Georgian Natural Wine Export Decline in 2025: Challenges and Strategic Adjustments

In January 2025, Georgia experienced a significant decline in natural wine exports, posing challenges for both the local winemaking industry and the country’s economic stability. According to the National Statistics Office of Georgia, wine exports decreased by 34.6% compared to the same period in 2024, with the most noticeable drop occurring in the Russian market.

Declining Export Volume and Revenue

In January 2024, Georgia exported 5,066 tons of wine to Russia, valued at $13.3 million. However, in January 2025, this volume fell to 2,561 tons, with revenue dropping to $6.98 million. Consequently, Russia’s share in total Georgian wine exports declined from 78.2% to 60.5%, indicating a shift away from heavy dependence on the Russian market. Despite this, Russia remains Georgia’s largest export destination, continuing to pose economic and geopolitical risks.

Low Export Prices in Key Markets

One of the biggest challenges facing Georgian wine producers is persistently low export prices, particularly in markets with historically high sales volumes. In January 2025, the average price per liter of Georgian wine exported to Russia stood at just $2.72, one of the lowest figures in recent years.

• Turkmenistan had the lowest recorded price at $2.43 per liter.
• Poland ($2.56), Ukraine ($2.59), and Israel ($2.71) also reported relatively low pricing levels.

These figures suggest that Georgian wine continues to struggle in achieving premium positioning in some of its primary export markets, making it vulnerable to price fluctuations and economic downturns.

Potential Causes of Export Decline

Several economic and geopolitical factors may be contributing to the decrease in Georgian wine exports:

1. Russian Economic Crisis and Sanctions

   • Russia’s economic downturn and ongoing sanctions have likely reduced demand for imported products, including wine.
   • Weakened consumer purchasing power in Russia may have contributed to the lower sales figures.

2. Deliberate Market Diversification Efforts

   • Georgia has been actively seeking to reduce its dependence on the Russian market, which has historically accounted for the majority of its wine exports.
   • While this diversification strategy is beneficial for long-term stability, it has not yet fully compensated for the lost revenue from Russia.

3. Lack of Strong Alternative Markets

   • Georgian wine producers have made limited inroads into alternative export destinations, such as the EU, the US, and East Asia, where market penetration remains relatively low.
   • Without strong brand awareness and marketing campaigns, it is difficult to establish Georgian wine in high-value markets.

Strategic Adjustments for Growth

To mitigate the decline and ensure sustainable export growth, Georgia’s wine industry must prioritize the following strategies:

1. Expanding and Strengthening Presence in New Markets

• EU, the US, and Asia represent high-potential markets where premium wines are valued.
• Increased collaborations with European wine importers and distributors could enhance market access.
• Targeted marketing efforts emphasizing unique Georgian winemaking traditions and authentic grape varieties (such as Saperavi and Rkatsiteli) could help boost demand.

2. Premium Market Positioning

• Georgian wine exporters must shift focus from volume-driven sales to higher-margin premium wines.
• Raising export prices and positioning Georgian wines as high-quality, boutique products could increase revenue without relying on bulk sales.
• Wine tourism promotion and international wine competitions can be leveraged to improve global brand perception.

3. Strengthening Industry Support and Export Incentives

• Government initiatives and trade agreements with Western countries could open new export opportunities.
• Increased investment in wine research and innovation could help differentiate Georgian wine from competitors.
• Improved logistics and export facilitation, such as enhanced wine transportation networks and direct trade agreements with global wine distributors, would enhance competitiveness.

Conclusion

The decline in Georgian natural wine exports in early 2025 presents a critical challenge, but also an opportunity for the industry to redefine its global strategy. By reducing dependence on the Russian market, expanding into premium markets, and increasing brand value, Georgia can build a more resilient and profitable wine sector. The transition may take time, but with the right policies and industry cooperation, Georgian wine can secure a stronger foothold in the global market.