Soft Drinks in Israel
Euromonitor International's Soft Drinks in Israel market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, 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 new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 140 | Publication date: May 2006
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Executive summary
Healthy growth in soft drinks thanks to improved economic climate in 2005
In 2005 soft drinks recorded healthy growth, mainly due to an improving economic climate and subsequent increase in disposable income. Soft drinks achieved double-digit percentage volume growth in 2005. In current value terms soft drinks also recorded healthy growth. However, current value growth was lower than volume growth, indicating a fall in unit prices in 2005. The healthy growth rates were the result of substantial growth in several sectors such as bottled water, functional drinks and other low calorie products. Growing health awareness among Israeli consumers strengthened this trend.
Soft drinks market is highly concentrated
The soft drinks market is highly concentrated with three companies accounting for the majority of shares. In carbonates, The Central Bottling Company and Yafora-Tavori were the leading companies in 2005. In fruit/vegetable juice, Gat Food Canneries Ltd and Ganir were the major players. In bottled water, Mayanot Eden and Neviot-Tevaa Hagalil commanded the majority of shares.
Declining popularity of carbonates due to growing health awareness
Off-trade carbonates recorded only limited current value growth in 2005. The main reason for this was growing health awareness among Israeli consumers. Off-trade low calorie cola carbonates was the best performer in the sector.
Strong sales of fruit/vegetable juice due to economic improvement and growing health awareness
The improving economic climate, which began in 2004 and continued into 2005, coupled with growing health awareness encouraged Israelis to consume more fruit/vegetable juice and to purchase better quality fruit/vegetable juice products. Off-trade sales of fruit/vegetable juice increased relatively rapidly in 2005. Nectars was the most dynamic and contributed significantly to the total sales of fruit/vegetable juice.
Low prices and improving economy boost volume and current value growth of bottled water in 2005
Off-trade bottled water recorded the most dynamic growth rates in 2005 in both volume and current value terms. The main reasons for this growth were the low prices of bottled water in Israel, which enabled more of the population to purchase it. In addition, the low quality of tap water and the fact that the Ministry Of Health announced several times that it was forbidden to drink tap water, increased the consumption of bottled water.
Economic improvement and greater health awareness boost sales of functional drinks in 2005
The growing worldwide trend for functional drinks, mainly in the US and Europe, and the fact that Israelis tend to adopt Western lifestyles and follow global trends, led to an increase in sales of functional drinks.
Slower growth for concentrates
Concentrates have decreased in popularity over the years, the major reason being that growing health awareness has encouraged consumers away from products which are considered unhealthy and of low quality. As a result, sales of concentrates were low in Israel in 2005. However, concentrates remain relatively popular among several consumer groups, such as low-income households, Israeli Arabs and religious Jewish families.
Growing popularity of RTD tea stimulates sales in 2005
Off-trade sales of RTD tea in Israel were still limited in 2005. However, sales have shown an increase in the last few years, reflecting a growing demand from Israeli consumers. Over the last three years, several different companies realised the potential of RTD tea and started to heavily invest in promotional campaigns and marketing activities in order to create awareness and stimulate sales.
Limited demand for RTD coffee
Off-trade sales of RTD coffee were also relatively limited in 2005. RTD coffee recorded low growth rates in both volume and current value terms in 2005, reflecting its lack of popularity. RTD coffee is relatively new in Israel and so awareness among Israeli consumers is still limited.
Unit prices expected to fall over the forecast period
Volume growth of soft drinks is expected to outpace constant value growth over the forecast period, indicating a fall in unit prices. The relatively high growth rates of the soft drinks market are expected to result from dynamic growth in bottled water, fruit/vegetable juice and functional drinks. An improving economy and growing health awareness are expected to be major factors behind this expected growth.
