Hot drinks in 2024: The big picture
The cost of living in Israel continued to rise in 2024, significantly affecting demand for hot drinks. Although the annual inflation rate eased slightly in the first half of the year, it surged to 3.
2024 key trends
Premiumisation remains a strong trend in the hot drinks market in Israel. Local consumers are increasingly enhancing their at-home coffee-making experiences, spurred by the growing popularity of premium coffee machines.
Competitive landscape
Strauss Group Ltd maintained its leading position in the hot drinks market in 2024, bolstered by its strong performance in both standard fresh ground coffee and instant coffee under the Elite brand. The company also dominates other hot drinks, where it benefits from limited competition, as smaller players struggle to compete due to restricted marketing budgets and insufficient financial resources.
Retailing developments
Since the outbreak of the Israel-Hamas War, there has been an increase in locals shopping at nearby grocers as concerns about being far from home drive consumers to remain close to their residences. At the same time, rising prices and the increased cost of living have led to a surge in shopping at discounters, as consumers seek to save money wherever possible.
Foodservice vs retail split
On-trade establishments in Israel were significantly impacted by the judicial reform protests in 2023. A series of proposed changes to Israel's judiciary system, which would limit the powers of the Supreme Court, sparked widespread protests, particularly on Thursday and Saturday nights - key times for socialising and dining out in Israel.
What next for hot drinks?
The hot drinks market in Israel is expected to continue to face rising prices over the forecast period, in the context of a series of economic changes. As of 1 January 2025, the rate of VAT will increase to 18%, while municipal taxes are set to rise by an average of 5% throughout the year.
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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
Hot drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
Coffee in Israel
KEY DATA FINDINGS
Comtinued price hikes in 2024
Premiumisation trend continues apace
Israel-Hamas war leads to significant disruptions
Economic pressures will continue to impact the market
Growing demand for premium coffee as at-home brewing continues to strengthen
Strauss plans to sell Elite coffee shops
Tea in Israel
KEY DATA FINDINGS
Wissotzky maintains market leadership amid price increases
Wissotzky declared a monopoly in Israel’s green tea and herbal infusion markets
Wissotzky launches Cold Breeze line, catering to Israel’s demand for refreshing beverages
Rising costs and minimal competition likely to impact tea prices in Israel
Wissotzky will continue as market leader
Continued shift towards premiumisation, supported by new product launches
Other Hot Drinks in Israel
KEY DATA FINDINGS
Price hikes contribute to declining sales
Private labels gain traction
Health and wellness trend increasingly hinders sales growth
Price rises likely to have negative impact on sakes
Health and wellness trend will exert futher downward pressure
Potential shift to private label given high cost of living
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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Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Hot Drinks research and analysis database.
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