Soft drinks in 2024: The big picture
The tax on sugar-sweetened soft drinks, introduced in Israel in January 2022 as part of efforts to reduce sugar consumption and address obesity rates, was repealed in January 2023. The tax had faced significant backlash, particularly from the ultra-Orthodox community, which argued that it disproportionately impacted low-income families who consume soft drinks more frequently.
2024 key trends
The health and wellness trend has had a significant impact on the soft drinks market in Israel. As consumers become more health-conscious, there is an increasing demand for beverages with reduced sugar content, as well as those made with more natural and clean ingredients.
Competitive landscape
The soft drinks landscape in Israel remains highly concentrated, with the four main players commanding over 75% of off-trade volume sales. In 2024, SPAR entered the market by opening several new supermarkets and launching a product aimed at competing with Coca-Cola.
Retailing developments
Since the outbreak of the Israel-Hamas War, there has been a noticeable shift in shopping behaviour, with locals increasingly turning to small local grocers for their shopping needs. At the onset of the conflict, concerns over being far from home prompted many consumers to prioritise stores in their immediate vicinity, a trend that carried into 2024.
Foodservice vs retail split
The on-trade channel in Israel faced significant challenges in 2023, with the Judicial Reform protests having a particularly strong impact on the recovery of restaurants. Protests, particularly on Thursday and Saturday nights -the busiest times for dining out- hampered the ability of restaurants to attract customers.
What next for soft drinks?
With VAT set to increase to 18% in January 2025, along with municipal taxes climbing by an average of 5% during the year, the prices of goods, including soft drinks, are expected to rise. This could drive further growth in the at-home soft drinks market in the early part of the forecast period, as consumers seek more affordable alternatives to dining out.
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Overview:
Understand the latest market trends and future growth opportunities for the Soft 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:
- Bottled Water
- Carbonates
- Concentrates
- Juice
- RTD Coffee
- RTD Tea
- Energy Drinks
- Sports Drinks
- Asian Speciality Drinks
If you're in the Soft 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 Soft 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 Soft Drinks in Israel?
- To what extent are health considerations impacting consumption of Soft Drinks in Israel?
- How are changing social attitudes and legislation (eg sugar tax) reshaping demand and consumption?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Soft Drinks in Israel?
- Which are the leading brands in Soft Drinks in Israel?
- What potential exists for multinational or domestic soft drinks companies to expand in Israel?
- How are products distributed in Soft Drinks in Israel?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How have home seclusion and social distancing measures following COVID-19 impacted sales of Soft Drinks?
- How are sustainability issues, such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, impacting the soft drinks industry?
- Where is future growth expected to be most dynamic?
Soft Drinks in Israel
Soft drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for soft drinks?
Fountain sales in Israel
Trends
DISCLAIMER
Bottled Water in Israel
KEY DATA FINDINGS
Rising costs drive price increases
Consumers stockpile water amid ongoing conflicts
Mei Eden's strategic shift to Tempo is approved by competitions authority
Rising temperatures lead to increased demand for Mei Eden water
Primo Water seeks buyer for Mei Eden amid strategic shift to North America
Neviot unveils new unified look and marketing strategy
Carbonates in Israel
KEY DATA FINDINGS
Price rises impact off-trade sales of carbonates
Pepsi Max rebrands to Pepsi Zero, aligning with global trends
Central Bottling Company offers compensation to consumers affected by monopoly violations
Rising prices expected, due to tax hikes and inflation
Health and wellness trend will continue to impact the market
Competitive landscape will remain stable
Concentrates in Israel
KEY DATA FINDINGS
Demand for concentrates continues to grow, despite health concerns
Price increases impact the market
Yachin rebrands its reduced sugar products
Concentrates market will continue to grow amid rising cost of living
Government tax hikes expected to impact prices
Osem to remain market leader
Concentrates Conversions
Juice in Israel
KEY DATA FINDINGS
Price rises contribute to decline in sales in 2024
Health and wellness trend has notable impact
Green Lantern acquires Priniv while Tapuzine invests in new launches
Rising taxes and geopolitical uncertainty to drive further price increases
Health and wellness will continue to shape the market
Climate change could impact orange juice supply
RTD Coffee in Israel
KEY DATA FINDINGS
RTD coffee sees dynamic growth amid rising demand for convenience
Expansion of RTD coffee offerings drives market growth
Dairy price hikes impact costs of RTD coffee products
Strong growth expected for RTD coffee
Market will continue to benefit from new product launches
Price rises could impact market, leading to slower growth
RTD Tea in Israel
KEY DATA FINDINGS
Health and wellness trend undermines demand
Consumers remain brand loyal, despite price hikes
Dilmah enters RTD tea market as Nestea exits, while Fuze Tea expands zero sugar range
Prices will continue to rise
Fuze Tea to maintain leadership, despite potential arrival of new entrants
More zero-sugar launches expected, as players seek to satisfy consumer demand for healthier options
Energy Drinks in Israel
KEY DATA FINDINGS
Energy drinks continue to post robust growth, despite unhealthy reputation
Reduced sugar variants grow at a rapid pace
Price rises impact market growth
Energy drinks market will maintain growth, despite growing health concerns
Anticipated rice of zero sugar and “clean” label variants
Carmel Corp looks to acquire distribution rights for Blu in ILS450 million deal
Sports Drinks in Israel
KEY DATA FINDINGS
Sports drinks benefit from health and wellness trend
Protein trend presents challenge to sales of sports drinks
Gatorade reigns supreme
Increasing participation in sports and exercise to boost sales
Sports drinks face rising competition as protein shakes gain popularity
Gatorade will continue to dominate the market
The following categories and subcategories are included:
Soft Drinks
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- Carbonated Natural Mineral Bottled Water
- Carbonated Spring Bottled Water
- Carbonated Purified Bottled Water
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- Still Flavoured Bottled Water
- Sparkling Flavoured Bottled Water
- Functional Bottled Water
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- Still Natural Mineral Bottled Water
- Still Spring Bottled Water
- Still Purified Bottled Water
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- Regular Carbonates
- Reduced Sugar Carbonates
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- Regular Cola Carbonates
- Reduced Sugar Cola Carbonates
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- Regular Non-Cola Carbonates
- Reduced Sugar Non-Cola Carbonates
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- Regular Lemonade/Lime
- Reduced Sugar Lemonade/Lime
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- Regular Tonic Water/Mixers/Other Bitters
- Reduced Sugar Tonic Water/Mixers/Other Bitters
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- Regular Orange Carbonates
- Reduced Sugar Orange Carbonates
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- Regular Other Non-Cola Carbonates
- Reduced Sugar Other Non-Cola Carbonates
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- Liquid Concentrates
- Powder Concentrates
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- Not from Concentrate 100% Juice
- Reconstituted 100% Juice
- Coconut and Other Plant Waters
- Juice Drinks (up to 24% Juice)
- Nectars
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- RTD Coffee
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- Carbonated RTD Tea and Kombucha
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- Regular Still RTD Tea
- Reduced Sugar Still RTD Tea
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- Regular Energy Drinks
- Reduced Sugar Energy Drinks
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- Regular Sports Drinks
- Reduced Sugar Sports Drinks
- Asian Speciality Drinks
Soft Drinks
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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This report originates from Passport, our Soft Drinks research and analysis database.
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