Executive Summary

Aug 2019
Prospects
Consumers are likely to keep prioritise low pricing when they purchase chocolate

There are a few recognised global brands in chocolate confectionery; however, the main selling point for the category is price. Most chocolate tablets are sold through limited-time price promotions.

An economic downturn can actually favour chocolate confectionery sales more than a healthy economy in Croatia

Chocolate confectionery has a strange habit of showing sales dynamics in contrast to general FMCG trends. In fact, while the economic downturn was in full force, chocolate confectionery fared better than the rest of the market.

The prolific number of combination products can lure consumers from other categories

Professionals following this category are curious about the outcome of the great number of product combinations currently available in chocolate confectionery. The variety of new chocolate products, especially tablets, with biscuits and fruit may be detrimental to sales of chocolate confectionery by confusing the consumer.

Competitive Landscape
Kraš dd holds off strengthening international competitors to lead thanks to good consumer loyalty and a well-established portfolio

Kraš dd not only leads in chocolate confectionery but also in sweet biscuits, snack bars and fruit snacks. It can easily be said that this local company is the reference point for sweets in Croatia.

Product and flavour innovation is increasingly central as companies look to prevent a potential decline

Players in chocolate confectionery want to prevent declining interest in their products. Therefore, they resort to ideas such as co-branding.

Acquisitions of leading local players seem likely as small firms are vulnerable to financial instability

There remains a distinct possibility that any of the three big local chocolate confectionery manufacturers could be acquired by a major global player. In a category this small with companies not exporting as much as they would like, their situation would seem untenable and strategic partnerships are sought for those companies to survive long term.

Prospects
Gum’s bubble is bursting as manufacturers stick to conventional flavours

Gum remained a fairly uneventful category in 2019, with no significant change in price and a distinct lack of new launches or news. The trend of packaging becoming bigger continues as gum is sold in pellet form in large jars.

Bubble gum retains its impulse appeal among a resilient consumer base

Bubble gum is the smaller of the two gum formats, which clearly shows that the most important gum feature is the utilitarian one of tooth health. Nevertheless, bubble gum has a small but resilient target group, which is mostly the younger population or children, and its sales growth will continue to outperform that of chewing gum over the forecast period.

The lack of product innovation is set to increase consumer disinterest and keep growth minimal

While disposable household incomes have started regaining their strength, consumers show little excitement about gum as an overall category. With only a modest volume CAGR expected over the forecast period, gum will be far from its peak 2008 sales.

Competitive Landscape
William Wrigley still dominates sales, supported by interesting marketing campaigns and its advertising efforts

Despite losing slight value share over the review period, William Wrigley maintains the upper hand in gum. Now with nearly three quarters of all value sales, the company still has a significant advantage compared with the other competitors.

William Wrigley is increasingly challenged by a more even playing field for distribution

The main cause for the leading player’s weakening position is the same one previously used by the leader to achieve its domination of gum. Namely, favourable shelf positioning saw William Wrigley reach the top spot thanks to the skilful negotiation tactics of its local distributor.

Price is not everything for brand-loyal gum customers

Croatian gum consumers tend to be very brand loyal and wary of unknown economy brands. This is not only seen in discounters, but in other retail channels as well.

Prospects
A healthier assortment of sugar confectionery is targeted as parents are increasingly mindful of the harm excessive sugar can cause

Sugar is the main threat to the sugar confectionery category. Its negative impacts on health and increased possibility of diabetes worry parents who want to protect children from the detrimental effects of indiscriminate sugar consumption, which include teeth damage and obesity.

High loyalty to local producers and strong traditionality characterise sugar confectionery consumers

Consumers tend to prefer traditional products in sugar confectionery and are reluctant to explore innovations. They are loyal to local companies that have years of tradition in the country, selling established “cash cow” products.

