Croatia

[Last updated July 2024]

Key facts

CHEMICAL INDUSTRY SNAPSHOT

Croatia was the birthplace of two Nobel laureates in chemistry, Lavoslav Ružička and Vladimir Prelog. The Croatian industry has a long tradition and an experienced and well-educated work force.  

Chemicals and pharmaceuticals, together with plastics and rubber processing are an integral part of the Croatian economy. Production spans pharmaceuticals, cosmetics, soaps, detergents, polymers, plastics and rubber products, fertilizers, agrochemicals, paints, varnishes and similar coatings, printing ink and fillers, industrial gases, glues and explosives.  

The chemical industry is concentrated around larger towns, especially Zagreb, and generated revenues of €1.005million in 2022, 2,9% of the manufacturing industry total. Its 409 companies employed 5,969 people.  

Pharmaceuticals employ another 6.155 people across 70 companies that generated revenues of €1,142 million, 3,3% of the manufacturing industry total. Plastics and rubber had €1,345 million of revenues in 2022, spread across 801 registered companies employing 9,778 workers.  

Most companies are SMEs (407) and they mostly serve the domestic market. They are busy restructuring and modernising production processes to meet European standards, reduce operating costs and achieve international quality certification.  

Many companies, especially larger ones, are also export-oriented mostly to countries in the same region. In 2022 chemicals export was €1.210 million, pharmaceuticals export was €1.055 million and plastics and rubber export was €753 million.  

HOW ARE WE DOING?

Strengths

• Long history and tradition  
• Highly skilled work-force  
• Advanced technology 
• High-quality and price-competitive products  
• Excellent geostrategic location within Europe with access to Central Europe, the Mediterranean and three Pan-European corridors  
• Seaports and most modern transport infrastructure in the region  
• Rising domestic demand  

Challenges

• Dependence on imported raw materials  
• Uncertainty over fuel supplies  
• High energy and logistic costs  
• Lack of investment in new and innovative products  
• Insufficient investment in marketing  
• Inadequate links between companies and research institutions to develop new products and improve technology  
• High cost of taxes, levies and utility charges  
• Pressure to increase tax take from heavy public sector deficit  
• High administrative and regulatory burden  

OUR CONTRIBUTION TO A COMPETITIVE EUROPE

Collaborating to innovate

Universities and research institutes are working with industry organisations, under the umbrella of the Croatian Chamber of Economy, to strengthen co-operation between science and our industry sectors to increase competitiveness.  

Opportunities for growth

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