Executive Summary

Jul 2019
Strengthening purchasing power allows Hungarian consumers to upgrade in terms of quality

Consumer sentiment keeps on improving thanks to macroeconomic growth, declining unemployment and rising real incomes. Hungarians are spending more on indulgence and entertainment.

Craft beer, local wine and spirits shaping mainstream offer

The Hungarian government continued to support craft beer, traditional wine making and the local spirit speciality pálinka by reducing the tax and administrative burden on individuals and small enterprises, and through wide-scale marketing campaigns to popularise consumption of quality domestic products. Tourist regions and associations organised numerous events, festivals, gastronomy weeks and competitions.

While premiumisation is on the rise, companies are still forced to compete by discounting

Alcoholic drinks sales are led by international companies across all categories, and further concentration of sales is expected due to their financial power, allowing investments in production facilities and large-scale marketing campaigns. Running a distribution network that spans all off-trade and on-trade channels is crucial to increasing sales.

Favourable summer weather, growing tourism and visitor numbers at music festivals drive on-trade performance, while price-sensitive consumers migrate to the off-trade

In 2018 on-trade value sales of alcoholic drinks performed better than off-trade, while only moderate growth was achieved in volume terms. The on-trade seems to be growing mainly due to the widening of the market, but this is not reflected in real growth in consumption.

Improving consumer confidence and expansion of premium offer will benefit sales but legislative changes and price competition could negatively impact the market

The alcoholic drinks market is expected to see continued growth as the economic outlook remains positive, with rising purchasing power over the forecast period. Volume sales are predicted to exceed pre-crisis volume levels thanks to the excellent performance of beer, although the recovery of spirits consumption will be hindered by high taxes and steep price increases.

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Alcoholic Drinks in Hungary

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Overview

Discover the latest market trends and uncover sources of future market growth for the Alcoholic Drinks industry in Hungary with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Alcoholic Drinks industry in Hungary, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in Hungary for free:

The Alcoholic Drinks in Hungary market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Alcoholic Drinks in Hungary?
  • What are the major brands in Hungary?
  • Have there been any alcoholic drinks legislative changes over the past 12 months?
  • How is the alcoholic drinks industry affected by the recession?
  • What is consumed more; beer, wine or spirits?
  • What have been the key trends seen in new product developments?
  • Do alcoholic drinks consumers want value for money or added value?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Alcoholic Drinks market research database.

Alcoholic Drinks in Hungary

EXECUTIVE SUMMARY

Strengthening purchasing power allows Hungarian consumers to upgrade in terms of quality
Craft beer, local wine and spirits shaping mainstream offer
While premiumisation is on the rise, companies are still forced to compete by discounting
Favourable summer weather, growing tourism and visitor numbers at music festivals drive on-trade performance, while price-sensitive consumers migrate to the off-trade
Improving consumer confidence and expansion of premium offer will benefit sales but legislative changes and price competition could negatively impact the market

MARKET BACKGROUND

Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments
Table 1 Number of On-trade Establishments by Type 2013-2018

TAXATION AND DUTY LEVIES

Summary 1 Taxation and Duty Levies on Alcoholic Drinks 2018-2019

OPERATING ENVIRONMENT

Contraband/parallel trade
Duty free
Cross-border/private imports

MARKET INDICATORS

Table 2 Retail Consumer Expenditure on Alcoholic Drinks 2013-2018

MARKET DATA

Table 3 Sales of Alcoholic Drinks by Category: Total Volume 2013-2018
Table 4 Sales of Alcoholic Drinks by Category: Total Value 2013-2018
Table 5 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2013-2018
Table 6 Sales of Alcoholic Drinks by Category: % Total Value Growth 2013-2018
Table 7 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2018
Table 8 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2018
Table 9 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume 2018
Table 10 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Value 2018
Table 11 GBO Company Shares of Alcoholic Drinks: % Total Volume 2014-2018
Table 12 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2013-2018
Table 13 Distribution of Alcoholic Drinks by Format and by Category: % Off-trade Volume 2018
Table 14 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2018-2023
Table 15 Forecast Sales of Alcoholic Drinks by Category: Total Value 2018-2023
Table 16 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2018-2023
Table 17 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 2 Research Sources

Beer in Hungary

HEADLINES

PROSPECTS

Beer sees a positive response to economics, weather and innovation
Shift toward premium beer continues, economy offer narrows
Craft beer explodes and influences offer of large breweries

COMPETITIVE LANDSCAPE

Beer is led by four main industrial players as more craft breweries emerge
Large breweries simplifying portfolio, featuring craft-style premium beer
Heineken invests in expanding facilities and production in Hungary

CATEGORY BACKGROUND

Lager price band methodology
Summary 3 Lager by Price Band 2018
Table 18 Number of Breweries 2013-2018

