Soft Drinks in Israel - Research and Markets

Retail volume sales of soft drinks experienced a significant decline in 2022, with only bottled water able to achieve marginal positive growth. A major sugar tax placed on sweetened drinks resulted in strong price increases on all soft drinks, most notably in carbonates that have a high sugar content. This caused a decline in volumes while prices increased dramatically as manufacturers endeavoured to make up for their losses.

The Soft Drinks in Israel report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data (2017-2021), allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they legislative, distribution, packaging or pricing issues. Forecasts to 2026 illustrate how the market is set to change.

Product coverage: Asian Speciality Drinks, Bottled Water, Carbonates, Concentrates, Energy Drinks, Juice, RTD Coffee, RTD Tea, Sports Drinks.

Data coverage: Market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?

Get a detailed picture of the Soft Drinks market;
Pinpoint growth sectors and identify factors driving change;
Understand the competitive environment, the market’s major players and leading brands;
Use five-year forecasts to assess how the market is predicted to develop.

SOFT DRINKS IN ISRAEL

EXECUTIVE SUMMARY

Soft drinks in 2022: The big picture
2022 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for soft drinks?

MARKET DATA

Table 1 Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: Volume 2017-2022
Table 2 Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: % Volume Growth 2017-2022
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2017-2022
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2017-2022
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2021
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2021
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2021
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2021
Table 9 Off-trade Sales of Soft Drinks (RTD) by Category: Volume 2017-2022
Table 10 Off-trade Sales of Soft Drinks (RTD) by Category: % Volume Growth 2017-2022
Table 11 Off-trade Sales of Soft Drinks by Category: Value 2017-2022
Table 12 Off-trade Sales of Soft Drinks by Category: % Value Growth 2017-2022
Table 13 Sales of Soft Drinks by Total Fountain On-trade: Volume 2017-2022
Table 14 Sales of Soft Drinks by Total Fountain On-trade: % Volume Growth 2017-2022
Table 15 NBO Company Shares of Off-trade Soft Drinks (RTD): % Volume 2018-2022
Table 16 LBN Brand Shares of Off-trade Soft Drinks (RTD): % Volume 2019-2022
Table 17 NBO Company Shares of Off-trade Soft Drinks: % Value 2018-2022
Table 18 LBN Brand Shares of Off-trade Soft Drinks: % Value 2019-2022
Table 19 Penetration of Private Label in Off-trade Soft Drinks (RTD) by Category: % Volume 2017-2022
Table 20 Penetration of Private Label in Off-trade Soft Drinks by Category: % Value 2017-2022
Table 21 Distribution of Off-trade Soft Drinks (as sold) by Format: % Volume 2017-2022
Table 22 Distribution of Off-trade Soft Drinks (as sold) by Format and Category: % Volume 2022
Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: Volume 2022-2027
Table 24 Forecast Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: % Volume Growth 2022-2027
Table 25 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2022-2027
Table 26 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2022-2027
Table 27 Forecast Off-trade Sales of Soft Drinks (RTD) by Category: Volume 2022-2027
Table 28 Forecast Off-trade Sales of Soft Drinks (RTD) by Category: % Volume Growth 2022-2027
Table 29 Forecast Off-trade Sales of Soft Drinks by Category: Value 2022-2027
Table 30 Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth 2022-2027
Table 31 Forecast Sales of Soft Drinks by Total Fountain On-trade: Volume 2022-2027
Table 32 Forecast Sales of Soft Drinks by Total Fountain On-trade: % Volume Growth 2022-2027

APPENDIX

Fountain sales in Israel

DISCLAIMER

SOURCES

Summary 1 Research Sources

CARBONATES IN ISRAELKEY DATA FINDINGS

2022 DEVELOPMENTS

Tax increase stimulates a decline in volume sales in 2022
Negative trend for the on-trade due to tax hike just as it was starting to recover from enforced closures during the pandemic
Industry players alter branding of their “diet” offerings to “Zero Sugar” in response to the global trend

PROSPECTS AND OPPORTUNITIES

Tax on carbonates slows forecast period growth as consumers rein in their spending
Central Beverage Company maintains its clear lead although its category share contracts
Tonic water/mixers/other bitters increasingly shift towards reduced sugar

