Market Dynamics
The Israeli ice cream market has seen growth in both the volume and value from the past few years. This growth can be attributed to the increased demand and consumption of ice cream due to the rising disposable income of the masses. The increasing trend of westernization has also led to a larger acceptance of ice cream as a mainstream dessert. An additional factor that has had an impact on the ice cream market is the winter tourism to Israel, which has resulted in increased sales of the product. In terms of demand, the market is largely driven by the country's population's rising disposable incomes, school holidays being major ice cream sales determinant, health and fitness awareness, and the changing lifestyles due to the increased availability of foreign flavors. Israel has witnessed an increase in organized retailing at a rapid rate and more number of shopping centers in recent times. This has consequently contributed to an increase in the sale of ice cream over the past few years. A number of new varieties of ice cream and frozen desserts are being introduced in the local market.
With the growing awareness of health-related concerns, there is an increasing trend toward low-fat, sugar-free and nutrition-rich food products like the ice cream, which is expected to significantly drive the demand for healthier alternatives, such as frozen yogurt. In terms of the sources of ingredients, imported ingredients account for a major share in the market. This has been enabled due to the government's relaxation of regulations and such trend is likely to continue in the future. Supermarkets and convenience stores are identified as the leading distribution channels for ice cream in the country. Online sales of ice-cream have seen a steady growth over the past few years and are expected to grow further in terms of contribution to the overall revenues of the industry. In terms of, the competition in the market is escalating day-by-day due to increased ice-cream products manufactured by multinationals, domestic and international companies. The intensifying competition has been encouraging companies to focus on product differentiation which, in turn, is helping them to stay ahead of their rivals. The prospects of the Israeli ice-cream market seem to remain positive in the forecast period, 2018 to 2032.
The market is expected to grow with the increased disposable income, rising tourism, expanding retail sector, and growing preference for innovative flavors and low-fat, sugar-free options.
