Odoriferous substances for food and drink market in Lithuania

Earlier Report Observations

Between 2018 and 2021, the market for odoriferous substances in Lithuania expanded from 10.5 million USD to 13.6 million USD. This growth was supported by investments from major Lithuanian food and dairy companies, such as Rokiškio sūris and Pieno žvaigždės, into production efficiency and new product development, which increased demand for flavoring ingredients. The regulatory framework, including EU Regulation 2065/2003 on smoking flavorings and labeling rules under Regulation 1169/2011, provided a stable environment for market operations.

The market value declined to 12.4 million USD in 2022 following the implementation of new national legal acts and hygiene norms that tightened the list of permitted aromatic substances and their conditions of use. This regulatory shift temporarily constrained market activity. In 2023, the market stabilized at 12.3 million USD, aided by European Commission initiatives aimed at reducing the administrative burden on industry and maintaining competitiveness within the sector.

A significant rebound occurred in 2024, with the market surging to 14.7 million USD. This increase was primarily fueled by growing consumer interest in natural and sustainable products, which prompted food manufacturers to incorporate more natural odoriferous substances into their offerings, aligning with broader trends in the food industry.

Production odoriferous substances for food and drink in Lithuania

In value, 2018-2021, K $ US

In 2021, Lithuania's production of odoriferous substances for food and drink reached a value of 918.2 thousand US dollars, marking a significant 25.5% increase compared to the previous year. The lowest value was recorded in 2020 at 731.7 thousand US dollars, which saw the largest decline of 5.1%. Over the period from 2018 to 2021, production grew by 20.2%, translating to an annualized growth rate of 6.3%.

Annual dynamics of production in Lithuania in value, 2018-2021, K $ US

In kind, 2018-2021, t

The data shows irregular changes, pointing to a volatile market environment. Production bottomed in 2020 at 124.5 tonnes and peaked in 2021 at 222.8 tonnes, representing a 1.8-fold difference. In 2021, Lithuania produced 222.8 tonnes of odoriferous substances for food and drink, a sharp 79.0% improvement over 2020. The largest decline occurred in 2020, dropping by 38.6%.

Annual dynamics of production in Lithuania in kind, 2018-2021, t

Exports odoriferous substances for food and drink from Lithuania

Exports in kind, t

Lithuania's exports of odoriferous substances for food and drink increased for the second consecutive year. In 2021, the country exported 844 tonnes, a slight rise of 1.8% compared to the previous year. The lowest export volume was recorded in 2019 at 776 tonnes, which also saw the largest decline of 38.2%. The largest increase occurred in 2020 at 6.8%. Over the period from 2018 to 2021, exports decreased by 32.8%, equivalent to an annualized decline of 12.4%.

Annual dynamics of product's exports from Lithuania in kind, 2018-2021, t

From 2018 to 2021, Russia, Kazakhstan, and Poland were the main markets for Lithuania's exports of odoriferous substances in kind. Russia accounted for 39.7% of exports, Kazakhstan for 20.4%, and Poland for 11.2%. Together, these three countries represented 71.3% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Lithuania in kind, 2018-2021

Exports in value, K $ US

Lithuania's exports of odoriferous substances for food and drink in value terms increased for the second year in a row. In 2021, exports reached 9 668 thousand US dollars, a 1.4% improvement year-over-year. The lowest value was recorded in 2019 at 7 845 thousand US dollars, which also experienced the largest decline of 12.6%. The largest increase occurred in 2020 at 21.5%. Over the period from 2018 to 2021, exports grew by 7.7%, with an annualized growth rate of 2.5%.

Annual dynamics of product's exports from Lithuania in value, 2018-2021, K $ US

Between 2018 and 2021, Russia, Kazakhstan, and Latvia were the primary markets for Lithuania's exports of odoriferous substances in value terms. Russia held a 46.3% share, Kazakhstan 16.1%, and Latvia 12.1%. Combined, these three countries accounted for 74.5% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Lithuania in value, 2018-2021

Imports odoriferous substances for food and drink to Lithuania

Imports in kind, t

After a two-year decline, Lithuania's imports of odoriferous substances for food and drink in kind increased. In 2021, imports amounted to 2 003 tonnes, a 12.9% rise compared to 2020. The lowest import volume was recorded in 2020 at 1 775 tonnes, which also saw the largest decline of 4.4%. Over the period from 2018 to 2021, imports increased by 6.5%, with a compound annual growth rate of 2.1%.

Annual dynamics of product's imports to Lithuania in kind, 2018-2021, t

From 2018 to 2021, France, Italy, and Germany were the leading sources for Lithuania's imports of odoriferous substances in kind. France accounted for 30.8% of imports, Italy for 27.7%, and Germany for 19.0%. Together, these three countries made up 77.5% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Lithuania in kind, 2018-2021

Imports in value, K $ US

Lithuania's imports of odoriferous substances for food and drink in value terms increased for the second consecutive year. In 2021, import volume totaled 22 310 thousand US dollars, an 8.5% advance year-over-year. The lowest value was recorded in 2019 at 17 956 thousand US dollars, which also experienced the largest decline of 4.0%. The largest increase occurred in 2020 at 14.5%. Over the period from 2018 to 2021, imports grew by 19.3%, with a compound annual growth rate of 6.0%.

Annual dynamics of product's imports to Lithuania in value, 2018-2021, K $ US

Between 2018 and 2021, Italy, Germany, and France were the main sources for Lithuania's imports of odoriferous substances in value terms. Italy accounted for 28.9% of imports, Germany for 25.6%, and France for 15.1%. Together, these three countries absorbed 69.6% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Lithuania in value, 2018-2021