Cafe Frei 2

As the European Coffee Symposium travels to Budapest, we put a spotlight on the Hungarian and neighbouring coffee shop markets.

European Market Size and Growth

  • The European branded coffee shop market (24 countries) was estimated at 19,472 outlets in October 2015.
  • The market grew by 9% per annum in 2015 adding 1,615 outlets
  • The European branded coffee shop market is indicating stronger growth in 2015 compared with 2014. 19 out of 24 countries saw expansion

Hungary

  • The Hungarian branded coffee shop market continued to grow in 2015, adding 11 stores — representing an increase of 5% to reach 232 stores.
  • Growth is driven by the national chain Café Frei (23 outlets) opening 5 new stores and Costa (19) opening 4 stores.
  • Starbucks added a further 2 stores and now trades from 11
  • Semiramis, roaster and traditional coffee chain, which operates from a 100% franchise model, remains the market leader operating an estimated 65 outlets across Hungary.
  • McCafé follows with 37 outlets, holding its position in 2015 with no growth but remains the key influence on the market with respect to American lifestyle-led coffee culture.
  • Industry executives report improving trading conditions in the Hungarian coffee shop sector as consumers respond to the positive economic environment with continued confidence.
  • Compared with independents, branded coffee shops are expected to grow in importance and are considered by far the most profitable operators. Nevertheless, visits to coffee shops are still considered a luxury and are status driven.
  • The Hungarian branded coffee shop market is forecast to grow at 4% p.a. over the next 5 years to exceed 280 outlets by 2020.

Hungary’s Neighbours:

Austria

  • The branded coffee shop market in Austria is estimated at 317 outlets
  • Coffee culture is established in Austria with the fourth highest per capita coffee consumption in Europe, estimated at 8.3kg per year
  • The branded coffee shop market in Austria is forecast to grow at 0.9% p.a. over the next 5 years to exceed 330 outlets by 2020.

Romania

  • Romania shows the strongest growth of 31% p.a. albeit from a very small base and driven primarily by Starbucks opening new stores.
  • With continued growth from Starbucks anticipated, the branded coffee shop market in Romania is forecast to grow at 10% p.a. over the next five years exceeding 140 outlets by 2020.

 

Allegra Strategies, Project Café16 Europe — November 2015