Tobacco processing factories were established in Croatia in Rijeka (1851–1946), Rovinj (1872), Senj (1894–1945), Pula (1920–1946), and Zadar (1923–2008).

In the interwar period, when the Tobacco Monopoly Act was in force, tobacco production stagnated in Dalmatia and Slavonia. Production resumed post-war, with companies for tobacco procurement and processing being established. Until the 1960s, cigarettes were produced by hand. The cigarette manufacturing process was modernized in factories in Zagreb, Rovinj, and Zadar in the 1960s and 1970s.