The report published by PLC Research says that Georgia increased total beverage exports at a CAGR of 10% from 2017 to 2023, and it reached USD 463 million in 2023. However, the increase of SME exports had a lower CAGR of 6%, while the growth of the value added in the sector had a CAGR of 11% and reached GEL 739 million in 2023 (1.9% of total value-added).
Nevertheless, there is a significant decline of the EU’s share in total beverage exports from 2017 to 2023 due to limited access to quality raw materials, outdated machinery, a shortage of skilled labor (particularly outside Tbilisi), and logistical constraints.
Another challenge is compliance with EU standards and Deep and Comprehensive Free Trade Area (DCFTA) regulations due to the high cost of obtaining certification and a lack of specialized expertise among SMEs.
Also, high interest rates, limited trade finance options, and cash flow challenges when exporting directly to supermarkets constrain access to financing for export operations.
The document reports that significantly higher shares of total exports and exports to the EU compared to other beverage types were accounted for “ethyl alcohol, spirits, liqueurs, and other spirituous beverages” and “natural/artificial mineral and aerated waters” from 2017 to 2023.
Nevertheless, different composition of other most exported beverage types in the two cases demonstrated different consumer preferences and market conditions in the EU. For example, 15% of total beverage exports belonged to “Flavored mineral aerated waters, containing added sugar or sweetening matter”, but only 2% of exports to the EU. In the same way, the share of “beer” exports was relatively small in exports to the EU compared to total exports. Opposingly, “fruit and vegetable juices” were more successful in exports to the EU.
NH Logistics GEO has been offering IOR Importer of Record and EOR Exporter of Record services since 2001 and is a market leader in Georgia and Eurasia, supporting many clients with their import/export shipments.
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