Georgian Wine Exports

The Georgian wine industry has undergone significant evolution in its export markets, particularly in recent years. With a rich history and unique wine-making traditions, Georgia has long been a significant player in the global wine market. In 2021, the country achieved a record high in wine exports, amounting to USD 234 million, marking a new era in its wine export saga.

Russia has historically been the dominant market for Georgian wine, and this trend continued in 2021. However, there was a noticeable decrease in its market share, which dropped to 56% - the lowest since Georgian wine re-entered the Russian market. This decline signifies a shift in Georgian wine export strategies, with efforts to diversify into other markets gradually yielding results.

In response to the over-reliance on the Russian market, Georgian wine producers have been actively exploring and penetrating new markets. Countries like Poland, the USA, the UK, Japan, Germany, China, and the Baltic states have emerged as significant targets for Georgian wine exports. Despite slow initial progress, these markets have started to gain more prominence, and active diversification is expected to continue in the coming years.

The war in Ukraine had immediate and dramatic consequences for Georgian wine exports. In the first half of 2022, exports to Ukraine practically ceased. However, Georgian wine producers demonstrated resilience by quickly redirecting their exports to other markets, ensuring that the overall impact on export volumes was minimal. This adaptability highlights the industry's ability to navigate geopolitical challenges effectively.

Georgian wine exports have consistently been dominated by red wine, which accounted for 75% of exports in 2021. Among these, red semi-sweet wine remains a favorite among international consumers, reflecting global taste preferences and the strength of Georgian red wines in the global market.

In Eastern Europe, Poland and the Baltic countries are the primary importers of Georgian wine. Poland, in particular, has emerged as a strong market, receiving 61% of Georgian wine exports directed to Eastern Europe.

In Western Europe, Germany leads the import of Georgian wines, followed by Sweden and France. Among the Commonwealth of Independent States (CIS), Belarus, Kazakhstan, and Moldova are notable importers, demonstrating the diverse appeal of Georgian wines across different cultural and geographic markets.

To enter and compete in these diverse markets, Georgian wine producers have focused on improving the quality of grapes and the wine production process. This emphasis on quality has not only facilitated entry into new markets but also helped in building a reputation for Georgian wines as high-quality products.

Interestingly, despite the challenges posed by the pandemic, the export of Georgian wines to strategic markets grew by 20% relative to 2019. The total export to these target markets reached an all-time high of USD 49 million in 2021, indicating robust market dynamics and the success of strategic initiatives.

In 2021, the UK and the USA showed remarkable growth in Georgian wine imports. The UK experienced a 50% year-over-year growth rate, the highest among the target markets. Similarly, the USA also improved its position, highlighting the growing global footprint of Georgian wines.

While Russia remains a significant export destination, the Georgian wine industry's efforts to diversify its target market portfolio are evident. The industry's ability to adapt to market changes and geopolitical events, combined with a focus on quality and strategic market penetration, paints a promising picture for the future of Georgian wine exports.