The Croatian Competition Agency (CCA) conducted an inquiry into the grocery retail market in 2023, focusing on 44 major undertakings. The total turnover in the grocery retail market for 2023 was EUR 7.73 billion, a 16.1% increase from 2022, driven by inflation trends, especially in food and non-alcoholic beverages. Market dynamics included a rise in sales outlets and net sales space, with Konzum plus emerging as the largest retailer with a 20%-30% market share, followed by Lidl and Kaufland.

In 2023, the grocery retail sector in Croatia experienced significant turnover growth, with top retailers like Konzum plus, Lidl, Spar, Studenac, and Kaufland leading the way. Market concentration slightly increased, with Studenac and Spar gaining market share. The Herfindahl-Hirschman Index indicated a weak concentration, suggesting a competitive environment. Turnover rise was observed across all regions, with the City of Zagreb leading in retail turnover.

The grocery retail sector in Croatia saw substantial turnover increases in various regions in 2023, influenced by factors like inflation and tourism growth. The City of Zagreb had the highest rise in turnover, followed by Split-Dalmatia, Primorje-Gorski Kotar, and Istria counties. Konzum Plus maintained its top position in several counties, while Schwarz Group members led in two counties. Changes in leading retailers occurred in some counties due to mergers and acquisitions.

In 2023, supermarkets and hypermarkets dominated grocery retail sales in Croatia, accounting for 72% of total turnover. Supermarkets had the largest share of net sales area, followed by self-service stores and hypermarkets. Online grocery shopping had a minor impact on total turnover, with Konzum plus leading in online sales. Loyalty programs were utilized by 14 retailers, with no new programs introduced.

The CCA investigated average profit margins of retailers across eight product categories in 2023, revealing bakery and confectionery products had the highest margins. Some food products were subject to government price control measures. Competition law advisors should monitor these findings to understand market dynamics and implications for competition in the retail sector.