Updated Feb 7, 2023 14:14

Roasted Coffee Market in Israel

Market Overview
After six years of growth, the Israeli roasted coffee market decreased by -% to $ in . In general, consumption, however, enjoyed a strong increase. Over the period under review, the market hit record highs at $ in , and then declined in the following year.

In , consumption of roasted coffee decreased by -% to tons for the first time since 2015, thus ending a six-year rising trend. Overall, consumption, however, posted resilient growth. Over the period under review, consumption attained the peak volume at tons in , and then declined dramatically in the following year.

The revenue of the roasted coffee market in Israel dropped to $ in , reducing by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption, however, showed a remarkable increase. Roasted coffee consumption peaked at $ in , and then contracted in the following year.

Consumption by Type
Roasted coffee (not decaffeinated) ( tons) constituted the product with the largest volume of consumption, comprising approx. % of total volume. Moreover, roasted coffee (not decaffeinated) exceeded the figures recorded for the second-largest type, roasted decaffeinated coffee ( tons), more than tenfold.

From 2007 to , the average annual growth rate of the volume of roasted coffee (not decaffeinated) consumptions amounted to +%.

In value terms, roasted coffee (not decaffeinated) ($) led the market, alone. The second position in the ranking was taken by roasted decaffeinated coffee ($).

From 2007 to , the average annual growth rate of the value of roasted coffee (not decaffeinated) markets stood at +%.

Market Forecast
Driven by increasing demand for roasted coffee in Israel, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .

Market Structure
Roasted coffee market in Israel consists almost entirely of imported products. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately ( percentage point) over the period under review.

Trade Balance
Israel remains a net importer of roasted coffee; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.