Other hot drinks was subject to new product labelling regulations in 2020, causing a large proportion of products in this category to be labelled with red sugar labels. Whilst this labelling was expected to cause a decline in sales (due to parents wanting to avoid buying high-sugar products for their children), it was thought the decline would be mitigated by parents’ prior knowledge that, for example, chocolate-based flavoured powder drinks contain high levels of sugar.
In 2020, consumers and their children spent more time at home due to working from home measures and school closures. In addition, the majority of lockdown took place during cold weather months in which other hot drinks are typically more popular.
Whilst the health and wellness trend continues to impact other hot drinks in Israel, for several months in 2020 it did not remain the key priority. During the COVID-19 lockdown, many parents set aside high-sugar content concerns, to focus more generally on feeding and entertaining their children.
Sales of other hot drinks are likely to drop in 2021 and continue declining throughout the forecast period. Children are key consumers of other hot drinks and as they will spend less time at home due to schools reopening, there will be fewer consumption occasions.
The product labelling regulation implemented in 2020 (to make consumers aware of high-sugar drinks) is set to be enforced further in 2021. It is expected that there will be a lower threshold for the red sugar labels, leading to more other hot drinks products carrying this label.
The competitive landscape in other hot drinks is likely to remain extremely stable over the forecast period with Strauss Group maintaining its strong dominance of the category. Private label may continue to see some success due to its budget-friendly pricing, especially among families.
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Understand the latest market trends and future growth opportunities for the Other Hot Drinks industry in Israel with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Other Hot Drinks research and analysis database.
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