Cedevita shows that offering health benefits can pay dividends as consumers look for products with a healthier positioning

Pastilles, gums, jellies and chews remained the biggest category within sugar confectionery in Croatia in 2019. Its popularity is partially due to a Croatian peculiarity, from the enormous popularity of the powder concentrates drink Cedevita, owned by Atlantic Grupa dd, which offers additional health values through functionality and added vitamins.

Competitive Landscape
Local players can rely on a strong consumer preference for domestic products

The traditional leader in several snacks categories, Croatian company Kraš dd also led sugar confectionery in 2019. Relying on traditional brands such as Kiki and Bronhi, which are the most popular sugar confectionery brands stretching back several generations, the company has built a strong presence in Croatia.

International players are more prominent in certain categories than others, supported by frequent advertising

International companies do not generally try to challenge the dominance of domestic companies in sugar confectionery. Instead, they seek niches and unoccupied positions to launch their products and try to grab sales share in this way.

There is some demand for economy sugar confectionery among a base of price-conscious Croatians

Despite the general preference for local companies, a significant number of cost-conscious Croatians are not brand loyal as they have insufficient budgets to continually purchase the same mid-priced brands. This has skilfully been used by producers of economy sugar confectionery, which have managed to account for a respectable quarter or so of total value sales.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Confectionery industry in Croatia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Confectionery industry in Croatia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Confectionery in Croatia market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Confectionery in Croatia?
  • What are the major brands in Croatia?
  • With economic recovery far from guaranteed, are consumers cutting back on impulse and indulgence food items like confectionery?
  • How are manufacturers addressing consumer concerns over health and obesity?
  • What does the future hold for ethically sourced products?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Confectionery in Croatia - Category analysis

Chocolate Confectionery

HEADLINES

PROSPECTS

Consumers are likely to keep prioritise low pricing when they purchase chocolate
An economic downturn can actually favour chocolate confectionery sales more than a healthy economy in Croatia
The prolific number of combination products can lure consumers from other categories

COMPETITIVE LANDSCAPE

Kraš dd holds off strengthening international competitors to lead thanks to good consumer loyalty and a well-established portfolio
Product and flavour innovation is increasingly central as companies look to prevent a potential decline
Acquisitions of leading local players seem likely as small firms are vulnerable to financial instability
Summary 1 Other Chocolate Confectionery by Product Type: 2019

CATEGORY DATA

Table 1 Sales of Chocolate Confectionery by Category: Volume 2014-2019
Table 2 Sales of Chocolate Confectionery by Category: Value 2014-2019
Table 3 Sales of Chocolate Confectionery by Category: % Volume Growth 2014-2019
Table 4 Sales of Chocolate Confectionery by Category: % Value Growth 2014-2019
Table 5 Sales of Chocolate Tablets by Type: % Value 2014-2019
Table 6 NBO Company Shares of Chocolate Confectionery: % Value 2015-2019
Table 7 LBN Brand Shares of Chocolate Confectionery: % Value 2016-2019
Table 8 Distribution of Chocolate Confectionery by Format: % Value 2014-2019
Table 9 Forecast Sales of Chocolate Confectionery by Category: Volume 2019-2024
Table 10 Forecast Sales of Chocolate Confectionery by Category: Value 2019-2024
Table 11 Forecast Sales of Chocolate Confectionery by Category: % Volume Growth 2019-2024
Table 12 Forecast Sales of Chocolate Confectionery by Category: % Value Growth 2019-2024

Gum

HEADLINES

PROSPECTS

Gum’s bubble is bursting as manufacturers stick to conventional flavours
Bubble gum retains its impulse appeal among a resilient consumer base
The lack of product innovation is set to increase consumer disinterest and keep growth minimal

COMPETITIVE LANDSCAPE

William Wrigley still dominates sales, supported by interesting marketing campaigns and its advertising efforts
William Wrigley is increasingly challenged by a more even playing field for distribution
Price is not everything for brand-loyal gum customers

