Confectionery in Hungary

2020 IMPACT

COVID-19 encourages stockpiling but lockdown hits demand for Easter seasonal chocolate hard

The COVID-19 pandemic broke out during early March in 2020 and will have a heavy impact on sales in the year, with a considerably slower retail volume growth anticipated in comparison to that seen in 2019. Initially, consumers stockpiled chocolate confectionery during the first weeks of the pandemic, as they prepared for a very strict and long lockdown.

Retailers launch private label dark chocolate

The demand for dark, premium chocolate continues as many consumers perceive milk chocolate as containing a greater amount of fat due to its milk content and sugar. Tuning into the trend, several retailers launched private label premium products in 2020.

Mondelez benefits from strong investment and consumer preference for global brands

Consumers continue to show a preference for multinational brands, despite the presence of smaller, local brands. Chocolate confectionery will continue to be led in 2020 by Mondelez Hungária Kft, and its two leading brands, Milka and Sport gained value share and are now the top two brands.

2020 IMPACT

Gum is hit badly by COVID-19 in 2020, as volume sales drop

Chewing gum is largely an impulse purchase and is often purchased on-the-go, as a breath freshener outside of home and at work. Thus, as result of the COVID-19 lockdown, retail sales volume of chewing gum dropped immediately.

Gum is suffering from lack of innovation

Um is lacking momentum and manufacturers are struggling to find new flavours that will interest consumers and generate some buzz. The main reason consumers chew gum is to freshen their breath and mint and peppermint flavours are associated with fresh breath and consumers are reluctant to try something new.

Several launches of premium chewing gum products in late 2019

Orbit Mega chewing gum launched in autumn 2019 and is positioned as a premium product, with a 35-40% price premium over a regular 10-piece Orbit pack. It is a soft-base chewing gum and is very popular in Western Europe, but was a new concept for Hungarian consumers.

2020 IMPACT

Lockdown to have heavy impact on impulse purchases in 2020

The COVID-19 pandemic is expected to have a heavy impact on sales in 2020. Sugar confectionery is a particularly sensitive product area within overall snacks, as these products are not considered to be a necessity, with consumers likely to switch their spending to products that are considered to be healthier during times of economic uncertainty.

Haribo benefits from Halloween innovation in 2020

The fairly fragmented category of sugar confectionery continued to be led by multinational players led by Haribo, Mondelez with Negro and Halls medicated confectionery and Ferrero Magyarország with its popular Tic Tac brand.

Coca-Cola and Tic Tac team up

Tic Tac, the second largest sugar confectionery brand in terms of retail value, continues to push boundaries. As part of a global limited edition roll out, Tic Tac partnered with Coca-Cola.

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