Maize flour and cereals market in Georgia

Earlier Report Observations

The market for maize flour and cereals in Georgia expanded from 63.5 thousand tons in 2018 to a peak of 86.6 thousand tons in 2022. This growth was primarily driven by the entry of new farmers from 2018 onward, who focused on producing higher-quality grain and non-hybrid flour, which increased domestic supply and likely stimulated demand. In 2022, the launch of the cargo airline Georgian Airlines improved logistics for grain transport, further supporting market activity. During this period, the market also saw a significant increase in the number of flour importers from Russia, which tripled in 2021, intensifying competition for local producers.

Market volume contracted by 22% to 67.3 thousand tons in 2023, a decline that coincided with wheat imports reaching a seven-year high, increasing the industry's reliance on imported raw materials and likely altering competitive dynamics. In 2024, the market faced additional pressure from rising flour prices, triggered by increased costs for wheat from Russia. The regulatory environment tightened with new government rules for product quality oversight and market withdrawal procedures. Consumer preferences also continued to shift towards products with specific quality and origin, while the organized market became more concentrated, with the top three FMCG companies controlling 61.3% of sales.

Production maize flour and cereals in Georgia

In kind, 2017-2020, t

Top producers of maize flour and cereals, 2017-2020

World map of production of maize flour and cereals, 2017-2020

In 2019, Georgia produced 63 180 tonnes of maize flour and cereals, which was the lowest output recorded during this period. The following year, in 2020, production increased to 68 310 tonnes, representing a moderate growth of 8.1% compared to 2019. The most significant decline occurred in 2018, when production fell by 6.7%.

Annual dynamics of production in Georgia in kind, 2017-2020, t

Exports maize flour and cereals from Georgia

Exports in kind, t

Georgia's exports of maize flour and cereals have been growing for three consecutive years. In 2020, exports reached 21.9 tonnes, showing a substantial year-over-year increase of 98.9%. Over the period from 2017 to 2020, exports surged by 817.2%, which translates to an annualized growth rate of 109.3%.

Annual dynamics of product's exports from Georgia in kind, 2017-2020, t

From 2017 to 2020, the United States, Israel, and France were the key export partners for Georgia's maize flour and cereals in terms of volume. The United States accounted for 41.1% of exports, Israel for 23.4%, and France for 16.8%. Together, these three countries represented 81.3% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Georgia in kind, 2017-2020

Exports in value, K $ US

Georgia's exports of maize flour and cereals in value terms have also been rising for three consecutive years. In 2020, exports totaled 25.3 thousand US dollars, marking a sharp increase of 69.0% compared to the previous year. Between 2017 and 2020, exports grew by 1 695.8%, with an annualized rate of 161.9%.

Annual dynamics of product's exports from Georgia in value, 2017-2020, K $ US

In the period from 2017 to 2020, the United States, Israel, and Germany led the structure of Georgia's maize flour and cereals exports in value terms. The United States contributed 43.7% of export value, Israel 29.8%, and Germany 10.6%. Collectively, these three partners accounted for 84.0% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Georgia in value, 2017-2020

Imports maize flour and cereals to Georgia

Imports in kind, t

After increasing for two years, Georgia's imports of maize flour and cereals declined in 2020. Imports fell to 444.5 tonnes, down by 21.7% year-over-year. The highest import volume was recorded in 2019 at 568.1 tonnes, which also saw the largest increase of 50.3%. Over the entire period from 2017 to 2020, imports grew by 46.2%, with a compound annual growth rate of 13.5%.

Annual dynamics of product's imports to Georgia in kind, 2017-2020, t

From 2017 to 2020, Ukraine, Turkey, and Russia were the principal sources for Georgia's imports of maize flour and cereals in terms of volume. Ukraine accounted for 33.5% of imports, Turkey for 24.0%, and Russia for 23.6%. Together, these three countries made up 81.1% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Georgia in kind, 2017-2020

Imports in value, K $ US

Following a two-year rise, Georgia's imports of maize flour and cereals in value terms decreased in 2020. Import value amounted to 196.5 thousand US dollars, reflecting a reduction of 17.3% compared to the previous year. The peak value was recorded in 2019 at 237.6 thousand US dollars, which also experienced the largest increase of 44.0%. Between 2017 and 2020, imports increased by 54.3%, with an annualized growth rate of 15.5%.

Annual dynamics of product's imports to Georgia in value, 2017-2020, K $ US

In the years 2017 to 2020, the leading destinations for Georgia's imports of maize flour and cereals in value terms were Ukraine, Russia, and Turkey. Ukraine accounted for 30.5% of import value, Russia for 23.3%, and Turkey for 18.3%. Collectively, these three countries represented 72.1% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Georgia in value, 2017-2020