Georgian Competition
and Consumer
Agency

In 2025, the retail value of the FMCG market amounted to GEL 13,698,224,599 (excluding VAT), representing an increase of 6.61% compared to 2024 (GEL 12,792,211,332) and 12.52% compared to 2023 (GEL 11,983,346,244).

At the retail level, the market remained low concentrated. The concentration index (HHI) reached 940 points, which is 234 points higher than in 2024 (706 points), yet still indicative of a competitive market structure. No undertaking was found to hold a dominant position, nor were the conditions necessary to establish collective dominance identified, particularly with respect to market share distribution.

Between 2023 and 2025, the aggregate market share of large retail companies exhibited a gradual upward trend. In 2025, the combined market share of the ten largest companies increased by 7.1% compared to 2024 and by 12.5% compared to 2023.

The organised retail segment accounted for 64.08% of total retail sales in 2025, representing a 5.68 percentage point increase compared to 2024 (58.4%).

As of 2025, the largest retail chains operated the following number of stores:

• Daily Group - 1411 stores


• Nikora - 672 stores


• Ori Nabiji - 638 stores


• Carrefour - 97 stores


• Goodwill - 9 stores


• Agrohub - 9 stores

A notable structural feature of the retail FMCG market concerns various indirect charges imposed by retailers on distributors, including cashback payments, listing fees for new stores, shelf-placement fees, marketing contributions, and related payments. Among these, cashback payments appear to exert the most significant influence on retail pricing, as distributors typically pay a percentage of the product price to retailers.

Although the “cashback” range for similar products may vary at both the distributor and retail levels, the final retail prices of the products remain largely uniform. Specifically, when a relatively low cashback is applied in retail trade, the subsequent retail margin tends to be higher; conversely, a higher cashback is generally associated with a lower retail margin. Consequently, the prices of identical products across different retail networks remain broadly comparable.

Interim Conclusion

1. No undertaking was identified as holding a dominant position, nor was any group of undertakings found to meet the criteria for collective dominance based on market shares. Consequently, the monitoring results do not currently justify the initiation of proceedings under Article 6 of the Law of Georgia on Competition (abuse of dominant position).


2. The retail FMCG market continues to expand. In 2025, market volume increased by 6.61% compared to 2024 and by 12.52% compared to 2023, accompanied by increasing market shares among major retail operators.


3. The expansion of large retail networks appears partly facilitated by the fact that distributors bear additional costs associated with placing products in newly opened stores. As a result, barriers to retail network expansion remain relatively low for retailers, while costs are largely transferred to distributors and ultimately reflected in consumer prices.


4. Between 2021 and 2025, fees associated with access to retail networks demonstrated a consistent upward trend. Monitoring of selected products indicates that cashback percentage ranges increased significantly over this period, influencing distribution costs and, ultimately, retail pricing.

The assessment of market size, the identification of active undertakings, and the calculation of their respective market shares were based on data obtained from the National Statistics Office of Georgia (Geostat) and the Revenue Service of the Ministry of Finance, including information derived from value-added tax (VAT) declarations.

The estimated market size excludes relevant products distributed through retail pharmacy channels. Market shares are presented on an individual undertaking basis and are not aggregated at the corporate group level. The combined market shares of the 3 and 5 largest undertakings in 2025 increased primarily as a result of market concentrations implemented in 2024, reflecting ongoing structural developments within the sector.