Israel instant coffee market is estimated to attain a market size of USD105.177 million in 2025 from USD91.969 million in 2019, growing at a CAGR of 3.09%. The average rate of per capita coffee consumption is around 3.5 cups a day. Hence, with substantial coffee consumption, the market is poised to hold strong growth prospects in the forecast period. The prevalent café culture in the country is further providing an impetus in burgeoning the market demand in the forecast period. The coffee has gained popularity with time where the drink is savored by a range of individuals in the form of different flavors and aromas that are not found in other hot beverages. The rich coffee culture of the country is further propelling the market demand in the forecast period. In the previous years, the country had a rich culture of consuming Turkish coffee, and with time, the Israeli developed their taste for fine espresso coffee, served in varied public places in the country including restaurants, coffee shops, cafeterias at stations, and universities. However, due to the current COVID-19 scenario, the market is projected to experience a slight decline in the forecast period. This is due to the closure of all the hotel and restaurant chains in the country including the coffee chains, further bringing down the sales of instant coffee in this sector. After 2020, the market is set to experience an uptick in the sales of instant coffee products due to relaxation in lockdown, however, efforts will be taken towards practicing social distancing and achieving workplace safety. This will further contribute to achieving a sustainable market growth by the end of 2025.
In Israel, coffee is the third most consumed drink after water and tea, also, coffee is the second most important international trade commodity, after crude oil. Furthermore, the domestic consumption is met by imports, in 2016, it was estimated that the country imported around USD123 million dollars of coffee from other nations of the world. Switzerland followed by Italy and Germany supplies coffee to Israel in order to satiate the domestic demand.
The dominance of the Strauss Group in the country for the sales of instant coffee is fueling the market growth during the forecast period. In line with the consumers’ preferences, the company deals in the development, manufacturing, sales, marketing, and distribution of a range of branded coffee products, including instant coffee as well. The company activities work under two segments, namely, The Israel Coffee segment for the development, manufacturing, sales, distribution, and marketing of coffee products, chocolate powders, and drink powders in Israel. The company is also involved in retail sales of its coffee products at the point of sale in Israel.
The main coffee products include roast and ground coffee and instant coffee. Instant coffee is in the form of powder, granulated, and freeze-dried under the brand name Elite. Additionally, the company operates its Elite Coffee chain specialized for the sales of coffee and other accompanying products in the on-the-go segment. These include coffee stalls located in railway stations, academic institutions, and hospitals.