Products pertaining to food & beverage, personal care & cosmetics, home care, and electronics occupy a majority share of the consumer goods sector in the country. The expansion of modern retail outlets such as supermarkets and hypermarkets has made these products easily available to customers.
The Global Armenia Consumer Goods Market is estimated to be valued at US$ 1.64 Bn in 2024 and is expected to exhibit a CAGR of 4.6% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Armenia consumer goods market are K-Town (K-Town Food), Alex Holding, Grand Candy, Kotayk Brewery, Ararat Brandy Factory, Dargett Brewery, Erebuni Brewery, Kilikia Brewery, Pico. K-Town Food is a leading manufacturer of snacks, biscuits and chocolates while Alex Holding and Grand Candy are major confectionery players. Kotayk Brewery, Ararat Brewery and Erebuni Brewery are prominent beer brewers.
The demand for consumer goods has been rising in Armenia owing to growth in disposable incomes. Changing lifestyle and exposure to global trends have increased spending on packaged food items, personal care products and home care goods. Rapid urbanization has also boosted demand from younger consumers who form a major part of the population.
The Armenia Consumer Goods Market Size has witnessed increasing presence of foreign brands in recent times. Major multinational companies have entered the market through acquisitions, partnerships and greenfield investments. Companies are exploring opportunities for exporting Armenian goods to overseas markets as well. Expansion into neighboring countries and online channels will further aid growth of the consumer goods sector.
Market Key Trends
A key trend gaining traction in the Armenia consumer goods market is the rising adoption of e-commerce. Several online shopping websites and apps have entered the market, enabling consumers to purchase products from the comfort of their homes. Leading players have also established their own online stores or partnered with e-retailers to boost sales. This has especially benefited purchase of electronics and personal goods. E-commerce also provides small businesses opportunities to participate in the consumer goods trade.
Porter’s Analysis
Threat of new entrants: Difficult for new brands to acquire retail shelf space and gain consumer recognition in this well-established market. Bargaining power of buyers: Individual consumers have low bargaining power due to the availability of many substitutable brands. Bargaining power of suppliers: Industry players import majority of raw materials due to limited domestic production. This leads to supplier concentration and higher bargaining power. Threat of new substitutes: Moderate threat from substitute products due to easy availability of alternatives within product categories. Competitive rivalry: Intense competition among existing brands to gain market share through continuous product innovation and competitive pricing.
Geographical regions:
The Armenian capital Yerevan accounts for approximately 40% of the country’s total consumer goods market value, mainly due to the concentration of major retailers and consumers in the city. Another region dominating consumer spend is the province of Armavir with major urban centres of Artashat, Ashtarak and Vagharshapat that account for 15% of national market value.
Fastest growing region: The Syunik province in southern Armenia bordering Iran has emerged as the fastest growing regional market for consumer goods in recent years on account of expanding dairy, beverage and snack industries catering to a young population. Improving living standards and rising disposable incomes have boosted per capita spend on packaged food, apparel and personal care products in Syunik.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it