Tobacco in 2024: The big picture
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.
2024 key trends
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.
Competitive landscape
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.
Retail developments
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.
What next for tobacco?
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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Overview:
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:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
If you're in the Tobacco industry in Croatia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Tobacco in Croatia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Tobacco in Croatia?
- Which are the leading brands in Tobacco in Croatia?
- How are products distributed in Tobacco in Croatia?
- Which category is the most heavily taxed in Croatia?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Croatia?
- How has COVID-19 impacted demand?
- How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
- Where is future growth expected to be most dynamic?
Tobacco in Croatia
Tobacco in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
What next for tobacco?
Legislation
Legislative overview
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Reduced harm
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Croatia
KEY DATA FINDINGS
Consumers gravitate towards affordable cigarettes
BAT continues to lead the market
Small local grocers lead sales while hospitality settings benefit from increase in tourism
Stable demand, as seasonal tourism flows counterbalance effects of tightening regulations and health awareness campaigns
Stricter regulations will have negative impact on sales
Innovation will be increasingly shaped by environmental concerns
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Croatia
KEY DATA FINDINGS
Robust performance in 2024
Arnold André holds sway in cigars and cigarillos while BAT Hrvatska doo sees intensified competition in smoking tobacco
Food/drink/tobacco specialists and small local grocers dominate sales
Continued growth for cigarillos and fine cut tobacco, thanks to their accessibility
Premiumisation will be a defining trend
Players will align new tobacco offerings with contemporary lifestyle trends
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Croatia
KEY DATA FINDINGS
Heated tobacco sees sustained growth while e-liquids suffer from tightening regulations
Umbrella Corp maintains lead in e-liquids as BAT gains ground in heated tobacco
Heated tobacco and e-vapour products expand beyond specialist stores
E-vapour and heated tobacco products face decline
Growing consumer interest in perceived less harmful alternatives
Innovation will be key manufacturer strategy
The following categories and subcategories are included:
Tobacco
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- Fine Cut Cigarettes
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- Cigarettes (Illicit+Legal)
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- Cigars
- Cigarillos
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- Pipe Tobacco
- Fine Cut Tobacco
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- Chewing Tobacco
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- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
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- Closed System Single Use
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- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
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- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
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- Tobacco Heating Devices
- Heated Tobacco
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- Nicotine Pouches
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- Closed System Single Use (Illicit+Legal)
- Closed System Cartridges (Illicit+Legal)
- E-Liquids (Illicit+Legal)
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 definitionsWhy buy this report?
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This report originates from Passport, our Tobacco research and analysis database.
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