Hungary reports rise in sweets sales - confectionary products - Brief Article - Statistical Data Included

Eurofood, Feb 13, 2001

Last year sales of Hungarian confectionery increased to around Hft95bn ([euro]358.4m), thanks largely to a rise in sales of quality chocolates. The industry expects a rise in imports of raw materials after Hungarian accession into the EU. Despite a very slow increase in production at the beginning of 2000, confectionery industry output for the full year is predicted to rise by 4%, with sales totalling Hft95bn, according to the secretary for the Association of Sweets Producers. The acceleration of sales at the end-year could be seen in every sector of the industry but the most spectacular increase was recorded for chocolate, which accounts for 50% of the 135 000t total confectionery output. The quality of chocolate bars rather than a rise in production volumes, is thought be driving sales, the share of flavoured and white chocolate increasing especially. Sales of small chocolate bars under 100g have also risen while sales of cakes, wafers and biscuits, which make up a third of total confectionery output, are increasing more slowly. Kraft Foods is the market leader with a market share of 40%, ahead of number two player Nestle.

The market share of low priced candies is only around 10% due to manufacturers investing less in marketing them. Sales of crisps, snacks, flakes and muesli, however, increased and now account for 12% of total sales. Demand for ice creams was also up in 2000, with sales during the year remaining close to peak summer levels.

SIMILAR INCREASE IN 2001

Manufacturers expect a further 4% to 5% increase in sales in 2001. Exports are forecast to continue to exceed imports in volume terms, while in value terms the opposite trend is true, largely due to the presence of multinational firms in Hungary.