Bread market in Azerbaijan

Earlier Report Observations

The bread market in Azerbaijan expanded from 16 080 t in 2018 to 19 192 t in 2019, driven by state support for agriculture under the Strategic Road Map and capacity expansion at major bakeries like Corekci, which upgraded with German technology. In 2020, the market slightly contracted to 18 525 t due to supply chain disruptions and price inflation caused by the COVID-19 pandemic, though government-imposed price ceilings on flour and bread helped stabilize availability.

Market volume rebounded sharply to 22 082 t in 2021 and further to 23 338 t in 2022, despite global wheat price surges and export restrictions that raised input costs. Authorities maintained anti-price-gouging controls, while import geography shifted from Russia to Kazakhstan and Turkey, securing supply. High per-capita bread consumption, around 130 kg annually, underpinned steady demand even as fuel and energy costs pushed production expenses higher.

By 2023, growth leveled off at 23 445 t, reflecting market maturation amid persistent cost pressures and sustained regulatory oversight of retail prices.

Production bread in Azerbaijan

In kind, 2018-2021, t

Top producers of bread, 2018-2021

World map of production of bread, 2018-2021

Bread production in Azerbaijan has increased for the third consecutive year. In 2021, the country produced 4 474 tons of bread, marking a 16.9% rise compared to the previous year. From 2018 to 2021, production grew by 45.2%, which translates to an annualized growth rate of 13.2%.

Annual dynamics of production in Azerbaijan in kind, 2018-2021, t

Exports bread from Azerbaijan

Exports in kind, t

Cross-border shipments of bread from Azerbaijan have increased for the third year in a row. In 2021, export volume reached 372 tons, showing a 13.8% year-over-year uptick. Between 2018 and 2021, exports rose by 79%, equating to an annualized growth rate of 21.4%.

Annual dynamics of product's exports from Azerbaijan in kind, 2018-2021, t

From 2018 to 2021, Georgia, Russia, and Iraq formed the core of Azerbaijan's bread exports in kind. Georgia accounted for 41.2% of exports, Russia for 14.7%, and Iraq for 10.7%, together representing 66.6% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Azerbaijan in kind, 2018-2021

Exports in value, K $ US

Azerbaijan exported $440,000 worth of bread in 2021, reflecting a robust gain of 21.3% from 2020. However, between 2018 and 2021, exports decreased by 24.5%, with an annualized decline rate of 8.9%. The maximum value was recorded in 2019 at $595,000, followed by a significant drop in 2020 to $363,000, which marked the lowest point and the largest decline of 39.0%.

Annual dynamics of product's exports from Azerbaijan in value, 2018-2021, K $ US

In the period from 2018 to 2021, the partner structure for Azerbaijan's bread exports in value terms was balanced rather than concentrated. Georgia represented 20.3% of exports, Russia 13.8%, and Iraq 9.9%, jointly accounting for 43.9% of total flows, while many other countries made up the remaining 56.1%.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Azerbaijan in value, 2018-2021

Imports bread to Azerbaijan

Imports in kind, t

Azerbaijan imported a total of 17 980 tons of bread in 2021, up by 19.7% compared to the previous year. Over the period from 2018 to 2021, imports increased by 36.1%, with a compound annual growth rate of 10.8%. The largest increase was recorded in 2019 at 22.0%, while the largest decline occurred in 2020 at 6.8%.

Annual dynamics of product's imports to Azerbaijan in kind, 2018-2021, t

From 2018 to 2021, Russia, Turkey, and Ukraine were the main suppliers of bread to Azerbaijan in kind. Russia accounted for 41.9% of imports, Turkey for 38.1%, and Ukraine for 13.6%, together comprising 93.6% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Azerbaijan in kind, 2018-2021

Imports in value, K $ US

In 2021, foreign bread supplies to Azerbaijan were recorded at $37,801,000, reflecting a 26.1% improvement compared to the previous year. Over the period from 2018 to 2021, imports increased by 40%, with a compound annual growth rate of 11.9%. The largest decline was recorded in 2020 at 10.7%.

Annual dynamics of product's imports to Azerbaijan in value, 2018-2021, K $ US

In the years 2018 to 2021, three principal markets—Turkey, Russia, and Ukraine—together accounted for 91.8% of total bread imports to Azerbaijan in value terms.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Azerbaijan in value, 2018-2021