CATEGORY DATA

Table 33 Off-trade vs On-trade Sales of Carbonates: Volume 2017-2022
Table 34 Off-trade vs On-trade Sales of Carbonates: Value 2017-2022
Table 35 Off-trade vs On-trade Sales of Carbonates: % Volume Growth 2017-2022
Table 36 Off-trade vs On-trade Sales of Carbonates: % Value Growth 2017-2022
Table 37 Off-trade Sales of Carbonates by Category: Volume 2017-2022
Table 38 Off-trade Sales of Carbonates by Category: Value 2017-2022
Table 39 Off-trade Sales of Carbonates by Category: % Volume Growth 2017-2022
Table 40 Off-trade Sales of Carbonates by Category: % Value Growth 2017-2022
Table 41 Total Sales of Carbonates by Fountain On-trade: Volume 2017-2022
Table 42 Total Sales of Carbonates by Fountain On-trade: % Volume Growth 2017-2022
Table 43 NBO Company Shares of Off-trade Carbonates: % Volume 2018-2022
Table 44 LBN Brand Shares of Off-trade Carbonates: % Volume 2019-2022
Table 45 NBO Company Shares of Off-trade Carbonates: % Value 2018-2022
Table 46 LBN Brand Shares of Off-trade Carbonates: % Value 2019-2022
Table 47 Forecast Off-trade Sales of Carbonates by Category: Volume 2022-2027
Table 48 Forecast Off-trade Sales of Carbonates by Category: Value 2022-2027
Table 49 Forecast Off-trade Sales of Carbonates by Category: % Volume Growth 2022-2027
Table 50 Forecast Off-trade Sales of Carbonates by Category: % Value Growth 2022-2027
Table 51 Forecast Total Sales of Carbonates by Fountain On-trade: Volume 2022-2027
Table 52 Forecast Total Sales of Carbonates by Fountain On-trade: % Volume Growth 2022-2027

JUICE IN ISRAELKEY DATA FINDINGS

2022 DEVELOPMENTS

The imposition of a new tax from January 2022 leads to a strong contraction in juice sales over the year
Health and wellness trend and tax rise stimulate a consumer shift from juice drinks (up to 24% juice) to 100% juice
Jafora-Tabori Ltd maintains its strong lead, thanks to the popularity of its brands and new product launches

PROSPECTS AND OPPORTUNITIES

Demand slows as consumers reduce their spending due to the rising cost of living
More unsweetened and natural launches likely over the forecast period which are subject to lower tax
Contraction of juice sales via the on-trade over the forecast period due to the increased offer of freshly squeezed juice

CATEGORY DATA

Table 53 Off-trade Sales of Juice by Category: Volume 2017-2022
Table 54 Off-trade Sales of Juice by Category: Value 2017-2022
Table 55 Off-trade Sales of Juice by Category: % Volume Growth 2017-2022
Table 56 Off-trade Sales of Juice by Category: % Value Growth 2017-2022
Table 57 NBO Company Shares of Off-trade Juice: % Volume 2018-2022
Table 58 LBN Brand Shares of Off-trade Juice: % Volume 2019-2022
Table 59 NBO Company Shares of Off-trade Juice: % Value 2018-2022
Table 60 LBN Brand Shares of Off-trade Juice: % Value 2019-2022
Table 61 Forecast Off-trade Sales of Juice by Category: Volume 2022-2027
Table 62 Forecast Off-trade Sales of Juice by Category: Value 2022-2027
Table 63 Forecast Off-trade Sales of Juice by Category: % Volume Growth 2022-2027
Table 64 Forecast Off-trade Sales of Juice by Category: % Value Growth 2022-2027

BOTTLED WATER IN ISRAELKEY DATA FINDINGS

2022 DEVELOPMENTS

Carbonated bottled water benefits from tax on sweetened soft drinks
Shortage of Eden bottled water brand impacts the company’s performance in 2022
Rising raw material costs as well as the imposition of a security deposit on the most popular 1.5 litre size cause a slowdown in off-trade volume sales in 2022

PROSPECTS AND OPPORTUNITIES

Health trend and tax on sugary soft drinks benefit bottled water over the forecast period
Water bars and soda streams pose a threat to bottled water sales
Slow and steady forecast period growth of carbonated bottled water

