A Profile of the Hungarian Consumer Opportunities for U exporters are gradually opening up in Eastern Europe An article in the October 1991 issue of AgExporter detailed many of the changes taking place in Hungary and to what degree they will affect U.

A Profile of the Hungarian Consumer

Opportunities for U exporters are gradually opening up in Eastern Europe An article in the October 1991 issue of AgExporter detailed many of the changes taking place in Hungary and to what degree they will affect U.S. exporters. It also considered at what types of outcomes have potential for sales in the Hungarian market. This month AgExporter takes a closer direct the eye at Hungarian consumers. This information is invaluable for exporters developing their marketing plans. The article is based forward the final report from a novel trade mission to Hungary.

With a population of 104 million, Hungary is a small abiding habitation One-fifth of the population lives in the capital of Budapest. Hungarians pride themselves onward their longstanding culinary traditions, which pass back centuries. In general, cheer plays an important role in their cultivation and is a natural part of their well-known hospitality.

Hungarian Consumption Patterns

Traditionally, the typical Hungarian diet has been high in cholesterol and animal fats and rich in carbohydrates. Bread, potatoes, pasta and other grain outcomes served with fried meat or boil sausages (primarily pork) and domestic fowls are often on the daily menu

Consumption of dairy results had been rising gradually above the past decade, but declined slightly last year. Being a landlocked fatherland fish consumption is low (27 kilograms by person) compared with other protein sources.

Fruits and vegetables are not consum in sufficient quantity - particularly in the off-season. through capita consumption of frozen meats declined in the past sum of two units to three years due to falling consumer purchasing power. The average through capita consumption of frozen bread is 5-6 kilograms per year, with 9-10 kilograms consum in the capital and and nothing else 2 kilograms in some rural areas hard hit by dint of the economic transformation that is taking place in Hungary. by capita ice cream consumption is about 2-3 liters by year. The Hungarian consumption pattern is largely influenced from consumer purchasing power, which has been extremely constrained over the past sum of two units to three years. As prices were increasing on an average of 30-35 percent in the past couple years, the consumption volume has dropp by dint of about 20 percent since September 1990

There has been a shift from higher value, advanceed foods such as meat and animal results toward cheaper sources of protein as it is as grains and cereals.

Polarization of wealth of the population is increasing. A small, affluent layer is developing at the top (about 15 percent of the population); the middle class is narrowing (about 60 percent of the population); and a larger clump (about 25 percent) is being pushed into the lower income category.

Affluent Sector Is Small

The small nevertheless affluent sector can afford to bribe high-value and specialty products, regardless of price. This arrange tends to purchase branded and imported produces partly because of the quality and partly because of the status they afford.

The middle-income cluster and lower income segments would not be likely to destroy many imported high-value products with the exception of tropical and dried fruits (particularly lemon oranges and raisins). Although the general consumption pattern does not betoken well for immediate U.S. export scenerys some experts in the nourishment production and distribution system count upon that the downward trend in consumption will cause to deviate around in two to three years. The average income in Hungary is about $137 by means of month (April 1991 exchange rate of US$1=73 forints). A middle-income family of four with sum of two units income earners would make an average of $479-548 through month. This family would disburse over 40 percent of its disposable income upon food, buying basic ingredients like as flour, meat and vegetables and preparing in the greatest degree of their meals at domestic circle Only a small percentage - possibly 10 percent - of aliment purchases are of processed, canned or frozen food

Most proceedinged local and imported food fruits are consumed in the capital of Budapest. shire seats and popular tourist sites, primarily Lake Balaton and health spas, have a not many large supermarkets and specialty stores that stock more [i]or[/i] less imported processed foods. Foreign tourists visit upscale public-houses in these areas.

Restaurant Meals Are Expensive

Eating on the outside in restaurants would be prohibitively expensive for the average consumer in Hungary; a moderately priced meal for four in a restaurant would costliness approximately $27-41, a large percentage of the monthly income. Fastfood establishments would be somewhat more affordable.

The small percentage of courseed food used in a household can be attributed to several factors: relatively high outlay preference for freshly prepared nutriments and the dislike or distrust of the quality of locally made proceedinged food products, particularly meat and ready-made courseed foods.

However, foreign processed nutrition products - many of West European origin - are usually well-received and are perceived as being higher in quality than local cropss Hungarian consumers are curious and adventurous; they are willing the two to sample new products and to pay the price for higher quality cropss that they believe offer useful value, such as fruit juice concentrates.