lh x cw market report A4_23.03.02 v34 interactive72

Whilst the overall economic impact of the pandemic was weaker than anticipated and the consumption pattern has somewhat changed, the share of food & beverages sales remained dominant. If we adjust the expenditure figures for inflation, we can see that private spending on household furniture and books is picking up, but was still below pre-pandemic levels in 2022, while spending on fashion, shoes and accessories has already exceeded this level.

Online growth is the most striking, currently accounting for 9% of total retail sales. Total retail sales grew at an average annual rate of 3.2% over the 2020-2022 period, still one of the strongest expansions in the region. Over the next 2 years, inflationary pressures will affect all markets, but retail sales in Hungary are expected by Moody’s Analytics to be the only one in the region not to turn negative, averaging 1.4% per year.

8% Miscellaneous goods and services

4% Catering and accomodation services

26% Food and non-alcoholic beverages

1% Education

6% Culture and recreation

Annual per capita expenditure by COICOP

7% Communication

4% Alcoholic beverages, tobacco

4% Clothing and footwear

11% Transport

19% Housing, maintenance and household energy

5% Health

5% Furnishing, household equipments and routine maintenance

Source: HCSO and Cushman & Wakefield Research