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Complex Analysis and Introduction of the Hungarian Mineral Water Industry
65-80Views:262The mineral water sector in Hungary has been developing dynamically for four decades. The present article explores the main characteristics of the sector and highlights its specificities within the food industry. The aim of the study is to identify the main characteristics of the market, analyze the macro and micro environment, determine the economic importance of the sector, analysis of the main players and strategic options. Based on the results of the research, it can be concluded that there are approximately 500 Hungarian companies whose activities include producing soft drinks and mineral waters under the TEÁOR 1107. However, there are only 10 of these companies whose main activity is exclusively producing mineral water, which is extracted and bottled in Hungary. The macro-environment analysis shows that the political environment is stable, the economic environment is not conducive to business, and high inflation, continuously rising labor costs, and raw material costs will continue to challenge businesses. However, SME support can provide significant help in the future. Among consumer habits, the growing health and environmental awareness significantly impact the sector. Rapid developments in technological factors offer many opportunities for businesses. Based on the microenvironment analysis, the market is saturated, and Szentkirályi Magyarország Kft. and Magyarvíz Ásványvíz Kft. hold almost 80% of the total industry turnover in 2021. The threat of new entrants is, therefore, not significant. The bargaining power of buyers and the threat of substitutes is high, and the bargaining power of suppliers is low. While compiling the competitive profile matrix, industry success factors were identified, with price level, brand, and environmental responsibility standing out. The biggest challenge in the sector is to reduce the environmental impact of packaging, using recycled plastic bottles as the easiest solution.
JEL Code: M21 -
International Market Segmentation of European Countries Based on Sports and Health Consumption
33-49Views:235Differences in development of European countries can be seen in many areas. Differences in household expenditure, income inequality and life expectancy have already been revealed by a number of previous studies. However, relatively little attention has been paid to the international variations in household health, sports and recreation spending. In our research, therefore, European countries were segmented on the basis of, among other things, household health, sports and recreation expenditures, pointing out that the level of these expenditures is related to other dimensions of development. As a result of our research, the authors managed to separate four clusters of European countries in terms of sports consumption and three clusters in terms of health consumption, with useful lessons for economic and social policy or profit-oriented companies considering international expansion in the health, sports and recreation markets.
JEL Classification: I12, I14, I15, M30, Z20
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Situation Analysis of the Hungarian Beekeeping Sector (Production, Trade)
21-34Views:422From year to year, the global production of honey is continuously growing, but the honey producers and other stakeholders around the world and in Europe face similar processes and difficulties that are destroying the honey market. It would be necessary to reduce counterfeiting, improve the bee health situation, operate a comprehensive database and monitoring system, and provide extensive support to beekeepers. In order to ensure the sustainability of the beekeeping sector, it is necessary to develop and apply good agricultural practices, and in order to preserve biodiversity, related rural development programs and measures are needed. If the sector stabilizes (in Hungary, in EU-28 and worldwide), the long-term sustainability of beekeeping can be achieved; its ecological significance can be protected, and the rural retention role of the countryside may be strengthened in honey-producing countries. The aim of the study is to map the EU and Hungary honey production and trade with the help of relevant literature and statistics, and to present the current situation, difficulties and challenges of the honey market. After analyzing the market situation and sectoral processes, a SWOT matrix has been created including the strengths, weaknesses, opportunities and threats of the beekeeping sector. Then we made recommendations to improve the current situation in the beekeeping sector.
JEL Code: M31 -
Investigating the Coffee Consumption Habits
59-70Views:1685Coffee consumption is a widespread activity nowadays all around the world. It is a very popular beverage, with many variants as are known. Caffeine can cause many effects in our bodies. These include health benefits and adverse effects. According to 2018 data, the annual per capita coffee consumption in Hungary was 3.1 kilograms, making it the 24th largest coffee consumption country in the world. The aim of the research was to reveal the coffee consumption habits at the domestic level, based on the results of a questionnaire survey based on secondary data collection. In our research, we have also placed great emphasis on examining the beneficial and harmful health effects of coffee consumption. Our further goal is to explore whether domestic consumers are aware of the health effects of coffee consumption. Our hypothesis, defined in connection with our research, was, “Those people who frequently consume coffee are unaware of the health effects of coffee”. As a first step in our research we made a secondary data collection and our second step was the primary data collection. The basis of our primary research was the questionnaire we prepared, which was shared online. The size of the examined sample is 1 664 people. The sample population does not statistically represent the population of Hungary, therefore we do not consider the survey to be representative, the results are only exploratory. Based on our research, we found out that although most of the people who consume coffee often are aware of the beneficial and harmful health effects of coffee, this is mainly true for women, but less so for men. Men are more likely to know only the harmful effects. Our results have shown that those who are aware of all the health-affecting properties of coffee are not more conscious of the amount of coffee consumed than those who are unaware of only the good, bad, or both of the properties.
