Overall, milk is not a very dynamic category in terms of innovations. However, there is an evident rise in demand for functional milk, such as protein-enriched milk, and milk with flavours.
In March 2021, the Croatian Chamber of Agriculture appealed to authorities for an investigation over the misleading branding of milk. Imported milk packaging was covered with the red chess board (the Croatian Coat of Arms) or similar branding, stating that it is a Croatian product.
The Waste Packaging Management Regulation and the Packaging and Waste Packaging Regulations of 1 July 2021 introduced milk and liquid dairy products into the refund system. With milk entering the returnable packaging system from this date, consumers have the right to be refunded a fee of HRK0.
With Croatians’ disposable incomes still on shaky legs and imports of cheap milk from other EU countries, unit prices will mostly remain the same in the forecast period. This will put a strain on local manufacturers as foreign milk is imported under dumping prices, so they can go as low as they wish.
Flavoured drinking milk products saw the strongest evolution in the review period and the same can be expected for the forecast period. Despite high unit prices compared to non-flavoured milk, the category saw growth even during the pandemic.
The shift from shelf stable to fresh milk will continue in Croatia during the forecast period. Consumers are more and more health-cautious and continue to turn to organic and fresh products.
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This report originates from Passport, our Drinking Milk Products research and analysis database.
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