Analysis of the Situation and Competitiveness of Hungarian Pasta Industry (based on Porter’s model)

Our present study wishes to introduce the market situation of pasta manufacturing industry based on secondary sources. Pasta industry subsector, belonging to bakery and pastry sector, is considered to be one of the basic food products in food industry. The analysis takes a lookout on the world, on Europe and Hungary, besides we search for the resource of long-term competitiveness. It is a major problem that the actors of the concentrated pasta industry can get into an asymmetrical bargaining position in the strong competition according to their power. Another problem is that the private label products of domestic retail companies have an adverse impact on domestic pasta manufacturing. We explore the present situation as well as domestic and international judgement of pasta industry by means of Porter’s Five Forces model. We map the structure of pasta manufacturing industry sector; beside the supply and demand conditions, our study also covers the characteristics of rivalry within the industry and inter-company relations. It can be clearly seen from the analysis that those sustainably competitive companies who are able to renew themselves continuously in the pasta market or try to establish another type of need and consumer culture with a range of special products.