There has been a spectacular change in one of the new segments of the Hungarian retail market

Trade in fairtrade products exceeded € 9.8 billion worldwide in 2018, an increase of 15 percent over the previous year. Demand for such products is growing worldwide, with more than 37,000 fairtrade certified products available in 131 countries, including Hungary. The most popular products the coffee, cocoa, chocolate, tea, bananas, honey, flowers, wool, but more and more gold also appears in the form of raw materials or jewelry writes TVE in its communication.

The Association of Conscious Customers has been measuring the size of the Hungarian fairtrade market for five years, for which data have been available since 2014. In two years, until 2016, the market grew almost sevenfold, then between 2016 and 2017, the turnover increased sevenfold to HUF 3.6 billion, and then in 2020 it exceeded HUF 6.9 billion. The rate of growth exceeds both inflation and rising food prices. Compared to the first measured year, the growth is a hundred times higher – consumers call attention.

“The main reason for the increase is the fact that the range of products containing fairtrade certified ingredients has been expanding globally since 2014. While in the past products whose possible ingredients were derived from fair trade were certified, from 2014 only products with only fair trade cocoa or a sugar ingredient, from 2018 the mark will be visible on any product, if, for example, cashew nuts, honey, rice, vanilla, cocoa, mango, sugar or tea are classified. So more and more products are showing the mark, ”said Anikó Haraszti, CEO of TVE.

By 2020, products whose only one component is qualified will appear on the Hungarian market, especially consumers will find them in discount chains.

Source: TVE, Nielsen

The chains pulled up Hungarian consumption

Another major component of the growth is that more and more private label products in various food retail chains and processed food stores are Fairtrade certified. “Today, fairtrade products have become readily available,” says a TVE employee. In addition to department store chains and specialty organic shops, delicatessens and dedicated buffets, we can already find fair trade in such surprising places as the buffet cars of the Austrian Railway Company’s (ÖBB) flights from Budapest to Vienna.

The statistics for previous years contain estimates of the turnover of ÖMV cafes selling fairtrade coffee. The data for 2019-2020 do not include these, nor do the data on food available in drugstores, so the real fairtrade market may be slightly larger than the figures here, TVE indicated.

What is fair trade?

The essence of fair trade is that, regardless of general world market prices, participants agree on a price that truly reflects the material and labor costs of producers, taking into account current economic and social and even ecological conditions.

In exchange for the higher price: the producer must meet the following working conditions: a healthy and safe working environment, protective clothing, reduction of exposure to chemicals, promotion of trade unions, respect for the right of association (trade union and collective bargaining), non-discrimination , prohibition of coercion and harassment, prohibition of child labor, maximum working week of 48 hours, legal employment, prohibition of physical punishment.

More than 1.9 million producers and workers worldwide, 1,880 producer organizations in 71 countries are part of the Fairtrade network.


Source: Napi.hu by www.napi.hu.

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