Select Country Report
Dairy products and alternatives in 2025: The big picture
Value sales of dairy products and alternatives in Israel are set to rise in 2025; however, growth is restrained by the rise in VAT to 18% on 1 January 2025, which further pushed prices upwards and heightened consumer price sensitivity. Consequently, volume sales are challenged as consumers, particularly those in middle- and lower-income brackets, cut back spending to save money.
Key trends in 2025
Despite the difficulties facing traditional dairy in 2025, plant-based dairy products have seen strong growth, driven by ongoing health and wellness concerns, environmental awareness, and animal welfare considerations. Lactose-intolerant consumers and vegans have welcomed the increased availability and variety of plant-based dairy options, while the trend has moved beyond a niche market to become mainstream. Additionally, many consumers who do not identify as flexitarian or vegan are also choosing plant-based alternatives due to challenges in accessing conventional dairy milk, and are impressed by the diverse flavours and tastes available.
Competitive Landscape
Tnuva Food Industries Ltd continues to lead dairy products and alternatives in 2025, further consolidating its position with over 50% value share. Its extensive brand portfolio, including Tnuva, Emek, Yoplait, Eshel, YOLO, Pireuse, and Gilboa, spans across cheese, drinking milk, yoghurt and sour milk, other dairy, and plant-based dairy products. The company’s strong performance and strong uplift in share will make it the most dynamic player in 2025.
Channel developments
Discounters continue to lead dairy distribution in Israel in 2025, further increasing its market share. These retailers benefit from ongoing price sensitivity and the intensifying pressure on household spending, exacerbated by the additional 1% VAT increase implemented at the start of the year. With consumers feeling the financial strain more acutely, discounters is maintaining its first placed position through offering low-price alternatives.
What next for dairy products and alternatives?
Value sales of dairy products and alternatives are expected to increase over the forecast period.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Israel with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in Israel, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in Israel report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in Israel?
- Which are the leading brands in Dairy Products and Alternatives in Israel?
- How are products distributed in Dairy Products and Alternatives in Israel?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Israel?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in Israel
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
Table 1 Sales of Dairy Products and Alternatives by Category: Value 2020-2025
Table 2 Sales of Dairy Products and Alternatives by Category: % Value Growth 2020-2025
Table 3 NBO Company Shares of Dairy Products and Alternatives: % Value 2021-2025
Table 4 LBN Brand Shares of Dairy Products and Alternatives: % Value 2022-2025
Table 5 Penetration of Private Label by Category: % Value 2020-2025
Table 6 Distribution of Dairy Products and Alternatives by Format: % Value 2020-2025
Table 7 Forecast Sales of Dairy Products and Alternatives by Category: Value 2025-2030
Table 8 Forecast Sales of Dairy Products and Alternatives by Category: % Value Growth 2025-2030
DISCLAIMER
Summary 1 Research Sources
Baby Food in Israel
KEY DATA FINDINGS
Rising costs and shifting preferences as baby food records retail value growth
Osem leads but faces challenges as Promedico and Carrefour gain momentum
Health and beauty specialists retains its lead, but retail e-commerce gains ground
Value sales are set to rise, however volume is expected to remain under pressure amid economic strain
Allergies and lactose intolerance are expected to boost demand for special baby milk formula
Local manufacturers are set to gain an advantage due to ongoing import issues
Table 9 Sales of Baby Food by Category: Volume 2020-2025
Table 10 Sales of Baby Food by Category: Value 2020-2025
Table 11 Sales of Baby Food by Category: % Volume Growth 2020-2025
Table 12 Sales of Baby Food by Category: % Value Growth 2020-2025
Table 13 Sales of Growing-Up Milk Formula by Age: % Value 2020-2025
