Alcoholic Drinks - Georgia

The Alcoholic Drinks market in Georgia has experienced significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Georgian consumers have shown a growing preference for alcoholic drinks, particularly wine and spirits. Wine holds a special place in Georgian culture, with a long history of winemaking and a wide variety of indigenous grape varieties. This has led to a strong demand for Georgian wines, both domestically and internationally. Additionally, there is a growing interest in craft beers and cocktails, as consumers seek unique and premium drinking experiences.

Trends in the market: One of the key trends in the Georgian alcoholic drinks market is the rise of craft breweries and distilleries. These small-scale producers offer a wide range of innovative and high-quality products, catering to the growing demand for unique and artisanal drinks. This trend is driven by consumers' desire for authenticity, local flavors, and the opportunity to support local businesses. Another trend in the market is the increasing popularity of low-alcohol and non-alcoholic drinks. Health-conscious consumers are seeking alternatives to traditional alcoholic beverages, leading to the introduction of a variety of low-alcohol wines, non-alcoholic beers, and spirits. This trend is also influenced by changing social norms and a desire for more inclusive drinking options.

Local special circumstances: Georgia has a rich winemaking tradition and is known for its unique winemaking techniques, such as the use of traditional clay vessels called qvevri. This gives Georgian wines a distinct flavor profile and has contributed to their popularity in both domestic and international markets. The country's wine tourism industry has also been growing, with visitors eager to explore the vineyards and wineries of Georgia. Furthermore, Georgia has a strong cultural tradition of toasting and socializing over drinks. This has created a vibrant bar and restaurant scene, where consumers can enjoy a wide variety of alcoholic beverages. The government has also taken steps to promote the country's alcoholic drinks industry, including the establishment of wine festivals and the introduction of regulations to protect traditional winemaking practices.

Underlying macroeconomic factors: The growth of the Alcoholic Drinks market in Georgia can also be attributed to favorable macroeconomic factors. The country has experienced stable economic growth in recent years, which has increased consumer purchasing power and discretionary spending. Additionally, the government has implemented policies to attract foreign investment and promote the country's exports, including wine and spirits. This has created new opportunities for Georgian producers to expand their reach and tap into international markets. In conclusion, the Alcoholic Drinks market in Georgia is experiencing strong growth due to changing customer preferences, emerging trends, and local special circumstances. The demand for Georgian wines, craft beers, and artisanal spirits is increasing, driven by consumers' desire for unique and high-quality products. The rise of low-alcohol and non-alcoholic drinks is also a notable trend in the market, reflecting changing social norms and a focus on health and wellness. The country's rich winemaking tradition, vibrant bar and restaurant scene, and favorable macroeconomic factors further contribute to the growth of the market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.