Dynamics of Export Prices of Georgian Wine

The position of Georgian wine in the global wine market is influenced by various factors, including its history, unique taste characteristics, and export prices. According to TBC Capital’s wine sector review, the average export price of Georgian wine in 2023 was $2.9 per liter. Compared to other wine-producing countries, Georgian wine is sold at a relatively lower price, which enhances its competitiveness in the market but also presents challenges. This article examines the export prices of Georgian wine and compares them with those of other leading countries to better understand Georgia’s position in the global wine market.

French wine is among the most expensive products on the global market. In 2023, the average export price of French wine was $9.8 per liter, making it the highest-priced wine. The quality and history of French wine, including the famous vineyards of Burgundy and Bordeaux, contribute to this price. Moreover, France’s marketing strategy and strict quality control allow it to sell wine at high prices globally. France is also the world leader in wine exports, annually exporting billions of liters.

The volume of French wine exports significantly exceeds that of other countries. Each year, France supplies approximately 1.5 billion liters to the global market, making it a leader in the wine industry. French wines are known for their exceptional quality and uniqueness, which justify their high prices. French wine exports include both high-end wines sold in prestigious restaurants and private collections, as well as mid-range products that are in demand on the mass market.

American wine ranks second in export price, averaging $5.9 per liter. The success of American wine is partly due to the development of California’s wine regions, where winemaking is based on modern technologies and innovative marketing. The California region produces more than 800 million liters of wine annually, making it a major player in the global market. The high price of American wine is driven by quality, branding, and diversified supply to the global market. American wine is popular in North America as well as in Asian and European markets, establishing it as a global player.

Italy, one of the largest wine producers in the world, ranks third in export price, averaging $3.9 per liter. Italian wines are popular not only in Europe but also around the world. Unique grape varieties and regions such as Tuscany and Piedmont make Italy stand out in the global market. Italy’s wine exports exceed 2 billion liters, making it one of the largest producers and exporters. Italy’s success is due not only to quality but also to the marketing of its cultural heritage and traditions, which add value for consumers.

In Argentina, the export price of wine is $3.5 per liter, reflecting the growing role of this South American country in the global wine market. Argentina is particularly known for Malbec wines, which are popular in American and European markets. Argentina’s wine export volume is around 400 million liters, making it a leading player in Latin America. The unique taste characteristics of Argentine wines, influenced by the specific climate of the Andes vineyards, give them an important place in the global market.

Germany’s export price for wine is also about $3.5 per liter, primarily due to the high quality of its white wines. German wines are especially popular in European markets, where their quality and purity are highly appreciated. Germany mainly produces white wines known for their unique aroma and flavor profiles. Germany’s export volume is approximately 250 million liters, making it an important part of the global market.

In 2023, the average export price of Georgian wine was $2.9 per liter, which is significantly lower than that of French and American wines. However, this price increases the competitiveness of Georgian wine, especially in developing markets. The volume of Georgian wine exports in 2023 reached approximately 107 million liters, which is a significant achievement for Georgia. Georgian wine is mainly exported to post-Soviet countries, where it is well recognized and in high demand. A significant share is exported to Russia, Ukraine, China, and Poland.

Russia is the largest importer of Georgian wine, with the volume of exports to Russia growing annually. In 2023, about 70 million liters of Georgian wine were exported to Russia, accounting for more than 65% of Georgia’s total wine exports. The volume of wine exported to Ukraine was about 15 million liters, while exports to China totaled 10 million liters. The popularity of Georgian wine in these countries is influenced by historical ties and cultural acceptance.

Georgian wine has unique qualities that make it stand out in the global market. The diversity of vineyards and thousands of years of history associated with Georgian wine culture add value to the product. However, the low export price indicates that branding and global positioning of Georgian wine still need development to achieve the high prices commanded by French and Italian wines. It is important for Georgia to further develop wine production technologies, quality control, and international marketing campaigns to increase the value and price of its product.

The export price of Georgian wine is relatively low in the global wine market, making it more accessible for developing markets. However, it also highlights certain challenges related to branding and the perception of quality. Georgia could invest more in improving quality, adopting modern technologies, and developing global marketing campaigns to increase export prices and present Georgian wine as a premium product on the global market.

Global demand for high-quality and unique wines is constantly growing, providing additional opportunities for Georgia. To raise the export price of Georgian wine to the range of $4-5 in the coming years, it is necessary to actively work on marketing, improving quality standards, and developing international cooperation. This will not only help increase export prices but also contribute to economic development and strengthen Georgia’s position in the global wine market.

Moreover, Georgia can develop new strategic markets, such as North America and Western Europe, where demand for high-quality and unique products is continuously increasing. This may require greater investment in branding and marketing, but the result would be higher export prices and improved positioning of Georgian wine in the global market. If Georgia can create a strong and sustainable marketing strategy, it will help increase the export price of Georgian wine and improve its representation in international markets.

It is also important for the country to support the development of small and medium-sized winemakers who produce unique, local varieties. Promoting these varieties in the global market will help Georgia expand its export markets and gain more attention at international wine festivals and exhibitions. Supporting entrepreneurship will also contribute to the creation of new jobs and the development of agriculture, ultimately having a positive impact on the country’s economy.

Georgia has the potential for Georgian wine to become a more well-known and high-value product on the global market. To achieve this, it is necessary to improve wine quality standards, develop marketing strategies, and increase investment in infrastructure and technology. Global market dynamics show that consumers are willing to pay a high price for unique and high-quality products, and this is the direction in which Georgian winemaking should develop. If Georgia takes the right steps in this direction, it is projected that by 2028, the export price of Georgian wine could exceed $5, and export volume could increase to 150 million liters, which would be a significant success for Georgia in the global market.