Pockets rattling with change

Consumer confidence in Hungary continues to lag behind the European level. Discounters are flying high and now realise 40% of FMCG sales.

Still in austerity mode

Consumer still hold back their shopping very much and in Hungary we are still living in austerity mode a little, trying to manage our monthly income well. Price is the No.1 factor in our purchasing decisions: 66% are particularly price-conscious when shopping. 76% of households actively search for and choose products on sale. The shares of private labels and branded products is roughly balanced (50-50%). Overall the situation remains difficult and tense, in spite of the fact that a positive shift is already visible. In the first half of 2024 sales were up 4% compared to January-June 2023. 2023 was the first year in which promotional sales surged this much (+36%), with a 27% rise in private label sales.

Discounters haven’t lost momentum

In Hungary the three discount supermarket chains now realise 40% of total food and drug sales. Lidl is responsible for 21% of retail sales in Hungary and it produced the biggest sales growth in the first half of 2024 compared to the same period last year. Lidl also has the highest penetration rate in Hungary at 83% – this means that 83% of Hungarian households visited Lidl in the first half of 2024. In this ranking Lidl is followed by Tesco, SPAR, Penny and Aldi. If we analyse basket size, Auchan is in the first place and Lidl is in the runner-up. Medium and large shopping baskets account for 35% and 33% of total sales, respectively. The proportion of large baskets (total value and product mix of baskets bought per shopping occasion) is the highest in discount supermarkets (45%). Therefore it is very important for manufacturers to be present in this channel and it really matters with what kind of product portfolio they do this.

We like to shop

38% of Hungarian households like to try new products. This proportion is 48% for younger generations and much lower for the elderly. Seven out of ten shoppers enjoy shopping, despite the fact that it is an increasing financial burden. 55% of shoppers say they compare products from different brands and 39% regularly use the internet to gather information about products for comparison. It is curious that half of households don’t see a quality difference between a branded and a private label product. The importance of promotions can’t be emphasised enough. Shoppers like discounts on the total amount the most (76%), followed by the discounts available in the loyalty programme (68%), the 1+1 promotion (58%) and the discounts on products with an approaching expiry date (46%). 68% of households watch TV daily and 40% listen to the radio every day. Social media use is widespread, with 76% of households using social media every day. //