Hot Drinks in Hungary

COVID-19 impact on hot drinks

Growth within hot drinks in Hungary was negatively impacted by the COVID-19 impact in 2020, with on-trade sales being hit particularly hard. During the lockdown period, which lasted two months in the spring of 2020, all restaurants and cafés were closed, resulting in a steep decline in on-trade sales of coffee, tea and other hot drinks.

COVID-19 country impact

The Hungarian government launched its official COVID-19 webpage and Facebook page on 4 March, the same day as the first cases were announced in the country. An indefinite state of emergency was declared on 11 March, prohibiting public gatherings in an enclosed space with more than 100 people, forcing sporting events to be held behind closed doors, and suspending foreign exchange programmes.

Company response

Demand for innovative, healthy and fortified hot drinks also increased during the COVID-19 pandemic. In response to the crisis, consumers are opting for healthier, reduced sugar or fortified variants of hot drinks.

Retailing shift

Online hot drinks increased strongly during the COVID-19 pandemic. E-commerce players that offer specialty coffee products and premium category teas have performed particularly well as these products proved popular among consumers during lockdown.

Foodservice vs. retail split

Many on-trade players were forced to close during the lockdown period, although this trend did not last long, with the recovery of the horeca segment in Hungary already starting at the beginning of the summer. Nevertheless, a significant decline in sales is expected for the whole of 2020 in on-trade channels, compared with turnover seen one year before.

What next for hot drinks?

Over the forecast period, hot drinks categories are expected to return to their pre-pandemic growth paths. Demand for premium products intensified during COVID-19 due to the forced shift from the on-trade to off-trade channels, with this trend set to gain momentum over the coming years.

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