Surface Care in Latvia

PROSPECTS

“Green” cleaning trend affords strong growth opportunities in a developing category

Surface care continues to see positive retail volume and current value sales growth in 2019, as a significant share of categories are still developing in Latvia. For example, multi-purpose cleaners, but also task-specific kitchen cleaners, descalers and wash and wax floor cleaners continue to develop, supported by the wider availability and diversity of such products.

Improving purchasing power supports demand for higher-quality products

While volume sales development supports retail current value sales growth, a premiumisation trend is also evident in surface care in Latvia. This trend is inherent in the move towards more natural and eco-friendly products.

Pricing remains a key factor among a price-sensitive population

Higher unit prices provided another important driver for the retail current value growth in 2019, especially for locally produced products and economy brands. In addition to the premiumisation trend, higher prices for raw ingredients and rising production costs exerted upward pressure on unit prices in surface care.

COMPETITIVE LANDSCAPE

Wide distribution, marketing and price promotions underpin leadership of multinationals

Multinational manufacturers retained their leadership of surface care in retail value share terms in 2019. However, the top three players, Colgate-Palmolive (Ajax), Reckitt Benckiser (Cillit Bang) and Unilever (Cif), continued to cede ground to smaller local companies and private label.

Local players lock into eco-friendly trend for domestic and export growth opportunities

The growing demand for eco-products is driving the positive performance of domestic producers, as most are focused on sustainability. In addition to a higher focus on eco-products, local companies are investing in the modernisation and expansion of production.

The online channel exerts growing influence on marketing and sales of surface care

In line with the general development of online shopping in Latvia, internet retailing continues to benefit as more local and niche players, such as Purenn and Bioteka, offer eco-friendly and organic surface care products through their online stores. The eco-chain Bioteka also operates numerous brick-and-mortar stores.

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