TBILISI, Georgia, August 21. According to analysts, the alcoholic beverages market in Georgia will exhibit a compound annual growth rate (CAGR) of 5 percent from 2023 to 2027. A study conducted by investment firm TBC Capital confirms that the revenue of the alcoholic beverages market is expected to increase to approximately $1 billion in 2023, Trend reports.
Despite the challenges caused by the COVID-19 pandemic, the global wine industry continues its growth, including Georgia's wine sector.
An important indicator is the growth of Georgian wine exports, which reached record volumes in 2022 in terms of both quantity and revenue. The volume of wine exported from Georgia totaled nearly 133 million bottles, up 26 percent from the previous year.
Analysts draw attention to the significant influence of Russia as a key sales market for Georgian wine. Russia's share in the total revenue of the Georgian wine industry in 2022 amounted to 64 percent, being the highest since 2014. European countries (13 percent) and CIS countries (8 percent) also account for a significant share of the largest markets for Georgian wine.
Nevertheless, the value of Georgian wine exports has been declining in recent years. In 2022, the average export price of one liter of Georgian wine was $2, down 16 percent from the previous year.
Total consumption of wine and alcoholic beverages in Georgia in 2022 decreased by 12 percent year-on-year, amounting to 23 million liters. Wine retains its dominant position among alcoholic beverages in Georgian households, occupying 95 percent of total consumption.
Wine and alcoholic beverages turnover in 2022 amounted to 1 billion lari ($381 million), up 4 percent year-on-year. Local wine producers have increased their revenue by 18 percent (CAGR) over the last eight years.
Also, according to TBC Capital, the Georgian wine companies included in the financial performance analysis generated revenues of 730 million lari ($278 million) in 2021, accounting for 75 percent of the country's total wine production. The profitability of these companies remained at a relatively stable level, indicating their sustainability.
In addition to the wine sector, Georgia's beer market also showed stable growth. In recent years, new local breweries and beer brands have appeared in the country. The total turnover of the beer sector in 2022 amounted to 495 million lari ($188 million), increasing by 30 percent year-on-year.
Beer production also continues to grow, reaching 111 million liters in 2021, up by 2 percent from 2020. In 2022, the value of beer production amounted to 214 million lari, increasing by 6 percent year-on-year.
Total annual household beer consumption in Georgia also increased by 5 percent in 2022, reaching 2 million liters. The increase in consumption indicates the continued popularity of beer among the Georgian population.
