Alcoholic beer market in Latvia

Earlier Report Observations

From 2018 to 2021, the Latvian alcoholic beer market volume shrank from 182 million liters to 137 million liters. This decline was linked to an overall decrease in alcohol consumption in the country, partly due to the reduction of the illegal alcohol market and the introduction of trade restrictions such as the ban on alcohol sales from 10 PM to 8 AM. At the same time, consumers shifted towards higher-quality and more expensive beer, which supported market value despite falling volumes. The COVID-19 pandemic in 2020 brought additional nighttime sales bans, and while total alcohol consumption saw a temporary increase, beer volume continued to decline due to improving consumption culture and reduced excessive use.

In 2022, market volume temporarily rose to 149 million liters, largely driven by the rapid expansion of the non-alcoholic beer segment. Producers like Cēsu alus actively launched new non-alcoholic products with high quality and convenient packaging. However, tightening regulations, including the ban on alcohol sales in small retail spaces and rules on trading hours, along with the ongoing decline in overall alcohol consumption, led to a new contraction in volume to 122 million liters by 2024. The growth of the non-alcoholic segment, which increased by 45% in volume in 2023 and reached 3% of total beer consumption, partially offset the slump in the alcoholic segment.

In value terms, the market showed more resilience: after dropping to USD 88 million in 2020, value recovered to USD 123 million in 2023 before falling to USD 104 million in 2024. This stability was explained by premiumization as consumers chose more expensive beer, as well as by the rising share of non-alcoholic beer, which carries a higher price point. Restrictions on advertising alcohol prices and discounts, introduced in 2024, and the emphasis on age limits for purchase further promoted a shift towards responsible consumption.

Production alcoholic beer in Latvia

In value, 2018-2021, K $ US

Latvia's alcoholic beer production rebounded after two years of decline. In 2021, output reached 74 277 thousand US dollars, marking a 10.1% increase from 2020. Over the 2018-2021 period, production fell by 4%, with an average annual decline of 1.4%. The lowest value was recorded in 2019 at 67 473 thousand US dollars, while the largest drop occurred in 2020 with an 8.0% decrease.

Annual dynamics of production in Latvia in value, 2018-2021, K $ US

In kind, 2018-2021, K l

Top producers of alcoholic beer, 2018-2021

World map of production of alcoholic beer, 2018-2021

Latvia's alcoholic beer production stabilized after a two-year decline. In 2021, output totaled 75 701 thousand liters, showing little change from 2020. Between 2018 and 2021, production decreased by 8.1%, equivalent to an average annual decline of 2.8%. The lowest volume was recorded in 2019 at 75 607 thousand liters, with the largest drop occurring in 2020 at 5.4%.

Annual dynamics of production in Latvia in kind, 2018-2021, K l

Exports alcoholic beer from Latvia

Exports in kind, M l

Latvia's alcoholic beer exports fell after two years of growth. In 2021, exports stood at 26.0 million liters, down 27.0% from the previous year. Over the 2018-2021 period, exports increased by 15.5%, averaging 4.9% growth per year. The peak was reached in 2020 at 35.6 million liters, with the largest increase also occurring that year at 33.8%.

Annual dynamics of product's exports from Latvia in kind, 2018-2021, M l

From 2018 to 2021, Russia, Lithuania, and Estonia were notable but not dominant buyers of Latvian alcoholic beer, accounting for 19.9%, 15.9%, and 6.9% of export volumes respectively. Together, they represented 42.6% of total exports in kind.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Latvia in kind, 2018-2021

Exports in value, K $ US

Latvia's alcoholic beer export value declined after two years of increase. In 2021, exports totaled 27 706 thousand US dollars, a 20.1% drop from 2020. Over the 2018-2021 period, export value rose by 26.7%, with an average annual growth rate of 8.2%. The highest value was recorded in 2020 at 34 680 thousand US dollars, with the largest increase also occurring that year at 41.0%.

Annual dynamics of product's exports from Latvia in value, 2018-2021, K $ US

Between 2018 and 2021, Latvian alcoholic beer was exported to a diverse range of markets. Lithuania, Russia, and China accounted for 14.9%, 14.7%, and 10.1% of export value respectively, totaling 39.7%. The remaining 60.3% was distributed among numerous smaller destinations.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Latvia in value, 2018-2021

Imports alcoholic beer to Latvia

Imports in kind, M l

Latvia's alcoholic beer imports declined for the third consecutive year. In 2021, imports totaled 87.4 million liters, down 19.8% from 2020. Over the 2018-2021 period, imports fell by 28.6%, with an average annual decrease of 10.6%.

Annual dynamics of product's imports to Latvia in kind, 2018-2021, M l

From 2018 to 2021, Lithuania and Estonia were the primary sources for Latvia's alcoholic beer imports in kind, jointly accounting for 84.4% of total volume. Other countries had relatively minor shares.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Latvia in kind, 2018-2021

Imports in value, K $ US

Latvia's alcoholic beer import value decreased for the third year in a row. In 2021, imports amounted to 46 745 thousand US dollars, a 15.9% decline from 2020. Over the 2018-2021 period, import value dropped by 18.7%, with an average annual fall of 6.7%.

Annual dynamics of product's imports to Latvia in value, 2018-2021, K $ US

Between 2018 and 2021, Estonia, Lithuania, and Mexico led as suppliers of alcoholic beer to Latvia in value terms, accounting for 33.9%, 32.6%, and 11.6% of imports respectively. Together, they represented 78.2% of total import value.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Latvia in value, 2018-2021