The Role of the Tobacco Industry in Hungary's Economic Growth and Social Changes

Szécsi Kincső (2025) The Role of the Tobacco Industry in Hungary's Economic Growth and Social Changes. Külkereskedelmi Kar.

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Absztrakt (kivonat)

My thesis, “The Role of the Tobacco Industry in Hungary’s Economic Growth and Social Changes”, offers a comprehensive analysis of the dual impact of tobacco consumption and regulation in Hungary. The study focuses on the period from 2010 to 2023, when the Hungarian government introduced a series of robust tobacco control policies that significantly reshaped both the economic landscape and public attitudes toward smoking. The thesis begins by highlighting the public health burden posed by tobacco in Hungary, which has historically had one of the highest smoking rates in the European Union. Smoking-related diseases are responsible for up to 40,000 deaths annually, placing an enormous strain on the national healthcare system and reducing productivity due to illness and premature death. Despite these impacts, tobacco continues to be a major source of tax revenue for the government, generating over HUF 400 billion annually in excise taxes. Hungary’s tobacco control strategy includes a wide range of measures aligned with both the World Health Organization’s Framework Convention on Tobacco Control (FCTC) and the EU Tobacco Products Directive (TPD). These measures include the 2012 indoor smoking ban, the 2013 creation of a state-controlled retail system (National Tobacco Shops), and continuous excise tax increases that doubled cigarette prices over a decade. Additionally, the government implemented strict advertising bans, graphic health warnings on packaging, and introduced taxation on emerging nicotine products such as e-cigarettes and heated tobacco sticks. The methodology of the study combines quantitative data analysis with qualitative insights from focus groups. National statistics and health surveys are used to track smoking prevalence, tax revenues, and health impacts. Focus groups were conducted with three stakeholder groups: smokers, non-smokers, and licensed tobacco retailers. This mixed-methods approach allows the thesis to explore not just measurable outcomes, but also public perception and the lived experience of those affected by tobacco policies. Quantitative findings reveal a modest but steady decline in adult smoking prevalence—from approximately 33% in 2010 to around 29% by the early 2020s. However, the rate remains high, especially among men. Youth smoking has decreased more significantly, a trend attributed to reduced product availability and tighter age restrictions. On the economic front, while tobacco tax revenues have risen due to higher prices, the financial costs of treating smoking-related diseases continue to outweigh the fiscal benefits. Qualitative data from focus groups adds depth to the analysis. Non-smokers overwhelmingly support strict tobacco control measures and express appreciation for smoke-free public spaces. Smokers, by contrast, often feel stigmatized and financially pressured but recognize the health risks associated with their habit. Many smokers expressed a desire to quit and had experimented with alternatives like e-cigarettes, although they remained uncertain about the health benefits of these products. Retailers acknowledged the public health rationale behind the laws but voiced concerns about the operational and economic impact of centralized regulation, taxation, and limitations on business autonomy. The study also includes a PESTEL analysis (Political, Economic, Social, Technological, Environmental, and Legal factors), which contextualizes the Hungarian regulatory environment. Politically, Hungary has demonstrated strong top-down commitment to tobacco control, often aligning with EU standards. Economically, the country must balance health objectives with its dependence on tobacco tax revenue. Socially, smoking is increasingly stigmatized, and health awareness is rising. However, challenges remain: illicit tobacco trade has increased, alternative nicotine products present regulatory ambiguity, and the slow decline in smoking rates suggests the need for sustained and adaptive policies. In conclusion, my thesis argues that while Hungary has made substantial progress in tobacco control, further efforts are necessary to address persistent smoking habits, socio-economic inequalities, and the unintended consequences of regulation. Future policy must integrate enforcement, education, support for cessation, and careful economic planning to achieve long-term public health goals.

Intézmény

Budapesti Gazdasági Egyetem

Kar

Külkereskedelmi Kar

Tanszék

Nemzetközi Gazdaságtan Tanszék

Tudományterület/tudományág

NEM RÉSZLETEZETT

Szak

Nemzetközi gazdálkodás

Mű típusa:	diplomadolgozat (NEM RÉSZLETEZETT)
Kulcsszavak:	dohánytermék(ek), economic growth, Hungary, Magyarország, market influence, social change, társadalmi változás(ok), tobacco products
SWORD Depositor:	User Archive
Felhasználói azonosító szám (ID):	User Archive
Rekord készítés dátuma:	2025. Okt. 27. 14:31
Utolsó módosítás:	2025. Okt. 27. 14:31

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