JEL Codes: A13, P56
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Functional Foods, Consumer Attitudes and Personalized Nutrition
3-17Views:490The dramatic spread of the so called diseases of civilization have occurred in the last decade worldwide. Deaths caused by them have long been of the highest rate among all causes of deaths. In parallel with the spread of the diseases of civilization, population of developed countries is increasingly ageing that increases the number of inactives and those who rely on health treatment. The outlined factors pose new challenges to the food industry: it requires the development new foods that slow down the spread of the diseases of civilization that hit the humankind through their health care effect, and at the same time provide longer life in health for the ageing societies. In the decade after decoding the human genome an extremely rapid development occurred in the techniques of genomics, and in the disciplines applying genomics methods. Researches in genomics focus on how the human genome interacts with the environmental factors for determining the gene expression. Nutrition as one of the most important environmental factors has an obvious impact on the health but we have not known yet exactly what this impact is and what its mechanism is. The so called nutrigenomics – that is a new discipline – aims to reveal the relationships that are not yet known. The personalized nutrition is a conception that adapts the diet, the foods, and the nutrients to the unique needs of the specific person.
The authors examined the relationships between the functional foods, consumer attitudes and personalized nutrition in the framework of a nation-wide representative consumer survey of 500 people. According to the results majority of the consumers (73.8%) believes that her/him nutrition (diet) follows a normal structure and all that she/he needs enters her/his body automatically. Knowing the critical health state of the population it can be stated that the high agreement portion is based on misbelieves. This is also indicated by the fact that 57.4% of consumers only eats foods that tastes good, even when it is supposedly less healthy. In the next half year almost 50% of the Hungarian population do not intend to switch to a nutrition considered healthier by themselves. Further 22% of the respondents already feel some urge to change their behavior, they compare the costs and the potential benefits of change. Only 5.0% of the interviewees switched to a nutrition considered healthier by themselves in the last six months, and the rate of those who maintain the positive change is 17.4%.
In the current situation there is no other option than raising awareness of the population for foods that provide excess nutrition benefits. These are the functional foods that hold important position in the education to healthy nutrition of the population. However, it is does matter in which strategy they are used by the enterprises. This applies for the development of both new technologies and new functional foods where involvement of consumers is inevitable today.
The so called perception screening theory answers the solution of the anomalies between the scientific objectivity and the consumer perception. We tried to apply the perception screening theory in a new discipline, entirely unknown to the consumers. The nutrition genomics and its major application area, the personalized nutrition are novel concepts to the population to such an extent that preferences and attitudes related to them have not occurred yet. This is why it could be interesting which most important psychological processes are the ones that can lead to the adoption of the new technology, and the development of the positive consumer attitudes. According to the results Hungarian consumers are mistrustful against the new technology and they are uncertain – despite its obvious advantages. The not so positive attitude is likely caused by more factors together. Traditional thinking, reluctance to the new play a role in it as well as the lack of information and misbelieves related to the genetic tests. The technology is novel to the consumers to such an extent that we found significant differences between the consumer segments only in some cases, i.e. consumer preferences cannot be classified, they are highly scattered. Finally, the authors developed an optimized practical model by which the successful launch of a new functional food and its hindering factors can be securely forecasted. -
Sour Cherry Seed Extract – An Emerging Functional Food
31-34Views:96Advanced analytical techniques have recently revealed powerful health-promoting properties in components of some plants, which had remained obscure until present days because they were not typically consumed as food by humans. A particularly fascinating example is the seed kernel of sour cherry (Prunus cerasus). Chemical analysis of the seed kernel revealed that the solid flavonoid-rich fraction, comprising approximately 64–68% of the kernel, contains several health-enhancing polyphenolic compunds including catechins, stillbenes, anthocyanidins and resveratrol. The remaining 32–36% is an oil fraction rich in tocopherols and related compounds, including tocotrienols, oleic acid and triglycerides. Previous studies demonstrated that oral administration of sour cherry seed extract to animals strongly stabilizes healthy tissue homeostasis and suppresses ischemia-reperfusion injury by augmenting expression of heme oxygenase-1, a major endogenous cytoprotective enzyme. The sour cherry fruit is a major export of several nations, including Hungary, however the seed is currently considered an agricultural by-product and discarded. The better understanding of health protective effects of the seed extract would open new avenues for the Hungarian agriculture and food industry in the future.
