Other Dairy in Lithuania

2021 DEVELOPMENTS

Influence of COVID-19 and Lidl

COVID-19 has had a slightly positive impact on the overall category of other dairy in Lithuania, with coffee whiteners benefiting the most from more at-home coffee consumption during lockdown in 2020. In 2021, coffee whiteners is expected to see less growth with the reopening of the horeca sector and as Lithuanians return to their regular routines and activities.

Products to appeal to increasingly health-conscious consumers

In a highly competitive environment, manufacturers compete by communicating the health benefits of their products as Lithuanians‘ health consciousness has increased, particularly following COVID-19. Such communication is clearly evident from Vilkyškiu chilled snacks (sureliai, which are extremely popular amongst local children, particularly in colder weather) - one product line highlights that the cheeses have a very high curd content (up to 81%), whilst another line emphasises that the sugar content has been reduced by 40%.

Pieno Zvaigzdes maintains its lead, offering well-established brands that are perceived to be healthy

Other dairy continues to be led by local manufacturers in 2021 due to the wide presence of fresh dairy products. Local consumers prefer to purchase fresh cream, chilled snacks and fromage frais and quark produced by local dairies, with Pieno Zvaigzdes, Rokiskio Pienas and Žemaitijos Pienas expected to retain their leading positions.

PROSPECTS AND OPPORTUNITIES

Expansion of functional and wellness products

With the health and wellness trend continuing to rise in Lithuania over the forecast period, influencing consumers’ choices, more and more manufacturers of functional and wellness products are expected to appear in other dairy going forward. The range and sales of these products, including lactose-free, vegan and reduced sugar, will consequently increase.

Cream will remain the most significant product, despite its unhealthy image, due to its versatility

Whilst cream continues to face competition from low fat, naturally healthy alternatives, including plain yoghurt, due to the rising health and wellness trend in the country, it will remain the most significant product within other dairy over the forecast period in retail volume and current retail value terms due to its versatility. Cream continues to be preferred for certain dishes, including in soup, on pancakes or for local specialities such as cepelinai stuffed dumplings, and the high fat versions in particular are expected to remain in demand among certain consumer groups.

Rokiskio Pienas expands production facilities and capacity

Rokiskio Pienas will invest in expanding its facilities and production capacity over the forecast period. In order to compete in the crowded product area, Rokiskio Pienas is preparing to increase the production of whey to add value to its products, ultimately boosting its current retail value.