As of the document, the increase was observed in the production value of the business sector as well. In the IV quarterof 2025, production value equaled 27.2 billion GEL, which is 15.5 percent more year-on-year.In the IV quarter of 2025, large businesses generated 67.4 percent of total turnover, while medium size businesses generated 14.7 percent, and 17.9 percent was generated by small businesses.A distribution was different in case of total production value: 43.6 percent — large businesses, 24.9 percent — medium, and 31.5 percent — small businesses.In the IV quarter of 2025, total purchases of goods and services carried out by enterprises equaled 35.6 billion GEL (year-on-year 7.2 percent more), while the purchase of goods and services for resale amounted to 20.2 billion GEL (year-on-year 7.0 percent more).In the IV quarter of 2025, the average number of persons employed in business sector equaled 839.2 thousand, which is year-on-year 3.4 percent more. Out of the total number of persons employed, 43.3 percent were female and 56.7 percent were male.Large businesses employed 41.4 percent of total number of persons, while 19.4 percent were employed by medium, and 39.2 percent — by small businesses.The total number of employees amounted to 782.8 thousand (year-on-year 2.4 percent more) and the total personnel costs of enterprises equaled 6 260.3 million GEL (year-on-year 13.1 percent more).In the IV quarter of 2025, average monthly remuneration of employees equaled 2 608.4 GEL (241.3 GEL increase year-on-year), while remuneration specifically for women employees was 1 998 GEL (150.7 GEL increase year-on-year). Average monthly remuneration by size of enterprises was as follows: Large business — 2 743.7 GEL Medium size business — 3 084.9 GEL Small business — 2 152.2 GEL n the IV quarter of 2025, the arts, entertainment and recreation had the highest share (35.9%) in the total turnover in business sector, followed by trade sector (including repair of motor vehicles and motorcycles) with 32.9 percent share, manufacturing – with 7.3 percent, construction – with 6.4 percent, transportation and storage – with 4.5 percent, information and communication – with 3.3 percent, and other sectors – with 9.7 percent share.In the IV quarter of 2025, manufacturing (18.6 percent), trade (18.5 percent), construction (18.5 percent), transportation and storage (9.3 percent) and information and communication (8.4 percent) held the top five places in business sector by production value. The rest of the sectors had 26.6 percent share combined.In the IV quarter of 2025, trade (wholesale and retail trade; repair of motor vehicles and motorcycles), manufacturing, and human health and social work activities led business sector by number of employed persons with 29.0 percent, 11.1 percent, and 8.9 percent shares, respectively. Enterprises engaged in construction activities (8.4 percent), transportation and storage (8.4 percent), information and communication (6.5 percent), and accommodation and food service activities (5.5 percent) also had a significant share though.

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The company imports major brands such as Roshen and Danone to Georgia.According to Burduli, the price difference compared to European countries is directly linked to producers’ policies. Large manufacturers view Georgia as a small buyer, resulting in higher purchase prices.“In many cases, major manufacturers consider our market expensive, small in scale, so purchase prices are higher than in other countries,” Burduli noted, citing Turkey as an example, where similar products are significantly cheaper.He added that prices imported by their company increased by no more than 2% on average in 2025, mainly due to changes in purchase costs.Burduli emphasized that distributors cannot arbitrarily raise prices, as international brands strictly control operating costs and profit margins. In most cases, distributors’ profit margins do not exceed 3%, and at most 5%.On March 5, the fifth session of the Commission for the Study of the Pricing Structure of Food Products, Medicines, and Fuel was held in the Georgian Parliament. The commission, which has already met with local producers and small importers, aims to complete its study of the market structure and value chain by the end of April.

