Retail demand for hot drinks picks up in 2025
Retail current value sales growth for hot drinks in Israel in 2025 was well up on 2024. This was primarily due to increases in unit prices, which persisted in all categories despite a gradual slowdown in domestic inflation. Beyond surges in global prices for essential raw materials like coffee and cocoa, hikes were driven by a rise in VAT from 17% to 18% at the start of the year and elevated cost pressures related to the disruptive impact of the war against Hamas. The market also showed a significantly improved performance in retail volume growth terms, however, as a more stable inflationary environment strengthened consumer confidence and made many Israelis somewhat less cautious in their discretionary spending decisions. Retail volume sales were further buoyed by the resilience of traditional consumption habits, favourable demographic trends, frequent new launches and sustained investment in promotional activities.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks 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 the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks 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 Hot Drinks 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 Hot Drinks in Israel?
- To what extent are health considerations impacting consumption of Hot Drinks in Israel?
- What are the traditional preferences in Hot Drinks in Israel? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in Israel?
- Which are the leading brands in Hot Drinks in Israel?
- How are products distributed in Hot Drinks in Israel?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in Israel
Retail demand for hot drinks picks up in 2025
KEY DATA FINDINGS
Premiumisation trend remains strongest in coffee
Rising health-consciousness boosts fruit/herbal tea consumption
Steady growth in overall retail volume and current value sales projected
Higher-end products and novel flavours will be focal points for innovation
Outlook for other hot drinks remains poor
Strauss Group continues to lead the market
PAZ Oil Co and GLS Coffee post highest retail value growth rates
Wissotzky Tea (Israel) Ltd maintains dominant position in tea
Discounters remains the leading distribution channel
Hot drinks sales through e-commerce continue to grow at a healthy pace
Foodservice vs retail split
COUNTRY REPORTS DISCLAIMER
Coffee in Israel
KEY DATA FINDINGS
Coffee posts improved results in retail volume and current value terms
Prices continue to rise despite gradual easing of inflationary pressures
Fresh coffee beans is the star performer in 2025
Overall demand for coffee set to remain robust
Growing consumer sophistication will continue to inspire premium-oriented launches
More imported brands likely to enter following regulatory reform
Strauss Group Ltd remains the clear leader in coffee
PAZ Oil Co Ltd and GLS Coffee Ltd are the most dynamic players
Discounters remains the leading distribution channel by a wide margin
Vending is the fastest growing distribution channel in retail volume terms
Tea in Israel
KEY DATA FINDINGS
Tea experiences return to growth in retail volume sales in 2025
Cost pressures and limited competition continue to drive up unit prices
Fruit/herbal tea shows the fastest development
Outlook for tea is reasonably bright
Producers will continue to launch healthier and more flavourful varieties
Tea set to remain highly concentrated despite likely entry of new imported brands
Wissotzky Tea (Israel) Ltd remains the dominant player
Cérémonie Tea Ltd is the best performing company in value growth terms
Supermarkets and discounters remain the top two distribution channels
Forecourt retailers and small local grocers are the most dynamic channels
Other Hot Drinks in Israel
KEY DATA FINDINGS
Current value growth picks up but retail volume sales continue to decline
Upward pressure on retail unit prices persists
Chocolate-based flavoured powder drinks still the only significant category
Rising health-consciousness will continue to inhibit demand
Other plant-based hot drinks likely to become more popular and widely available
Regulatory change should support emergence of new imported brands
Strauss Group continues to dominate other hot drinks
Lesser-known brands and private label lines make modest gains
Other hot drinks distribution remains concentrated in supermarkets and discounters
E-commerce is the best performing distribution channel in 2025
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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This report originates from Passport, our Hot Drinks research and analysis database.
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