"From 2017 to 2023, the beverage manufacturing sector's turnover grew at a compound annual growth rate (CAGR) of 14%, reaching GEL 2.3 billion in 2023 (1.1% of total turnover)", - according to the report published by PLC Research. Meanwhile, the value added in the sector increased at a CAGR of 11%, reaching GEL 739 million in 2023 (1.9% of total value-added).
The report notes that the highest CAGR was observed in „the manufacture of fruit and vegetable juices” (20%).
As of PMC Research, the beverage manufacturing sector in Georgia is characterized by a strong presence of small and medium-sized enterprises (SMEs), which make up 88% of the 400 enterprises across key sub-sectors, with SMEs maintaining a consistently high share in each, ranging from 80% to 91%. Given the prominence of SMEs in this sector and its high export potential to the EU, a thorough analysis of recent trends is essential.
For example, beer companies received 562 million GEL in revenue in 2023, of which only 4% came from small businesses; in the case of alcoholic beverages, the revenue is 398 million GEL, and the share of small businesses is 13%; in the case of mineral waters, only 2% of the 1.2 billion GEL revenue comes from small businesses.
An average of 6,504 people were employed across all subsectors of the beverage manufacturing industry from 2017 to 2023, reaching 7,155 in 2023 (0.9% of total business sector
employment in Georgia). The labor force in the sector as a whole experienced modest growth over this period, with a CAGR of 1%. While employment declined at first from 2017 to 2020, it has been steadily rising since 2021.
The average monthly salary in the sector has gradually increased in recent years, reaching GEL 2,553 in 2023 (a 13.7% YoY increase). However, salary disparities exist in accordance with enterprise size. In 2023, small enterprises paid 2.6 times less than the overall sector average, while large enterprises paid nearly twice as much as medium ones (GEL 3,149 vs. GEL 1,600). Notably, salaries in large enterprises are rising faster than in medium enterprises. As a result, small enterprises face difficulties in attracting qualified labor, as they cannot offer competitive salaries.
