Why Is Demand for Cold Storage Growing Rapidly in Tbilisi — and How Is It Reshaping Regional Logistics?

In recent years, one of the most notable trends in Tbilisi’s logistics sector has been the surge in demand for cold storage facilities. In 2019, the volume of goods stored in cold warehouses was just 77,000 tons, but by 2023 this figure had risen to 118,000 tons, with the number of cold storage sites nearly doubling over the five-year period (source: Galt & Taggart).

The key driver behind this shift has been the Russia–Ukraine war, which significantly disrupted traditional trade routes. Previously, goods destined for Central Asia — including frozen and perishable products — primarily transited through Russia. Today, a growing share of these shipments is rerouted through Georgia, making Tbilisi an increasingly vital hub for intermediate storage and reprocessing.

Importantly, it’s not just about volume — there has also been a noticeable shift in the composition of stored products. While poultry and meat products still dominate, their share has declined in recent years, while dairy products and aquaculture have seen significant growth. This points to a more diversified cold chain infrastructure, serving multiple sectors beyond just meat processing.

Most new cold warehouses are being built for internal company use. As of 2023, 68% of cold storage capacity is owned directly by businesses, reflecting a trend where companies are investing in custom infrastructure to meet their specific logistical needs. While this signals market maturity, it also suggests that Georgia’s independent 3PL cold logistics market is still underdeveloped.

Price trends also highlight the growing pressure: between 2020 and 2023, the average monthly rental price for cold storage increased from $17 to $23 per ton, a 30% rise driven not only by demand but also by increases in electricity prices, construction costs, and wages (source: Galt & Taggart).

For Georgia, this trend presents a strategic opportunity — to expand deep-freeze, fast-reprocessing, and regional distribution services. However, this growth requires careful planning not only from private businesses but also at the policy level, including energy efficiency standards, certification mechanisms, and stronger food safety oversight.