Healthcare Spending Is Rising — Are Georgians Taking Better Care of Themselves or Just Paying More?

In May 2025, healthcare-related spending in Georgia recorded one of the sharpest increases across all consumer categories. According to TBC Capital’s Consumer Spending Tracker, pharmacy payments made by card rose 22% year-over-year, making it one of the fastest-growing sectors in terms of non-cash transactions.

The immediate explanation might seem obvious: inflation. According to Georgia’s National Statistics Office (GeoStat), healthcare-related inflation in May stood at 10.4% YoY. But that doesn’t fully account for a 22% surge in card transactions — suggesting that at least 10–12% of the increase came from greater real consumption or a structural shift in consumer behavior.

This becomes more plausible when considering the broadening definition of pharmaceutical consumption in Georgia. Many pharmacy chains now offer far more than just essential medicine. Demand is rising for products like vitamins, dietary supplements, immune boosters, and cosmeceuticals — all part of a growing “preventive wellness” trend, particularly among younger and urban consumers. Pharmacy chains report that demand in these categories is growing at 15–20% annually.

Another major factor is demographics. Nearly 19% of Georgia’s population is over 60, and the prevalence of chronic illnesses like hypertension, diabetes, and cardiovascular diseases is relatively high across the country (WHO data). This population segment has consistent, often monthly, spending needs on medication — a key driver of rising pharmacy transactions.

On top of that, Georgia’s healthcare system still lacks universal coverage. As of 2023, only around 46% of the population was covered by either public or private health insurance. This means a large share of the population pays out-of-pocket for medical goods and services, making household budgets more sensitive to both price increases and health needs.

There’s also a structural shift in how pharmacies operate. Georgia’s top five pharmacy networks now operate more than 1,500 locations, many of them 24/7, selling everything from prescription drugs to skincare, baby products, and even household essentials. This expanded convenience model makes pharmacies increasingly relevant in everyday spending patterns — and helps explain their growing share in POS data.

Taken together, while inflation is certainly part of the picture, it does not fully explain the rapid growth in healthcare spending. Georgians are not just paying more — they’re buying more. That could reflect a deeper awareness of physical and mental well-being, or a shift toward self-care in the absence of strong social protections.

Ultimately, the story is bigger than prices. The surge in healthcare-related spending reflects a changing society: one where people are placing greater importance on quality of life and health resilience — not necessarily because the system supports them, but because they’re trying to support themselves. Whether Georgia’s healthcare infrastructure can adapt to meet this growing demand for access, affordability, and preventive care remains an open and critical question.