What Drives Beer Price Growth in Georgia?

In 2024, beer prices in Georgia increased by 14% (Source: Geostat). This growth is driven by several factors, including the rising price of ingredients, low share of imports, market concentration, changes in packaging preferences, and etc.

In 2023, 92% of beer consumption in Georgia came from local production, meaning that price formation is primarily influenced by domestic factors. The market is dominated by four main producers: Lomisi, Georgian Beer Company, Global Beer Georgia, and Argo (Source: Galt & Taggart). The relatively low level of competition gives local producers greater influence over price changes.

In terms of packaging, 2.5-liter plastic bottles still hold the largest market share, though their dominance is declining. Consumers are increasingly shifting to cans, glass bottles, and large kegs, reflecting growing demand from bars and restaurants (Source: Galt & Taggart). The higher production and transportation costs associated with glass bottles and cans contribute to price increases.

Beer imports are also on the rise, reaching a record $17 million in 2024, a 23% annual growth (Source: Geostat). The rising cost of local beer makes imported brands more competitive. The import growth is particularly noticeable in German, Belgian, and Czech brands, which are gaining popularity despite their higher prices.

While local factors have the greatest impact on beer prices, the rise of imports, the growing presence of international brands, and changing consumer behavior are creating new dynamics in the market. As prices continue to climb, imported beer is becoming a stronger competitor, which could increase market competition in the coming years.