Experiencing impressive revenue growth of 16.1%, the Croatian grocery retail market has reached a significant milestone in 2023, attaining €7.73 billion. The remarkable surge in revenue can be attributed to various factors, including the expansion of store networks, market consolidation efforts, and shifting consumer preferences. According to data from the Agency for the Protection of Market Competition (AZTN), the total revenue encompasses contributions from 44 different retailers operating 5,140 outlets, which represents an increase of 144 outlets compared to the previous year.
Key Players and Market Dynamics
In the realm of Croatian grocery retail, the landscape continues to be dominated by ten major players, with Konzum Plus firmly holding the lead. Konzum Plus not only maintained its top position but also slightly increased its market share by the end of 2023, boasting 637 stores—a net gain of nine outlets. Other significant players in this space include Lidl, Plodine, SPAR, Kaufland, Studenac, Tommy, KTC, Trgovina Krk, and NTL. The financial year saw subsidiaries of the Schwarz Group, Lidl and Kaufland, experiencing double-digit revenue growth, further cementing their strong market presence.
The report underscores notable revenue increases for several key players in the market. Konzum Plus, Lidl, SPAR, Studenac, Kaufland, Plodine, Tommy, KTC, and Eurospin all witnessed significant gains over the year. Such strong performances reflect a competitive and dynamic market where leading entities consistently strive to enhance their footprint. The data indicates that market competition remains stiff among the top players, with strategic expansions and the opening of new outlets contributing significantly to the overall growth trajectory.
Market Concentration and Structural Changes
A discernible trend towards market consolidation is becoming evident, as seen in the slight reduction in the number of major players in the field. Specifically, large-scale integrations have occurred with Studenac incorporating Duravit, Kordun, Strahinjčica, and Špar into its operations. Following these mergers, Studenac has emerged as the leading retailer based on the number of outlets, with a total of 1,257 stores primarily catering to convenience and smaller-format shopping needs. This strategic move highlights the growing focus on convenience shopping within the Croatian market.
Additionally, several smaller and regional operators such as Boso, Ribola, Mlin i pekare, NTL, and Decentia have demonstrated remarkable revenue growth, bolstering the diversified nature of the market. These operators are not only consolidating their existing market positions but also significantly expanding their influence in various regions. The emphasis on regional dominance indicates a balanced competitive environment where smaller players are also pivotal in shaping the market landscape. Such structural changes point to a dynamic market environment continuously evolving through strategic consolidations and expansions.
Consumer Preferences and Shopping Formats
Consumer preferences within the Croatian grocery retail market are increasingly tilting towards larger shopping formats, with supermarkets and hypermarkets accounting for 72% of the total revenue. This shift highlights a growing consumer trend favoring comprehensive shopping experiences that offer a wide array of products under one roof. Despite this, smaller-format stores remain significant players in the market. This is particularly evident in Studenac’s portfolio, which emphasizes convenience and local shopping with its smaller-sized outlets, catering to immediate and neighborhood-level shopping needs.
Bakery products and confectionery items have emerged as particularly popular among Croatian consumers, boasting the highest average profit margins. These are followed by fresh fruits and vegetables, as well as soft drinks—further indicating a consumer trend towards fresh and ready-to-eat product categories. This preference shift underscores changing consumer behavior patterns, with more individuals opting for products that offer convenience and ease of consumption. The willingness to spend more on prepared and fresh products highlights evolving lifestyle choices and dietary preferences that are shaping the market’s future direction.
E-commerce and Future Outlook
The Croatian grocery retail market has hit a significant milestone in 2023 by reaching a revenue of €7.73 billion, showing a robust growth rate of 16.1%. This impressive increase in revenue is driven by multiple factors such as the expansion of store networks, market consolidation, and changing consumer preferences. According to the Agency for the Protection of Market Competition (AZTN), the total revenue accounts for contributions from 44 different retailers who collectively operate 5,140 outlets. This number marks an increase of 144 outlets compared to the previous year.
The growing number of stores and the consolidation of the market have played pivotal roles in boosting revenue. Additionally, shifts in consumer behavior, including a preference for convenience and variety, have also contributed to this significant growth. The Croatian grocery retail sector is becoming more competitive, making it an interesting market to watch in the coming years. This positive trend suggests a promising future for the country’s retail landscape.
