Beer - Israel

The Beer market in Israel has been experiencing significant growth in recent years. Customer preferences in the Israeli beer market have been shifting towards craft beers and specialty brews. Consumers are increasingly looking for unique and innovative flavors, as well as locally brewed beers. This trend is in line with global consumer preferences, as craft beers have been gaining popularity worldwide. Additionally, there is a growing interest in healthier options, such as low-alcohol or non-alcoholic beers, reflecting a broader trend towards health-consciousness in the beverage industry. One of the key trends in the Israeli beer market is the rise of microbreweries. These small-scale breweries have been gaining traction among consumers who value locally produced and artisanal products. Microbreweries offer a wide range of flavors and styles, catering to the diverse preferences of beer enthusiasts. The growth of microbreweries has also contributed to the development of beer tourism, with visitors seeking out unique beer experiences and brewery tours. Another trend in the Israeli beer market is the increasing popularity of imported beers. With globalization and the growing exposure to different cultures, Israeli consumers have developed a taste for international beer brands. This trend is driven by the desire for new and exotic flavors, as well as the influence of international travel and exposure to foreign cuisines. Imported beers offer a wide variety of options, appealing to different consumer preferences and expanding the choices available in the market. Local special circumstances in Israel have also played a role in the development of the beer market. The country has a vibrant and diverse culinary scene, with a strong emphasis on food and beverage innovation. This culture of experimentation and creativity has influenced the beer industry, leading to the emergence of unique and unconventional beer flavors. Additionally, the Mediterranean climate in Israel, with its hot summers, has created a demand for refreshing and light beers that can be enjoyed in the warm weather. Underlying macroeconomic factors have also contributed to the growth of the beer market in Israel. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. This has allowed consumers to explore different beer options and indulge in premium and higher-priced products. Furthermore, the government has implemented policies to support the growth of the craft beer industry, including tax incentives and regulatory reforms. These measures have created a favorable environment for the expansion of the beer market and the development of new breweries. In conclusion, the Beer market in Israel is experiencing growth due to changing customer preferences, including a shift towards craft beers and specialty brews. The rise of microbreweries, the popularity of imported beers, and the emphasis on local innovation are key trends shaping the market. Local special circumstances, such as the culinary culture and climate, have also contributed to the development of the beer industry. Finally, underlying macroeconomic factors, such as economic growth and government support, have created an enabling environment for the expansion of the market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.