Amid the general rise in awareness of higher-quality foods and higher culinary standards, there is a prominent trend towards buying more expensive and unique cheeses. Sales of basic soft cheese are eroding while premium cheeses, such as premium soft unpackaged cheese and spreadable processed cheese, show drastic rises.
The Ministry of Economy has opened the market to hard cheese imports in order to encourage competition and lower prices. The ministry opens a tender every year, allowing players to import hard cheese without paying customs.
Although some will argue that the healthier nutrition trend is driven by consumers, it is mainly encouraged by leading companies’ launches and campaigns. In the late review period, Tara Dairy Ltd held various prominent launches of cheese with natural ingredients and no preservatives.
Tnuva Food Industries Ltd accounts for the majority value share within cheese but is losing share consistently. One of the prominent explanations for this is the hard cheese customs-free quotas.
While the main focus of dairy companies during 2017-2018 was on chilled dairy desserts, yoghurt and flavoured milk drinks, there were some interesting launches in cheese too. Tnuva Food Industries Ltd has found the dairy alternatives niche to offer a growth opportunity, seizing the growing awareness of lactose intolerance and the veganism trend.
The health and wellness trend continues to evolve. People often hear what they should avoid but they are not certain what they should actually eat.
Milk alternatives continues to see fast growth rates. People have become more aware of what they consume and how it makes them feel.
As the standard of living keeps rising, and people are less sensitive to price and more focused on convenience, there is a prominent shift towards buying milk packaged in cartons rather than bags, despite the lower price of bags. Smaller household sizes also contribute to this shift, as people prefer milk in cartons that have a longer shelf life.
Tnuva Food Industries Ltd has seen a continuous decrease in its share of drinking milk products. During 2017, the company offered large discounts in order to maintain its share.
Milk is highly regulated by the Israel Dairy Board, which is composed of representatives from the government and leading companies. The unique structure of the milk market enables it to remain very concentrated, maintaining its shares and prices.
Corresponding closely with the health and wellness trend and consumers’ rising engagement in sports, there is also an increase in demand for high-protein products. This is a trend that is relatively easy for consumers to adopt; while other nutritional trends tend to focus on foods that should or should not be consumed, this is a positive health trend that focuses on foods that are widely recommended.
Consumers are shifting away from plain yoghurt towards flavoured yoghurt. Although plain yoghurt is perceived as the healthier choice, and “cleaner” and lower in sugar, consumers increasingly choose flavoured yoghurt which is seen as more interesting and pampering.
Although in most food categories consumers pay less attention to fat levels and diet products, in yoghurt it is a significant factor as fat has a greater impact on the product’s flavour. In addition, consumers are increasingly aware that the number of calories in a product is not as important as its composition.
Strauss Group Ltd leads yoghurt and sour milk products with a growing value share. The company is a leader of innovation; it is fast to recognise consumer trends and invests in constant development of new products to address them.
Tnuva Food Industries Ltd is the second strongest player in yoghurt and sour milk products. Its value share is on the decline despite launches of new products.
While the two leading players focus on launching high-protein products, targeting consumers who engage in sports, Tara Dairy Ltd directs its marketing efforts based on the indulgence and pampering trends. In 2018, the company launched Müller Froop flavoured yoghurt with only 0.
Companies have realised the potential in targeting older consumers who seek unique, more indulgent flavours and textures and are willing to pay extra for them. Consumers seek to eat healthier foods but whenever they are tempted to eat something sweet they are more likely to choose the most indulgent product, obtaining as much pleasure as they can while considering the health cost.
The continued volume decline of chilled dairy desserts is mainly a reflection of the health and wellness trend. As awareness of high sugar levels has risen, consumption of chilled dairy desserts has become less frequent, being regarded as a treat or for special occasions.
There is a prominent trend towards higher culinary standards. An abundance of TV cooking contests and many cooking videos on social media intrigue consumers into using higher-quality ingredients and cooking more sophisticated and unique dishes.
In contrast to its other categories within dairy, Tnuva has succeeded in maintaining its value share of other dairy despite difficulties. Its share remains stable due to its dominance of cottage cheese and cream, both of which see positive growth and little competition.
Strauss Group Ltd is innovation-orientated, investing in frequent launches and their accompanying campaigns. The company encourages a scaling-up movement in other dairy by offering more indulging dairy desserts and maintaining its brands’ strength, mainly for Milky and Splendid.
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Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Israel with research from Euromonitor's team of in-country analysts.
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This industry report originates from Passport, our Packaged Food market research database.