Non-Alcoholic Drinks - Israel

The Non-Alcoholic Drinks market in Israel is experiencing steady growth, driven by evolving customer preferences and favorable local special circumstances.

Customer preferences: In Israel, there is a growing demand for healthier beverage options, which has led to an increased interest in non-alcoholic drinks. Consumers are becoming more health-conscious and are actively seeking out beverages that are low in sugar, natural, and free from artificial additives. This shift in consumer preferences has resulted in a surge in the popularity of non-alcoholic drinks such as herbal teas, flavored water, and functional beverages. Additionally, the younger generation in Israel is particularly drawn to innovative and unique flavors, leading to a rise in the consumption of craft sodas and specialty drinks.

Trends in the market: One of the key trends in the Non-Alcoholic Drinks market in Israel is the increased focus on functional beverages. Consumers are looking for drinks that offer additional health benefits, such as enhanced hydration, improved digestion, and increased energy levels. As a result, there has been a rise in the availability of functional beverages that incorporate ingredients like probiotics, antioxidants, and vitamins. Another notable trend is the growing popularity of plant-based drinks. Israel has a large population that follows vegetarian or vegan diets, and this has created a demand for non-dairy milk alternatives, such as almond milk, soy milk, and oat milk. Additionally, there is a rising interest in local and artisanal products, with consumers seeking out beverages that are produced using traditional methods and locally sourced ingredients.

Local special circumstances: Israel has a unique cultural and religious landscape that influences the Non-Alcoholic Drinks market. The country has a significant Jewish population that observes dietary laws, including the prohibition of consuming certain animal products. This has led to a demand for kosher-certified beverages, which adhere to strict religious standards. Furthermore, Israel's warm climate and active outdoor lifestyle contribute to the popularity of refreshing and hydrating drinks. Non-alcoholic beverages, such as fruit juices, iced teas, and carbonated drinks, are sought after by consumers looking to quench their thirst and stay cool in the hot weather.

Underlying macroeconomic factors: Israel's strong economy and high disposable income levels contribute to the growth of the Non-Alcoholic Drinks market. The country has a well-developed retail sector, with a wide range of distribution channels available to beverage manufacturers. This allows for easy access to the market and provides opportunities for both local and international brands. Additionally, Israel has a thriving food and beverage industry, with a focus on innovation and entrepreneurship. This encourages the development of new and unique non-alcoholic drink offerings, catering to the diverse tastes and preferences of Israeli consumers. In conclusion, the Non-Alcoholic Drinks market in Israel is witnessing growth due to changing customer preferences towards healthier options, the popularity of functional and plant-based beverages, unique local circumstances, and a favorable macroeconomic environment. As consumers continue to prioritize their health and seek out innovative and flavorful drink choices, the market is expected to further expand in the coming years.

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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.