Hungary Food and Drink Report Q1 2013
Report description
We envisage another full-year of contraction for household consumption in 2012 - to the tune of 2.3% - which would mark the fifth year of real decline in the past six years. The outlook is based on deteriorating economic confidence (owing to both domestic and external weaknesses), a private sector that remains burdened by high debt, tight fiscal policy and weak domestic credit extension. Consequently, we retain our cautious outlook for the performance of the country's food and drink markets.
Headline Industry Data (local currency)
? 2013 per capita food consumption: +2.59%; forecast compound annual growth rate to 2017: +4.21
%? 2013 alcoholic drinks sales: +4.52%; forecast compound annual growth rate to 2017: +3.91
%? 2013 soft drinks sales: +2.34%; forecast compound annual growth rate to 2017: +3.88
%? 2013 mass grocery retail sales: +4.17%; forecast compound annual growth rate to 2017: +5.16
%Key Company Trends
Foreign Companies Continue Investing in Local Manufacturing: In October 2012, Switzerland-based food flavouring and fragrances company Givaudan launched a new production plant worth US$169.12mn in Mako, Hungary. The company's new 50,000-square-foot plan - which will reportedly manufacture savoury flavours - already employs more than 200 workers and has a total capacity of 40,000 tonnes. Givaudan said commercial production is set to begin soon, and the plant is expected to be fully operational by end-2013.
Confectionery Volumes Down, Partly due to 'Fat Tax': Overall confectionery sales in Hungary declined 6% year-on-year (y-o-y) by volume, with sales of chocolate and candies falling 4% y-o-y and 8% y-o-y in H112, according to research by Gfk Hungaria. The decline might be attributed to the introduction of the 'chips tax' on September 1 2011, according to GfK Hungaria. The government applied the tax on soft drinks, sodas and juices with less than 25% real fruit juice and more than 8 grams of sugar per decilitre. The tax also applies to salty snacks containing more than 10% salt and energy drinks as well as prepackaged sweets containing 40% or more sugar.
Key Risks To Outlook
Downside Economic Risks High: Given Hungary's dependence on trade and investment linkages with Western Europe, a worse-than-expected downturn in the eurozone economy would have a major knockon effect on Hungarian economic activity and broader confidence. Additionally, the failure to thus far reach a deal with the IMF on a financial backstop leaves the Hungarian economy susceptible to a sudden loss in investor confidence.
Table of contents
Chapter - BMI Industry View
Chapter - SWOT Analysis
Hungary Food Industry SWOT
Hungary Drink Industry SWOT
Hungary Mass Grocery Retail Industry SWOT
Chapter - Business Environment Ratings
BMI's Core Global Industry Views
Table: Core Views
CEE Food & Drink Risk/Reward Ratings
Table: Central & Eastern Europe Q113 Food & Drink Risk/Reward Ratings
Table: Central & Eastern Europe Q113 Food & Drink Risk/Reward Sub-Factor Ratings (scores out of 10)
Hungary's Food & Drink Business Environment Ratings
Macroeconomic Outlook
Table: Economic Activity
Chapter - Industry Forecast Scenario
Consumer Outlook
Food
Food Consumption
Table: Food Consumption Indicators – Historical Data & Forecasts, 2010-2017
Confectionery
Table: Confectionery Volume/Value Sales – Historical Data & Forecasts, 2010-2017
Canned Food
Table: Canned Food Volume/Value Sales – Historical Data & Forecasts, 2010-2017
Meat
Table: Meat Consumption, Production And Trade – Historical Data & Forecasts, 2010-2017
Pasta
