Based on a joint analysis by the Ministry of Agriculture and the Association of Responsible Food Manufacturers, a data-rich presentation demonstrated how the performance of the Hungarian food industry has evolved from EU accession to the present day. The picture is mixed: nominal growth, stagnation in real terms, low productivity, and increasingly severe competitiveness disadvantages characterize the sector.
At an event organized by the Agricultural and Food Industry Section of the HEA, Zsombor Páll, economic analyst at the Ministry of Agriculture, and Attila Vörös, Managing Director of the Association of Responsible Food Manufacturers, delivered presentations. The analysis was based on the publication “Food Industry in Numbers”, compiled using statistics from the Hungarian Central Statistical Office (KSH), Eurostat, and tax return data from the National Tax and Customs Administration (NAV).
A Strategic Sector, Yet Lagging Behind
The economic weight of the food industry is significant: in 2025, the sector generated nearly HUF 7,000 billion in production value, with more than HUF 3,000 billion in direct exports, and employed 105,000 people. The value of investments exceeded HUF 538 billion, representing 3.6 percent of total national economic development investments. In addition, the food industry is the most important domestic market for agriculture – nearly 37 percent of agricultural output is sold to domestic processors.
At the same time, EU comparisons show that the added value of the Hungarian food industry is only two-thirds that of agriculture, whereas in a well-functioning value chain the two sectors should be roughly balanced. Austria and Poland demonstrate more favorable ratios in this respect.
Moderate Growth, Strong Export Expansion
Calculated at constant prices, the sector grew by approximately 15 percent overall during the past two decades – although the trend was far from uniform. Following EU accession, the industry experienced a decline, which was further deepened by the 2008 economic crisis. However, from the 2010s until 2022, the sector enjoyed a favorable period of continuous expansion. Then, record-high inflation in 2022–2023 reduced domestic sales, the volume of which has stagnated ever since.
The trajectories of domestic and export sales diverged sharply: while domestic sales fell by 13 percent over 21 years, exports more than doubled. The share of exports in total sales increased from one-quarter to nearly one-half, providing stability for the sector, facilitating knowledge transfer through foreign supply chains, and improving financing opportunities, as exporters can access euro-denominated loans.
Productivity: Progress, but Untapped Potential Remains
Labor productivity showed substantial improvement between 2010 and 2023 – Hungary ranks sixth among EU member states in terms of growth. However, this is partly explained by the country’s initially low base level, and in absolute terms Hungary still ranks near the bottom of the EU field, behind Belgium, the Netherlands, and Austria. The productivity of small and micro-enterprises lags particularly far behind that of larger companies. Meanwhile, the wage-efficiency indicator has stagnated: increasing profitability is being absorbed by rising personnel expenses.
The picture is also weak in terms of energy intensity: Hungary ranks poorly within the EU regarding energy consumption per euro of added value, and the situation is similar with respect to greenhouse gas emissions.
Corporate Concentration and Dual Structure
Over the past 20 years, the number of incorporated food industry enterprises declined from 4,300 to 3,800, while production increased – indicating a degree of concentration. The sector is characterized by a dual structure: a small number of economically dominant medium-sized and large companies account for half of employment, two-thirds of asset value, and 68 percent of total revenue, while a large number of micro- and small enterprises are present with relatively little economic weight.
Competitiveness Disadvantages: Regulation and Special Levies
In the second part of the presentation, Attila Vörös, Managing Director of the Association of Responsible Food Manufacturers, pointed out that the level of raw material and processing costs in Hungary is broadly in line with the EU average – meaning that the country’s competitiveness gap does not stem from these factors. The real problem lies in the special levies imposed on production.
As an illustrative example, he cited the extended producer responsibility (EPR) system: due to the fees imposed on packaging materials, packaging food products in Hungary is now more expensive than in Austria. The case of cooking oil is even more striking: Hungary is the only country in the world where such fees are also imposed on food products. As a result, cooking oil prices in Hungary are approximately 10 percent higher than the EU average, consistent with the latest sectoral investigation by the Hungarian Competition Authority (GVH).
These burdens are compounded by high VAT on food products, industrial electricity system usage charges, non-residential water and sewage fees, the public health product tax, and various Hungary-specific regulatory costs. Together, these factors create an income deficit within the sector that constrains development opportunities.
Looking Ahead: Comprehensive Development Is Needed
According to the speakers, progress requires complex and balanced development – including technological investments, innovation, improving workforce qualifications, strengthening the organization of the value chain, and diversifying sales channels. As the analysts illustrated using an analogy by János Kornai: development can only be effective if the entire system strengthens proportionally – emphasizing a single element cannot solve structural problems.
The two speakers shared the conclusion that the sector requires data-driven, statistics-based policy planning, for which comprehensive analyses such as this are indispensable.
Prepared with the assistance of artificial intelligence applications, based on the summary transcript.