Market Insights Consumer Alcoholic Drinks

Spirits - Israel

Israel

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to €616.9m in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to €384.3m in 2024.
Revenue, combined amounts to €1,001.0m in 2024.
The revenue, at home is expected to grow annually by 1.61% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated in China (€134,300m in 2024).
In relation to total population figures, the average revenue per capita, at home of €66.25 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 15,960.0k L by 2024.
Volume, out-of-home is expected to amount to 1,698.0k L in 2024.
Volume, combined is expected to amount to 17,660.0k L in 2024.
The Spirits market is expected to show a volume growth, at home of -0.8% in 2025.
The average volume per person, at home in the Spirits market is expected to amount to 1.71L in 2024.

Key regions: United States, United Kingdom, Worldwide, United Kingdom, Australia

Definition:

The Spirits market includes alcoholic beverages that have been produced through the distillation of wine, fermented fruits, or grains. Due to the distillation process, the alcohol content of spirits is much higher than that of most wines and beers, typically ranging from 20% to 50% alcohol by volume (ABV).

Structure:

The Spirits market is divided into 8 markets:

The Whisky market encompasses spirits on a grain basis that have been aged in wooden casks for a duration of at least three years.
The Vodka market encompasses spirits based on grain and/or potatoes.
The Rum market encompasses spirits based on sugar cane.
The Gin market encompasses spirits based on juniper berries.
The Brandy market encompasses spirits based on fermented fruit juice.
The Tequila market encompasses spirits made primarily from the blue agave plant (Agave tequilana) in Mexico.
The Soju market encompasses the Korean distilled beverage, Soju, which is traditionally made from rice, barley, or sweet potatoes.
The Liqueurs & Other Spirits market encompasses all other spirits not previously mentioned as well as Ready-to-Drink (RTD) cocktails.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per liter, as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Diageo (e.g., Johnnie Walker, Smirnoff, and Tanqueray), Pernod Ricard, and Kweichow Moutai.

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Analyst Opinion

The Spirits market in Israel has been experiencing significant growth in recent years, driven by changing consumer preferences and local special circumstances.

Customer preferences: In Israel, there has been a shift in consumer preferences towards premium and craft spirits. Consumers are increasingly seeking out unique and high-quality products, and are willing to pay a premium for them. This trend can be attributed to a growing interest in mixology and the rise of cocktail culture in the country. Additionally, there is a rising demand for organic and locally-produced spirits, as consumers become more conscious of the environmental impact of their purchasing decisions.

Trends in the market: One of the key trends in the Spirits market in Israel is the increasing popularity of whiskey. Whiskey consumption has been on the rise, driven by a growing appreciation for its complex flavors and the influence of international trends. Israeli consumers are exploring different types of whiskey, including Scotch, bourbon, and Irish whiskey. This trend is also reflected in the growing number of whiskey bars and tasting events in the country. Another trend in the market is the rise of flavored spirits. Flavored vodkas and gins have gained popularity among consumers, who are looking for new and exciting flavors to enhance their drinking experience. This trend is in line with the global trend of flavored spirits, as manufacturers continue to innovate and introduce new flavors to cater to consumer demand.

Local special circumstances: Israel has a unique market for spirits due to its religious and cultural background. The country has a significant population of observant Jews who adhere to kosher dietary laws. This has led to a demand for kosher-certified spirits, which are produced in accordance with Jewish dietary restrictions. Kosher certification ensures that the spirits are suitable for consumption by observant Jews, and this has become an important factor for many consumers when making purchasing decisions.

Underlying macroeconomic factors: The growth of the Spirits market in Israel can also be attributed to favorable macroeconomic factors. Israel has a strong economy and a high standard of living, which has increased disposable income and consumer spending power. This has allowed consumers to indulge in premium and high-quality spirits, driving the demand for these products. In conclusion, the Spirits market in Israel is experiencing growth due to changing consumer preferences, including a shift towards premium and craft spirits, as well as the rise of whiskey and flavored spirits. The local special circumstance of kosher certification also plays a significant role in shaping the market. Additionally, favorable macroeconomic factors, such as a strong economy and high disposable income, contribute to the growth of the market.

Methodology

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.