Croatian consumers are seeking ways to save due to rising food prices, often opting for cheaper brands and retailers that offer better prices, according to the results of the research ‘State of Grocery Retail in Central Europe 2023’ by McKinsey & Company conducted in April on a sample of 4,500 respondents from five Central European countries: the Czech Republic, Croatia, Poland, Romania, and Ukraine.
As stated, the results undoubtedly show that consumers in this region are increasingly feeling the pressure of prices, and in Croatia, this is most evident through a preference for cheaper brands and private label products. According to the results, as many as 24 percent of consumers in Croatia do not give up on purchasing local products, and this year they are saving the most on three categories of products – snacks and sweets, alcohol, and non-alcoholic beverages. When some groceries are on sale, all age groups are eager to buy them in larger quantities, and in the event of further price increases, members of the baby boom generation are more willing to purchase smaller quantities of products.
Regarding locations, supermarkets are the favorite shopping place for Croatian consumers, but discount stores are becoming increasingly popular. What Croatia lags behind Central Europe in is the habit of buying groceries online as even 56 percent of Croatian consumers stated that they have never purchased groceries online. In this segment, Generation Z stands out, as 14 percent of them reported that they started buying groceries online during the pandemic and have continued this habit to this day. The main reasons consumers choose online shopping are convenience and time savings.
Furthermore, 60 percent of respondents prefer cheaper products, while 58 percent choose retailers with more favorable prices. Looking at future trends, Croatian consumers indicate that they mostly plan to buy private label products, which is not surprising considering the research showed a perception of equal quality and value of these products compared to more well-known brands. To save further, 25 percent of surveyed Croatian consumers will buy smaller quantities of groceries, which is a trend that still remains below the Central European average of 33 percent, the statement notes.
Supermarkets Undoubtedly the Most Popular
– The COVID-19 pandemic prompted many to find alternatives to their favorite products, often choosing private labels, and they have continued to use them even after the pandemic. We expect this trend to last due to two main advantages of such products, namely availability and affordability. However, the potential success of private labels will depend on consumers’ perception of them as products that are comparable to or of better quality than well-known brand products, stated Marcin Nowakowski, one of the co-authors of the research and associate partner at McKinsey’s office in Poland.
