Alcoholic drinks continues to grow in 2012
In 2012, the alcoholic drinks market continued to witness growth over the previous year. The increase in alcohol consumption was mainly due to the increase in spirit and wine consumption; in 2012 the two main growth engines were the other sparkling wine category in wine and spirits, especially whiskies. The increase in consumption was supported by the globalisation process that occurred over the review period and is expected to continue over the forecast period.
Taxation and regulations in 2012
The prices of alcohol in Israel have always been considered relatively high, as a result of import costs and taxation policy. In July 2012, the government announced an increase in taxes on cigarettes and alcohol, focusing on beer in order to decrease alcohol consumption volume in Israel. A possible outcome of the current taxation policy is a change in consumption habits, away from certain drinks, such as beer and vodka, to others, such as gin due to their relatively attractive price. A potential result is polarisation - small breweries and wineries’ shares will erode and some players will have no choice but to withdraw from the market for lack of profitability, while the power of the large players will increase.
Tempo Beer Industries continues to lead
The competitive environment of the alcoholic drinks market changes every year due to changes in consumer consumption preferences. Companies' strategies are based on maximum exposure for certain products when taking into account governmental restrictions and regulations regarding advertising. The leading company in 2012 continued to be Tempo Beer Industries. The company’s acquisition of the distribution rights for Pernod Ricard brands in 2011 contributed to its leadership, which continued in 2012.
On-trade vs. Off-trade
In 2012, the growth rate in the on-trade sales channel was better than the previous period and that witnessed in the off-trade sales channel. The performance was due to the exposure of various products that are consumed primarily in the on-trade channel but consumed less via the off-trade. The on-trade sales channel is also smaller than the off-trade sales channel and any change in consumer preferences affects it more significantly.
Positive growth expected over the forecast period
Alcoholic drinks are projected to continue growing over the forecast period at similar rates to those recorded in 2012. The main contributing factor over the forecast period will be the innovation reflected by new flavours and brands, when the expose and initial consumption will be mostly in the on-trade channel followed by promotion. Potential threats to this positive trend of growth are governmental regulations and restrictions regarding alcohol sales like adding a verbal and graphical health warning and prohibitions alcohol advertising.
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The Alcoholic Drinks in Israel market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Production, imports by origin, exports by destination
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Alcoholic Drinks in Israel?
- What are the major brands in Israel?
- Have there been any alcoholic drinks legislative changes over the past 12 months?
- How is the alcoholic drinks industry affected by the recession?
- What is consumed more; beer, wine or spirits?
- What have been the key trends seen in new product developments?
- Do alcoholic drinks consumers want value for money or added value?
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This industry report originates from Passport, our Alcoholic Drinks market research database.