Georgian Spirits Face Export Challenges in 2025

The first half of 2025 has posed serious challenges for Georgia’s alcoholic beverage industry, with both the volume and value of spirit exports experiencing a notable decline. According to Georgia’s National Statistics Office, 22,913 tons of alcoholic beverages were exported between January and May, compared to 27,442 tons during the same period last year—a drop of 16.5%. Export revenue also fell sharply, down by $11 million, totaling $82.22 million. While the average export price per liter rose by 10 cents, reaching $3.50, this marginal increase failed to offset the significant loss in volume.

A key vulnerability remains the overconcentration of exports in a single market: 59% of Georgia’s spirit exports still go to Russia, amounting to 13,622 tons valued at $53.08 million. The next-largest destinations—Armenia, Ukraine, France, and Belarus—each account for only a small share of the total, making Georgia’s export earnings highly susceptible to geopolitical instability and regional disruptions. Recent months have seen growing trade obstacles on the Russian market, including customs complications, technical barriers, and broader political and economic volatility, all of which have had a direct impact on Georgia’s outbound volumes.

While exports declined, imports of alcoholic beverages into Georgia rose by 8.8%, totaling 3,472 tons over the same period. This was accompanied by a shift in pricing dynamics: the average import price per liter decreased from $6.00 in 2024 to $5.30 in 2025, signaling a more competitive landscape for foreign products in the local market. This downward trend in import prices creates an additional hurdle for Georgian producers already facing external pressure.

The import market is more diversified, although Russia remains the largest source with 780 tons, followed by the UK and Armenia. Interestingly, the pricing varies considerably by source: imports from Russia are relatively low-cost, whereas products from the UK dominate the premium segment—with 289 tons valued at $2.757 million.

In sum, the Georgian spirits industry is grappling with a complex set of challenges: declining export volumes, overreliance on a volatile market, increasing consumer preference for imported brands, and intensifying price competition. To ensure long-term sustainability, the sector must prioritize diversification—both in terms of markets and product range—and develop new value chains that will bolster the economy against future global uncertainties.