"Average export price for Georgian wine has been decreasing in recent years. In 2022, an average export price for 1-liter Georgian wine amounted to 2.49 USD, which is 16% less compared to a year before," reads the recent publication of TBC Capital on Alcoholic Beverages.
According to the publication, "Global wine industry is experiencing a resurgence after facing challenges due to the COVID-19 pandemic. The Alcoholic Drinks market is set to achieve a revenue of approximately 1,609.00 bln. USD in the year 2023. This market is anticipated to exhibit a steady annual growth rate (CAGR) of 5.42% between the years 2023 and 2027.
Wine sector is also increasing in Georgia. Although, wine production has been volatile over the decade, however, maintained a positive trend, especially after an embargo lift in 2013. The formal wine production in 2022 reached 11.9 million liters, almost matching the level achieved in the previous year, 2021.
Production of sparkling wine has strong increasing trend over last five years. In 2022, 4.7 mln. liters of sparkling wine were produced, which is up by 4.5% compared to last year level.
In 2022, Georgian wine exports hit the all-time high, both in terms of volume and revenues. Georgia exported nearly 133 million bottles of wine; a 26% increase compared to a prior year.
Russia remains as the most significant market for Georgian wine. In terms of revenue, Russia's share in the total revenue of the Georgian wine industry reached 64% in 2022, which is the highest level recorded since 2014.
European countries (13%) and CIS states (8%) are among the 3 top markets for Georgian wine.
Average export price for Georgian wine has been decreasing in recent years. In 2022, an average export price for 1-liter Georgian wine amounted to 2.49 USD, which is 16% less compared to a year before.
In 2022, the total annual household consumption of wine and spirits in Georgia reached 23 million liters. This amount indicates a 12% decline when compared to the consumption figures from the previous year. Wine remains the dominant alcoholic beverage in Georgian households, accounting for 95% of total wine and spirits consumption in 2021.
The total turnover of wine and alcoholic beverages reached 1.37 bln. GEL in 2022, which represents a 4.5% year-on-year (YoY) growth. Total revenues generated by local wine producers increased at a CAGR of 18% over an 8-year period. This indicates significant and consistent growth in the industry over that timeframe.
Georgian wine producers included in the financial performance analysis have generated total revenue of GEL 730 million in 2021, constituting 75% of total wine production in Georgia. Gross profit has been marginally declining over the analyzed years, indicating the reduced profitability of the companies.
Similar to wine sector, beer sector in Georgia has been steadily growing, and the country has seen an increasing number of local breweries and beer brands emerging in recent years. The total turnover of beer reached 495 mln. GEL in 2022, which represents a substantial 30% year-on-year (YoY) growth.
Beer production has been on the rise in recent years and amounted to 111 million liters in 2021, an increase of 2.4% compared to 2020. In terms of value, production increased by 6.5%, reaching 214 million GEL.
In 2022, the total annual household consumption of beers in Georgia reached 2.7 million liters. This amount indicates a 5.6% increase when compared to the consumption figures from the previous year. A noteworthy point to highlight beer consumption in Georgia has been steadily increasing over the years."