CATEGORY DATA

Table 19 Sales of Beer by Category: Total Volume 2013-2018
Table 20 Sales of Beer by Category: Total Value 2013-2018
Table 21 Sales of Beer by Category: % Total Volume Growth 2013-2018
Table 22 Sales of Beer by Category: % Total Value Growth 2013-2018
Table 23 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018
Table 24 Sales of Beer by Off-trade vs On-trade: Value 2013-2018
Table 25 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 26 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018
Table 27 GBO Company Shares of Beer: % Total Volume 2014-2018
Table 28 NBO Company Shares of Beer: % Total Volume 2014-2018
Table 29 LBN Brand Shares of Beer: % Total Volume 2015-2018
Table 30 Forecast Sales of Beer by Category: Total Volume 2018-2023
Table 31 Forecast Sales of Beer by Category: Total Value 2018-2023
Table 32 Forecast Sales of Beer by Category: % Total Volume Growth 2018-2023
Table 33 Forecast Sales of Beer by Category: % Total Value Growth 2018-2023

Cider/Perry in Hungary

HEADLINES

PROSPECTS

Cider growth exceeds expectations, but taxation and maturity could affect future performance
Classic cider flavours perform best, reduced-sugar options still rare
Cider successfully competing for share, consumers migrate from spirit-based RTDs and other low-alcohol flavoured drink categories

COMPETITIVE LANDSCAPE

Heineken Hungária (Strongbow) is most active in the promotion of cider
On-trade gains importance in promotional strategies
Brand and flavour loyalty are high in cider, private label cannot gain a foothold

CATEGORY DATA

Table 34 Sales of Cider/Perry: Total Volume 2013-2018
Table 35 Sales of Cider/Perry: Total Value 2013-2018
Table 36 Sales of Cider/Perry: % Total Volume Growth 2013-2018
Table 37 Sales of Cider/Perry: % Total Value Growth 2013-2018
Table 38 Sales of Cider/Perry by Off-trade vs On-trade: Volume 2013-2018
Table 39 Sales of Cider/Perry by Off-trade vs On-trade: Value 2013-2018
Table 40 Sales of Cider/Perry by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 41 Sales of Cider/Perry by Off-trade vs On-trade: % Value Growth 2013-2018
Table 42 GBO Company Shares of Cider/Perry: % Total Volume 2014-2018
Table 43 NBO Company Shares of Cider/Perry: % Total Volume 2014-2018
Table 44 LBN Brand Shares of Cider/Perry: % Total Volume 2015-2018
Table 45 Forecast Sales of Cider/Perry: Total Volume 2018-2023
Table 46 Forecast Sales of Cider/Perry: Total Value 2018-2023
Table 47 Forecast Sales of Cider/Perry: % Total Volume Growth 2018-2023
Table 48 Forecast Sales of Cider/Perry: % Total Value Growth 2018-2023

Spirits in Hungary

HEADLINES

PROSPECTS

Fluctuating performance in spirits sales due to instability in legislative environment
EU forcing Hungary to end discrimination and extend health tax equally to all spirits
Widening gap between low- and high-end spirits, low-quality other spirits and premium craft spirits both increase significance

COMPETITIVE LANDSCAPE

Winning strategies of international companies include a focus on powerful brands with constant promotions and frequent discounts
The growing competitive advantage of vodka
Local spirits manufacturers’ competitive strategy to offer economy other flavoured spirits and premium pálinka

CATEGORY BACKGROUND

Vodka, gin, other blended Scotch whisky, dark rum and white rum price band methodology
Summary 4 Benchmark Brands 2018

CATEGORY DATA

Table 49 Sales of Spirits by Category: Total Volume 2013-2018
Table 50 Sales of Spirits by Category: Total Value 2013-2018
Table 51 Sales of Spirits by Category: % Total Volume Growth 2013-2018
Table 52 Sales of Spirits by Category: % Total Value Growth 2013-2018
Table 53 Sales of Spirits by Off-trade vs On-trade: Volume 2013-2018
Table 54 Sales of Spirits by Off-trade vs On-trade: Value 2013-2018
Table 55 Sales of Spirits by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 56 Sales of Spirits by Off-trade vs On-trade: % Value Growth 2013-2018
Table 57 Sales of Dark Rum by Price Platform: % Total Volume 2013-2018
Table 58 Sales of White Rum by Price Platform: % Total Volume 2013-2018
Table 59 Sales of Other Blended Scotch Whisky by Price Platform: % Total Volume 2013-2018
Table 60 Sales of English Gin by Price Platform: % Total Volume 2013-2018
Table 61 Sales of Vodka by Price Platform: % Total Volume 2013-2018
Table 62 Sales of Vodka by Flavoured vs Non-flavoured: % Total Volume 2013-2018
Table 63 GBO Company Shares of Spirits: % Total Volume 2014-2018
Table 64 NBO Company Shares of Spirits: % Total Volume 2014-2018
Table 65 LBN Brand Shares of Spirits: % Total Volume 2015-2018
Table 66 Forecast Sales of Spirits by Category: Total Volume 2018-2023
Table 67 Forecast Sales of Spirits by Category: Total Value 2018-2023
Table 68 Forecast Sales of Spirits by Category: % Total Volume Growth 2018-2023
Table 69 Forecast Sales of Spirits by Category: % Total Value Growth 2018-2023

