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Economic Perspectives on Craft Beer pp 211–228Cite as

Palgrave Macmillan

The Emergence and Survival of Microbreweries in Hungary

Abstract

This chapter investigates the emergence of microbreweries in Hungary after 2000. The privatization of the Hungarian beer industry leads to the dominance of the big multinational enterprises. Although in the early phase of the transition the number of microbreweries increased rapidly, their number had declined considerably during analyzed period. Our major findings are as follows: Microbreweries are typically short-lived, and they live only four years in average during a fifteen-year period. The entry rate of microbreweries was greater after the economic crisis than before it, while the exit rate decreased. However, in recent years, due to the new regulations on the beer market, relatively low entry costs, and rapidly growing demand for craft beers, the number of microbreweries started to increase again. New wave microbreweries efficiently reflect to the new generation demand for higher priced craft beers, and thus, they are able to create and exploit a new market segment. They concentrate on large university cities and Budapest using efficiently social media as a marketing tool.

Keywords

  • Beer Market
  • Microbreweries
  • Hungary

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Fig. 8.1

Source Authors’ composition

Fig. 8.2

Source Research Institute of Agricultural Economics

Fig. 8.3

Source Research Institute of Agricultural Economics

Fig. 8.4

Source Food Balance Sheets, Hungarian Central Statistical Office

Fig. 8.5

Source Food Balance Sheets, Hungarian Central Statistical Office

Fig. 8.6

Source Authors’ calculations based on the Annual Report of Hungarian Beer Association 2006–2015

Fig. 8.7

Source Authors’ composition

Fig. 8.8

Source Research Institute of Agricultural Economics

Notes

  1. 1.

    Hazard Analysis and Critical Control Points, a system for reducing safety hazards in food and drink.

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Author information

Authors and Affiliations

  1. Hungarian Academy of Sciences, Budapest, Hungary

    Imre Fertő

  2. Research Institute of Agricultural Economics, Budapest, Hungary

    József Fogarasi

  3. Kaposvar University, Kaposvar, Hungary

    Anita Major

  4. Corvinus University of Budapest, Budapest, Hungary

    Szilárd Podruzsik

Authors
  1. Imre Fertő
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  2. József Fogarasi
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  3. Anita Major
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  4. Szilárd Podruzsik
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Corresponding author

Correspondence to Imre Fertő .

Editor information

Editors and Affiliations

  1. University of Milano-Bicocca and Bocconi University, Milan, Italy

    Dr. Christian Garavaglia

  2. Centre for European Policy Studies, KU Leuven, Leuven, Belgium

    Prof. Johan Swinnen

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Fertő, I., Fogarasi, J., Major, A., Podruzsik, S. (2018). The Emergence and Survival of Microbreweries in Hungary. In: Garavaglia, C., Swinnen, J. (eds) Economic Perspectives on Craft Beer. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-58235-1_8

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