Table of contents
SOFT DRINKS IN ISRAEL : MARKET INSIGHT
EXECUTIVE SUMMARY
TOTAL SOFT DRINKS SALES
Market Performance
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2000-2005
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2000-2005
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2000-2005
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2000-2005
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2005
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2005
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2005
Table 9 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2005-2010
Table 10 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2005-2010
Table 11 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2005-2010
Table 12 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2005-2010
OFF-TRADE SOFT DRINKS SALES
Market Performance
Table 13 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2000-2005
Table 14 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2000-2005
Table 15 Off-trade Sales of Soft Drinks by Sector: Value 2000-2005
Table 16 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2000-2005
Competitive Environment
Table 17 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2001-2005
Table 18 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2002-2005
Table 19 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2001-2005
Table 20 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2002-2005
Table 21 Company Shares of Off-trade Soft Drinks by Value 2001-2005
Table 22 Brand Shares of Off-trade Soft Drinks by Value 2002-2005
Off-Trade Distribution
Table 23 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2005
Retailer Activity and Private Label Trends
Table 24 Penetration of Private Label (as sold) by Sector by Volume 2001-2005
Table 25 Penetration of Private Label by Sector by Value 2001-2005
Forecast Market Performance
Table 26 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005-2010
Table 27 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2005-2010
Table 28 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2005-2010
Table 29 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2005-2010
APPENDIX
Concentrates Conversions and Additional Data
Table 30 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format
Table 31 Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2000-2005
Table 32 Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2000-2005
Table 33 Company Shares of Liquid Concentrates (as sold) by Off-trade Volume 2001-2005
Table 34 Brand Shares of Liquid Concentrates (as sold) by Off-trade Volume 2002-2005
Table 35 Company Shares of Concentrates (RTD) by Off-trade Volume 2001-2005
Table 36 Brand Shares of Concentrates (RTD) by Off-trade Volume 2002-2005
Table 37 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2005-2010
Table 38 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2005-2010
Institutional Sales of Bottled Water
DEFINITIONS
LOCAL COMPANY PROFILES - ISRAEL
COCA-COLA ISRAEL - SOFT DRINKS - ISRAEL
COMPANY BACKGROUND
RECENT NEWS
Summary 1 Summary - The Central Bottling Co Ltd Operational Indicators 2003
GAT FOOD CANNERIES LTD - SOFT DRINKS - ISRAEL
COMPANY BACKGROUND
RECENT NEWS
MAYANOT EDEN LTD - SOFT DRINKS - ISRAEL
COMPANY REVIEW
INTERNATIONAL ACTIVITY
RECENT NEWS
Summary 2 Summary - Mayanot Eden Ltd Operational Indicators 2004
TEMPO BEER INDUSTRIES LTD - SOFT DRINKS - ISRAEL
COMPANY BACKGROUND
RECENT NEWS
Summary 3 Summary - Tempo Beer Industries Ltd: Operational Indicators 2004
YAFORA-TAVORI LTD - SOFT DRINKS - ISRAEL
COMPANY BACKGROUND
RECENT NEWS
Summary 4 Summary - Yafora-Tavori Ltd: Operational Indicators 2004
CARBONATES IN ISRAEL
SECTOR PERFORMANCE
2005 headlines
Growing health awareness prevents strong growth
Cola carbonates the largest subsector in value and volume terms
Low popularity of non-cola carbonates hinders growth
Consumption of carbonates relatively low in Israel
A handful of companies dominate carbonates in 2005
Yafora-Tavori the second key player in carbonates
Tempo Beer Industries in third position
Limited range of packaging types in carbonates
Forecast performance
Table 39 Off-trade Sales of Carbonates by Subsector: Volume 2000-2005
Table 40 Off-trade Sales of Carbonates by Subsector: Value 2000-2005
Table 41 Off-trade Sales of Carbonates by Subsector: % Volume Growth 2000-2005
Table 42 Off-trade Sales of Carbonates by Subsector: % Value Growth 2000-2005
Table 43 Company Shares of Carbonates by Off-trade Volume 2001-2005
