We are longing for a sweet life

By: Budai Klára Date: 2023. 12. 20. 10:23

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Gábor Intődy, secretary general of the Association of Hungarian Confectionery Manufacturers told us that the confectionery category is clearly becoming more expensive, mainly due to the inflationary environment, higher raw material and energy prices and labour costs, a significant increase in the public health product tax (NETA), extra taxes and price freezes.

This article is available for reading in Trade magazin 2023/12-01

Gábor Intődy
secretary general
Hungarian Confectionery Manufacturers

“Annual sales in the Hungarian confectionery market are around HUF 250-350bn. Profitability varies from segment to segment and from company to company”, the secretary general explained.

The triumph of quality over quantity

Overall, the association estimates that the price of chocolates, biscuits, candies and other confectionery products has grown by approximately 20%, as value sales increased by 20% but volume sales typically stagnated or dropped. There are big differences between product groups: some products have become much more expensive and others less so. There was one winner last year, ice cream: sales increased by around 5%. Despite the price increase, Hungarians are generally not giving up on quality. According to the association’s survey, 49% of those buying sweets said they don’t make compromises in quality.

Manufacturers do not expect the crisis to last long

No reason to be bitter

Manufacturers are optimistic, expecting raw material prices to stabilise, energy prices to stay put and further rationalisation and administrative simplification in tax matters. They forecast that the downturn in sales won’t be as big as in the 2008 recession or the first year of the pandemic, and they don’t expect a prolonged crisis. Sweets makers hope that the new tenders will include funding for technological development and packaging improvements, as these areas are critical for the future. //