Overview
In Hungary, arable land and permanent crops cover 4.3 million hectares (ha), of which about 130 thousand ha are irrigated. Pastures account for 0.8 million ha, and forests cover 2 million ha. Major crops include wheat (0.9 million ha), corn (0.8 million ha), and sunflower (0.7 million ha). The country also has a long tradition of producing planting seeds and horticultural products. Animal production includes 2.8 million pigs and a poultry flock of 33.8 million birds. The number of cattle of all types is approximately 0.9 million head.
Hungary is a resilient, export-driven economy. Improvements in technological readiness and financial markets provide positive business incentives. Fiscal loosening and cuts in VAT, corporate income taxes, and social security contributions have intensified the market and trade and helped profitability, even in agriculture. Hungary’s agriculture contributed 2.8% to the gross value added in 2024. The total value of agricultural output decreased by 2.4%, and the volume of production also declined by 3.7%. Agriculture accounted for 4.3% of total investments and 4.2% of national employment.
The country’s agricultural trade balance remains positive. Agricultural exports accounted for 9.1% of Hungary’s total exports in 2024. Agricultural imports comprised 7.3% of total imports. The foreign trade structure of agricultural and food products is relatively stable. Most of the exported commodities are grains and grain products (13%), animal feed (12%), meat and meat products (9%), animal fat and vegetable oils (7%), beverages (8%), oilseeds (5%), dairy products (5%), vegetables and fruits (5%). Imports mostly consisted of oilseeds (5%), animal feed (9%), confectionery products (6%), meat products (8%), dairy products (7%), fruits (5%), tobacco (6%), and beverages (5%). More than 90% of agricultural imports (by value) came from EU member states. Hungary’s most important suppliers are Germany (18.7%), Poland (13.8%), Slovakia (8.4%), the Netherlands (8.4%), Austria (7.1%), and Italy (6.1%). Non-EU imports typically arrive from Ukraine (3%), Serbia (1.4%), Turkey, China, and the United States.
Regarding food and agricultural products, Hungary has a well-developed distribution system. While more than two-thirds of food on retail shelves is of Hungarian origin, opportunities still exist for U.S. products with good price-value ratios. Hungarian importers look for well-known brands and special, innovative, or new-to-market products when deciding on products to order. As a result, entering the market with a single product or product line can be difficult. Since brand loyalty is not a decisive factor in purchasing decisions, new ideas and new brand names are welcome in the market.
Retail Food Prospects
A broad range of consumers is open to American foodstuffs. An increasing number of buyers seek quality products and special or gourmet products from the United States, helped in part by stories, traditions, and positive sentiments toward America.
For instance:
- Craft beer consumption offers limited but improving export opportunities for U.S. products despite high competition from substitute goods. Premium beer and flavored alcohol-free beer products have also maintained their popularity.
- U.S. bourbon whiskey is popular among Hungarians who can afford premium products. While the current level of U.S. whiskey exports to Hungary can be increased, high VAT and excise taxes on spirits present challenges.
- With western consumption patterns emerging, especially among younger consumers, exports of sweets and snack foods offer lucrative opportunities.
- The pet food market holds stable prospects. The number of pets and responsible pet owners is growing. As wages have notably increased in recent years and the financial situation of the middle class has improved, sales turnover can increase in premium and super-premium segments.
Prospects in Tourism and Catering
Tourism in Hungary shows an upward trend. Fine dining businesses with demand for U.S. foodstuffs can provide export opportunities. Gastro-tourism drives sales in Budapest, but fine dining initiatives are emerging in the countryside as well. High-quality U.S. beef has good prospects in full-service, white tablecloth restaurants targeting tourists and high-end domestic consumers.
Foodservice operators, event marketing professionals, and regional tourism offices often collaborate to create open-air events, making various consumer foodservice types and cuisines popular.
Prospects in Food Processing
Thousands of food businesses operate in the country. Imports of out-of-season or unavailable ingredients, additives, packaging materials, and technologies can also provide export opportunities.
Useful information is also available to exporters in FAS Budapest’s Food and Agricultural Import Regulations and Standards (FAIRS) narrative and FAIRS export certificate report.
U.S. Embassy - U.S. Agricultural Services
Gellert Golya, Agricultural Specialist
Budapest, Hungary
Tel: +36 (1) 475-4162
Email: golyag@state.gov