Ready-to-Drink (RTD) Coffee - Israel

The Ready-to-Drink (RTD) Coffee market in Israel has been experiencing significant growth in recent years.

Customer preferences: Israelis are increasingly embracing the convenience and variety offered by RTD coffee products. With a fast-paced lifestyle and a growing coffee culture, consumers are looking for quick and easy ways to enjoy their favorite caffeinated beverages on the go. RTD coffee provides a convenient solution for busy individuals who want to satisfy their coffee cravings without the need for brewing or waiting in line at a coffee shop.

Trends in the market: One of the key trends in the RTD coffee market in Israel is the increasing demand for healthier and more natural options. Consumers are becoming more health-conscious and are seeking products that are low in sugar, fat, and artificial ingredients. As a result, there has been a rise in the availability of RTD coffee products that are made with organic and natural ingredients, as well as those that are sugar-free or low in calories. Another trend in the market is the growing popularity of RTD coffee among younger consumers. Millennials and Generation Z are driving the demand for RTD coffee products, attracted by the convenience and innovative flavors offered by these beverages. Manufacturers are responding to this trend by introducing new and unique flavors to cater to the preferences of younger consumers.

Local special circumstances: Israel has a strong coffee culture, with coffee consumption being an integral part of daily life for many Israelis. The country has a high number of coffee shops per capita, indicating the popularity of coffee among the population. This coffee culture has created a favorable environment for the growth of the RTD coffee market, as consumers are already familiar with and enjoy coffee-based beverages.

Underlying macroeconomic factors: Israel has a strong and stable economy, which has contributed to the growth of the RTD coffee market. With a high GDP per capita and a relatively high disposable income, Israelis have the purchasing power to indulge in premium and convenient coffee products. The country's strong economy has also attracted international coffee brands, leading to increased competition and innovation in the RTD coffee market. In conclusion, the Ready-to-Drink (RTD) Coffee market in Israel is experiencing growth due to the convenience it offers to consumers in a fast-paced society, as well as the increasing demand for healthier and more natural options. The strong coffee culture in the country and the favorable macroeconomic factors have also contributed to the growth 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 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.