Hungary Food and Drink Report Q4 2011
Report description
Hungary continues to fall down the table in this quarter’s Food and Drink Business Environment Ratings. While the country continues to offer an attractive operating environment, a fact that is reflected in our favourable risk score, Hungary’s rewards variable continues to disappoint. Issues such as elevated unemployment and severely dented consumer sentiment will continue to discourage discretionary spending on premium-priced food and beverages.
Headline Industry Data (local currency) ?? 2011 per capita food consumption: +3.87%; forecast to 2015: +23.67% ?? 2011 alcoholic drinks sales: +2.26%; forecast to 2015: +14.62% ?? 2011 soft drinks sales: +3.17%; forecast to 2015: +20.68% ?? 2011 mass grocery retail sales: +5.68%; forecast to 2015: +32.13%
Key Company Trends Hungarian Consumers Remain Extremely Price-Sensitive: A research survey by US market researcher Nielsen has claimed that the price-to-value ratio remains the most important criteria for Hungarians when choosing food products. The findings were confirmed by 47% of respondents, compared with the EU average of 39%. While 43% prefer price alone as the most important factor, 28% revealed that the information about the product or previous experience drives their purchasing decision. Other factors include brand trust, price discounts and recommendations from acquaintances.
Local Investment Continues: In June, Hungary-based chocolate maker Happy Company opened a new chocolate factory in Uri near Budapest. Foreign majors are also investing in the expansion of their Hungarian capacity, with a view to increasing exports. To this end, in July, Nestlé Hungária, a subsidiary of Swiss-based Nestlé, began trial production at its second US$53.2mn pet-food plant in Western Hungary. The plan will export much of its output to other regional markets. Key Risks To Outlook Risks Remain on the Downside: The short-to-medium-term outlook for the Hungarian consumer remains very subdued. Given that economic recovery, however mild, has been driven by exports rather than by domestic demand, the possibility of a slowdown in export markets will continue to weigh on Hungary’s economic outlook. In fact, Hungarian Prime Minister Viktor Orbán said on August 17 that the economy is expected to achieve 2% growth in 2011, below an earlier forecast of 3%.
Table of contents
Chapter 1 - BMI Industry View
Chapter 2 - SWOT Analysis
Hungary Food Industry SWOT
Hungary Drink Industry SWOT
Hungary Mass Grocery Retail Industry SWOT
Chapter 3 - Business Environment Ratings
BMI’s Core Global Industry Views
Table: BMI’s Core Views For The Food & Drink Industry
CEE Food & Drink Business Environment Overview
Table: Emerging Europe Food & Drink Risk/Reward Ratings Q
Hungary’s Food & Drink Business Environment Ratings
Macroeconomic Outlook
Table: Economic Activity
Chapter 4 - Industry Forecast Scenario
Hungary’s Consumer Outlook
Food
Food Consumption
Table: Hungary Food Consumption Indicators Historical Data & Forecasts
Confectionery
Table: Confectionery Sales Historical Data & Forecasts
Canned and Processed Food
Table: Canned Food Sales Historical Data & Forecasts
Meat
Table: Jams And Jellies
Pasta
Table: Pasta
Baked Products
Table: Baked Products
Dairy
Table: Dairy
Drink
Alcoholic Drinks
Table: Hungary Drink Consumption Indicators Historical Data & Forecasts
Soft Drinks
Table: Hungary Drink Consumption Indicators Historical Data & Forecasts
Hot Drinks
Table: Hungary Drink Consumption Indicators Historical Data & Forecasts
Mass Grocery Retail
Table: Hungary Mass Grocery Retail Value Sales by Format Historical Data & Forecasts
Table: Grocery Retail Sales By Format – Historical Data and Forecasts
Trade
Table: Sectoral trade indicators Export Import and Balance Value Historical Data and Forecasts
Chapter 5 - Food
Key Industry Trends and Developments
‘Unhealthy’ Food Tax on the Cards
Price Remains the Determining Factor
Strengthening Demand for Organic Foods
Milk Consumption Increasing
Capacity Expansion Continues Despite Challenging Environment
Previously i
Consolidation in the Bakery Market
Export Sales Continue to Grow
Economic Weakness Forces Company Restructuring
Market Overview
Food Consumption
Food Production
Leading Players
Confectionery
Canned and Processed Food
Trade
Agriculture
Organic Farming
Sugar Production
Chapter 6 - Drink
Key Industry Trends and Developments
Mineral Water Producer Looking to Increase Exports
Capsule Coffee Machines Making Headway into Hungary
Alcoholic Drinks Suffering Amid Dented Consumer Confidence…
…With Marketing Strategies Becoming More Important
The Hungarian Wine Industry Attracting Interest
Market Overview
Alcoholic Drinks
Beer
Leading Breweries
Wine
Spirits
Soft Drinks
Hot Drinks
Chapter 7 - Mass Grocery Retail
Key Industry Trends and Developments
Difficult Times Ahead As Retail Chains Face Crisis Tax
Tesco Expanding Its Emerging Europe Foothold
Private Label Increasing in Importance
MGR Consolidation Continues
Market Overview
Leading Retailers
Table: Hungary Structure Of The Mass Retail Grocery Market By Number Of Outlets
Table: Hungary Structure of the MGR Market By Value
Table: Hungary Grocery Retail Sales By Format Historical Data and Forecasts
Chapter 8 - Competitive Landscape
Table: Leading Companies in Hungary's Food Sector ()
Table: Leading Companies in Hungary's Drink Sector ()
Table: Key Players – Hungary's Mass Grocery Retail Sector ()
Chapter 9 - Company Monitor
Food
Nestlé Hungary Kft
Mars Hungary
Fornetti Group
Cerbona
Drink
SióEckes
Heineken Hungária Sörgyárak Nyrt
Dreher Breweries (SABMiller)
Borsod Breweries (CVC Capital Partners)
CocaCola Beverages Magyaroszág Kft
Mass Grocery Retail
Tesco Global Áruházak Zrt
CBA Kereskedelmi
SPAR Magyarország
Auchan Magyarorszag
Chapter 10 - BMI Food & Drink Methodology
Food & Drink Business Environment Ratings
Ratings Methodology
Ratings Overview
Ratings System
Indicators
Table: Limits Of Potential Returns
Table: Risks To Realisation Of Potential Returns
Weighting
Table: Weighting
BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
BMI Food & Drink Forecasting And Sourcing
How We Generate Our Industry Forecasts
Sourcing
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