IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v13y2025i5p136-d1656162.html

Corporate Concentration and Market Dynamics in Hungary’s Food Manufacturing Industry Between 1993 and 2022

Author

Listed:
  • Mahdi Imani Bashokoh

    (Doctoral School in Economics and Regional Science, Hungarian University of Agriculture and Life Sciences, 7400 Kaposvár, Hungary)

  • Gergely Tóth

    (Institute of Rural Development and Sustainable Economy, Hungarian University of Agriculture and Life Sciences, 7400 Kaposvár, Hungary)

  • Omeralfaroug Ali

    (Agribiotechnology and Precision Breeding for Food Security National Laboratory, Institute of Physiology and Animal Nutrition, Department of Animal Physiology and Health, Hungarian University of Agriculture and Life Sciences, 7400 Kaposvár, Hungary)

Abstract

The changes in market structures in post-socialist economies have led to a significant increase in interest in the dynamics of corporate concentration and its broader socio-economic impacts. This study aimed to assess Hungary’s food industry over a 30-year period (1993–2022), with a primary focus on corporate concentration, by analyzing nine main sectors and their 38 subsectors using grounded theory, trend analysis, and sparse partial least squares-discriminant analysis. The findings reveal that the Hungarian food industry has been moderately to highly concentrated across all sectors (three and six major sectors, respectively). Two distinct periods of increasing corporate concentration were identified: 1996–1998 and 2004–2007, coinciding with post-communist economic reforms and Hungary’s accession to the European Union. These structural shifts led to a decline in the number of active firms, a reduction in workforce size, and increased challenges for smaller competitors; meanwhile, larger domestic companies expanded, and ownership structures transitioned toward privatization and internationalization. In the later years, market concentration showed a declining trend and then gradually stabilized.

