The Croatian tobacco market is undergoing significant transformation. One of the most notable developments is the visible shift towards new-generation products, such as e-cigarettes and heated tobacco. Leading tobacco companies are actively redirecting investments away from traditional cigarettes and focusing on these alternatives. This strategic shift is largely driven by mounting regulatory pressures and anticipated hikes in excise duties on conventional tobacco, alongside a growing consumer shift towards products perceived as less harmful. Within this context, Croatia is positioning itself as a key production and export hub within Europe - most notably through British American Tobacco’s Kanfanar facility, which now manufactures Veo heat sticks for markets across the region.
The Croatian tobacco market experienced accelerated volume growth in 2024, primarily driven by an increase in cigarette sales. Cigarettes remained the dominant tobacco product, with rising smoking prevalence sustaining growth in the category. Tourism has also significantly contributed to this expansion, as many visitors from countries with higher tobacco prices purchase substantial quantities of tobacco products while in Croatia, boosting overall sales volumes. At the same time, new-generation products such as e-cigarettes and heated tobacco are attracting a wider range of consumers, including teenagers and young adults. Adults are also increasingly adopting these alternatives, motivated by the perception that they pose fewer risks to their health.
British American Tobacco Hrvatska (BAT) maintained its leading position in Croatia’s tobacco market, bolstered by a diverse portfolio of well-established cigarette brands such as Dunhill, York, Walter Wolf, Lucky Strike, and Rothmans. These brands continue to perform strongly due to their competitive pricing, reputation for quality, and widespread availability—particularly appealing to price-sensitive consumers during a period of ongoing economic uncertainty.
Small local grocers remained the leading sales channel for tobacco in Croatia in 2024, dominating multiple categories including cigarettes, smoking tobacco, and nicotine pouches. Their continued strength is largely attributable to their widespread presence across both urban neighbourhoods and rural areas, offering convenient access for daily smokers - especially older and price-sensitive consumers. These outlets play a critical role in the distribution of fine cut tobacco and economy cigarette brands.
Croatia’s tobacco market is expected to remain relatively stable in terms of volume sales over the forecast period. The industry faces several key challenges, including increasing regulatory complexity, rising excise taxes, and shifting social attitudes driven by health concerns. Companies that can successfully adapt through diversified product portfolios and omnichannel strategies -especially in alternative nicotine product - will be best positioned to capitalise on these evolving trends.
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Understand the latest market trends and future growth opportunities for the Tobacco industry in Croatia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
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Tobacco
Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.
See all of our definitionsThis report originates from Passport, our Tobacco research and analysis database.
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