After sales of alcoholic drinks slumped at the peak of the COVID-19 pandemic in 2020, 2021 saw a recovery of sales as Jordanian society reopened and foreign tourists returned. Sales have been under pressure for years due to falling disposable incomes, but growth rates are now positive as the economy has improved.
2021 sore volume sales of alcohol drinks register strong growth in Jordan, with both off-trade and non-trade sales recording substantial increases. This strong sales performance represented a robust recovery from the strong declines that were registered in volume sales of alcoholic drinks at the peak of the COVID-19 pandemic in 2020.
It is an unavoidable fact that the COVID-19 had a huge impact on Jordan’s alcoholic drinks industry during 2020. The principal factor to take into consideration is the very strict approach taken to social distancing and home seclusion in response to the pandemic, with an extended quarantine lockdown lasting from March until June 2020 requiring all bars, cafés, restaurants and even liquor stores to remain completely closed.
While many households in Jordan are facing financial pressures due to the 2019 introduction of income tax and the progressive removal of subsidies on essential food items, the measures taken by the government to modernise the economy resulted in positive economic growth and a reduction in the unemployment rate over the second half of the review period. However, the COVID-19 pandemic disrupted positive backbone economic trends to some extent due to interruptions course to economic activity in key sectors, especially the hospitality and tourism sectors.
The most important development in the distribution of alcohol drinks in Jordan towards the end of the review period was the dramatic increase seen in sales via e-commerce. Initially, consumers turned to e-commerce as a way of ensuring they still had access to alcohol drinks during the three-month quarantine lockdown that was imposed upon the population of Jordan at the peak of the COVID-19 pandemic between March and June 2020.
Both the legal drinking age and the legal purchasing age are 18 years old in Jordan. Sales of alcoholic drinks to people under the age of 18 years is prohibited, although enforcement is quite relaxed.
The duty and taxation levied on alcoholic drinks are high in Jordan. The alcohol import tax is determined depending on the category of alcoholic drink and is set at 200% for beer, 180% for whiskies, 200% for gin and vodka and 200% for liqueurs.
Alcoholic drinks is slated for a strong point in Jordan over the forecast period, with steady but moderate positive volume growth expected in both the on-trade and off-trade channels. While many local consumers have been experiencing pressure on their disposable incomes in recent years due to various government policies that aimed to liberalise the local economy, after several years of difficult times for many Jordanians, there is now solid economic growth, falling unemployment and increasing business opportunities.
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Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.See All of Our Definitions
This report originates from Passport, our Alcoholic Drinks research and analysis database.
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