Suggested Citation

  • Mahdi Imani Bashokoh & Gergely Tóth & Omeralfaroug Ali, 2025. "Corporate Concentration and Market Dynamics in Hungary’s Food Manufacturing Industry Between 1993 and 2022," Economies, MDPI, vol. 13(5), pages 1-28, May.
  • Handle: RePEc:gam:jecomi:v:13:y:2025:i:5:p:136-:d:1656162
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/13/5/136/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2227-7099/13/5/136/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Michael L. Katz, 2019. "Multisided Platforms, Big Data, and a Little Antitrust Policy," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 54(4), pages 695-716, June.
    2. David Autor & David Dorn & Lawrence F. Katz & Christina Patterson & John Van Reenen, 2017. "Concentrating on the Fall of the Labor Share," American Economic Review, American Economic Association, vol. 107(5), pages 180-185, May.
    3. Guanming Shi & Jean-paul Chavas & Kyle Stiegert, 2010. "An Analysis of the Pricing of Traits in the U.S. Corn Seed Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1324-1338.
    4. David Autor & David Dorn & Lawrence F Katz & Christina Patterson & John Van Reenen, 2020. "The Fall of the Labor Share and the Rise of Superstar Firms [“Automation and New Tasks: How Technology Displaces and Reinstates Labor”]," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(2), pages 645-709.
    5. Judit Kiss, 1995. "Privatization and Foreign Capital in the Hungarian Food Industry," Eastern European Economics, Taylor & Francis Journals, vol. 33(4), pages 24-37, August.
    6. Sylvie Bonny, 2017. "Corporate Concentration and Technological Change in the Global Seed Industry," Sustainability, MDPI, vol. 9(9), pages 1-25, September.
    7. Karolina Pawlak & Małgorzata Kołodziejczak, 2020. "The Role of Agriculture in Ensuring Food Security in Developing Countries: Considerations in the Context of the Problem of Sustainable Food Production," Sustainability, MDPI, vol. 12(13), pages 1-20, July.
    8. Maywa Montenegro de Wit & Matt Canfield & Alastair Iles & Molly Anderson & Nora McKeon & Shalmali Guttal & Barbara Gemmill-Herren & Jessica Duncan & Jan Douwe Ploeg & Stefano Prato, 2021. "Editorial: Resetting Power in Global Food Governance: The UN Food Systems Summit," Development, Palgrave Macmillan;Society for International Deveopment, vol. 64(3), pages 153-161, December.
    9. Georgia Tsolomyti & Anastasios Magoutas & Giannis T. Tsoulfas, 2021. "Global Corporate Concentration in Pesticides: Agrochemicals Industry," Springer Proceedings in Business and Economics, in: Damianos P. Sakas & Dimitrios K. Nasiopoulos & Yulia Taratuhina (ed.), Business Intelligence and Modelling, pages 289-297, Springer.
    10. Sophia Murphy, 2008. "Globalization and Corporate Concentration in the Food and Agriculture Sector," Development, Palgrave Macmillan;Society for International Deveopment, vol. 51(4), pages 527-533, December.
    11. Eleni A. Kaditi, 2013. "Market Dynamics in Food Supply Chains: The Impact of Globalization and Consolidation on Firms’ Market Power," Agribusiness, John Wiley & Sons, Ltd., vol. 29(4), pages 410-425, September.
    12. Kimberly A. Eddleston & Robert F. Otondo & Franz Willi Kellermanns, 2008. "Conflict, Participative Decision‐Making, and Generational Ownership Dispersion: A Multilevel Analysis," Journal of Small Business Management, Taylor & Francis Journals, vol. 46(3), pages 456-484, July.
    13. Yu, Wantao & Chavez, Roberto & Jacobs, Mark A. & Feng, Mengying, 2018. "Data-driven supply chain capabilities and performance: A resource-based view," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 371-385.
    14. Attila Jambor & Matthew Gorton, 2025. "Twenty years of EU accession: learning lessons from Central and Eastern European agriculture and rural areas," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 13(1), pages 1-17, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eskandari, Ruhollah & Zamanian, Morteza, 2022. "Cost of carry, financial constraints, and dynamics of corporate cash holdings," Journal of Corporate Finance, Elsevier, vol. 74(C).
    2. Stöhr, Annika, 2021. "Price effects of horizontal mergers: A retrospective on retrospectives," Ilmenau Economics Discussion Papers 151, Ilmenau University of Technology, Institute of Economics.
    3. Terranova, Roberta & Turco, Enrico M., 2022. "Concentration, stagnation and inequality: An agent-based approach," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 569-595.
    4. Cauvel, Michael & Pacitti, Aaron, 2022. "Bargaining power, structural change, and the falling U.S. labor share," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 512-530.
    5. Cortes, Matias & Lerche, Adrian & Schönberg, Uta & Tschopp, Jeanne, 2023. "Technological Change, Firm Heterogeneity and Wage Inequality," IZA Discussion Papers 16070, IZA Network @ LISER.
    6. Stiebale, Joel & Suedekum, Jens & Woessner, Nicole, 2024. "Robots and the rise of European superstar firms," International Journal of Industrial Organization, Elsevier, vol. 97(C).
    7. Rod Tyers & Yixiao Zhou, 2023. "Automation and inequality with taxes and transfers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 70(1), pages 68-100, February.
    8. Matthias Firgo & Peter Mayerhofer & Michael Peneder & Philipp Piribauer & Peter Reschenhofer, 2018. "Beschäftigungseffekte der Digitalisierung in den Bundesländern sowie in Stadt und Land," WIFO Studies, WIFO, number 61633.
    9. Germán Gutiérrez & Callum Jones & Thomas Philippon, 2019. "Entry Costs and the Macroeconomy," NBER Working Papers 25609, National Bureau of Economic Research, Inc.
    10. Alpanda, Sami, 2025. "Monopsony in labor markets: Not important in the aggregate," Economic Modelling, Elsevier, vol. 152(C).
    11. Clapp, Jennifer & Vriezen, Rachael & Laila, Amar & Conti, Costanza & Gordon, Line & Hicks, Christina & Rao, Nitya, 2025. "Corporate concentration and power matter for agency in food systems," Food Policy, Elsevier, vol. 134(C).
    12. Bom, Pedro R.D. & Erauskin, Iñaki, 2022. "Productive government investment and the labor share," International Review of Economics & Finance, Elsevier, vol. 82(C), pages 347-363.
    13. Bouazizi, Youssef & Oulmakki, Ouail & Savard, Luc & Verny, Jérôme, 2025. "The decline of the wage share in value-added: What have we learned from North African firms?," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 150-162.
    14. Jennifer Clapp & Indra Noyes & Zachary Grant, 2021. "The Food Systems Summit’s Failure to Address Corporate Power," Development, Palgrave Macmillan;Society for International Deveopment, vol. 64(3), pages 192-198, December.
    15. Yang, Guang-Zhao & Si, Deng-Kui & Ning, Guang-Jie, 2023. "Does digital transformation reduce the labor income share in enterprises?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1526-1538.
    16. Cavalleri, Maria Chiara & Eliet, Alice & McAdam, Peter & Petroulakis, Filippos & Soares, Ana & Vansteenkiste, Isabel, 2019. "Concentration, market power and dynamism in the euro area," Working Paper Series 2253, European Central Bank.
    17. Ana Bottega & Rafael S. M. Ribeiro, 2023. "Kalecki meets Schumpeter: The decline of competition in a demand‐led dynamic model," Metroeconomica, Wiley Blackwell, vol. 74(3), pages 584-605, July.
    18. Yang, Guang-Zhao & Si, Deng-Kui, 2025. "The impact of VAT input tax refund policy on firms’ labor income share: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 2233-2246.
    19. Ryosuke Shimizu & Shohei Momoda, 2021. "Does Automation Technology increase Wage?," Discussion papers ron343, Policy Research Institute, Ministry of Finance Japan.
    20. Amendola, Marco & Ciampa, Valerio & Germani, Lorenzo, 2024. "The distributional effects of labour market deregulation: Wage share and fixed-term contracts," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 328-338.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:13:y:2025:i:5:p:136-:d:1656162. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.