Table 14 NBO Company Shares of Baby Food: % Value 2021-2025
Table 15 LBN Brand Shares of Baby Food: % Value 2022-2025
Table 16 Distribution of Baby Food by Format: % Value 2020-2025
Table 17 Forecast Sales of Baby Food by Category: Volume 2025-2030
Table 18 Forecast Sales of Baby Food by Category: Value 2025-2030
Table 19 Forecast Sales of Baby Food by Category: % Volume Growth 2025-2030
Table 20 Forecast Sales of Baby Food by Category: % Value Growth 2025-2030
Butter and Spreads in Israel
KEY DATA FINDINGS
High prices drive retail value growth for butter and spreads across 2025
Tnuva Food Industries holds its lead, but lower-cost rivals gain ground
Discounters lead sales as price takes priority in butter and spreads
Butter value sales are expected to grow amid rising prices and diverse import sources
There is set to be growing interest in plant-based alternatives across the forecast period
Import and production challenges threaten the ongoing availability of butter
Table 21 Sales of Butter and Spreads by Category: Volume 2020-2025
Table 22 Sales of Butter and Spreads by Category: Value 2020-2025
Table 23 Sales of Butter and Spreads by Category: % Volume Growth 2020-2025
Table 24 Sales of Butter and Spreads by Category: % Value Growth 2020-2025
Table 25 NBO Company Shares of Butter and Spreads: % Value 2021-2025
Table 26 LBN Brand Shares of Butter and Spreads: % Value 2022-2025
Table 27 Distribution of Butter and Spreads by Format: % Value 2020-2025
Table 28 Forecast Sales of Butter and Spreads by Category: Volume 2025-2030
Table 29 Forecast Sales of Butter and Spreads by Category: Value 2025-2030
Table 30 Forecast Sales of Butter and Spreads by Category: % Volume Growth 2025-2030
Table 31 Forecast Sales of Butter and Spreads by Category: % Value Growth 2025-2030
Cheese in Israel
KEY DATA FINDINGS
Value sales of cheese rise in 2025, but affordability leads to changes in consumer habits
Tnuva Food Industries maintains its leadership as Gad Dairies captures attention with premium innovation
Discounters dominate cheese sales while retail e-commerce surges with premium appeal
Cheese value sales are set to grow, while volume remains under pressure amid rising prices
Plant-based trends pose a challenge to cheese, but heritage and health could drive loyalty
Traditional dairy will face rising competition from ImaginDairy and Remilk
Table 32 Sales of Cheese by Category: Volume 2020-2025
Table 33 Sales of Cheese by Category: Value 2020-2025
Table 34 Sales of Cheese by Category: % Volume Growth 2020-2025
Table 35 Sales of Cheese by Category: % Value Growth 2020-2025
Table 36 Sales of Spreadable Cheese by Type: % Value 2020-2025
Table 37 Sales of Soft Cheese by Type: % Value 2020-2025
Table 38 Sales of Hard Cheese by Type: % Value 2020-2025
Table 39 NBO Company Shares of Cheese: % Value 2021-2025
Table 40 LBN Brand Shares of Cheese: % Value 2022-2025
Table 41 Distribution of Cheese by Format: % Value 2020-2025
Table 42 Forecast Sales of Cheese by Category: Volume 2025-2030
Table 43 Forecast Sales of Cheese by Category: Value 2025-2030
Table 44 Forecast Sales of Cheese by Category: % Volume Growth 2025-2030
Table 45 Forecast Sales of Cheese by Category: % Value Growth 2025-2030
Drinking Milk Products in Israel
KEY DATA FINDINGS
Sales of drinking milk products rise amid shortages and shifting consumer preferences
Tnuva Food Industries strengthens its lead as Tara Dairy drives value with its strategic product mix
Discounters lead sales as retail e-commerce gains ground amid changing consumer habits
Value sales are expected to rise, but price increases may shift consumer preferences
Health concerns and rising prices could push consumers towards plant-based and alternative milk options
A challenging outlook for price-controlled drinking milk over the forecast period
Table 46 Sales of Drinking Milk Products by Category: Volume 2020-2025
Table 47 Sales of Drinking Milk Products by Category: Value 2020-2025
Table 48 Sales of Drinking Milk Products by Category: % Volume Growth 2020-2025
Table 49 Sales of Drinking Milk Products by Category: % Value Growth 2020-2025
Table 50 NBO Company Shares of Drinking Milk Products: % Value 2021-2025
Table 51 LBN Brand Shares of Drinking Milk Products: % Value 2022-2025
Table 52 Distribution of Drinking Milk Products by Format: % Value 2020-2025
