Analysts: Latvia’s bread market stabilizes; demand increases for high-quality bread
Latvia’s bread market has stabilized: demand for bread with high added value continues growing, some growth in also noted for traditional bread segments, according to analysts’ data. In Estonia and Lithuania, like Latvia, there was an increase in demand for high-quality bread.
According to data from Nielsen, generally there is a slight decline (1%) in the Baltic bread market. This can be explained with the increasing ratio of one-person households due to declining population. Eating habits also continue changing – buyers pay more attention to quality and healthiness. «Innovations contribute to the bread market’s development. This trend is noted not only in the bread segment with high added value. Latvian buyers also value innovations in traditional bread segments, where we now see a 2% increase after several years of decline. Study shows that the main reason is buyers’ choice in favour of high-quality bread – Kefir bread. The stabilized market shows that buyers in Latvia value high quality and nutritional value, which are more important factors than price,» comments Fazer Bakery Baltic director Mindaugas Snarskis.
Nielsen study shows that approximately 36% of Latvia’s bread market consists of bread with high added value, which is an increase by 1% when compared with the previous year. The most rapid climb has been noted for rye bread segment (+36%). The second largest increase has been noted for wheat bread segment (+11%). «Looking at bread segments among Baltic States, we see that even though demand for bread with high added value continues increasing in Latvia, we are still behind Estonia and Lithuania. The proportion of bread with high added value there is 54% and 40% respectively, whereas Latvia’s proportion is 36%. It should also be said that the most rapid growth in those segments was noted in Latvia,» says Snarskis. According to data from Nielsen, 49% of bread products sold in Baltic States in the last three analyzed months (March, April and May 2017) were Fazer. The three new Fazer Vegetable bread products were in the lead in Latvia in those months.