CATEGORY DATA

Table 65 Off-trade Sales of Bottled Water by Category: Volume 2017-2022
Table 66 Off-trade Sales of Bottled Water by Category: Value 2017-2022
Table 67 Off-trade Sales of Bottled Water by Category: % Volume Growth 2017-2022
Table 68 Off-trade Sales of Bottled Water by Category: % Value Growth 2017-2022
Table 69 NBO Company Shares of Off-trade Bottled Water: % Volume 2018-2022
Table 70 LBN Brand Shares of Off-trade Bottled Water: % Volume 2019-2022
Table 71 NBO Company Shares of Off-trade Bottled Water: % Value 2018-2022
Table 72 LBN Brand Shares of Off-trade Bottled Water: % Value 2019-2022
Table 73 Forecast Off-trade Sales of Bottled Water by Category: Volume 2022-2027
Table 74 Forecast Off-trade Sales of Bottled Water by Category: Value 2022-2027
Table 75 Forecast Off-trade Sales of Bottled Water by Category: % Volume Growth 2022-2027
Table 76 Forecast Off-trade Sales of Bottled Water by Category: % Value Growth 2022-2027

SPORTS DRINKS IN ISRAELKEY DATA FINDINGS

2022 DEVELOPMENTS

Tax on sugar drinks leads to a slowdown in off-trade volume sales of sports drinks in 2022
Growth of retail e-commerce slows as lifestyles return to pre-pandemic norms
The performance of sports drinks subdued by rising demand for protein drinks

PROSPECTS AND OPPORTUNITIES

Health and wellness trend shapes category sales over the forecast period
Tempo Beverages remains the leading player despite strong competition
The launch of Powerade Zero boosts the potential for reduced sugar sports drinks over the forecast period

CATEGORY DATA

Table 77 Off-trade Sales of Sports Drinks: Volume 2017-2022
Table 78 Off-trade Sales of Sports Drinks: Value 2017-2022
Table 79 Off-trade Sales of Sports Drinks: % Volume Growth 2017-2022
Table 80 Off-trade Sales of Sports Drinks: % Value Growth 2017-2022
Table 81 NBO Company Shares of Off-trade Sports Drinks: % Volume 2018-2022
Table 82 LBN Brand Shares of Off-trade Sports Drinks: % Volume 2019-2022
Table 83 NBO Company Shares of Off-trade Sports Drinks: % Value 2018-2022
Table 84 LBN Brand Shares of Off-trade Sports Drinks: % Value 2019-2022
Table 85 Forecast Off-trade Sales of Sports Drinks: Volume 2022-2027
Table 86 Forecast Off-trade Sales of Sports Drinks: Value 2022-2027
Table 87 Forecast Off-trade Sales of Sports Drinks: % Volume Growth 2022-2027
Table 88 Forecast Off-trade Sales of Sports Drinks: % Value Growth 2022-2027

ENERGY DRINKS IN ISRAELKEY DATA FINDINGS

2022 DEVELOPMENTS

Tax on regular energy drinks boosts popularity of reduced sugar energy drinks which retail at lower prices
Volume sales contract in 2022 due to growing health and wellness trend and higher unit prices
Consumer tastes become more sophisticated, particularly as changing trends in alcoholic beverages reduce demand for energy drinks as a mixer

PROSPECTS AND OPPORTUNITIES

Sales contract over the forecast period due to high prices and an unhealthy image
Despite recent contraction the strong performance of Monster Energy bodes well for future competition
Potential for new flavour launches over the forecast period

CATEGORY DATA

Table 89 Off-trade Sales of Energy Drinks: Volume 2017-2022
Table 90 Off-trade Sales of Energy Drinks: Value 2017-2022
Table 91 Off-trade Sales of Energy Drinks: % Volume Growth 2017-2022
Table 92 Off-trade Sales of Energy Drinks: % Value Growth 2017-2022
Table 93 NBO Company Shares of Off-trade Energy Drinks: % Volume 2018-2022
Table 94 LBN Brand Shares of Off-trade Energy Drinks: % Volume 2019-2022
Table 95 NBO Company Shares of Off-trade Energy Drinks: % Value 2018-2022
Table 96 LBN Brand Shares of Off-trade Energy Drinks: % Value 2019-2022
Table 97 Forecast Off-trade Sales of Energy Drinks: Volume 2022-2027
Table 98 Forecast Off-trade Sales of Energy Drinks: Value 2022-2027
Table 99 Forecast Off-trade Sales of Energy Drinks: % Volume Growth 2022-2027
Table 100 Forecast Off-trade Sales of Energy Drinks: % Value Growth 2022-2027

