Fortified/Functional Packaged Food in Hungary

PROSPECTS

FF packaged food expands but faces competition from other HW categories and dietary supplements

Although similar to other health and wellness categories, fortified/functional packaged food also saw an expansion in retail value sales in Hungary in 2018 due to demand for healthy food products but its growth was less dynamic than the other four HW categories. Since free from and naturally healthy packaged food products are more visible, people more often opt for these goods when purchasing healthy food.

Category hit by limited number of new product launches and lack of promotions

Compared to other HW categories, fortified/functional packaged food witnessed only a limited number of innovations and new product launches in Hungary in 2018. Several manufacturers, including Sága, Bunge and Cerbona, invested in developing new products in more popular HW categories such as free from and naturally healthy to be more competitive, which left FF packaged food with a low number of new products.

FF probiotic yoghurt remains the biggest FF category

In Hungary, FF probiotic yoghurt remained the largest FF category in 2018. Among local consumers, yoghurt products are traditionally considered healthy and well-known and trusted companies such as Sole-Mizo, Danone, FrieslandCampina offer a wide selection of probiotic variants.

COMPETITIVE LANDSCAPE

Danone remains the leader

In 2018, Danone remained the leading player thanks to its promotional efforts. In the drinking yoghurt category, a new TV advertisement for its Actimel brand was launched that used its “stay strong” slogan and the firm also continued to air former TV spots of the same product, targeting kids, parents and elderly people.

Private label producers focus on HW categories other than FF

Similar to manufacturers of branded HW packaged food products, private label producers also decided to focus on popular health and wellness categories other than functional/fortified packaged food, which led to a drop in the retail value share of private label products. Due to growing demand for free from products as a result of more Hungarians being diagnosed with food intolerances and allergies, several chains including Lidl, Spar, Aldi and Tesco focused on expanding their portfolios of branded products in this category, which had a negative effect on the sales of private label FF packaged food products.

Cornexi Food gains share in FF

Unlike most players in the category, Cornexi Food Kft, the Hungarian producer of breakfast cereals and snack bars, increased its retail value share in the FF category (thanks to its functional/fortified breakfast cereals, targeting children primarily and containing vitamins). The company invested in increasing the visibility of its products in stores and magazines.

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