ByDR. HEZI GUR MIZRAHI

JUNE 21, 2026 09:15

World coffee values have moved away from recent highs. Figures from the International Coffee Organization show the overall index fell roughly 23.4 percent in May 2026 from the same month a year earlier, while partial June 2026 readings point to a decline near 19.8 percent versus June 2025.

Yet a separate check by the Institute for Retail Research found the opposite pattern on store shelves in Israel, where average prices jumped 14.4 percent. The mismatch frustrates shoppers: rising raw-material costs quickly reach consumers, but falling costs rarely produce matching relief at checkout.

Global Benchmarks Slide While Store Tags Rise

In May 2025 the ICO composite index reached 334.41 US cents per pound. By May 2026 the figure had slipped to 256.05 cents, a drop of 78.36 cents or about 23.4 percent. All major segments declined, with Robusta off nearly 30 percent, Brazilian Naturals down 22.7 percent, Other Milds lower by 20.7 percent, and Colombian Milds easing 18.2 percent.

June numbers followed the same path. The 2025 composite stood at 295.06 cents per pound; by mid-June 2026 it had fallen to 236.52 cents, a reduction of roughly 19.8 percent. Category drops included Brazilian Naturals at 22.9 percent, Other Milds at 20 percent, Robusta at 17.8 percent, and Colombian Milds at 15.4 percent.

Israeli buyers, however, purchase jars of instant coffee, Turkish blends, capsules, or private-label options rather than exchange-traded beans. On that shelf the trend runs in the opposite direction.

Retail Survey Shows Steady Increases Across Chains

The Institute for Retail Research reviewed 35 coffee-product observations in Israeli supermarkets, comparing June 2025 with June 2026 and including promotions. The exercise was not a fixed basket but a set of paired readings that reveal direction and scale of change.

The headline result is clear: average price moved from NIS 19.85 to NIS 22.71, an increase of NIS 2.86 or 14.4 percent. Yesh Chesed posted the largest jump at 27.7 percent, followed by Shufersal Deal at 18.1 percent, Osher Ad at 15.8 percent, Yohananof at 14.6 percent, Carrefour Hyper at 14.1 percent, Victory at 12.4 percent, and Rami Levy at 11.6 percent.

Even chains known for everyday low prices or frequent promotions showed the same upward movement.

Everyday Items Also Affected

The increases reached beyond specialty items. Black coffee, Turkish coffee, instant varieties, and capsules all recorded notable gains.

Elite Turkish coffee with cardamom at Osher Ad climbed from NIS 6.10 to NIS 8.90, a rise of 45.9 percent. Landwer house-blend capsules at Shufersal Deal advanced from NIS 13.49 to NIS 18.73, up 38.8 percent. Similar capsules at the same chain rose 38.6 percent. Elite Brazilian coffee at Yesh Chesed increased 32.5 percent, and Elite Platinum Classic followed almost the same pace.

Coffee is bought repeatedly and carries strong personal habits. Many shoppers stay loyal to a familiar taste and morning routine, giving suppliers pricing leverage.

Two Dominant Suppliers Shape the Market

Strauss Elite and Osem Nestle together control most of the Israeli coffee shelf. Strauss Elite leads in black coffee, Turkish blends, instant powder, and capsules, while Osem Nestle dominates freeze-dried instant coffee through Taster's Choice.

Elite Turkish coffee has become almost synonymous with the category for many buyers, reducing the perceived need to compare alternatives.

Osem Nestle positions Taster's Choice as the top instant-coffee brand on its local site, helping explain why even high prices for a 200-gram jar meet limited resistance.

Parallel imports have not yet created strong low-cost substitutes for these flagship items, leaving pricing power largely with the established suppliers.

Why Parallel Imports Have Limited Impact

Parallel imports have lowered prices in categories such as toiletries and cereals, yet coffee presents extra hurdles. Taste loyalty is high because consumers detect small differences in aroma and texture. Brand familiarity also plays a role; many buyers continue purchasing the same product for years despite complaints about cost.

Additionally, some products appear in Israel in formats or recipes that differ from those sold abroad, making direct price comparisons difficult.

Other Brands Follow Rather Than Challenge

Brands such as Nescafe Red Mug, Jacobs, and Landwer compete on the shelf but have not forced broad price cuts. In the survey, Red Mug instant coffee rose 10.4 percent on average, Jacobs Gold instant climbed 15.9 percent at one chain, and Landwer capsules increased more than 30 percent.

Rather than undercut leaders, many mid-tier labels appear to treat high prices as a reference point and adjust upward as well.

Capsules Add a Premium Layer

The capsule segment was expected to increase competition, yet it has instead become a higher-priced category. Shoppers compare capsule costs to cafe beverages rather than to bulk coffee, shifting sensitivity and allowing manufacturers to charge more for the perceived experience.

Carrefour Shows Discounts Are Possible

Under the national basket program, Carrefour offers reduced prices on several leading coffees. These promotions demonstrate that even strong brands can be sold at lower levels when competitive pressure is applied.

The limited spread of such discounts to other chains underscores the rigidity of the overall market.

Private Labels Gain Some Ground

House brands from Shufersal and Rami Levy are attracting more buyers and offering lower prices in certain segments, yet they have not yet altered the broader pricing pattern across the category.