Carbonates in Hungary

2020 IMPACT

COVID-19 has limited impact on demand for carbonates in Hungary

Given the fact that the lockdown in response to the COVID-19 pandemic was relatively short in Hungary, the impact on consumer demand was limited. However, on-trade sales of carbonates were severely affected, partly due to restrictions on international tourism.

Innovation and healthier novelty carbonates support development

The COVID-19 crisis in Hungary has hit consumer markets unexpectedly, with the pandemic impacting large scale innovation projects. Demand for healthier carbonates with limited added sugar drove overall sales in 2020 as well.

Well established players benefit from effective brand communication

The success of leading brands in carbonates is strongly correlated with intense promotional campaigns, stronger brand communication and active competition for attention. Brands look to attract consumers via large scale sponsorship efforts at festivals and sport and charity events.

RECOVERY AND OPPORTUNITIES

Slow recovery and steady growth expected as early as 2021

The sudden decline in demand for carbonates was reflected mainly in the on-trade channel, which is expected to see a rapid recovery given the relatively limited impact of COVID-19 and number of infections in Hungary. Indeed, carbonates volume sales are expected to recover at a modest pace already in 2021 and over the forecast period as a hole.

Healthier lemonade and low-calorie colas key to driving future growth

Lemonade continues to see strong growth in demand in Hungary as it is perceived as a healthier carbonate and is traditionally preferred by Hungarians. One of the leading domestic producers of carbonates experienced outstanding growth for its lemonades in recent years.

Return to on-the go consumption to support growth over forecast period

Carbonates saw somewhat sluggish sales growth over the review period due to growing competition from freshly pressed or 100% bulk juices, as a result of health concerns related to the consumption of carbonates with added sugar. Nevertheless, these negative trends were somewhat offset by the expansion of on-the-go consumption, especially among people looking for a refreshing beverage during the hot summer period.