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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
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    References listed on IDEAS

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