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Market Research Report

Packaged Food in Hungary

Published by	Euromonitor International
Published	February, 2010	Product code	117059
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Price	US $ 6500 PDF by E-mail (Single User License)

Introduction
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Packaged Food in Hungary published by Euromonitor International in February, 2010. This report price starts from US $ 6500.

Introduction

Abstract

Euromonitor International' s Packaged Food in Hungary market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

Why buy this report

Get insight into trends in market performance
Pinpoint growth sectors and identify factors driving change
Identify market and brand leaders and understand the competitive environment

Product coverage

Baby food; Bakery products; Canned/preserved food; Chilled processed food; Confectionery; Dairy products; Dried processed food; Frozen processed food; Ice cream; Impulse and indulgence products; Meal replacement products; Meal solutions; Noodles; Nutrition/staples; Oils and fats; Pasta; Ready meals; Sauces; dressings and condiments; Snack bars; Soup; Spreads; Sweet and savoury snacks

Executive summary

Decreasing household incomes stifles demand

The global economic crisis and the government' s austerity measures seriously negatively affected household incomes. Hungarians tried to save money by decreasing their outgoings on a number of areas of everyday life, such as energy consumption, travelling and also spending less on food products. Decreasing household incomes resulted in a volume sales decline in 2009, and value sales growth lagged behind growth of previous years.

Prices increase in spite of falling demand

Although demand dipped in numerous packaged food sectors, unit prices increased due to the higher VAT rate. The Hungarian government raised the rate of VAT from 20% to 25% from July 2009 resulting in increasing tensions between manufacturers and retailers. As manufacturers are in a difficult financial situation due to the economic crisis and high volatility of the Hungarian currency, they could not afford to bear the costs of any more increases themselves, which forced them to raise their prices.

Market leaders strengthen their positions

The global financial crisis seriously affected small and middle-sized companies, while large market leaders managed to maintain or even strengthen their market positions. International and huge domestic companies were able to invest in brand management, innovation and promotion, helping them to generate additional sales. In the meantime, demand for economy and private label products also increased at the expense of smaller companies.

Discounters develop dynamically

Since Lidl and Aldi entered the Hungarian market in 2004 and 2006 respectively, the discounters channel has recorded the fastest growth in Hungary in terms of distribution. The number of discount retail units rose dynamically over the review period and these outlets are increasingly popular among price-sensitive Hungarians. During the review period, all other distribution channels such as supermarkets/hypermarkets and small grocery retailers lost some of their consumer bases due to heightened competition with discounters.

Decreasing household incomes will limit market growth

The global financial crisis and government measures taken to stimulate development of the Hungarian economy will have lingering effects on household incomes. Consumers will decrease their consumption and turn to economy and private label products in order to reduce their outgoings. Sharpening price competition will limit price increases, and thus value sales of packaged food are likely to increase slightly over the forecast period.