The Structure of Export and Import of Georgian Sparkling Wine: What Impact Do Market Changes Have?

Georgian sparkling wine, once popular only in the local market, has now become a part of international trade. However, despite its increasing recognition for quality and uniqueness, the dynamics of its export show that Georgian sparkling wine is still heavily reliant on one main market – Russia. According to Geostat data, from January to November 2024, the export of Georgian sparkling wine amounted to $3.054 million, with $1.369 million worth of products sent to Russia. This means that 45% of Georgian sparkling wine exports are directed towards the Russian market, increasing Georgia’s dependency on this economically unstable and politically volatile market.

Despite the fact that Georgian wine has been making its way into various markets in recent years, the largest volumes of exports still go to Ukraine, Belarus, Poland, Turkey, Latvia, and the USA, following Russia. However, it is worth noting that data from 2024 shows a decline in the export of Georgian sparkling wine compared to the previous year. In the same period of 2023, exports amounted to $4.344 million, nearly 30% higher than the current year. This decrease can be attributed to several key factors. Firstly, the ongoing war in Ukraine has a significant impact on the country’s trade, including imports, which is reflected in the export performance of Georgian products. Secondly, Russia’s economic instability, caused by sanctions and currency fluctuations, may also be a contributing factor to the decline in sales of Georgian sparkling wine. Additionally, the high level of competition in international markets should be considered. Established producers of high-quality sparkling wines from France, Italy, and Spain represent serious obstacles for Georgian sparkling wine in European and American markets.

While Georgian sparkling wine exports are decreasing, the import scenario is showing an opposite trend. In recent years, Georgia has been increasingly importing more sparkling wine, which directly indicates that Georgian consumers are paying more attention to international brands. From January to November 2024, the total value of imports amounted to $2.913 million, showing a 29% increase compared to the same period in 2023, which was $2.256 million. The largest share of imports comes from France and Italy, which is not surprising – French champagne and Italian prosecco lead the global market in both quality and brand recognition. Among the imported products in Georgia, Spanish, German, and Dutch sparkling wines can also be found, though demand for them is relatively lower.

Georgian sparkling wine faces significant challenges in establishing itself on international markets. Its main strength lies in its unique taste and traditional winemaking methods, which make it a more distinctive product compared to sparkling wines from other countries. However, branding and marketing strategies remain one of the weakest points, hindering Georgian producers’ ability to compete. The high dependence on Russia also poses a serious risk – a market influenced by political and economic factors is unstable, and the export process could be interrupted at any time, delivering a significant economic blow to Georgian winemaking.

Against this backdrop, it is crucial for the Georgian wine industry to continue its diversification process and enter European and American markets more actively. Promoting Georgian wine at international exhibitions, more aggressive marketing campaigns, and enhancing quality standards could be steps that help Georgian sparkling wine achieve broader success. Ultimately, Georgian winemaking must take steps to ensure that local products are not only focused on Russia and the post-Soviet space, but also establish themselves on the global market, where there is a high demand for quality sparkling wines.