Table: Pasta Consumption, Production And Trade – Historical Data & Forecasts, 2010-2017
Snack And Other Processed Foods
Table: Jams & Jellies Consumption, Production And Trade – Historical Data & Forecast, 2010-2017
Table: Baked Products Consumption, Production And Trade – Historical Data & Forecasts, 2010-2017
Dairy
Table: Dairy Consumption, Production And Trade – Historical Data & Forecasts, 2010-2017
Drink
Alcoholic Drinks
Table: Alcoholic Drinks Volume/Value Sales – Historical Data & Forecasts, 2010-2017
Soft Drinks
Table: Soft Drinks Volume/Value Sales – Historical Data & Forecasts, 2010-2017
Hot Drinks
Table: Hot Drinks Volume/Value Sales – Historical Data & Forecasts, 2010-2017
Trade
Table: Trade Indicators – Historical Data & Forecasts, 2010-2017
Mass Grocery Retail
Table: Mass Grocery Retail Sales By Format – Historical Data & Forecasts, 2010-2017
Table: Grocery Retail Sales By Format
Chapter - Food
Key Industry Trends And Developments
Confectionery Sales Volumes Decline
Foreign Players Remain Interested In Local Manufacturing
Meat Processor Hoping for State Financing Lifeline
Capacity Expansion Continues Despite Challenging Environment
Strengthening Demand For Organic Foods
Milk Consumption Increasing
Market Overview
Food Consumption
Food Production
Leading Players
Confectionery
Canned And Processed Food
Frozen Food
Trade
Agriculture
Organic Farming
Chapter - Drink
Key Industry Trends And Developments
Coca Cola Increases Local Production Capacity
Vertical Consolidation In Soft Drinks Market
Mineral Water Producer Looking To Increase Exports
Capsule Coffee Machines Making Headway Into Hungary
‘Fat Tax' Stimulates Innovation In Soft Drinks
Hungarian Wine Industry Attracting Interest
Market Overview
Alcoholic Drinks
Beer
Leading Breweries
Wine
Spirits
Soft Drinks
Hot Drinks
Chapter - Mass Grocery Retail
Key Industry Trends And Developments
Food Retail Sale Values And Volumes Up In H112
Online Shopping to Expand in Hungary
MGR Consolidation Continues
Retail Chains Deal With Crisis Tax, Ban On Large Store Openings
Tesco Expanding Emerging Europe Foothold
Retailers Fined Over Unfair Business Practices
Market Overview
Leading Retailers
Table: Structure Of Mass Grocery Retail Market By Number Of Outlets
Table: Structure Of MGR Market By Value
Table: Value Of Sales Per Outlet – 2012
Chapter - Competitive Landscape
Table: Key Players In Hungary's Food Sector
Table: Key Players In Hungary's Drink Sector
Table: Key Players In Hungary's Mass Grocery Retail Sector
Chapter - Company Monitor
Food
NestlChapter - é Hungary
Mars Hungary
Fornetti Group
Drink
Sió-Eckes
Heineken Hungária Kft
Dreher Breweries (SABMiller)
Borsod Breweries (StarBev)
Coca-Cola Beverages Magyaroszág Kft
Mass Grocery Retail
Tesco Global Áruházak Zrt.
CBA Kereskedelmi
SPAR Magyarország
Auchan Magyarorszag
Chapter - Demographic Outlook
Table: Hungary's Population By Age Group, 1990-2020 ('000)
Table: Hungary's Population By Age Group, 1990-2020 (% of total)
Table: Hungary's Key Population Ratios, 1990-2020
Table: Hungary's Rural And Urban Population, 1990-2020
Chapter - Risk/Reward Ratings Methodology
Table: Rewards
Table: Risks
Weighting
Table: Weighting
Chapter - BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
Chapter - BMI Food & Drink Forecasting & Sourcing
How We Generate Our Industry Forecasts
Sourcing
The just-drinks office is currently: Closed
Office opening hours
Mon-Thursdays 9:00am-5:30pm
Fridays 9:00am-4:30pm
The office is closed during weekends.
Current time at just-drinks headquarters: 2:05am (Wednesday, 22 May 2013)
Need help? Contact the research team
