The baked goods category in Georgia is dominated by bread. The unit price for bread has increased significantly in the country in recent years due to a poor grain yield in Russia.
There is a difference in consumption habits between rural and urban areas. Unrefined bread accounts for more than one-third of consumption in rural areas and smaller towns.
Dessert mixes saw the most dynamic performance in 2019. This is a relatively new category in Georgia, with sales emerging from negligible territory only in recent years.
The baked goods environment is very fragmented, with no single player even holding a double-digit value share in 2019. This is largely due to the lack of differentiation in the category.
Premiumisation occurs through the employment of a particular strategy in Georgia. Bread brand Mzetamze is presented with the message that it is made using local, Georgian grain.
The outlook for artisanal baked goods is not positive, as demand is shifting towards packaged, industrially produced offerings, especially in Georgia’s larger towns and cities. However, in rural areas and smaller towns, consumers still prefer the unpackaged breads produced by local independent bakeries.
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This industry report originates from Passport, our Packaged Food market research database.