Hungary Instant Coffee Market Size, Share, COVID-19 Impact, Opportunities, And Trends By Type (Freeze-Dried Instant Coffee, Spray-Dried Instant Coffee, Others), By Distribution Channel (Offline (Retail, Food Services), Online), And By Cities - Forecasts From 2022 To 2027

Published:  Oct 2022 Report Code: KSI061613683 Pages: 75

Hungary instant coffee market is estimated to attain a market size of US$211.173 million by the end of 2027. The market was valued at US$158.485 million in 2020 and is projected to grow at a CAGR of 4.19%.  

It is observed that direct coffee imports in Eastern European countries, including Hungary, are low. However, the overall coffee import from Eastern European countries is growing. The increasing disposable income, along with the growing interest in high-quality coffee, will continue to increase the market growth for high-instant coffee varieties in the region. The large multinational enterprises and mainstream brands dominate Hungary’s coffee market. Additionally, the growth of specialized small coffee roasters further propels the market growth in the forecast period.

Low per capita consumption in 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, Eastern European countries were reported to account for a share of around 18% sales of the overall coffee revenue in the EU market in 2018. Hungary accounted for a share of around 1.8% of coffee consumption in Eastern Europe after Poland and Romania. Robusta holds a major market share in 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 significantly during the forecast period.

The per capita consumption of coffee in 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 anticipated to add impetus to the market growth in the projected 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 were joined by stylish third-wave coffee stores. The capital is moving on to adopting modern coffee houses with the onset of specialty coffee shops in the city. In comparison to previous years, the younger generation prefers filter coffee. Consequently, with the evolving coffee culture in Budapest, the market is anticipated to significantly grow in the projected period. However, due to the current COVID-19 scenario, the market is predicted to experience a slight decline in 2020 due to the shutdown of cafes and public gathering spaces.

Hungary’s burgeoning food retail segment is bound to boost the market in the forecast period.

International grocery retailers dominate the Hungarian food retail sector. These include Tesco, Coop Hungary, Spar, CBA Group, Auchan, Lidl, Aldi, and Penny Market as main discounter channels.

The retail sector in Hungary, apart from the international retailers, comprises small, independent, family-owned shops. These are prevalent in less-populated regions. Many shops 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 centres, hypermarkets, and supermarkets in Budapest further provides an opportunity to drive 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 end-users direct consumption is further contributing to surging the market growth.

Key Developments in the Market

  • In May 2022, 5 to go, a Romanian-based cafe chain revealed its intention to open a new cafe in Hungary, its fourth international market, through a partnership with a local entrepreneur.
  • In May 2020, Coca-Cola HBC and Costa Coffee announced the launch of a new line of Costa Coffee products in Europe. The products were launched in Hungary, Poland, and Bulgaria, among others. The product portfolio is comprised of whole beans, roast & ground coffee, Ready-To-Drink coffee, self-serve barista-quality coffee, and coffee pods via Costa Express machines.

COVID-19 Insights:

COVID-19 had a significant impact on Hungary's Instant Coffee Market. The exponential surge of active cases led to the enforcement of a nationwide lockdown and social distancing measures in Hungary. Subsequently, multiple coffee houses, cafes, and food outlets were closed, showing a sharp decline in revenue. Nonetheless, the consumption of instant coffees at home increased, boosting domestic sales. The development of the e-commerce segment further boosted the growth.

Segmentation:

  • By Type
    • Freeze-Dried Instant Coffee
    • Spray-Dried Instant Coffee
    • Others
  • By Distribution Channel
    • Offline
      • Retail
      • Food Services
    • Online
  • By Cities
    • Budapest
    • Debrecen
    • Others

1. Introduction
1.1. Market Overview
1.2. COVID-19 Impact
1.3. Market Definition
1.4. Market Segmentation

2. Research Methodology
2.1. Research Data
2.2. Assumptions

3. Executive Summary
3.1. Research Highlights

4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. Hungary Instant Coffee Market Analysis, By Type
5.1. Introduction
5.2. Freeze-Dried Instant Coffee
5.3. Spray-Dried Instant Coffee
5.4. Others

6. Hungary Instant Coffee Market Analysis, By Distribution Channel
6.1. Introduction
6.2. Offline
6.2.1. Retail
6.2.2. Food Services
6.3. Online

7. Hungary Instant Coffee Market Analysis, By Cities
7.1. Introduction
7.2. Budapest
7.3. Debrecen
7.4. Others

8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9. Company Profiles
9.1. Nestle
9.2. Il Perfetto Food Solutions Ltd.
9.3. Mocca Negra

Nestle

Il Perfetto Food Solutions Ltd.

Mocca Negra

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