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In January of this year, the Agency received 388 consumer applications and handled 990 hotline calls, marking a 92% increase in applications compared to the previous year.During the reporting period, the Georgian Competition and Consumer Agency (GCCA) identified 51 violations of consumer group rights in 89 cases. Due to non-compliance with obligations imposed by the GCCA, 24 traders were fined in 44 cases, with total penalties amounting to 47 925 GEL. For consumer protection, 30 commitment agreements were signed in 37 cases, where traders committed to modifying their internal business policies and restoring the rights of affected consumers who suffered due to unfair business practices.According to the reporting period, 65% of submitted applications concerned online transactions, while 35% related to in-person purchases. From a regional perspective, Tbilisi accounted for the largest share of applications 75%, followed by Adjara 6%, Imereti 5%, Kvemo Kartli 3% , Kakheti 3%, Samegrelo Zemo-Svaneti 3%, etc.According to the data for the first two months of the current year, the demand for a refund is 122, the repair or replacement of defective items is 104, 93 for restoring the right to a defective service, 21 applications related to the delivery of goods within the legally established timeframe, and the rest is 48. According to the statistics, 65% of the applications related to the wholesale and retail sector, followed by transport and warehousing with 13%, the arts, entertainment, and recreation sector accounted for 2%, while the remaining 17% concerned other types of economic activities.

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Cholaria explained that the exit is part of a global decision made by Yandex Eats at the international level."My role as Head of Operations for Yandex Eats in Georgia has ended due to the company’s global decision to cease local operations.I am proud of what we built together. In a very short time, we structured the business into a results-oriented operation, with clear responsibilities, transparent processes, and high performance standards.In 2025, our market became the company’s strongest international operation in terms of results, reflecting focus, discipline, and consistent leadership.I want to thank everyone who was part of this journey. Building a strong team and achieving results in a competitive environment is never easy, and that is what makes it meaningful," Cholaria wrote.

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Inspections by the National Wine Agency covered 62 companies, with 19 samples from 7 companies found non-compliant. Additional checks by contractor firms Bureau Veritas Georgia and SGS Georgia identified 3 violations in 529 samples from 80 companies, primarily when submitted lots for certification did not match production batches.Organoleptic testing for export purposes included 279 tastings of 13,349 samples, of which 520 failed, while the remaining 12,829 passed. Domestic market checks of 78 companies showed 73 of 136 samples with irregularities, highlighting the continued need for strict local oversight.Levan Mekhuzla, Chairman of the National Wine Agency, emphasized the importance of quality from vineyard to production, stating that maintaining high standards is critical for international competitiveness. In 2026, quality control efforts will intensify, with a focus on both domestic and export markets to boost the recognition of Georgian wine.

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According to the Agency’s assessment, following a decline in export volumes during the period 2021-2024, the hazelnut market demonstrated positive export dynamics in 2025. In January-October 2025, the volume of exported hazelnuts increased by up to 18% compared to the corresponding period of the previous year. At the same time, a slight decrease was observed in the Herfindahl–Hirschman Index (HHI) and in the market shares of leading companies.The analysis also reveals an upward trend in average product prices. After a period of declining prices during 2020-2022, when the lowest average price was recorded in 2022 at GEL 13 per kilogram, export prices increased to GEL 17 per kilogram in 2024. In 2025, the average price reached GEL 23.4 per kilogram, representing a 35% increase compared to the corresponding ten-month period of the previous year.Based on the Agency’s assessment, no risks of violations of competition legislation have been identified in the hazelnut market. The export segment is characterized by a low level of concentration, the presence of a large number of exporting undertakings, and the absence of a dominant position.For the purpose of assessing the competitive environment, the Georgian Competition and Consumer Agency initiated monitoring of the hazelnut market in 2023. Georgian hazelnut exports are primarily destined for Italy, followed by Germany, Spain, Armenia, and other markets.GCCA continues to monitor the hazelnut market, along with other strategically important markets.

