Spirits - Hungary

The Spirits market in Hungary has been experiencing steady growth in recent years. Customer preferences for premium and craft spirits, as well as the increasing popularity of cocktails, have contributed to this trend. Additionally, local special circumstances and underlying macroeconomic factors have played a role in shaping the market. Customer preferences in Hungary have shifted towards premium and craft spirits. Consumers are becoming more discerning and are willing to pay a premium for high-quality products. This trend is driven by a growing appreciation for the craftsmanship and unique flavors that premium and craft spirits offer. As a result, there has been an increase in the number of artisanal distilleries producing small-batch spirits in Hungary. The popularity of cocktails has also influenced the Spirits market in Hungary. Consumers are increasingly interested in experimenting with different flavors and mixology techniques. This has led to a surge in demand for spirits that are versatile and can be used in a variety of cocktail recipes. As a result, spirits such as vodka, gin, and rum have seen an increase in sales. Local special circumstances in Hungary have also contributed to the development of the Spirits market. Hungary has a rich tradition of spirit production, particularly in the form of fruit brandies such as pálinka. Pálinka is a traditional Hungarian fruit brandy that is made from a variety of fruits, including plums, apricots, and cherries. It is highly regarded and has a protected designation of origin status in the European Union. The popularity of pálinka has not only driven domestic sales but has also attracted international attention, with exports of Hungarian spirits increasing in recent years. Underlying macroeconomic factors have also played a role in the development of the Spirits market in Hungary. The country's strong economic growth and rising disposable incomes have contributed to increased consumer spending on spirits. As consumers have more disposable income, they are able to afford higher-priced spirits and are more willing to experiment with different brands and flavors. Additionally, the growth of the tourism industry in Hungary has also had a positive impact on the Spirits market, as tourists often purchase local spirits as souvenirs or to experience the local culture. In conclusion, the Spirits market in Hungary is developing in response to changing customer preferences, the popularity of cocktails, local special circumstances, and underlying macroeconomic factors. The shift towards premium and craft spirits, the growing interest in cocktails, the tradition of spirit production, and the country's strong economic growth and rising disposable incomes have all contributed to the growth of the 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.