Table 44 Brand Shares of Carbonates by Off-trade Volume 2002-2005
Table 45 Company Shares of Carbonates by Off-trade Value 2001-2005
Table 46 Brand Shares of Carbonates by Off-trade Value 2002-2005
Summary 5 Summary - Carbonates: New Product Launches 2004-2005
Table 47 Forecast Off-trade Sales of Carbonates by Subsector: Volume 2005-2010
Table 48 Forecast Off-trade Sales of Carbonates by Subsector: Value 2005-2010
Table 49 Forecast Off-trade Sales of Carbonates by Subsector: % Volume Growth 2005-2010
Table 50 Forecast Off-trade Sales of Carbonates by Subsector: % Value Growth 2005-2010
LOW-CALORIE CARBONATES
Table 51 Low-calorie Carbonates % Breakdown by Subsector by Off-trade Volume 2002-2005
CARBONATES DISTRIBUTION
Off-trade the main distribution channel for carbonates
Fountain sales
Table 52 On-trade vs Off-trade Sales of Carbonates: Volume 2000-2005
Table 53 On-trade vs Off-trade Sales of Carbonates: Value 2000-2005
Table 54 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2000-2005
Table 55 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2000-2005
FRUIT/VEGETABLE JUICE IN ISRAEL
SECTOR PERFORMANCE
2005 headlines
Improving economy and growing health awareness stimulate growth of fruit/vegetable juice
With a 60% volume share of fruit/vegetable juice, nectars is the largest and most dynamic subsector
Better economic climate stimulates sales of 100% juice
The smallest subsector in fruit/vegetable juice is juice drinks (up to 24%)
Three players together account for 82% of volume sales
Key players invest in consolidation, advertising and new product development
Leading companies move into new areas
Intensive new product development in fruit/vegetable juice
Plastic bottles the most popular packaging format
Forecast performance
Growing health awareness expected to boost growth of 100% juice
Table 56 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2000-2005
Table 57 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2000-2005
Table 58 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2000-2005
Table 59 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2000-2005
Table 60 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2001-2005
Table 61 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2002-2005
Table 62 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2001-2005
Table 63 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2002-2005
Summary 6 Summary - Fruit/Vegetable Juice: New Product Launches 2004-2005
Table 64 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2005-2010
Table 65 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2005-2010
Table 66 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2005-2010
Table 67 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2005-2010
CHILLED VS NON-CHILLED FRUIT/VEGETABLE JUICE
Table 68 Chilled vs Non-chilled Fruit/Vegetable Juice by Off-trade Volume 2002-2005
FLAVOURS
Table 69 Leading Flavours for 100% Juice: % Volume Breakdown 2003-2005
Table 70 Leading Flavours for Nectars (25-99% Juice): % Volume Breakdown 2003-2005
Table 71 Leading Flavours for Juice Drinks (up to 24% Juice): % Volume Breakdown 2003-2005
SMOOTHIES
Table 72 % Share of Smoothies in 100% Juice and Nectars (25-99% Juice): Off-trade Value 2004-2005
BOTTLED WATER IN ISRAEL
SECTOR PERFORMANCE
2005 headlines
Low prices and improving economy boost volume and value sales of bottled water in 2005
Huge popularity of still bottled water
Few mergers and acquisitions in bottled water in 2005
Bottled water highly concentrated
Limited new product development
Forecast performance
Still bottled water to remain the most dynamic and largest in value terms over the forecast period
Table 73 Off-trade Sales of Bottled Water: Volume 2000-2005
Table 74 Off-trade Sales of Bottled Water: Value 2000-2005
Table 75 Off-trade Sales of Bottled Water: % Volume Growth 2000-2005
Table 76 Off-trade Sales of Bottled Water: % Value Growth 2000-2005
Table 77 Company Shares of Bottled Water by Off-trade Volume 2001-2005
Table 78 Brand Shares of Bottled Water by Off-trade Volume 2002-2005
Table 79 Company Shares of Bottled Water by Off-trade Value 2001-2005
Table 80 Brand Shares of Bottled Water by Off-trade Value 2002-2005
Summary 7 Summary - Bottled Water: New Product Launches 2004-2005
Table 81 Forecast Off-trade Sales of Bottled Water: Volume 2005-2010
Table 82 Forecast Off-trade Sales of Bottled Water: Value 2005-2010
Table 83 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2005-2010
