Soft Drinks - Hungary

The Soft Drinks market in Hungary has experienced significant growth in recent years, driven by changing consumer preferences and local special circumstances. Customer preferences have shifted towards healthier beverage options, leading to increased demand for low-sugar and natural drinks. Additionally, the rising popularity of convenience and on-the-go consumption has fueled the growth of ready-to-drink beverages.

Customer preferences: Hungarian consumers are increasingly conscious of their health and wellness, which has influenced their beverage choices. There is a growing demand for low-sugar and natural drinks, as consumers seek healthier alternatives to traditional sugary soft drinks. This trend is driven by concerns over obesity and the negative health effects associated with excessive sugar consumption. As a result, companies have introduced a wide range of low-sugar and natural soft drinks to cater to this demand.

Trends in the market: The Soft Drinks market in Hungary has seen a surge in the popularity of ready-to-drink beverages. With busy lifestyles and a growing preference for convenience, consumers are opting for on-the-go options that require minimal preparation. This has led to a rise in the consumption of bottled and canned soft drinks, as well as the emergence of new packaging formats such as single-serve bottles and pouches. Companies have capitalized on this trend by introducing innovative packaging designs and marketing strategies to attract consumers.

Local special circumstances: Hungary has a strong cultural tradition of consuming mineral water and natural spring water. This has influenced the Soft Drinks market, with a significant portion of the population preferring these natural beverages over carbonated soft drinks. As a result, mineral water and flavored water have gained popularity in Hungary, offering a healthier alternative to traditional soft drinks. The country's abundant natural resources and the presence of well-known mineral water brands have further contributed to the growth of this segment.

Underlying macroeconomic factors: The Soft Drinks market in Hungary has been positively impacted by a stable economy and rising disposable incomes. As the country's GDP has grown steadily, consumers have more purchasing power to spend on non-essential items such as soft drinks. This has created a favorable environment for companies to invest in product development and marketing initiatives, driving the growth of the market. Additionally, the increasing tourism industry in Hungary has also contributed to the demand for soft drinks, as visitors seek refreshing beverages during their stay.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.