Georgia: Within the framework of the ongoing monitoring efforts, the Georgian Competition and Consumer Agency (GCCA) is releasing an interim report on the FMCG market. FMGC market refers to the Fast-Moving Consumer Goods Market.
The Georgian Competition and Consumer Agency (GCCA) shared the details about this on its official Facebook page on May 1, 2025, Thursday. The details shared by the Agency included the annual report of GCCA and other important facts related to it.
According to the annual report of GCCA, in 2024 the retail level volume of the FMCG market amounted to 12 792 211 332 GEL (without VAT), which is 6.75% higher than the analog index of 2023 (11 983 346 244 GEL).
According to the GCCA estimates, in 2024 the retail level of the market is low-concentrated, the concentration index reached 706 units, slightly above the analog index of 2023 – 397 units. The dominant economic agent is not fixed at the retail level of the market, and there is no place for one of the conditions necessary for the existence of a group’s dominant position in the form of market shares.
In 2024 at the retail level of the FMCG market, the total market share of 3 large companies is 31.9% (29.9%-2023). ) The share of 5 large companies with 44.2% (40.6%-2023 year. ) The share of the 10 largest companies was 55.5% (50.1%-2023 year. ) And the total share of the organized market was 58.4%.
As per the information shared by the Consumer Agency of Georgia, in recent years, cases of merging and expanding networks have been recorded on the market, as well as new players have emerged on the market. Rapid development is noticeable in the regions. The share of the organized market is dynamically growing.
At the retail level of the FMCG market, various types of indirect taxes imposed by retail for distributors, such as cashback, network/new store entry fee, shelf, marketing, etc. are a major issue. Considering the size, the retail price has the most cashback paid by the distributor from the price of the products provided, with the appropriate percentage.
It is also noteworthy that cashback dynamics are increasing on most products (for example – water in case of 0.5 liters from 22% to 33%, eggs 10 pcs. From 20% to 24%, sunflower oil 1 liter from 8% to 15%, butter 200g (82%) from 25% to 34%, milk (1l) and whey (400g) from 14% to 25%.
According to GCCA’s perspective, even while the payback range varies for comparable products, the product eventually sells at the retail level for roughly the same price at both the distributor and retail levels.
Therefore, when a relatively low cashback is fixed, the immediate post-retail price increase is high and vice versa, where a high cashback is high, the retail price increase is low, resulting in similar prices to the identical product in different networks.