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As a result of these infringements, the undertakings subject to the notification obligation were collectively fined a total amount of GEL 70,000.In two of the three cases, the obligation to submit a notification applied to the same undertaking. In addition to the imposition of fines, the respective parties were instructed to submit the relevant concentration notifications to the Agency.The infringements concerned the acquisition by LLC “ITN” of 20% ownership interests in LLC “Horeca Delivery” and LLC “Gastronom Georgia”, as well as the acquisition by the Non-Entrepreneurial Legal Entity New Vision University of a 40% ownership interest in LLC Mtskheta Medical Center (currently operating as LLC “New Vision University Hospital-Mtskheta”).In case of bypassing the Competition Agency subject to the mandatory notification, before the Agency reviews the notification or despite the negative conclusion, the person with the obligation to submit the notification shall be fined. Concentration is subject to notification to the Agency if the aggregate (total) joint income of its participants on the territory of Georgia, exceeds 20 million GEL and the joint income of at least two persons participating in the concentration exceeds 5 million GEL for the previous financial year. The fee for reviewing a merger notification is 5,000 GEL.In 2025, the GCCA granted clearance to 18 concentrations, while the review of one concentration notification remains ongoing.

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During the reporting period, the Agency received 1,470 consumer applications and handled 5,450 hotline calls, marking a 65% increase in applications compared to the previous year.90% of concluded cases were decided in favor of consumers, with total compensation exceeding GEL 1 million.During the reporting period, the Georgian Competition and Consumer Agency (GCCA) identified 183 violations of consumer group rights in 288 cases. Due to non-compliance with obligations imposed by the GCCA, 85 traders were fined in 139 cases, with total penalties amounting to 135 955 GEL. For consumer protection, 161 commitment agreements were signed in 182 cases, where traders committed to modifying their internal business policies and restoring the rights of affected consumers who suffered due to unfair business practices.In 2025, 66% of submitted applications concerned online transactions, while 34% related to in-person purchases. From a regional perspective, Tbilisi accounted for the largest share of applications (79%), followed by Adjara and Imereti (5%). Kakheti, Kvemo Kartli, Shida Kartli, and Samegrelo-Zemo Svaneti each represented 2%, and etc.Based on 2025 data, the demand for a refund is 465, the repair or replacement of defective items is 484, 273 for restoring the right to a defective service, ensuring delivery of goods within the stipulated period 112, 46 related to the prohibition of misleading practices, and the rest is 90. According to the statistics, 73% of the applications related to the wholesale and retail sector, followed by transport and warehousing with 12%. The arts, entertainment, and recreation sector accounted for 5%, while the remaining 10% concerned other types of economic activities.

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The deputy minister also stressed that local producers find it difficult to enter online markets, which is due to the contractual terms that online markets impose on them.According to Vakhtang Tsintsadze, prices for comparable products in Georgia are 20% to 180% higher than in European online markets."The mentioned challenge is not new and is not limited to Georgia. Similar challenges have existed in European countries, including Georgia, and various countries have responded to it with various adequate mechanisms. Our goal is to study this issue in depth in order to respond to the challenge with appropriate adequate mechanisms," the Deputy Minister of Economy noted.On December 24, Irakli Kobakhidze spoke about the high markup on products in Georgia and the financial burden imposed on suppliers.According to Kobakhidze, the study shows that the financial profit of chain markets in Georgia is much higher than in Europe, in particular, the net profit margin of specific retail chains in Georgia is 7, 8 and even 14 percent, when the average net profit margin in Europe is 2%.As of December 24, inflation in Georgia is 4.8%.A 2023 study by the ISET research organization discusses that - government price controls can have several negative consequences. Among them: It often leads to a shortage of goods or services, - because the price is artificially lowered below the market equilibrium point, which, in turn, creates excess demand. In addition, imposing a maximum price limit can lead to a decrease in the quality of goods or services, as producers may begin to look for ways to reduce costs. Sellers can avoid the law by reducing quality instead of raising prices. Consumers may also have to bear the costs associated with searching for goods and services, such as long lines or the time spent searching for a product that is in high demand but in low supply. Typically, when paying a higher price than the established one is illegal, buyers find a way to pay more in the form of bribes, which ultimately increases the level of corruption.

