Israel's Plant-Based Dairy Market Expands as Sales Projected at 685M NIS
Israel's plant-based dairy market reached 665 million shekels in 2025 and is projected to hit 685 million shekels in 2026. Senior executives from Tnuva, Strauss, and Gad discuss upcoming product innovations and the shift toward mainstream consumption.
The global market for plant-based dairy alternatives continues to experience steady growth, with Israel serving as a prominent example. According to Storenext data, the local category has expanded at an average annual growth rate of approximately 12% since 2018. In 2025, retail sales of chilled plant-based dairy alternatives reached 665 million shekels, with projections indicating a rise to 685 million shekels in 2026. Coffee beverages dominate the market, accounting for 69% of total sales, followed by tofu at 15%, yogurts at 6%, desserts at 5%, and cheeses at 5%.
Ahead of World Vegan Day, observed annually on November 1, three senior executives from leading Israeli dairy companies—Omri Sela of Tnuva, Yarden Wizel of Strauss Group, and Noga Zisman Malka of Gad Dairies—share how their personal dietary preferences intersect with their professional roles. They discuss the evolution of plant-based products from a niche market for vegans into a mainstream daily consumption habit, while revealing upcoming product innovations for consumers.
The Oat Revolution and Clean Labels
Omri Sela, head of the alternatives and culinary business unit at Tnuva, notes that his journey into plant-based products began five years ago for health reasons. Wanting to avoid the heavy feeling associated with dairy milk, particularly in his coffee, he transitioned to soy and later oat beverages. Today, while he still consumes fermented dairy products and meat, he completely avoids regular milk, drinking two to three cups of coffee daily with soy or oat milk.
Sela highlights the remarkable transformation of the Israeli market over the past decade. "In 2012, the market was estimated at 84 million shekels and catered primarily to vegans and the lactose-intolerant," Sela explains. Today, approximately 50% of Israelis consume plant-based dairy alternatives—surpassing adoption rates in the United States and Europe, which hover around 40% to 42%. Crucially, only 4% to 5% of local consumers purchase these products for strict ideological veganism; the vast majority do so for taste, dietary variety, or kosher observance.
Responding to the growing global trend toward reduced food processing and clean labels, Tnuva recently launched the Alternative SIMPLE series. This includes a chilled soy beverage made with just water, soybeans, and salt, and an oat beverage crafted from four ingredients: water, oats, coconut oil, and salt. Sela reveals that the company will introduce a new spelt-based beverage in November, featuring a delicate flavor and excellent frothing properties suitable for coffee.
Ideology Meets the Refrigerator
For Yarden Wizel, plant-based brand manager for yogurts and desserts at Strauss Group, her professional role aligns closely with a decade of strict veganism driven by animal welfare. Wizel emphasizes that taste remains the ultimate deciding factor for consumers. When products meet high culinary standards, they naturally appeal to flexitarians and traditional consumers alike.
A major milestone for Strauss was the opening of the Michael Campus in Achihud last year, featuring a dedicated plant-based dairy facility adjacent to the traditional dairy plant. This local production shift supports an expanding portfolio, including the Danone V soy-based bio yogurt series, Alpro barista oat and hazelnut drinks, and Yotvata V dairy-free chocolate and iced coffee beverages. Wizel announces that Strauss's PRO brand will launch PRO Vegan in November, introducing soy-based protein drinks in coffee and chocolate-hazelnut flavors.
Mainstreaming Plant-Based Choices
Noga Zisman Malka, marketing manager for growth engines at Gad Dairies, points out that modern consumers are increasingly flexible, frequently alternating between animal and plant-based foods. Gad Dairies recently entered the plant-based sector with the launch of Feel Gad, an 11-product series encompassing cheeses, spreads, yogurts, beverages, and desserts primarily utilizing almonds as a base ingredient.
Zisman Malka emphasizes that despite the saturation of the plant-based beverage market, the yogurt and dessert categories still present opportunities for growth. By leveraging decades of traditional dairy expertise, Gad Dairies aims to overcome lingering taste barriers, ensuring that all new plant-based items meet rigorous internal tasting standards before reaching store shelves.
