Israel Instant Coffee Market - Forecasts from 2022 to 2027

Israel instant coffee market is estimated to attain a market size of US$118.195 million in 2027 from US$88.597 million in 2020, growing at a CAGR of 4.20%. The average rate of per capita coffee consumption is around 3.5 cups a day. Hence, with substantial coffee consumption, the market is poised to hold strong growth prospects in the forecast period. The prevalent café culture in the country is further providing an impetus to burgeoning market demand in the forecast period. Coffee has gained popularity with time, where the drink is savoured by a range of individuals in the form of different flavors and aromas that are not found in other hot beverages. The rich coffee culture of the country is further propelling the market demand in the forecast period. In the previous years, the country had a rich culture of consuming Turkish coffee, and with time, the Israelis developed a taste for fine espresso coffee, served in various public places in the country, including restaurants, coffee shops, and cafeterias at stations, and universities. However, due to the current COVID-19 scenario, the market is projected to experience a slight decline in the forecast period. This is due to the closure of all the hotel and restaurant chains in the country, including the coffee chains, further bringing down the sales of instant coffee in this sector. After 2020, the market is set to experience an uptick in the sales of instant coffee products due to the relaxation of lockdown. However, efforts will be made towards practising social distancing and achieving workplace safety. This will further contribute to achieving sustainable market growth by the end of 2025.

In Israel, coffee is the third most consumed drink after water and tea. It is also the second most important international trade commodity, after crude oil. Furthermore, domestic consumption is met by imports. In 2016, it was estimated that the country imported around USD123 million dollars of coffee from other nations. Switzerland, followed by Italy and Germany, supplies coffee to Israel in order to satiate the domestic demand.

The dominance of the Strauss Group in the country for the sales of instant coffee is fueling the market's growth during the forecast period. In line with the consumers’ preferences, the company deals in the development, manufacturing, sales, marketing, and distribution of a range of branded coffee products, including instant coffee as well. The company's activities work under two segments, namely, the Israel Coffee segment for the development, manufacturing, sales, distribution, and marketing of coffee products, chocolate powders, and drink powders in Israel. The company is also involved in retail sales of its coffee products at the point of sale in Israel.

The main coffee products include roasted and ground coffee, as well as instant coffee. Instant coffee is in the form of powder, granulated, and freeze-dried under the brand name Elite. Additionally, the company operates its own Elite Coffee chain, specialising in the sales of coffee and other accompanying products in the on-the-go segment. These include coffee stalls located in railway stations, academic institutions, and hospitals.

COVID -19 SCENARIO

The Israel Instant coffee market is expected to undergo a modest reduction in the forecast period as a result of the COVID-19 pandemic. This is owing to the closure of all of the country's hotel and restaurant businesses, including coffee chains, further reducing instant coffee sales in this sector. Due to the easing of lockdown after 2020, sales of instant coffee products are expected to increase; nonetheless, efforts will be made to practice social distance and achieve workplace safety. This will also help to achieve long-term market growth.

Key Development

Jan 2021- Nestlé establishes a food tech division under Osem, an Israeli food manufacturer. The Israeli section of the international corporation will assist Israeli entrepreneurs in connecting with the company's scientists and facilities around the world.

Segmentation:

By Type

• Freeze-Dried Instant Coffee
• Spray-Dried Instant Coffee

By Distribution Channel

• Offline
• Retail
• Food Services
• Online

By Cities

• Jerusalem
• Tel Aviv