Bakery boom in Croatia as industry hits €700 million

Croatia’s bakery industry is undergoing a period of rapid expansion and structural change, with strong revenue growth, increasing consolidation, and rising pressure on profitability shaping the market landscape.

More than 900 bakery entrepreneurs currently operate in Croatia, while the top 25 companies account for around 70% of the market and generate approximately €700 million in annual revenue, tportal writes.

The sector has become one of the most important segments of domestic food production, driven by strong demand for bread, pastries and ready-made bakery products.

Despite growing sales, the industry is facing significant challenges. Rising labour costs, higher energy prices and increased logistics expenses are putting pressure on margins, while bakery businesses remain highly labour-intensive.

The country’s largest bakery company, Zagreb-based Mlinar, leads the market with €183 million in revenue last year, representing growth of nearly 12%.

However, its profit fell by 31.5% to €6.2 million, reflecting wider trends across the sector where revenue growth is not translating into higher earnings.

A similar pattern is visible across other leading operators. Vinkovci-based companies Pekar Tomo and Pekar recorded strong revenue growth of 27.3% and more than 30% respectively, but continue to operate with low profit margins despite export expansion.

Mlinar

Market consolidation is also reshaping the industry. The Mlinar Group, now part of Bosqar Invest, operates across Croatia, Slovenia and Serbia with around 300 outlets and exports to more than 20 countries, making it the largest bakery group in the Adria region.

Other key players include Zagrebačke pekare Klara, part of the Čakovečki mlinovi group structure, which reported €52.7 million in revenue and recorded strong growth following consolidation, alongside the wider group generating around €350 million in total revenue.

At the same time, Pan-Pek, formerly one of the country’s largest bakery companies, reported a €1.8 million loss following a revenue decline and is now owned by Poland’s Inter Europol.

Among the most profitable operators are Klara, with around €9 million in profit, and Pekara Dubravica, which continues to maintain stable performance despite falling earnings.

Average net salaries in leading bakery companies remain relatively low, typically between €800 and €1,200, below the national average, contributing to ongoing labour shortages across the sector.

While companies such as Bobis, part of the Tommy retail group, continue to show stable performance with nearly €39 million in revenue, the broader industry is increasingly investing in automation and production upgrades.

The Croatian bakery sector is now entering a new phase in which efficiency, export growth and consolidation will likely determine future competitiveness.