Alcoholic Drinks - Jordan

The Alcoholic Drinks market in Jordan has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Jordan, there has been a shift in customer preferences towards premium and craft alcoholic drinks. Consumers are increasingly seeking high-quality and unique products that offer a differentiated experience. This trend is driven by the growing middle class and their willingness to spend on premium products. Additionally, there is a rising interest in locally produced alcoholic drinks, as consumers appreciate the authenticity and craftsmanship associated with these products.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Jordan is the increasing popularity of wine. Wine consumption has been on the rise, driven by changing lifestyles, increasing exposure to international cuisines, and a growing culture of wine appreciation. Consumers are becoming more knowledgeable about different wine varieties and are willing to experiment with new flavors and styles. This trend is also supported by the growing number of wine bars and specialized wine shops in the country. Another trend in the market is the rising demand for non-alcoholic alternatives. Health-conscious consumers are seeking beverages that offer the same taste and experience as alcoholic drinks but without the alcohol content. This trend is driven by a growing awareness of the negative health effects of excessive alcohol consumption and the desire to lead a balanced lifestyle. As a result, there has been an increase in the availability of non-alcoholic beers, wines, and spirits in the market.

Local special circumstances: The Alcoholic Drinks market in Jordan is influenced by local cultural and religious norms. Jordan is a predominantly Muslim country, and Islam prohibits the consumption of alcohol. However, there is a significant non-Muslim population in the country, as well as tourists and expatriates, who contribute to the demand for alcoholic drinks. The government regulates the sale and consumption of alcohol through licensing and strict regulations. This creates a unique market environment where alcoholic drinks are available but within certain limitations.

Underlying macroeconomic factors: The growth of the Alcoholic Drinks market in Jordan is also influenced by underlying macroeconomic factors. The country has been experiencing economic stability and a gradual increase in disposable income, which has contributed to higher consumer spending on discretionary items such as alcoholic drinks. Additionally, the government has been implementing policies to promote tourism and attract foreign investment, which has led to an increase in the number of tourists and expatriates in the country. This has further fueled the demand for alcoholic drinks. In conclusion, the Alcoholic Drinks market in Jordan is developing in response to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards premium and craft products, the growing popularity of wine, the demand for non-alcoholic alternatives, cultural and religious norms, and economic stability are all contributing to the growth of the market. As consumer tastes and preferences continue to evolve, it is expected that the market will continue to expand and diversify in the coming years.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.