Due to the outbreak of COVID-19 in 2020, total volume sales decreased by 2%, with on-trade volume sales falling by 26%. Meanwhile, off-trade volume sales of spirits increased by 3%, compared to a decline in sales the previous year, with the outbreak of COVID-19 increasing home consumption of spirits in the country.
In Latvia, vodka is the biggest-selling spirit in the on-trade and therefore, it experience one of the greatest losses in 2020. However, the shift in consumption to retail helped to minimise the overall total volume loss for vodka, and the spirit continued to record the most sales in 2020.
Starting from August 2019, spirits in Latvia were cheaper for consumers due to the decrease in excise tax, with this lasting for seven months, until February 2020. However, starting from March 1, 2020, the excise taxes were increased significantly, with a 5% uplift in the on-trade.
Unlike beer, the on-trade landscape will benefit from the non-perishable nature of spirits in the early forecast period. If stored correctly, these products will not have gone to waste and will continue to be sold when Latvians return to reopened hotels, cafés, bars and restaurants.
Across the forecast period, sales of spirits are expected to be challenged by declining volume sales. This will be due to changes in consumption habits, linked to adapting consumers' lifestyles, with many paying greater attention to their health and wellness.
Over the longer-term forecast period, disposable incomes among Latvians is set to rise again, increasing interest in better-quality spirits will once again rise. As a result, sales of premium brands will increase at the expense of cheaper, lower-quality alternatives over the coming years.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Spirits industry in Latvia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Spirits industry in Latvia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
This report originates from Passport, our Spirits research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page