Tea in Latvia

PROSPECTS

Producers have the health trend down to a tea

Tea volume sales are decreasing further as a result of depopulation in Latvia. The number of people living in the country dropped continually throughout the review period, including 2019, and is set to keep doing so over the forecast period.

Demand for black tea is going cold

Black tea, the largest category, remains the core, but volume sales are expected to continue declining, as the format has become more mature and less eventful whilst other segments are at the forefront of consumers’ minds, reinforced by abundant innovation and education about them. Traditional black tea is losing out to these more dynamically developing tea categories, as consumers also perceive the latter as healthier options.

Foodservice sales benefit from a strengthening economy

On-trade tea consumption is generally just avoiding decline, supported by consumers spending more on eating and drinking outside of the home and on to-go products thanks to the improving economic environment and rising incomes. A previously strong perception of tea as a beverage to be consumed mainly at home is changing amongst Latvians as tea is now widely available in coffee shops and retailers are offering hot beverages to go.

COMPETITIVE LANDSCAPE

Functional teas and cold-brew teas are on the menu for NPD

Unilever Baltic LLC SIA continued to lead tea in Latvia in 2019, mainly thanks to its Lipton brand. Lipton held a double-digit value share in 2019, largely on account of its strong presence within black tea, but it also leads or ranks second in smaller, more dynamic categories.

Threats and opportunities emerge for leading tea brands

Tea remains a competitive category, led by Unilever’s Lipton and Inteka SIA’s Mozums, followed by smaller Apsara, Greenfield, Pickwick and Ahmad Tea. These six brands account for just over two thirds of total retail value sales.

Loyd positions itself more specifically, while Ready Cup Tea provides novelty

Mokate SA continued to emerge as a challenger in the tea category in 2019 and is set to extend the retailing reach of its Loyd the Magic Experience range to mainstream sales channels. This move will further expose its 2018 launches Good Night’s Sleep and Soothing Throat herbal infusion teas to the tea consumer base.

Files are delivered directly into your account within a few minutes of purchase.