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The Prime Minister urged law enforcement agencies to conduct a thorough investigation into the matter.“I call on law enforcement agencies to examine the issue in detail and determine whether there are any indications of criminal activity by specific entities.Additionally, I would like to request that the Georgian Parliament establish a parliamentary commission, empowered to utilise relevant parliamentary tools to assess and address this issue,” Irakli Kobakhidze added.The Prime Minister also mentioned in his video address that the disparity between Georgian and European prices is quite significant.“When comparing identical international brand products in Georgia and France, sunflower oil is 34% more expensive in Georgia, pasta 97% more, rice 180% more, butter 30% more, cheese 42% more, and chocolate 47% more,” the Prime Minister stated.According to the Head of Government, the price difference is determined by the high mark-ups of distribution companies and supermarkets, which average 86% from the Georgian border to the checkout.“The public frequently expresses concern that food prices in Georgian supermarkets are significantly higher than those in Europe. To investigate this issue, we selected several basic food items, compared their prices in Georgia with those in specific European countries, and analysed the markup structures, including the trading practices of chain supermarkets. The disparity between Georgian and European prices is indeed considerable; for example, when comparing identical international brand products between Georgia and France, sunflower oil is 34% more expensive in Georgia, pasta 97% more, rice 180% more, butter 30% more, cheese 42% more, and chocolate 47% more. This price gap is largely driven by high mark-ups applied by distributors and supermarkets, which average around 86% from the Georgian border to the point of sale,” Kobakhidze stated.Georgia’s Prime Minister also observed that the net profit margins for certain retail chains in Georgia are 7%, 8%, and even 14%, whereas the average net profit margin across Europe is around 2%. According to the Prime Minister, the mark-ups on products and the financial burdens placed on suppliers are so significant that it is often more profitable for Georgian producers to export their goods abroad rather than sell them in Georgian supermarkets.“Research indicates that the financial profits of chain supermarkets in Georgia are significantly higher than those of their European counterparts. Specifically, net profit margins for certain retail chains in Georgia are 7%, 8%, and even 14%, whereas the average net profit margin across Europe is around 2%. It is also important to note that operating costs for supermarkets in Europe, such as premises rental, labour expenses, utility bills, and so forth, are substantially higher. Additionally, the net profit margins of distribution companies in Georgia are quite high, typically ranging from 6% to 13.5%.The mark-ups on products and the financial burdens placed on suppliers are so significant that it is often more profitable for Georgian producers to export their goods abroad rather than sell them in Georgian supermarkets. This is why one frequently encounters foreign products in Georgian supermarkets that were actually exported by Georgian companies. This presents a serious problem, as the state’s interest should, on the contrary, be to support Georgian manufacturing and minimise imports as much as possible,” the Prime Minister remarked.The Head of Government further stated that, amid high profit margins, companies are rapidly expanding their retail networks. Over the past five years, the number of chain supermarkets in the country has doubled. As a result, Georgia now has 113 supermarkets per 100,000 people, compared to 45 in Germany and 62 in Austria. The Prime Minister sees it as reasonable to conclude that the costs associated with network expansion are directly reflected in product prices. According to Kobakhidze, preliminary analyses indicate several key factors that may be contributing to high mark-ups and, consequently, elevated prices.“For example, there is the so-called network cashback, entrance fees imposed for shelf space, delayed payments to distributors or manufacturers, the proliferation of shops and the reflection of new shop opening costs in prices, and so forth. Most importantly, existing practices raise suspicions that market players may be acting in concert, following cartel principles, which, naturally, requires further analysis,” the Prime Minister noted.Two-time former Prime Minister Irakli Gharibashvili, accused of corruption, stated in February 2023 that prices and margins for importers and specific rules for retail would be established to regulate food prices.The rules for the retail sector in Georgia are not approved in Europe, so the Ministry of Economy was to prepare a draft law on fair trade to regulate retail trade rules on the instructions of Gharibashvili."The picture that emerged is this - the markup of importers has increased by 100% in some cases, this is unacceptable and the issue must be regulated," Gharibashvili said.At the request of Gharibashvili, the National Competition Agency studied the market of 7 main products (rice, buckwheat, pasta, sugar, salt, oil, butter), as a result of which it concluded that price increases at the import level were indeed high, although no cartel agreement or violation of the law was officially confirmed. The agency only addressed the business with recommendations.

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