Hungary instant coffee market is estimated to attain a market size of USD197.060 million by the end of 2025. It is observed that direct coffee imports in the Eastern European countries including Hungary are low. However, the overall coffee import of Eastern European countries is growing. The increasing disposable income along with the growing interest for high-quality coffee will continue to increase the market growth for high-instant coffee varieties in the region. The coffee market in Hungary is dominated by big multinationals and mainstream brands. Additionally, the growth of the specialized small coffee roasters is further propelling the market growth in the forecast period.
Low per capita consumption in the Eastern European countries including Hungary is providing ample space for coffee consumption growth in the forecast period.
According to the Centre for the Promotion of Imports from developing countries (CBI) estimates, the Eastern European countries were reported to account for a share of around 18% sales of the total coffee sales volume in the EU market in 2018. Hungary accounted for a share of around 1.8% in coffee consumption in Eastern Europe after Poland and Romania. Robusta holds a major market share in the Eastern European countries due to the preference for instant coffee in the region. Hence, this indicates that instant coffee in Hungary will continue to grow at a significant pace during the forecast period.
The per capita consumption of coffee in the Eastern European countries is low, this indicates that there is room for the market to grow along with the surging consumer income.
Evolving coffee culture in Budapest is further fueling the market growth in the forecast period.
The country’s capital city is popular for its luxurious coffee houses and in the past was visited by the literary crowd. However, with time, the coffee culture evolved and the classic cafes in the city are joined by stylish third-wave coffee stores. The capital is moving on to the adoption of modern coffee houses with the onset of specialty coffee shops in the city. In comparison to the previous years, the younger generation is preferring filter coffee. Hence, with the evolving coffee culture in Budapest, the market is projected to grow at a significant rate in the forecast period. However, due to the current COVID-19 scenario, the market is predicted to experience a slight decline in 2020, due to the shut-down of cafes and public gathering spaces.
The food retail growth in the country is further providing an impetus in propelling the market growth in the forecast period.
International grocery retailers dominate the Hungarian food retail sector. These include Tesco, Coop Hungary, Spar, CBA Group, Auchan, Lidl, Aldi, Penny Market as main discounter channels.
The retail sector in Hungary apart from the international retailers comprise small, independent, family-owned shops. These are prevalent in less-populated regions. There are many shops that continue to serve the country’s rural population and hence pose significant challenges in logistics for varied distributors and suppliers. The presence of prestigious superstores, shopping centers, hypermarkets, and supermarkets in Budapest is further providing an opportunity for driving the sales of consumer goods including instant coffee products during the forecast period. The presence of a typical distribution channel in the country for importer-wholesalers to service retailers and for end-user direct consumption is further contributing to surging the market growth.