Changing trends: Can alcohol in Hungary still be considered cheap?
As expected, the COVID pandemic affected the tourism sector in Hungary in many ways. For example, it completely redesigned the habits regarding consuming alcohol in Hungary. During the lockdown, many people figured out that making cocktails at home is far more affordable than going out to fancy bars. In addition, the price of alcohol in Hungary is not necessarily attracting tourists to the country anymore.
Hungary is no longer an affordable destination
Habits and changing trends regarding alcohol consumption in Hungary were the focus of Pénzcentrum‘s recent interview with Zsolt Erdei, CEO of Passion Group. According to the CEO, Hungary is no longer the affordable destination it once was for tourists seeking low-cost experiences, especially when it comes to dining out. The prices at Hungarian restaurants have risen significantly, with even traditional dishes like goulash soup coming at a cost that rivals meals in cities like Barcelona (where Erdei lives), despite differences in the types of cuisine offered. Various factors have contributed to these price hikes, making Hungary less attractive for those who previously visited due to its affordability.
Do tourists come for the cheap alcohol in Hungary?
The CEO suggests that alcohol in Hungary is not necessarily cheaper than in other EU countries. In addition, the tourism sector in Hungary is also facing challenges in terms of visitor demographics. Previously, there was a steady influx of tourists interested in good bars and restaurants, but these numbers faced a sharp drop. Meanwhile, Erdei notes that some excellent initiatives and sophisticated bars exist in Hungary. However, the affluent class of tourists rarely target Budapest.
According to the CEO, the key to regaining this market lies in the fact that the industry needs to adopt a strong strategy. In addition, fostering better partnerships to highlight Hungary’s excellent culinary and alcohol offerings, particularly in Budapest, is also of high importance. Effective marketing and collaboration are essential to attract more gastronomically focused travellers to the capital.
Changing tendencies
Globally, alcohol consumption is declining across all age groups. In Hungary, changing habits are starting to reflect a broader international trend. Younger generations, particularly Generation Y, are consuming less alcohol, with a recent survey showing that half had not consumed any alcohol in a given month. In the decade of social media, young people are trying to be more conscious about what they do, as anything could end up online.
This shift has impacted producers, including winemakers and brewers, who are increasingly focusing on low-alcohol and alcohol-free alternatives such as sparkling wines and flavoured beers. Major beer companies, present in Hungary, predict that by 2025, non-alcoholic and low-alcohol products will account for half of their sales. Thus, alcohol in Hungary will become even less popular. Although this trend is slower to take hold here, it is expected that alcohol consumption among younger people will continue to decline in the upcoming years as well.
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It most certainly isn’t cheap and hasn’t been for a while. It’s one thing that the cost of drinks has escalated in bars and restaurants, another that the supermarket prices for alcohol have also seen swingeing increases in the last few years. You can still get a beer for an average of 1000 Ft in Budapest which, I guess, is reasonable by way of international comparison (although perhaps not with Czechia, but that’s an exception) but wine in particular has gone through the roof, a good glass in a bar or restaurant is as expensive as anywhere in Europe and considerably more than Spanish or Italian prices. You can’t buy a ‘good’ bottle of Hungarian wine in a supermarket for under 2000 Ft, all the action at the lower end of the market is in imported wine (French, Italian and Spanish with Chilean and Argentinian also making an appearance). Sparkling wine is now more expensive than a French cremant bought in a French supermarket. The base quality Hungaria blue label is 7 Euros nearly everywhere. I can buy an excellent bottle-fermented Spanish cava in a UK supermarket for less than that. Quality spirits have become hideously expensive, branded gin and whisky are now cheaper in the UK, despite the UK’s famed high levels of alcohol tax. I do sometimes wonder who is paying these elevated Hungarian prices, someone must be, but not me.