Beer Inflation in Georgia: Rising Prices and Expanding Imports

In 2024, beer prices in Georgia surged by 18% compared to the previous year — a sharp contrast to the overall consumer price index, which increased by just 0.7% during the same period (source: Geostat, TBC Capital). But this is not just a one-off spike. Beer prices have been rising steadily for the past several years: 13% in 2022 and another 11% in 2023. As a result, beer has become one of the most inflation-prone products in the Georgian market.

This trend stands in stark contrast to other consumer categories. While some basic food items, like dairy and bread, have even shown occasional price drops, beer prices have continued to climb. Non-alcoholic beverages have also become more expensive — unsweetened carbonated drinks rose by 10% — yet still trail behind beer in terms of inflation intensity.

According to TBC Capital, the rise in beer prices is driven by a combination of local and global cost pressures. Production costs for brewers have jumped by around 17%, primarily due to more expensive imported ingredients like barley and sugar, along with packaging materials. Labor costs have also risen, and logistics remain costly after the global disruptions of 2021–2022, which have yet to fully normalize.

Beyond production factors, consumer behavior plays a key role. Unlike staple goods, beer is not a necessity, yet its consumption remains relatively stable. That resilience gives producers greater leeway to raise prices without a major drop in demand. Beer occupies a specific cultural and seasonal niche in Georgian consumption habits, especially in the warmer months, making it less price-sensitive compared to other goods.

This dynamic is reflected in Georgia’s growing beer imports. According to Geostat, more than 18 million liters of beer were imported in 2024 — an increase of about 15% over the previous year. As local products become more expensive, foreign brands are gaining ground. Consumers may be turning to imports either as a cheaper alternative or as a preferred choice despite higher prices, especially in the premium market segment.

In this context, beer inflation offers a window into broader price formation patterns in the Georgian economy. When general inflation is low but select industries experience sharp price increases, it signals deeper structural issues. These might include import dependence, low domestic competition, or supply-side inefficiencies. 

Looking ahead, continued price growth could eventually weigh on consumption, potentially widening the space for imports even further. On the other hand, if consumers continue to tolerate higher prices, it would suggest that beer has low price elasticity and that the market can absorb inflation — a dynamic that deserves closer attention from policymakers and businesses alike.