Latvia's alcoholic beverage industry recorded a sharp contraction in the first eight months of 2026, with production excluding beer falling 30.2% year-on-year to 22.386mn litres, according to figures released by the State Revenue Service (VID), Latvian news agency LETA reported on October 22.

The downturn highlights significant changes in Latvia's alcoholic drinks manufacturing sector, with falling output across most product categories potentially affecting producers, suppliers and exporters. The figures also contrast with the industry's modest expansion in 2025, although the reasons behind the latest decline remain unclear.

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Production of intermediate alcoholic products was particularly hard hit in the country. Output of beverages containing up to 15% alcohol dropped 18.3-fold, while production in the category containing more than 15% but no more than 22% alcohol collapsed 50.7-fold.

Other segments also experienced substantial reductions. Production of fermented beverages with an alcohol content of up to 6% fell 32.5%, while wine output declined 30.6%.

The broad category of other alcoholic beverages, which accounts for most of Latvia's production, registered a 32.2% decrease, LETA reported.

However, one segment moved against the overall trend. Production of fermented beverages containing more than 6% alcohol increased 8.2-fold compared with the corresponding period last year.

Measured by pure alcohol content rather than the total volume of beverages, overall production contracted even more sharply – by 34.1%.

During January–August, Latvian producers manufactured 17.101mn litres of other alcoholic beverages, alongside 2.299mn litres of fermented drinks containing up to 6% alcohol and 2.291mn litres of stronger fermented beverages.

Output of intermediate products containing up to 15% alcohol totalled 121,540 litres, while the 15–22% category accounted for just 2,230 litres. Wine production was reported at approximately 570,000 litres, LETA reported.