From 2017 to 2023, Georgia’s total beverage exports grew at a CAGR of 10%, reaching USD 463 million in 2023. SME exports also increased, though at a lower CAGR of 6%, meaning SMEs’ share in total exports declined over time. Despite overall export growth, the share of exports to the EU declined significantly during this time, particularly for SMEs – 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 EU’s share in total beverage exports declined significantly from 2017 to 2023. Key factors hindering exports include limited access to quality raw materials, outdated machinery, and a shortage of skilled labor (particularly outside Tbilisi), as well as logistical constraints.
Compliance with EU standards and Deep and Comprehensive Free Trade Area (DCFTA) regulations remains a challenge due to the high cost of obtaining certification and a lack of specialized expertise among SMEs.
Access to financing for export operations is constrained by high interest rates, limited trade finance options, and cash flow challenges when exporting directly to supermarkets.
According to the document, from 2017 to 2023, “ethyl alcohol, spirits, liqueurs, and other spirituous beverages” and “natural/artificial mineral and aerated waters” accounted for significantly higher shares of total exports and exports to the EU compared to other beverage types.
However, the composition of other most exported beverage types differed between the two cases, reflecting different consumer preferences and market conditions in the EU. Notably, “Flavored mineral aerated waters, containing added sugar or sweetening matter” made up 15% of total beverage exports but only 2% of exports to the EU. Similarly, “beer” exports had a relatively small share in exports to the EU compared to total exports. In contrast, “fruit and vegetable juices” held greater prominence in exports to the EU.
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