Wine in Hungary

HEADLINES

PROSPECTS

Good tendencies in still light grape wine production and local wine making
Shift in wine consumption toward quality wines
Sparkling wine is gaining momentum, premium bottle-aged segment shows dynamic growth

COMPETITIVE LANDSCAPE

Retailer activity strongly contributing to rising wine consumption
Leading domestic wine maker invests in expanding facilities and product range
Craft still and sparkling wine makers thrive, quality local wine is trendy

CATEGORY DATA

Table 70 Sales of Wine by Category: Total Volume 2013-2018
Table 71 Sales of Wine by Category: Total Value 2013-2018
Table 72 Sales of Wine by Category: % Total Volume Growth 2013-2018
Table 73 Sales of Wine by Category: % Total Value Growth 2013-2018
Table 74 Sales of Wine by Off-trade vs On-trade: Volume 2013-2018
Table 75 Sales of Wine by Off-trade vs On-trade: Value 2013-2018
Table 76 Sales of Wine by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 77 Sales of Wine by Off-trade vs On-trade: % Value Growth 2013-2018
Table 78 Sales of Still Red Wine by Price Segment: % Off-trade Volume 2013-2018
Table 79 Sales of Still Rosé Wine by Price Segment: % Off-trade Volume 2013-2018
Table 80 Sales of Still White Wine by Price Segment: % Off-trade Volume 2013-2018
Table 81 Sales of Other Sparkling Wine by Price Segment: % Off-trade Volume 2013-2018
Table 82 GBO Company Shares of Still Light Grape Wine: % Total Volume 2014-2018
Table 83 NBO Company Shares of Still Light Grape Wine: % Total Volume 2014-2018
Table 84 LBN Brand Shares of Still Light Grape Wine: % Total Volume 2015-2018
Table 85 GBO Company Shares of Champagne: % Total Volume 2014-2018
Table 86 NBO Company Shares of Champagne: % Total Volume 2014-2018
Table 87 LBN Brand Shares of Champagne: % Total Volume 2015-2018
Table 88 GBO Company Shares of Other Sparkling Wine: % Total Volume 2014-2018
Table 89 NBO Company Shares of Other Sparkling Wine: % Total Volume 2014-2018
Table 90 LBN Brand Shares of Other Sparkling Wine: % Total Volume 2015-2018
Table 91 GBO Company Shares of Fortified Wine and Vermouth: % Total Volume 2014-2018
Table 92 NBO Company Shares of Fortified Wine and Vermouth: % Total Volume 2014-2018
Table 93 LBN Brand Shares of Fortified Wine and Vermouth: % Total Volume 2015-2018
Table 94 GBO Company Shares of Non-grape Wine: % Total Volume 2014-2018
Table 95 NBO Company Shares of Non-grape Wine: % Total Volume 2014-2018
Table 96 LBN Brand Shares of Non-grape Wine: % Total Volume 2015-2018
Table 97 Forecast Sales of Wine by Category: Total Volume 2018-2023
Table 98 Forecast Sales of Wine by Category: Total Value 2018-2023
Table 99 Forecast Sales of Wine by Category: % Total Volume Growth 2018-2023
Table 100 Forecast Sales of Wine by Category: % Total Value Growth 2018-2023

Rtds in Hungary

HEADLINES

PROSPECTS

Spirit-based RTDs consumer base eroding, category renewal needed
Cocktails increasingly popular, high-strength, cocktail-like RTDs becoming trendy
Budget limits force partying youth to mix their own drinks

COMPETITIVE LANDSCAPE

Availability and variety of low-strength spirit-based RTDs is declining, discounters expand product range with competitively priced high-strength premixes
New type of RTD launched as an attempt to invigorate the category – but success depends on active marketing and matching local flavour preferences
Retailers achieve limited success with seasonal offer of private label RTDs

CATEGORY DATA

Table 101 Sales of RTDS by Category: Total Volume 2013-2018
Table 102 Sales of RTDS by Category: Total Value 2013-2018
Table 103 Sales of RTDS by Category: % Total Volume Growth 2013-2018
Table 104 Sales of RTDS by Category: % Total Value Growth 2013-2018
Table 105 Sales of RTDS by Off-trade vs On-trade: Volume 2013-2018
Table 106 Sales of RTDS by Off-trade vs On-trade: Value 2013-2018
Table 107 Sales of RTDS by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 108 Sales of RTDS by Off-trade vs On-trade: % Value Growth 2013-2018
Table 109 GBO Company Shares of RTDS: % Total Volume 2014-2018
Table 110 NBO Company Shares of RTDS: % Total Volume 2014-2018
Table 111 LBN Brand Shares of RTDS: % Total Volume 2015-2018
Table 112 Forecast Sales of RTDS by Category: Total Volume 2018-2023
Table 113 Forecast Sales of RTDS by Category: Total Value 2018-2023
Table 114 Forecast Sales of RTDS by Category: % Total Volume Growth 2018-2023
Table 115 Forecast Sales of RTDS by Category: % Total Value Growth 2018-2023