Alcoholic Beverages – Wine Industry in 2024
n 2023, adverse weather conditions across the globe led to the lowest level of global wine production seen in the past 60 years. This significant decline in output underscores the vulnerability of the wine industry to climatic factors, which can severely impact grape yields and overall production volumes.
Italy and Spain, the second and third largest wine producers, experienced significant reductions in production in 2023, with decreases of 23% and 21%, respectively.
According to preliminary data from Geostat, formal wine production in 2023 reached 127 million liters, representing a 7% increase compared to 2022. Even though wine production has increased by 7% in 2023, compared to 2022, in terms of total value it has gone down by 5%. In 2022, wine production in terms of monetary value reached nearly 1 billion GEL, showing a significant increase of 7% compared to the level in 2021.
In 2023, the country earned $259 million from wine exports, which represented 4.1% of its total exports. Georgia ranks among the top 20 wine-exporting nations, consistently holding its place. In 2023, Georgian wine exports achieved a record high in revenue. However, the quantity of wine exported saw a decline. Georgia exported nearly 117 million bottles of wine, an 11% decrease compared to the previous year, while revenues increased by 2% during the same period.
One of the main export destinations for Georgian wine is Russia. In terms of revenue, Russia’s share in the total revenue of the Georgian wine industry reached 66% in 2023. In 5 months of 2024, exports to Russia increased by 52% year-on-year, which was mainly caused by the increase in excise duty. Wine exporters opted to export a substantial portion of their annual goods just before the excise duty increase took effect.
In 2023, the total turnover of wine and alcoholic beverages reached 1.43 billion GEL, reflecting a year-on-year (YoY) growth of 4.6%. Over the past nine years, total revenues for local wine producers have grown at a compound annual growth rate (CAGR) of 16%, indicating substantial and steady progress in the industry.
Looking ahead, the total turnover of wine companies in Georgia is projected to grow moderately by 5% in 2024. This forecast considers current export trends, which show a rising interest in Georgian wines in various international markets, as well as local consumption patterns, which continue to support steady demand.