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Drivers of Local Food Product Consumption among Young Consumers
21-39Views:295Future trends in sustainable food consumption include, among others, the expansion of short food supply chains coupled with a shift in consumer behaviour, e.g., a growing interest in product information, increased appreciation of trust towards local producers and locally produced food. There is a growing body of literature on local or alternative food to address the problem of consumer behaviour called the buyer's "black box". This paper aims to identify the most prominent drivers for the segment of young consumers for purchasing healthy and quality products: curiosity, uniqueness, and experience. We conducted this study to direct the attention specifically to the buying behaviour of young consumers, as previous research found this segment the most open to sustainable food consumption. A quantitative study was conducted on a large-sample survey with respondents aged 18 – 45 in Hungary. The questionnaire focused on product features, intrinsic and extrinsic motivational elements, and demographic characteristics. The findings of this study can support managerial decision-making and serve as a basis for further academic research.
JEL-Codes: A13, F64, M21, O13, P46 -
Examinations of Attitudes towards Functional Foods – Literature Review
21-34Views:253The current study of our two-part paper series dealing with psychological influences on functional food consumer behaviour focuses on attitudes towards functional foods, while the subsequent study will discuss other psychological influential factors. Several research studies have already examined attitudes towards functional foods but the wide range of available products, the significant international heterogeneity of attitudes and the diversity of the applied research methods make their comparison and generalization remarkably hard. This paper aims to organize these research studies according to specific standpoints, and based on this, to draw generalizable conclusions. Based on the literature review, we can state that attitudes towards functional foods are positive worldwide, and those attitudes have a positive effect on the purchase and consumption of functional foods. There are, of course, international differences in attitude factors that play a significant role in this positive effect, and also in the composition of those factors. These differences can be attributed primarily to the different development stages of markets. However, we can state that the most important attitude factor everywhere is the reward from using functional foods (health protection and promotion, well-being, good performance and mood) that has to be forwarded stated simply and obviously towards the consumers in marketing communication messages. Besides this, social necessity (including medicine-like effects) of and confidence in functional foods also influence the intention for consumption, thus, the healing effect can also be a useful buzzword in messages. In the less developed markets – such as Hungary – confidence includes the belief in the safety of the products indicating the fact that where consumers are not familiar with these products, perceived risks of functional foods can be a strong barrier to their consumption. Therefore, a key role of marketing communication messages in those markets is the reduction of perceived risks. It is worth noting, however, that functional foods cannot be seen as a homogeneous food category, thus the importance of different attitude factors may vary between the different types of food. Additionally, consumers cannot be seen as one, homogeneous group, either, therefore different marketing communication messages developed according to the attitude-based segments will be effective.
