Beer in Latvia will rise in price from March 1 due to excise tax increases and falling demand.
The Latvian beer market is entering 2026 in a state of prolonged decline. Retail prices for beverages will inevitably rise: the industry is under pressure from operational costs and the upcoming March excise tax increase. The head of the Latvian Brewers' Union, Peteris Linins, acknowledged in a conversation with the LETA agency that the industry finds itself caught between expensive logistics and declining consumption.
Survival mode: raw materials, energy, and salaries
According to Linins, producers today are forced to operate in conditions of a "perfect storm." On one hand, there are climate anomalies and global instability that have driven up prices for malt and hops. On the other hand, there is the rising cost of energy, packaging, and logistics chains. The issue of staffing also plays a significant role: personnel costs continue to rise.
Linins noted that producers are currently at a crossroads: "On one hand, production costs are rising, while on the other, the beer market in Latvia continues to shrink. This combination creates serious pressure on producers and forces them to reconsider previous plans regarding prices and investments."
Companies are trying to minimize losses through investments in energy efficiency and ecology, but such investments take a long time to pay off, and the financial burden on businesses is already significant.
Administrative costs have been added to internal expenses. Despite the overall support for the deposit system, participation in it has become more expensive for businesses since January 1. The changes have hit hardest those who use reusable glass of universal design - here the tariff has increased by 16.5%. For single-use glass and individual containers, the increase was 0.8% and 4.5%, respectively.
The final chord in the spring price increase will be the excise tax. "From March 1, 2026, the increase in the excise tax will come into effect, and in a situation where the market is already shrinking and costs are rising, this further intensifies the pressure on the industry," emphasized Linins.
Numbers against optimism
Statistics from the State Revenue Service (VID) confirm: interest in beer in Latvia is waning. Over the 10 months of 2025, production volumes fell by 7.5% (to 61.1 million liters). Real consumption in the domestic market dropped by 6.4%, while export figures plummeted by 37.1%.
Linins attributes this to changing habits among Latvians, high sensitivity to price tags, and fierce competition from other beverages. The union head's summary is bleak: "Cost pressures occur at a time when consumption is falling, meaning that increased costs cannot be easily compensated without affecting the final price."
