STiR coffee and tea magazine

46 STiR coffee and tea | 2024 Issue 3 (June / July) T By Eugene Gerden he coffee market of Hungary, a landlocked country in Central Europe, spanning much of the Carpathian Basin, is steadily growing these days thanks to improv- ing local economics and the rising demand for high-quality coffee. Hungary is not one of Europe's major coffee drinking nations, as the per capita consumption of local customers is significantly lower than that in Italy and the Nordic states. However, in recent years, the situation has changed, mainly due to the expan- sion of some global players into the local market and Hungarian consumers switching to more quality and expensive coffee varieties. The switch to higher-quality coffee has contributed to the overall growth of the market. According to the latest data provided by László Békefi, the managing direc- tor of Coca-Cola HBC Magyarország Kft (with its Costa Coffee and Caffé Vergnano brands), one of the leading local players in Hungary, the estimated annual value of the coffee market exceeds $541 million. In volume terms, the market is estimated at 19 million kg annually, with the annual growth rates of about 8%. About 30% of the market accounts for ground coffee, which is the largest segment of the market. In terms of market structure, retail trade generates a turnover of HUF 85-86 billion, and the HORECA sector earns HUF 110-120 billion. Premium Coffee Stimulates the Hungarian Market According to an earlier Nielsen survey, 85% of the adult Hungarian population drinks coffee, an average of 2.7 cups per day. 91% of coffee drinkers consume cof- fee at home every day, and 53% of them also drink coffee at work on a daily basis. The Hungarian coffee market has been demonstrating stable growth rates since the end of the pandemic. The pre- mium coffee segment is a major factor driving the coffee market. As Békefi added at present the pre- mium category accounts for 9% of the overall market, while the company holds approximately 2% of the market. As for Coca-Cola HBC Magyarország Kft, in 2023 the company registered al- most 50% sales' growth, with a further 30% increase for the company in the present year. Part of the company's strategy is ac- celerating expansion in the Hungarian market this year, paying particular focus to the HORECA segment. In case of its flagship Vergnano brand, it already has 600 contracted HORECA partners in the Hungarian coffee market. While there are plans for more active development in re- tail trade. The company expects a further growth of the share of Caffé Vergnano up to 0.5% of the market and 3.5% in case of Costa Coffee. In 2022 the company opened Accademia Vergnano in Buda- pest, the brand's professional training cen- ter. The academy with an investment of HUF 50 million offers about 300 courses. In addition to Coca-Cola HBC, the Hungarian market is also attracting inter- est from other global coffee producers. One of them is the Italian Lavazza, which With the most coffee shops in the country, Budapest is the center of the Hungarian coffee scene. The growing Hungarian coffee market is attracting major international brands and players.

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