JEL codes: D11, M31
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Farmers' Markets on the University Campus
41-56Views:356Short food supply chains are increasingly studied areas of international studies. Many see their spread as the solution to sustainability in agriculture. One of its defining sales channels is farmers' markets, their number has grown dramatically in Hungary in recent years. Many studies analyse the consumers of farmers' markets worldwide, but only a few studies examine the relationship of university students with farmers' markets. However, there are examples of this in the USA; it is even typical that farmer's market is organized on university campuses. University students are not typical buyers of farmers' markets, but they will be the consumers of the future, so it is worth examining their habits and needs. With the help of a questionnaire filled out by 382 university students, we investigate whether there is a difference between the food shopping habits of the university students examined in previous studies and the ones analysed in the current study. Do they have clearly identifiable habits of purchasing on the farmer's market? Is there a demand to organize farmers' markets on university campuses in Hungary? The food shopping habits of university students studying in Hungary are largely the same as the habits of university students examined by previous research. For university students, the price, comfort, the selection, and quality aspects of the products dominate. 31% of the university students, who filled out the questionnaire, have never shopped at a farmer's market; while among those, who purchase there food, only 21% do this regularly. The main obstacle for non-regular shoppers is the distance from farmers' markets, which can be solved by organizing farmers' markets on university campuses. 95% of the sample is open to this, so it would be worthwhile to conduct separate research for each university and put the positive results into practice.
JEL-Codes: O13, P46, Q13 -
The Role of GI Products in the Hungarian Food Discounters
3-18Views:132More than 25 years ago, the European Union (EU) has established a sui generis system of geographical indications (GIs) for identifying the products which quality, reputation or other characteristics are linked to their geographical origin. By the end of 2018 the official register of the European Commission (the DOOR database) included 1448 registered food products with GI label, but their number is continuously increasing. For several reasons, we examined the discounters operating in Hungary in order to estimate the market size and price premium of GI foods in Hungary. Firstly, discounters’ share in the Hungarian food retail sector is continuously growing and reaching the majority of the average Hungarian consumers. Secondly, their typical feature is that their supplies are almost constant and limited, discounters target the price sensitive consumers, so the minimum level of price premium can be defined here. In this study, we would like to estimate from below both the market size of Hungarian GI products and the price premium of GI products compared to their direct substitute products. To gather real life data, we have gone mystery shopping for a year every month (January-December 2018) to an Aldi, Lidl and Penny Market retail shop located in Budapest. We collected data of available GI products and their closest substitute products which were available in the shop and then we analysed the dataset consist of several hundreds of observations. Our results show that the number of GI products available in the Hungarian discounters is very limited, however, their supply is quite permanent. The majority of GI foods available in Hungarian discounters are Italian and the average price premium was around 43% with remarkable differences. Our results show that currently GI food products have limited importance in the Hungarian food market as they are rarely available. On the other hand, a real price premium for GI products exists in the Hungarian market and an even higher price premium might be expected in less low-price oriented food retailers.
JEL Classification: M31, M37, O13, O34, Q13
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Changes in Food Purchasing Habits During the Covid Pandemic in Slovakia and Hungary, Focus on Southern Slovakia and Western Hungary
55-70Views:855The global pandemic of COVID-19 has led to many drastic changes worldwide, not only in the economy, but amongst others, in the structure of people’s daily routines as well. Some developments have been involuntary – as social distancing, wearing masks, restrictions on travel, etc., but for others, it has merely accelerated the adoption of behaviors already gaining traction, such as the digitalization of shopping and more. Consequences of subsequent lockdowns and their effect on the consumers’ grocery purchasing habits and their implications for food retail had been investigated in our research with a particular focus on regions of South Slovakia and West Hungary in a period ranging from November 2020 till April 2021. The constructed online questionnaire chosen for data collection aimed to identify specific ways in which consumers changed their grocery shopping behavior during the lockdown (e.g., frequency of shopping trips, time spent in stores, the aim of shopping, purchase of ingredients, online shopping). The results of the online questionnaire underlined the main regional differences between the two countries. The overall outcome of our research showed the moderate reduction in grocery shopping frequency, minor changes in shopping location and partially increase in online shopping. Our results showed that although the proportion of online purchases has increased, such a crisis does not seem to be sufficient to overcome barriers to shopping, such as the purchase of a new, unknown product. But changes that provide positive experiences are likely to last longer, particularly those driven by convenience and well-being, such as digital adoption, value-based purchasing, and increased health awareness. This provides an opportunity for companies to offer innovative, value-based, and integrated products or services to meet customer needs. Companies and retailers will need to adapt fast, understand consumers’ preferences, and stay relevant.
JEL Codes: D12, D91