Kauno Grūdai has officially opened its new €32M instant food factory in Lithuania, set to create 250–300 new jobs and 7,400 square meters of production space. This investment reinforces Lithuania’s role as a key player in the global instant food market, with a focus on sustainability and innovation.
AB Kauno Grūdai, one of Lithuania’s largest food manufacturing companies, has opened its newest factory in the city of Alytus. This €32 million investment marks the company’s second instant food factory in the city and its third local instant food manufacturing branch.
This milestone comes as demand for instant food surges across Europe, driven by its convenience and affordability. By increasing production capacity, Kauno Grūdai aims to solidify Lithuania’s role as a key player in the European FMCG market while boosting the region’s economy.
Responding to global demand for instant food
The global instant food market is projected to reach around $200 billion by 2032. As European consumers embrace products like instant noodles and porridges, Kauno Grūdai has positioned itself at the forefront of this trend. Currently exporting 96% of its production, the company supplies major retailers in 30 European countries, including Spain, France, Germany, and the UK.
The new factory will significantly expand production capabilities, adding 240 million instant food units annually. This includes 120 million noodle cups and snack pots and 120 million noodle packs, raising the company’s total production capacity to 500 million servings per year—nearly one-fifth of the European market.
“The instant food segment is steadily growing . This new facility is essential to meet rising demand while maintaining the high quality our customers expect,” said Andrius Pranckevičius, CEO of AB Kauno Grūdai. “This investment not only strengthens our position in Europe but also underscores Lithuania’s growing influence in global food markets.”
As part of AB Akola group, Kauno Grūdai is a key contributor to Lithuania’s growing reputation in global agribusiness and food production. The group’s annual revenue exceeds €1.5 billion, with exports reaching Western Europe, Scandinavia, and the United States.
Sustainability and innovation at the core
Kauno Grūdai places a strong emphasis on the quality of its products and sustainability goals. It uses only segregated, RSPO Certified Sustainable Palm Oil and has committed to replacing 45% of the palm oil used with sunflower oil by the end of 2025. This shift is part of the company’s broader environmental strategy, which includes initiatives aimed at reducing carbon emissions and minimizing waste.
In line with this commitment, Kauno Grūdai has equipped the new factory with automated production lines. These cutting-edge technologies and optimized processes not only streamline production but minimize environmental impact. The facility will operate on green electricity, use recyclable packaging, and minimize waste. Over the past year, the company has reduced plastic in its packaging by 15% for cups and 10% for packs, offering similar solutions to private label customers.
Kauno Grūdai also emphasizes research and development, introducing over 70 unique product recipes annually. The technological features of the production facility enhance the capabilities and expertise of the R&D department, enabling the company to introduce new products more efficiently. In addition to expanding its product range, the company is focused on increasing sales volumes, and introducing new products to meet consumer demand.
Moving forward, the company will continue to prioritize growth in exports, particularly to Western Europe, Scandinavian countries, and the USA. The expansion of its production capacity and continued innovation are set to solidify Kauno Grūdai’s position as a leader in the global instant food market.
