkla Group (Orkla Foods Latvija SIA), meaning the top three positions are maintained by international companies.

Milda KM disappears, unable to keep pace with developments

Competition for smaller players, which are focused on low pricing, became more complicated at the end of the review period. For instance, Milda KM was unable to respond to evolving trends, and the increase in demand for innovative products.

Category’s competitive environment consolidates as larger players gain share from smaller counterparts

Multinationals Heinz and Unilever are among the strongest performers in sauces, dressings and condiments. Heinz’ eponymous brand, and Unilever’s Hellmann’s, saw growth in recent years, with a further rise in value share in 2019.

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