Eco-friendly toy producers in Georgia are facing shrinking access to retail networks, with sales dropping sharply in recent years. According to Kote Svanadze, founder of wooden toy manufacturer Kodala, sales in major retail chains have fallen by 70–80%, forcing local producers to rethink their business models.
Svanadze told BMGTV’s Women’s Narrative that large retail networks have significantly reduced cooperation with local manufacturers, pushing companies toward direct-to-consumer channels, including social media and digital platforms. Kodala now works with only one major retail partner, while placing products in other chains has become increasingly difficult.
Despite these challenges, Svanadze says companies cannot afford to slow down and must continue innovating. Interest in eco-friendly wooden toys is growing in Georgia, and new producers are entering the market, though not yet at levels that would meaningfully shift the sector.
Svanadze emphasizes that developing sustainable, eco-friendly toys is not just a business issue but one tied to public awareness and children’s well-being. He says the sector lacks resources for awareness campaigns and needs stronger cooperation with public institutions. To stay financially resilient, Kodala is diversifying into corporate gifts and souvenirs but stresses that the sector’s future depends on supportive consumer behavior and broader recognition of the value of locally made, eco-friendly products.
