Galt & Taggart published a report on FMCG Sector in Georgia.
According to the document, the share of branded retail chains increased from 21.7% in 2018 to 38.6% in 2023. The growth of branded retail chains is expected to grow 18.4% CAGR over 2023-28 due to geographic expansion and strategic development, lifting the market share to 55.6% in 2028.
According to the research, 48% of the FMCG market is concentrated in Tbilisi, and the rest accounts for the regions, of which Adjara and Imereti have the largest share. The local population spends the most on FMCG products, although the contribution of tourists and migrants to the growth of the sector in the last 2 years was also great. However, according to Galt & Taggart's research, the highest spending in the FMCG market ( 70%) accounts for food products, followed by beverages and tobacco.
The monthly household FMCG expenditure amounted to GEL 1,450 in 2023 – 45.1% of total expenses. More than 80% of tourists and migrants' expenses are spent in Tbilisi and Batumi.
There are a total of 50 retail chains on the market, with the Big Four (Nikora, Spar, Carrefour, 2 Nabiji) accounting for 55% of the market share. The Tbilisi market is relatively more saturated than the entire Georgia. The top 4 branded retailers collectively hold c. 63% market share in Tbilisi.
The revenue of branded retail chains grew faster in the regions (+42.7% CAGR) than in Tbilisi (+22.2% CAGR) over 2018-23. As a result, the share of regions in the revenue of branded retail chains increased from 22.7% to 38.9%.
The number of branded stores in the regions is getting close to Tbilisi, but the average annual revenue per store remains smaller. This can be attributed to variations in store formats and the lower expenditures of the regional population.
