Georgian FMCG Sector Analysis

The Fast-Moving Consumer Goods (FMCG) sector in Georgia is developing rapidly. Over the last four years, total FMCG retail revenue has grown at a 5.8% CAGR and reached GEL 7.8 bn in 2017. Looking at the latest market development trend, total FMCG retail grew by 10% y-o-y in 2017. Revenue for the organized market grew 32% y-o-y to GEL 1.3 bn in 2017. On the other hand, unorganized market amounted to GEL 6.5 bn, displaying growth of 7% in the same period. TBC Capital Research projects 6% annual growth in total FMCG retail revenues over the next 6 years to GEL 11 bn by 2023. While organized FMCG market penetration is 16% currently, the lion’s share (84%) still goes to the unorganized sector, giving a huge upside potential to the organized market. We expect organized FMCG retail to grow its current market share to 30% by 2023, reaching GEL 3.4 bn, driven by substitution of the unorganized market.

 

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