Alcoholic beer market in Israel

Earlier Report Observations

The Israeli beer market volume remained stable between 2018 and 2020, averaging around 181 million liters annually. This stability occurred despite regulatory headwinds, including a new purchase tax on beers above 3.8% alcohol introduced in 2018 and restrictions on late-night sales. Market dynamics were supported by the entry of new boutique breweries focusing on quality and uniqueness, which began diversifying the offering. In 2019, the popularity of IPA styles grew, and international brewers like Heineken started investing in non-alcoholic beer marketing, laying groundwork for future segments. The COVID-19 pandemic in 2020 temporarily altered consumption patterns, but the market volume saw only a slight adjustment as the expansion of non-alcoholic and low-alcohol options continued to attract consumers.

In 2021, the market volume surged by 41% to 252 million liters. This sharp increase was driven by a post-pandemic recovery in consumption and accelerated investments by major companies in the non-alcoholic beer category. New brands and variants with lower alcohol content entered the market, responding to growing consumer emphasis on health and moderation. These efforts expanded the total addressable market, pulling in new drinkers and increasing overall beer consumption.

Growth moderated from 2022 onward, with volume reaching 263 million liters by 2023. The market was shaped by intensified competition and continuous product innovation, particularly in the premium and non-alcoholic segments. In 2022, the trend toward boutique and premium beers strengthened, while 2023 saw further marketing pushes for low-alcohol options amid a broader shift in consumer habits toward premiumization and reduced alcohol intake. By 2024, the market’s sales value rose to about 715 million shekels, though volume remained nearly unchanged, indicating a shift toward higher-value products rather than volume expansion.

Production alcoholic beer in Israel

In kind, 2017-2020, M l

Top producers of alcoholic beer, 2017-2020

World map of production of alcoholic beer, 2017-2020

In 2020, Israel produced 120.0 million liters of alcoholic beer, marking a 7.7% decrease from the previous year. Over the period from 2017 to 2020, production declined by 7.7%, with a compound annual growth rate of 2.6%. The largest increase occurred in 2018, at 0.0%.

Annual dynamics of production in Israel in kind, 2017-2020, M l

In value, 2017-2020, M $ US

In 2020, the output of alcoholic beer in Israel was valued at 119.1 million US dollars, reflecting an 11.2% decline compared to 2019. From 2017 to 2020, production decreased by 25.6%, with a compound annual growth rate of 9.4%. The largest decline was recorded in 2018 at 20.1%, while the largest increase occurred in 2019 at 4.9%.

Annual dynamics of production in Israel in value, 2017-2020, M $ US

Exports alcoholic beer from Israel

Exports in kind, K l

The data reveals irregular changes, indicating a volatile market environment. Exports varied by 2.2-fold from a low in 2017 to a high in 2019. In 2020, Israel exported 1 023 thousand liters of alcoholic beer, equivalent to a sharp decrease of 27.2% compared to the previous year. The maximum value was recorded in 2019 at 1 406 thousand liters, and the largest increase occurred in 2018 at 114.5%.

Annual dynamics of product's exports from Israel in kind, 2017-2020, K l

From 2017 to 2020, Cyprus, the United States, and Canada stood out as the main markets for exports in kind, accounting for 45.2%, 20.1%, and 9.7% of exports, respectively. Together, they represented 75.0% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Israel in kind, 2017-2020

Exports in value, K $ US

The market showed signs of volatility over the observed period. Exports varied by 1.9-fold from a low in 2017 to a high in 2019. In 2020, Israel's volume of alcoholic beer exports amounted to 1 016 thousand US dollars, constituting a reduction of 30.0% compared to the previous year. The maximum value was recorded in 2019 at 1 452 thousand US dollars, and the largest increase occurred in 2018 at 71.3%.

Annual dynamics of product's exports from Israel in value, 2017-2020, K $ US

Throughout 2017 to 2020, Cyprus, the United States, and Canada formed the core of exports in value terms, accounting for 42.9%, 21.2%, and 10.0% of exports, respectively. Together, they took 74.1% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Israel in value, 2017-2020

Imports alcoholic beer to Israel

Imports in kind, K l

Foreign alcoholic beer supplies to Israel increased for the third consecutive year. In 2020, Israel imported 59 916 thousand liters of alcoholic beer, up by 12.0% year-on-year. Between 2017 and 2020, imports increased by 27.2%, equating to an 8.3% annualized rate.

Annual dynamics of product's imports to Israel in kind, 2017-2020, K l

From 2017 to 2020, Belgium, Germany, and Mexico were among the largest suppliers of alcoholic beer to Israel, accounting for 18.2%, 15.9%, and 14.2% of imports in kind, respectively. However, even together they represented just 48.4% of total imports, indicating a broadly diversified partner base.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Israel in kind, 2017-2020

Imports in value, K $ US

In 2020, alcoholic beer deliveries to Israel registered 71 380 thousand US dollars, which is 15.2% more compared to 2019. Between 2017 and 2020, imports increased by 25.1%, equating to a 7.7% annualized rate. The largest decline was recorded in 2019 at 0.8%.

Annual dynamics of product's imports to Israel in value, 2017-2020, K $ US

Over 2017 to 2020, imports in value terms were distributed across a wide set of partner countries, with Belgium, Germany, and Mexico accounting for 20.0%, 14.8%, and 14.0% of imports, respectively. Jointly, they accounted for just 48.9% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Israel in value, 2017-2020