CONCENTRATES IN ISRAELKEY DATA FINDINGS

2022 DEVELOPMENTS

New tax and subsequent significant increase in unit price stimulate contraction in volume sales in 2022 to which industry players respond by being creative
Osem suggests a lower concentration of its product per drink on its labelling in order to have the red label removed from its packaging and avoid paying the tax
Osem Food Industries remains the leading player in concentrates

PROSPECTS AND OPPORTUNITIES

As powder concentrates are not subject to the sugar tax, the category poses a significant threat to liquid concentrates over the forecast period
Volume sales of concentrates contract as these products are not perceived as healthy while the sugar tax makes them increasingly unaffordable
The outcome of a lawsuit against Osem Food Industries for altering its serving suggestion on its labelling could shape future category sales

CATEGORY DATA

Concentrates Conversions
Summary 2 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format
Table 126 Off-trade Sales of Concentrates (RTD) by Category: Volume 2017-2022
Table 127 Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2017-2022
Table 128 Off-trade Sales of Concentrates by Category: Value 2017-2022
Table 129 Off-trade Sales of Concentrates by Category: % Value Growth 2017-2022
Table 130 LBN Brand Shares of Off-trade Concentrates (RTD): % Volume 2019-2022
Table 131 NBO Company Shares of Off-trade Concentrates: % Value 2018-2022
Table 132 LBN Brand Shares of Off-trade Concentrates: % Value 2019-2022
Table 133 NBO Company Shares of Off-trade Liquid Concentrates (RTD): % Volume 2018-2022
Table 134 LBN Brand Shares of Off-trade Liquid Concentrates (RTD): % Volume 2019-2022
Table 135 Forecast Off-trade Sales of Concentrates (RTD) by Category: Volume 2022-2027
Table 136 Forecast Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2022-2027
Table 137 Forecast Off-trade Sales of Concentrates by Category: Value 2022-2027
Table 138 Forecast Off-trade Sales of Concentrates by Category: % Value Growth 2022-2027

RTD TEA IN ISRAELKEY DATA FINDINGS

2022 DEVELOPMENTS

Strong decline in off-trade volume sales of RTD tea as consumers avoid drinks with a high sugar content while high taxes put prices up
Health and wellness trend focuses demand on reduced sugar RTD tea, which also benefits from lower tax making it more affordable
Name change of reduced sugar variants from “diet” to “zero”

PROSPECTS AND OPPORTUNITIES

Shift to healthier beverages continues over the forecast period
Decrease in both regular and reduced sugar RTD tea over the forecast period
Fuze Tea maintains its strong lead thanks to its wide distribution network and new product launches

CATEGORY DATA

Table 101 Off-trade Sales of RTD Tea by Category: Volume 2017-2022
Table 102 Off-trade Sales of RTD Tea by Category: Value 2017-2022
Table 103 Off-trade Sales of RTD Tea by Category: % Volume Growth 2017-2022
Table 104 Off-trade Sales of RTD Tea by Category: % Value Growth 2017-2022
Table 105 Leading Flavours for Off-trade RTD Tea: % Volume 2017-2022
Table 106 NBO Company Shares of Off-trade RTD Tea: % Volume 2018-2022
Table 107 LBN Brand Shares of Off-trade RTD Tea: % Volume 2019-2022
Table 108 NBO Company Shares of Off-trade RTD Tea: % Value 2018-2022
Table 109 LBN Brand Shares of Off-trade RTD Tea: % Value 2019-2022
Table 110 Forecast Off-trade Sales of RTD Tea by Category: Volume 2022-2027
Table 111 Forecast Off-trade Sales of RTD Tea by Category: Value 2022-2027
Table 112 Forecast Off-trade Sales of RTD Tea by Category: % Volume Growth 2022-2027
Table 113 Forecast Off-trade Sales of RTD Tea by Category: % Value Growth 2022-2027

RTD COFFEE IN ISRAELKEY DATA FINDINGS

2022 DEVELOPMENTS

Sales of RTD coffee increase as consumer demand rises for soft drinks that can be consumed on-the-go
Prices increases in 2022 encourage consumers to alter their consumption habits
Tnuva enters the category with three new variants, of which the chocolate latte one contains high sugar level

PROSPECTS AND OPPORTUNITIES

Health and wellness trend benefits Tnuva and its fresh milk RTD coffee range, while brands without artificial flavouring are likely to be launched over the forecast period
Master Café maintains its lead despite the anticipated entrance of more brands
Negligible presence of on-trade RTD coffee

CATEGORY DATA