Dairy products is performing well in 2022 in line with the pandemic coming to an end. Likewise, Western food trends, more women in the workforce and expansion of chained supermarkets and hypermarkets will continue to drive growth.
After being impacted by the COVID-19 pandemic in 2020 and 2021, dairy products is seeing a much better performance in 2022. The reopening of the economy has resulted in resumed social activities which has boosted demand, especially during Ramadan.
Dairy products and alternatives as well as sales of fast-moving consumer goods in general were impacted by the introduction of higher taxes on many products in January 2018. Taxes were increased on fuel, soft drinks, cigarettes and also many packaged food products, including packaged dairy, while bread subsidies were removed.
Products that are considered essential in Jordan include: Labneh, milk, yoghurt and white cheese, with these being present in most households. Most consumers buy the same brands for these products, irrespective of income level, although a small group of wealthier consumers in West Amman also purchase organic products.
Aside from traffic jams during rush hour and some badly repaired roads there are little challenges to the distribution of packaged food in Jordan.
Moderate value growth is expected to be seen in dairy products and alternatives over the forecast period. In addition to an alleviation in the global health crisis and roll-out of vaccines, only modest growth is likely due to the financial burden placed on households by higher taxation and subsidy reductions.
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Dairy Products and Alternatives
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