Table 53 Forecast Sales of Drinking Milk Products by Category: Volume 2025-2030
Table 54 Forecast Sales of Drinking Milk Products by Category: Value 2025-2030
Table 55 Forecast Sales of Drinking Milk Products by Category: % Volume Growth 2025-2030
Table 56 Forecast Sales of Drinking Milk Products by Category: % Value Growth 2025-2030
Yoghurt and Sour Milk Products in Israel
KEY DATA FINDINGS
Positive growth is driven by the health and wellness benefits of yoghurt and sour milk products
Strauss Group Limited retains its lead, but share is lost to Tnuva Food Industries
Discounters lead while retail e-commerce gains ground during 2025
Growth is expected to remain positive for yoghurt and sour milk products, despite ongoing price pressures
Wellbeing and indulgence are set to shape the future of yoghurt and sour milk products
Plant-based momentum is expected to threaten growth for traditional yoghurt
Table 57 Sales of Yoghurt and Sour Milk Products by Category: Volume 2020-2025
Table 58 Sales of Yoghurt and Sour Milk Products by Category: Value 2020-2025
Table 59 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2020-2025
Table 60 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2020-2025
Table 61 Sales of Flavoured Yoghurt by Flavour: Rankings 2020-2025
Table 62 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2021-2025
Table 63 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2022-2025
Table 64 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2020-2025
Table 65 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2025-2030
Table 66 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2025-2030
Table 67 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2025-2030
Table 68 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2025-2030
Other Dairy in Israel
KEY DATA FINDINGS
Cream drives value growth as the indulgence trend boosts sales of other dairy
Tnuva Food Industries maintains its lead while Strauss Group gains momentum with health-focused innovations
Discounters lead other dairy sales amid rising prices, while retail e-commerce gains momentum
Strong value growth expected despite limited price controls and rising consumer costs
Growing health awareness spurs demand for lower-fat and lactose-friendly dairy products
Plant-based alternatives pose a growing challenge to sales of other dairy
Table 69 Sales of Other Dairy by Category: Volume 2020-2025
Table 70 Sales of Other Dairy by Category: Value 2020-2025
Table 71 Sales of Other Dairy by Category: % Volume Growth 2020-2025
Table 72 Sales of Other Dairy by Category: % Value Growth 2020-2025
Table 73 Sales of Cream by Type: % Value 2020-2025
Table 74 NBO Company Shares of Other Dairy: % Value 2021-2025
Table 75 LBN Brand Shares of Other Dairy: % Value 2022-2025
Table 76 Distribution of Other Dairy by Format: % Value 2020-2025
Table 77 Forecast Sales of Other Dairy by Category: Volume 2025-2030
Table 78 Forecast Sales of Other Dairy by Category: Value 2025-2030
Table 79 Forecast Sales of Other Dairy by Category: % Volume Growth 2025-2030
Table 80 Forecast Sales of Other Dairy by Category: % Value Growth 2025-2030
Plant-Based Dairy in Israel
KEY DATA FINDINGS
Plant-based dairy sales surge amid ongoing innovation and growing mainstream acceptance
Tnuva Food Industries dominates sales through a wide array of product offerings
Discounters lead sales while retail e-commerce increases its share during 2025
Plant-based dairy is set to sustain growth amid the maturing market and rising operating costs
No-sugar variants and product diversification is expected to drive growth in plant-based dairy
Foodtech innovation is set to gain ground, however, challenges will remain
Table 81 Sales of Plant-Based Dairy by Category: Value 2020-2025
Table 82 Sales of Plant-Based Dairy by Category: % Value Growth 2020-2025
Table 83 Sales of Other Plant-Based Milk by Type: % Value 2022-2025
Table 84 NBO Company Shares of Plant-Based Dairy: % Value 2021-2025
Table 85 LBN Brand Shares of Plant-Based Dairy: % Value 2022-2025
Table 86 Distribution of Plant-Based Dairy by Format: % Value 2020-2025
Table 87 Forecast Sales of Plant-Based Dairy by Category: Value 2025-2030
Table 88 Forecast Sales of Plant-Based Dairy by Category: % Value Growth 2025-2030
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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