Beer Consumption in Hungary Declined Last Year

Last year, Hungarian beer consumption fell by 10%, from 6.006 million hectoliters in 2022 to 5.4 million hectoliters, with a significant drop in imports and an increase in the share of domestic products, Sándor Kántor, director of the Association of Hungarian Beer Producers, told MTI.

Based on the combined data of the five most important beer producers in Hungary (Borsodi Sörgyár Ltd., Carlsberg Hungary Kft., Dreher Sörgyárak Plc., Heineken Hungária Plc., and the largest small-scale brewery participating in the data analysis, Pécsi Sörfőzde Plc.), imports decreased by 28%, from 886,000 hectoliters to 640,000 hectoliters. Exports also decreased, by 16% to 375,000 hectoliters.

The director of the association stressed that the technological and product development programs of the companies, which have been carried out over the years with billions of euros of investment, have resulted in an increase in the share of sales of domestically produced beers: in 2023, the five largest Hungarian producers achieved 88% of sales. Domestic production thus fell by less than 8%, from 5.567 million hectoliters in 2022 to 5.135 million hectoliters.

Despite the drop in sales, the budget payments of the five largest producers increased by 1% to 86.4 billion forints in 2023, with VAT payments rising by 15% and excise tax payments falling by 11%, worth HUF 41.5 billion and HUF 37.8 billion respectively, the director of the beer association said.

The number of employees in the industry continued to grow, reaching 1,624 in 2023 at the five largest Hungarian producers, and the sector provided stable employment for an additional 20,000 people in production support, logistics, trade and catering.

Speaking about the individual product groups, Sándor Kántor said that the share of the super-premium and premium segment in domestic sales continued to grow, reaching 31% in 2023, with 1.661 million hectoliters. The mid-range segment maintained its share of 55%, with sales of 2.957 million hectoliters, and the weight of low-end products continued its years-long decline. The latter segment accounted for only 8% of the turnover of the five largest producers last year, with 418,000 hectoliters. The market expansion in non-alcoholic and reduced alcohol beers observed in previous years has come to a halt, with the product group accounting for almost 7% of total sales last year with 364,000 hectoliters.

Sándor Kántor pointed out that sales of cask-conditioned beer in the HORECA sector (hotels, restaurants, cafés) fell by 9% to 386,000 hectoliters. Among the most popular retail packaged products, sales of the most popular litter-box products fell by a similar amount to 3.856 million hectoliters, which is 70% of total domestic sales. As a result of rising demand, sales of PET bottled beers increased by 4% to nearly 300,000 hectoliters, while sales of single-port non-refillable bottled beers, typically the packaging of premium products, fell by 5% to 223,000 hectoliters, less than the overall market.