2025 was a black year for the Hungarian food industry: product lines under pressure on multiple fronts

Expectations at the beginning of the year: a wave of subsidies and flexible inflation

At the beginning of 2025, the market was still hoping that food inflation would subside, but it was widely expected that it could remain above overall inflation. Meanwhile, the processing industry development programs and the measures focused on producer protection and irrigation predicted an increase in investments.

The Chairman of the Poultry Product Council, Attila Csorbai, then drew attention to the fact that the production of animal products has decreased in several member states as a result of the EU production restriction rules, while the demand for poultry meat is increasing. Regarding the support side, however, he emphasized that when assessing applications, realistic criteria based on bank ratings and company due diligence are needed so that truly feasible investments are given the green light.

Margin stop: one of the biggest points of tension in the product pipeline

In 2025, margin stop became one of the sharpest sources of conflict among processing industry players. The regulation 2026. Valid until February 28, the commercial margin for the affected basic foodstuffs is maximum 10%, and applies to traders whose annual sales revenue exceeds 1 billion forints. The scope, initially introduced for 30 product categories, was expanded to additional products from December 2025, and the sanctions could include a fine of up to 5 million forints.

According to the managing director of Nádudvari Élelmiszer, Ádám Nagy, despite the regulation, justified price increases were not implemented, while costs – wages, packaging, logistics – increased by 5–10%, which significantly narrowed the profit margin. At the same time, the ceiling brought an increase in consumption for the affected products, which several companies had to follow up with capacity expansion – in other words, the regulation simultaneously depressed the price side and accelerated production adaptation.

One ​​of the key points of discussion on the retail side is that margin is not the same as profit: this is what has to be used to cover operating costs, so the ceiling is causing tension especially in segments with traditionally low profitability. According to the actors, the effect will ripple through the entire product path and may distort market signals.

Consumer turn: discounting and quality compromises

In 2025, several signs indicated that price sensitivity would permanently increase in purchasing habits: the weight of discount channels would increase, and lower-priced, private label options would come to the fore more often. At the same time, the processing industry also faced import pressure and the risk of “quality degradation” – while labor shortages and the lack of consolidation further worsened efficiency prospects.

Insect proteins: controlled spread, with lively debates

The use of insect proteins in the food industry remained a recurring theme of the year. At EU level, the use of four insect species is currently permitted, only in specific forms (for example, frozen house crickets (in dried, powdered or powdered form), with strict composition, limit and labeling regulations. In Hungary, products containing insect protein are subject to the provisions of Decree 36/2014. (XII. 17.) FM Decree, the warning (“Warning! The food contains insect protein!”) must be displayed in the same font size as the product name, and such products must be displayed separately.

57 recalls: food safety risks also came into the spotlight

In 2025, the “background risks” of food industry operations also appeared in public: during the year, 57 product recalls were registered, which is the highest number of product recalls in the past six years. data-start=”4203″ data-end=”4226″>the second highest value. The majority of recalls were initiated through the EU RASFF alert system, which monitors not only food but also materials and feed that come into contact with it.

External pressure: tariff wars and Mercosur dispute

International trade tensions also affected product trajectories in 2025. The tariff wars have increased uncertainty on the purchasing and sales side, while the debate over the Mercosur agreement has emerged as a new risk: according to expert opinions, the agreement may have controversial consequences for European agriculture, food security, natural values ​​and climate goals.

Based on the experience of 2025, the players are preparing for 2026 in a way that the risks will not disappear overnight: the development of the regulatory environment, cost-side adaptation, consumer price sensitivity and foreign market uncertainty together determine the room for maneuver. The question is no longer whether there will be pressure in the system, but rather who can build a stable business model and how quickly under the changed conditions.