TBC Capital Presents FMCG Sector Investment Analysis

TBC Capital presents a second investment analysis about the FMCG sector for food and fast food products with the aim of discussing the current market situation and developing the potential of the sector together with companies and potential investors.

According to the survey, by the end of 2019, the volume of the FMCG sector will exceed GEL 9.4 billion, of which organized players - branded trading networks, will occupy 28% of the market, which is 10% more than in 2016.

Expenditure on food and fast-food products in the local population is projected to rise to GEL 8.1 billion by 2019, while direct spending on tourism and restaurants will reach GEL 1.3 billion over the same period.

“Our research provides a good basis for identifying the sector's growth potential,” said Tornike Kordzaia, Head of TBC Capital Studies. “We predict that sales of organized players will increase to GEL 5.5 billion over the next five years, that means a 13% increase of organized market share and more than 600 new online stores. Where growth was mostly coming from capital in previous years, we predict that at this stage the organized market will become more active in the regions, driven by increased tourism and high activity during the summer.”

TBC Capital is a TBC Bank affiliate and licensed company providing investment banking services to its customers. In 2017, TBC Capital became a part of TBC Bank's corporate and investment banking business. The main business areas of the company are: financial consulting and credit, rating services, bond and stock issuance, investment research and brokerage activities.

By Mariam Merabishvili