Wine - Hungary

The Wine market in Hungary has been experiencing significant growth in recent years.

Customer preferences: Hungarian consumers have shown a growing interest in wine, with an increasing number of people incorporating wine into their daily lives. Wine consumption has become more popular among younger consumers, who are seeking new and unique flavors. Additionally, there is a growing trend towards organic and natural wines, as consumers become more conscious of their health and the environment.

Trends in the market: One of the key trends in the Hungarian wine market is the rise of domestic wine production. Hungarian winemakers have been investing in modernizing their vineyards and wineries, resulting in the production of high-quality wines that can compete with international brands. This trend has been supported by the government, which has implemented policies to promote the growth of the domestic wine industry. As a result, Hungarian wines are gaining recognition both domestically and internationally. Another trend in the market is the increasing popularity of wine tourism. Hungary has a rich wine culture and a long history of winemaking, which attracts tourists from around the world. Wineries are now offering tours, tastings, and other wine-related activities to cater to this growing demand. This trend not only boosts the wine industry but also contributes to the overall tourism sector in the country.

Local special circumstances: Hungary has a unique climate and geography that are favorable for wine production. The country is known for its diverse wine regions, each with its own distinct characteristics. The volcanic soils, moderate continental climate, and abundance of sunshine provide ideal conditions for growing a wide variety of grape varieties. This diversity contributes to the uniqueness and quality of Hungarian wines.

Underlying macroeconomic factors: The Hungarian economy has been growing steadily, which has had a positive impact on the wine market. As consumers' disposable incomes increase, they are more willing to spend on premium wines and explore new flavors. Additionally, the government's efforts to promote the wine industry have attracted foreign investment, leading to further growth and development in the market. In conclusion, the Wine market in Hungary is experiencing growth due to changing customer preferences, such as the increasing interest in wine among younger consumers and the demand for organic and natural wines. The rise of domestic wine production and the popularity of wine tourism are also contributing to the market's growth. Hungary's unique climate and geography, along with the country's growing economy, are underlying factors that support the development of the wine market.

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 alcoholic beverages, 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 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.