Alcoholic Drinks - Israel

The Alcoholic Drinks market in Israel has been experiencing significant growth in recent years.

Customer preferences: Israeli consumers have shown a growing interest in premium and craft alcoholic beverages. They are increasingly seeking unique and high-quality products that offer a distinct flavor profile. This shift in consumer preferences can be attributed to a greater emphasis on quality and a desire for more sophisticated drinking experiences. Additionally, there has been a rising demand for healthier alcoholic options, such as low-alcohol or alcohol-free beverages, as consumers become more health-conscious.

Trends in the market: One of the prominent trends in the Israeli Alcoholic Drinks market is the increasing popularity of local craft breweries and distilleries. These smaller-scale producers are gaining traction among consumers who appreciate the artistry and attention to detail that goes into crafting these beverages. This trend is also driven by a desire to support local businesses and promote Israeli culture and heritage. Another trend in the market is the growing popularity of wine consumption. Israel has a long history of winemaking, and the quality of Israeli wines has been recognized internationally. Israeli consumers are becoming more knowledgeable about wine and are willing to explore different varieties and styles. This trend is also supported by the increasing number of wine bars and wine-focused events in the country.

Local special circumstances: Israel's unique cultural and religious landscape has an impact on the Alcoholic Drinks market. The country has a diverse population with different religious beliefs and cultural practices. For example, the Jewish population observes strict dietary laws, which prohibit the consumption of certain foods and drinks. This has led to the development of kosher alcoholic beverages, which are produced according to specific religious guidelines. The availability of kosher products is an important consideration for many Israeli consumers.

Underlying macroeconomic factors: Israel has experienced steady economic growth in recent years, which has contributed to increased consumer spending power. This has allowed consumers to allocate more of their budget towards discretionary items, including alcoholic beverages. Additionally, the country has seen a rise in tourism, with a growing number of international visitors coming to Israel. This influx of tourists has created a demand for a wide range of alcoholic beverages, catering to different tastes and preferences. In conclusion, the Alcoholic Drinks market in Israel is evolving to meet the changing preferences of consumers. The demand for premium and craft beverages, as well as the growing interest in wine consumption, are key trends shaping the market. The unique cultural and religious landscape of Israel, along with the country's economic growth and increasing tourism, are important factors driving the development 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 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.