Table 84 Forecast Off-trade Sales of Bottled Water: % Value Growth 2005-2010
FUNCTIONAL DRINKS IN ISRAEL
SECTOR PERFORMANCE
2005 headlines
Improving economy and greater health awareness boost sales of functional drinks in 2005
Several retailers and on-trade outlets boycott functional drinks due to high prices of products
Functional drinks relatively concentrated
More products fortified with vitamins expected
Table 85 Off-trade Sales of Functional Drinks by Subsector: Volume 2000-2005
Table 86 Off-trade Sales of Functional Drinks by Subsector: Value 2000-2005
Table 87 Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2000-2005
Table 88 Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2000-2005
Table 89 Company Shares of Functional Drinks by Off-trade Volume 2001-2005
Table 90 Brand Shares of Functional Drinks by Off-trade Volume 2002-2005
Table 91 Company Shares of Functional Drinks by Off-trade Value 2001-2005
Table 92 Brand Shares of Functional Drinks by Off-trade Value 2002-2005
Summary 8 Summary - Functional Drinks: New Product Launches 2004-2005
Table 93 Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2005-2010
Table 94 Forecast Off-trade Sales of Functional Drinks by Subsector: Value 2005-2010
Table 95 Forecast Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2005-2010
Table 96 Forecast Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2005-2010
CONCENTRATES IN ISRAEL
SECTOR PERFORMANCE
2005 headlines
Growing health awareness and improving economy affect sales of concentrates
Concentrates relatively popular among specific consumer groups
Two companies account for around 80% of value sales
Increase in company activity
Forecast performance
Table 97 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2000-2005
Table 98 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2000-2005
Table 99 Off-trade Sales of Concentrates by Subsector: Value 2000-2005
Table 100 Off-trade Sales of Concentrates by Subsector: % Value Growth 2000-2005
Table 101 Company Shares of Concentrates by Off-trade Value 2001-2005
Table 102 Brand Shares of Concentrates by Off-trade Value 2002-2005
Summary 9 Summary - Concentrates: New Product Launches 2005-2006
Table 103 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2005-2010
Table 104 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2005-2010
Table 105 Forecast Off-trade Sales of Concentrates by Subsector: Value 2005-2010
Table 106 Forecast Off-trade Sales of Concentrates by Subsector: % Value Growth 2005-2010
RTD TEA IN ISRAEL
SECTOR PERFORMANCE
2005 headlines
Growing popularity of RTD tea stimulates sales in 2005
RTD tea highly concentrated
Forecast performance
Table 107 Off-trade Sales of RTD Tea by Subsector: Volume 2000-2005
Table 108 Off-trade Sales of RTD Tea by Subsector: Value 2000-2005
Table 109 Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2000-2005
Table 110 Off-trade Sales of RTD Tea by Subsector: % Value Growth 2000-2005
Table 111 Company Shares of RTD Tea by Off-trade Volume 2001-2005
Table 112 Brand Shares of RTD Tea by Off-trade Volume 2002-2005
Table 113 Company Shares of RTD Tea by Off-trade Value 2001-2005
Table 114 Brand Shares of RTD Tea by Off-trade Value 2002-2005
Summary 10 Summary - RTD Tea: New Product Launches 2004-2005
Table 115 Forecast Off-trade Sales of RTD Tea by Subsector: Volume 2005-2010
Table 116 Forecast Off-trade Sales of RTD Tea by Subsector: Value 2005-2010
Table 117 Forecast Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2005-2010
Table 118 Forecast Off-trade Sales of RTD Tea by Subsector: % Value Growth 2005-2010
RTD COFFEE IN ISRAEL
SECTOR PERFORMANCE
2005 headlines
Limited demand for RTD coffee
RTD coffee highly concentrated
Forecast performance
Table 119 Off-trade Sales of RTD Coffee: Volume 2000-2005
Table 120 Off-trade Sales of RTD Coffee: Value 2000-2005
Table 121 Off-trade Sales of RTD Coffee: % Volume Growth 2000-2005
Table 122 Off-trade Sales of RTD Coffee: % Value Growth 2000-2005
Table 123 Company Shares of RTD Coffee by Off-trade Volume 2001-2005
Table 124 Brand Shares of RTD Coffee by Off-trade Volume 2002-2005
Table 125 Company Shares of RTD Coffee by Off-trade Value 2001-2005
Table 126 Brand Shares of RTD Coffee by Off-trade Value 2002-2005
Table 127 Forecast Off-trade Sales of RTD Coffee: Volume 2005-2010
Table 128 Forecast Off-trade Sales of RTD Coffee: Value 2005-2010
Table 129 Forecast Off-trade Sales of RTD Coffee: % Volume Growth 2005-2010
Table 130 Forecast Off-trade Sales of RTD Coffee: % Value Growth 2005-2010