Israel Plant-Based Dairy Market: Trends, Forecasts upto 2028 and Company Shares

Market Snapshot

The plant-based dairy market in Israel has been growing rapidly in recent years, driven by increasing consumer demand for healthier and more sustainable food options. This trend is reflected in the growing number of plant-based dairy products available in Israeli supermarkets, including milk, cheese, yogurt, and ice cream made from soy, almond, coconut, and other plant-based ingredients. Major players in the Israeli plant-based dairy market include local companies such as Tivall and Osem, as well as international brands like Alpro and Silk. With the Israeli government promoting plant-based diets as part of its efforts to combat climate change and improve public health, the plant-based dairy market is expected to continue its growth trajectory in the coming years.

The dairy industry in the Israel is undergoing a great transformation, influenced by many factors. Economic instability and ongoing geopolitical tensions are challenging the traditional dairy sector. These challenges have created a unique opportunity for the growth of plant-based dairy alternatives in Israel. This dynamic shift in consumer preferences reflects a changing landscape.

Plant-based options in the Israel are increasingly favoured by sustainability-conscious consumers, presenting a notable shift in consumer preferences. While traditional cow's milk prices have risen, plant-based alternatives are gaining ground, with notable growth in sectors like plant-based yoghurt and cheese. The sustainability trend and convenience-driven purchases are driving the growth of plant-based dairy in the Israel, despite the slight price difference compared to traditional dairy products. The competitive landscape is evolving as major brands enter the plant-based dairy market, responding to changing consumer lifestyles and preferences.

Market Overview

Plant-based dairy alternatives are making a sustainable mark on the Israel market, riding a wave of consumer interest in environmentally friendly products. Despite economic uncertainties and geopolitical tensions, the dairy industry is experiencing a change in consumer preferences. Premium consumers are turning to oat, soy, and almond milk as sustainable alternatives to traditional cow's milk. Plant-based milk prices have seen substantial growth, although at a slightly slower rate compared to traditional cow's milk.

Plant-based yoghurt and cheese in Israel are flourishing, registering impressive retail volume growth rates. In contrast, soy drinks are facing dwindling demand as consumers explore diverse plant-based options. Although the price gap between traditional and plant-based dairy is shrinking, plant-based options still carry a slightly higher price tag. This, coupled with reduced disposable incomes among consumers, has tempered the resurgence of plant-based choices. However, the sustainability trend continues to drive interest and growth, despite the economic challenges facing the Israel.

Segmentation by Retail Channel

The retail landscape in the Israel's dairy and plant-based alternatives market is experiencing a surge in competitive marketing campaigns. Price sensitivity and innovative product formulations are pushing major brands to venture into the plant-based dairy market, expanding the range of options available to consumers. The convenience of e-commerce is driving sales of plant-based dairy, with online availability improving, and convenience stores are also benefiting from the demand for convenient plant-based products. Single-serve yoghurt products are emerging as meal substitutes, aligning with changing consumer patterns. In this ever-evolving landscape, the plant-based dairy market in the Israel offers growth potential, as consumers increasingly seek sustainable and environmentally conscious alternatives to traditional dairy products.

Competitive Landscape

The plant-based dairy market in Israel is becoming increasingly competitive as more companies enter the market. With a growing demand for plant-based alternatives to traditional dairy products, companies are vying for a share of the market by offering a variety of products such as milk, cheese, and yogurt made from soy, almonds, and other plant-based sources. Established companies such as Tnuva and Strauss are facing competition from newer players like Yofix, which offers a range of dairy-free yogurts, and Oatly, which recently launched its oat milk products in Israel. As the market continues to grow, competition is expected to intensify, driving innovation and product development.

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