Overview
Estonia’s food market has potential for a range of high-value product imports, particularly for middle and higher-income demographics, the tourism sector, and Estonia’s growing expatriate community. Consolidation among retail outlets through investment by large Scandinavian and Baltic grocery chains developed quickly and may provide new opportunities for exporters. Products targeted by the local restaurant industry like fish and seafood, nuts, wine, and distilled spirits are growing in popularity. There are long established consumer preferences for domestic fresh products which have short shelf lives and are free of additives. Although Estonian consumers remain price-sensitive, they are increasingly interested in organic foods. Younger consumers are also interested in new products. Estonia has a food and agricultural trade surplus with the United States, and according to the Estonian Statistical Office, it is a net food exporter. Beverage products, meat products, horticulture, coffee, tea, jellies and jams, and feed grains are important imports. U.S. exports with strong market potential in Estonia include fish (pollock, hake, roe, surimi), tree nuts (shelled almonds and walnuts), dried fruit (cranberries, blueberries, or prunes), wine, and distilled spirits. Estonian food exports include dairy products, meat, fish, and beverages. Important Estonia exports to the United States include forest products, cheeses, frozen fish, and preparations, as well as starch, glues, and cotton articles.
Since Estonia’s accession to the EU in 2004, it has fully harmonized its tariff rates with the EU. Exporters should first examine whether their products have EU market access. Some commodities such as meat, poultry, dairy, corn, rice, fresh fruit, and various processed products face significant nontariff barriers. Also, inter-EU agricultural trade among Member States faces zero tariffs, versus the Most Favored Nation (MFN) rates for U.S. imports. Sub-sector Prospects for Agricultural Products:
- Tree Nuts (Consumer Oriented Product)
- Hardwood Lumber (Forest Products)
- Fish Products
Leading Sub-Sectors
1. Tree Nuts
U.S. tree nuts, primarily almonds, and walnuts are increasingly popular in confectionery, home baking, and snack food production. Spain is the leading competitor to U.S. tree nut exports in Estonia. The Netherlands, Lithuania, Latvia, and Germany coordinate shipments from Spain and the United States. Estonia imported tree nuts valued at more than $10 million in 2020, mainly from the United States and Spain. The Estonian market for U.S. tree nuts in 2021 was negatively affected by COVID-19 along with other high-value products. Almond and other tree nut sales are likely to rebound in Estonia in 2022 for home baking and snacking.
Table1: Total Market Size for Nuts
Commodity Group: Nuts (incl. Almonds and Walnuts)
Harmonized Schedule Code(s): HS 0802
Value in US$1,000
f. forecast
|
Year |
2019 |
2020 |
2021 |
2022 f. |
|
Total Imports |
16,353 |
10,044 |
8,560 |
9,000 |
|
Total Imports from U.S. |
1,588 |
1,638 |
2,445 |
2,450 |
2. Forest Products
Estonia is a leading manufacturer of wood furniture for the European market, particularly for Scandinavia. Estonia imported $1,137 million of wood and wood products in 2021, mainly from Russia, and to a lesser extent from Finland and Latvia. U.S. wood product exports to Estonia are mostly ash and oak sawn or chipped lumber products.
Table 2: Total Market Size for Wood Products
Commodity Group: Wood and Articles of Wood
Harmonized Schedule Code(s): HS 44
Value in US$1,000
f. forecast
|
Year |
2019 |
2020 |
2021 |
2022 f. |
|---|---|---|---|---|
|
Total Imports |
606,179 |
666,274 |
1,136,502 |
1,500,000 |
|
Total Imports from U.S. |
14,651 |
10,288 |
12,364 |
14,500 |
3. Seafood (Alaska pollock, hake and caviar)
Fish is an important part of the Estonian diet. Estonian consumers are more actively seeking out product information regarding fish and seafood. Estonia’s growing seafood processing industry will continue to offer sales opportunities for U.S. exporters, particularly for Alaskan pollock, hake, and fish roe.
Table 3: Total Market Size for Fish and Fish Products
Harmonized Schedule Code(s): HS 03
Value in US$1,000
Commodity Group: Fish and Fish Products
|
Year |
2019 |
2020 |
2021 |
2022 f. |
|---|---|---|---|---|
|
Total Imports |
126,046 |
123,078 |
143,720 |
143,800 |
|
Total Imports from U.S. |
2,258 |
3,608 |
3,843 |
3,850 |
f. forecast
Opportunities
USDA attaché reports regularly provide updated information on market opportunities, new policy developments, and other information regarding the local food industry. Some standard reports include the Retail Market Report, Exporter Guide, Food Service Report, and market briefs on select products.
Trade Data
Please refer to The USDA Foreign Agricultural Service’s Global Agricultural Trade System (GATS). GATS includes international trade statistics on agricultural, fish, forest, and textile products, dating from the inception of the Harmonized coding system in 1989 to present.
Resources
Information on agricultural trade barriers is available from the U.S. Mission to the EU Foreign Agriculture Service.
The USDA Foreign Agricultural Service Regional Office in Warsaw covers Estonia.