CATEGORY DATA

Table 13 Sales of Gum by Category: Volume 2014-2019
Table 14 Sales of Gum by Category: Value 2014-2019
Table 15 Sales of Gum by Category: % Volume Growth 2014-2019
Table 16 Sales of Gum by Category: % Value Growth 2014-2019
Table 17 NBO Company Shares of Gum: % Value 2015-2019
Table 18 LBN Brand Shares of Gum: % Value 2016-2019
Table 19 Distribution of Gum by Format: % Value 2014-2019
Table 20 Forecast Sales of Gum by Category: Volume 2019-2024
Table 21 Forecast Sales of Gum by Category: Value 2019-2024
Table 22 Forecast Sales of Gum by Category: % Volume Growth 2019-2024
Table 23 Forecast Sales of Gum by Category: % Value Growth 2019-2024

Sugar Confectionery

HEADLINES

PROSPECTS

A healthier assortment of sugar confectionery is targeted as parents are increasingly mindful of the harm excessive sugar can cause
High loyalty to local producers and strong traditionality characterise sugar confectionery consumers
Cedevita shows that offering health benefits can pay dividends as consumers look for products with a healthier positioning

COMPETITIVE LANDSCAPE

Local players can rely on a strong consumer preference for domestic products
International players are more prominent in certain categories than others, supported by frequent advertising
There is some demand for economy sugar confectionery among a base of price-conscious Croatians
Summary 2 Other Sugar Confectionery by Product Type: 2019

CATEGORY DATA

Table 24 Sales of Sugar Confectionery by Category: Volume 2014-2019
Table 25 Sales of Sugar Confectionery by Category: Value 2014-2019
Table 26 Sales of Sugar Confectionery by Category: % Volume Growth 2014-2019
Table 27 Sales of Sugar Confectionery by Category: % Value Growth 2014-2019
Table 28 Sales of Pastilles, Gums, Jellies and Chews by Type: % Value 2014-2019
Table 29 NBO Company Shares of Sugar Confectionery: % Value 2015-2019
Table 30 LBN Brand Shares of Sugar Confectionery: % Value 2016-2019
Table 31 Distribution of Sugar Confectionery by Format: % Value 2014-2019
Table 32 Forecast Sales of Sugar Confectionery by Category: Volume 2019-2024
Table 33 Forecast Sales of Sugar Confectionery by Category: Value 2019-2024
Table 34 Forecast Sales of Sugar Confectionery by Category: % Volume Growth 2019-2024
Table 35 Forecast Sales of Sugar Confectionery by Category: % Value Growth 2019-2024

Packaged Food in Croatia - Industry Overview

EXECUTIVE SUMMARY

Increased disposable income and rising interest in quality over quantity drives value growth of packaged food in 2019
Croatian producers of organic food set to capitalise on rising interest
Change in ownership from Agrokor to Forenova set to have positive impact on many domestic players in Croatia, where local producers playing a leading role
Modern distribution channels and major brands have clear advantages, but new legislation is set to level the playing field for smaller brands to compete
Demand for healthier, natural and more sustainable food, along with high consumption of processed meat, will continue to be major trends

FOODSERVICE

Sales to Foodservice
Foodservice volume growth set to remain steady, even if the rate of tourism growth may have peaked
Competitive landscape comprises direct manufacturers, a wholesaler and a cash and carry operator, none of whom focus exclusively on providing packaged food to foodservice operators
Foodservice providers continue to explore options to resolve logistical problems impeding timely delivery
Category Data
Table 36 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 37 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 38 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 39 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 40 Sales of Packaged Food by Category: Volume 2014-2019
Table 41 Sales of Packaged Food by Category: Value 2014-2019
Table 42 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 43 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 44 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 45 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 46 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 47 Penetration of Private Label by Category: % Value 2014-2019
Table 48 Distribution of Packaged Food by Format: % Value 2014-2019
Table 49 Distribution of Packaged Food by Format and Category: % Value 2019
Table 50 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 51 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 52 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 53 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

SOURCES

Summary 3 Research Sources