Perspectives of aggregates production development are closely related to the country’s economic development and the state’s support to road construction. Competitiveness in this sector largely depends on decisions made and support given to quarries on the state level. Seeing that mineral deposits are non-renewable resources, and decrease of the reserves is inevitable, sustainable and rational usage of the materials is called for. Production of aggregates has good perspectives to develop business in the regions of Latvia. However, Latvia lacks a profound research on deposits and extraction of aggregates as well as further development options. Demand for the production of aggregates in Latvia has been verified within this research. The research also includes the analysis on extraction of the most demanded aggregates – sand and gravel – in the regions of Latvia and development of the market in general; identification of the main problems governing in the sector; elaboration of a scheme for recycling sand and gravel in the process of road construction (reconstruction); and provision of suggestions for changes in the legislation that relate to tenders for aggregates for road construction. The authors have justified the necessity for excise tax exemption for production of aggregates and described technical and economic characteristics related to the production of aggregates. Suggestions for solving the acknowledged problems with the aim to increase competitiveness in the sector have been developed in the concluding part of the research.