Latvia flag Latvia: Buying and Selling

Advertising and marketing in Latvia

Marketing opportunities

Consumer Profile
With a GDP per capita of USD 19,820 (IMF, 2021) and a median age of 44.4 years (CIA World Factbook, 2020 est.), the average Latvian consumer is less wealthy than their neighbours and older than most of their European counterparts (the EU median age was 43.9 years in 2020 - Eurostat). The Latvian population follows similar demographic trends to the rest of the Baltics with a rapidly shrinking (net growth rate -1.1% in 2021 - CIA World Factbook, 2021 est.) and ageing population (people aged 0-24 years comprise 24.32% of the total population - CIA World Factbook, 2020 est.).
Latvian consumer has recovered from the financial crisis and is now able to save more money (disposable income rising from EUR 286 in 2010 to EUR 582.82 in 2019 - Central Statistical Bureau of Latvia, latest data available). Nonetheless, the market remains highly divided with Latvia having one of the highest income inequalities in the EU (Gini score of 35.2 points as opposed to the EU average of 30.2 points in 2019 - Eurostat, latest data available).
Consumer Behaviour
Price is the most prominent factor in consumer spending, ahead of product quality and store features. More affluent consumers are brand-conscious and willing to pay a higher price to purchase from their favourite brand. Consumers spend an important part of their income on food as well as housing and utilities, nonetheless, their share in total expenditure has been declining in recent years. The share of food in total expenditure fell from 26.2% to 23.3% between 2016 and 2019 whereas housing and utilities accounted for 14.6% in 2019 as opposed to 15.3% in 2016. Spending on recreation as well as hotels, cafes and restaurants increased in the meantime (8.1% as opposed to 7.6% and 5.4% as opposed to 4.8%) (Central Statistical Bureau of Latvia, 2020). Moreover, there is a growing interest in e-commerce as in 2020 65.9% of the total population have ordered any goods or services (Central Statistical Bureau of Latvia) and the country had the highest e-commerce growth among Baltic countries (28.5%) (Eurostat, latest data available).
Consumers Associations
Latvian Association for the Protection of Consumer Interests
Consumer Rights Protection Centre
Main Advertising Agencies
Not Perfect
DDB Latvia
Carat Latvia
Mindshare Latvia
Denver

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Latest Update: July 2022

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