Georgia is a significant contributor to the global hazelnut industry, ranking among the world’s leading countries in both shelled and in-shell hazelnut exports. Notably, in 2022, Georgia held a 6.7% share in global hazelnut exports, securing fourth position among the world’s top exporting countries. In addition, Georgia is also among the key players in terms of production and harvested area in the hazelnut industry.
Nearly all (97.9%) Georgian hazelnuts are produced in the following five regions: Samegrelo (42.2%); Guria (20.7%); Kakheti (12.9%); Adjara (12.0%); and Imereti (10.5%). Among these regions, the price of hazelnuts is highest in Kakheti, followed by Samegrelo and Imereti.
Most of the hazelnuts produced in Georgia are exported. Notably, 66.0% of total production was exported in 2022. The leading importer countries of Georgian hazelnuts are Italy and Germany. Furthermore, the price of Georgian hazelnuts in the export market is below the global average due to their relatively low quality.
From 2016 to 2022, hazelnut production in Georgia increased at an average annual rate of 7.1%. However, in 2017-2018, the Brown Marmorated Stink Bug (BMSB)5 invasion and tree fungus diseases6 hindered hazelnut production in Georgia. In 2022, the production faced setbacks yet again (-27.4%, y/y) due to unfavorable weather conditions.
In Georgia, Samegrelo stands out as the top hazelnut-producing region, backed by Ferrero Rocher’s utilization and investments in the region8. Samegrelo is followed by Guria, Kakheti, Adjara, and Imereti. These five regions collectively account for 97.9% of Georgian hazelnut production.
In 2022, hazelnut production setback is evident in every region, except Kakheti. In 2022, Hazelnut production increased marginally in Kakheti, attributed to favourable weather conditions and higher share of industrial orchards. However, all other regions, including Samegrelo and Guria, experienced production setbacks. Hazelnut prices vary across regions in Georgia. During the period 2020-22, the most expensive hazelnuts in Georgia were produced in Kakheti, followed by Samegrelo-Zemo Svaneti and Imereti. Some price differences across regions can be attributed to the proportion of industrial orchards in the region. Kakheti, in particular, stands out due to the majority of its orchards being industrial, producing premium-quality hazelnuts that are sold at higher prices.
In 2022, the price of hazelnuts followed a downward trend in every region, resulting in an 11.3% decrease y/y (measured in USD per kilogram). Decreasing prices negatively affect profitability of hazelnuts production in Georgia.
In 2022, Georgia exported 22 thousand tonnes of hazelnuts, experiencing a moderate y/y decrease of 6.5%. Notably, Georgian hazelnut exports displayed a declining trend during 2016-2018, followed by a steady growth trajectory leading up to 2022, resulting in an average annual growth rate of 1.6% during 2016-2022.
In 2022, Georgia exported 22 thousand tonnes of hazelnuts, experiencing a moderate y/y decrease of 6.5%. Notably, Georgian hazelnut exports displayed a declining trend during 2016-2018, followed by a steady growth trajectory leading up to 2022, resulting in an average annual growth rate of 1.6% during 2016-2022.
In 2022, 27.4% of the shelled hazelnuts exported from Georgia were sent to Germany, known for having one of the highest hazelnut consumption rates and for its various hazelnut treats. Italy followed closely at 19.3%, with Armenia (9.8%) and Spain (6.1%) also being key importers.
