Wine - Jordan

The Wine market in Jordan has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Jordan, there has been a growing interest in wine consumption among the younger generation. This can be attributed to a shift in cultural norms and increased exposure to international cuisines. Wine is now seen as a sophisticated and fashionable beverage, often enjoyed during social gatherings and special occasions. Additionally, the health benefits associated with moderate wine consumption, such as improved heart health and antioxidant properties, have also contributed to its popularity among health-conscious consumers.

Trends in the market: One of the notable trends in the wine market in Jordan is the increasing demand for imported wines. Jordanian consumers are becoming more adventurous in their wine choices, seeking out unique and high-quality products from renowned wine-producing regions around the world. This trend is driven by the desire for variety and the perception that imported wines offer superior taste and craftsmanship. As a result, wine importers and distributors in Jordan have been expanding their portfolios to cater to this growing demand. Another trend in the market is the rise of boutique wineries in Jordan. These small-scale, artisanal producers are gaining popularity among consumers who appreciate the authenticity and craftsmanship that goes into producing their wines. Boutique wineries often focus on producing limited quantities of high-quality wines, using traditional winemaking techniques and locally sourced grapes. This trend aligns with the global movement towards supporting local and sustainable products, and it provides consumers with a unique and personalized wine experience.

Local special circumstances: Jordan's wine market is influenced by several local special circumstances. Firstly, the country's predominantly Muslim population has traditionally limited alcohol consumption. However, there has been a gradual shift in attitudes towards alcohol, with wine being more widely accepted compared to other alcoholic beverages. This has created a niche market for wine producers and importers to cater to the growing demand. Furthermore, Jordan's location in the Middle East provides a unique opportunity for the wine market. The country's proximity to major wine-producing regions, such as Lebanon and Israel, allows for easy access to a wide variety of wines. Additionally, Jordan's growing tourism industry has also contributed to the development of the wine market, as tourists from around the world seek to explore and taste local wines during their visits.

Underlying macroeconomic factors: The growth of the wine market in Jordan can be attributed to several underlying macroeconomic factors. Firstly, the country's stable economic environment has provided a conducive setting for businesses to thrive. This stability has attracted both local and international investors, leading to increased investment in the wine industry and the establishment of new wineries and wine-related businesses. Secondly, Jordan's strategic location as a gateway between Europe, Asia, and Africa has facilitated trade and commerce, making it easier for wine producers and importers to access global markets. This has resulted in a wider variety of wines being available in the local market, catering to the diverse preferences of consumers. In conclusion, the Wine market in Jordan is experiencing growth due to changing customer preferences, including a growing interest in wine consumption among the younger generation and an increasing demand for imported and boutique wines. Local special circumstances, such as shifting attitudes towards alcohol and Jordan's location in the Middle East, also contribute to the development of the wine market. Additionally, underlying macroeconomic factors, such as a stable economic environment and Jordan's strategic location, further support the growth of the industry.

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.