Competition Lowers Prices in Israel's Iconic Cookie Market
Competition in Israel's middle-eastern cookie market drives a 14% drop in average prices, as Achva challenges longtime dominant brand Abadi with lower-priced alternatives.
The legendary middle-eastern cookies market in Israel has experienced a significant shift over the past year, as new competition drives down average prices. Abadi, the iconic family-owned bakery whose roots trace back to 1838 in Aleppo, Syria, and operating in Israel since 1928, has long dominated the sector.
New Competition and Price Drops
Around a year ago, Achva, a company primarily known for its tehina and halva products, entered the market by launching a series of middle-eastern cookies at significantly lower prices. According to data provided by Achva from research firm StoreNext, the average price per kilogram of salted cookies dropped from 46.25 NIS in October 2025 to 39.76 NIS in September 2026. This represents a decrease of approximately 14%, or 6.49 NIS per kilogram, over the course of a year.
Achva attributed the price reduction to intensifying market competition, offering its cookies in three flavors: classic, garlic and onion, and za'atar. The company recommends a price of 8 to 11 NIS for a 400-gram package, while Abadi cookies are often sold at nearly double that price. For example, on the Victory online store, a 400-gram package of Achva classic middle-eastern cookies is sold for 12.90 NIS, compared to 18.90 NIS for Abadi's salted version of the same weight—a gap of about 32%.
Legal Battles and Market Share
Achva's market entry was not uncontested. Even before the nationwide rollout, Abadi filed a 3 million NIS lawsuit against the newcomer, claiming copyright and packaging infringement, and demanding the removal of products from shelves and the destruction of inventory. Achva countered that the lawsuit was an attempt to stifle competition in a market where Abadi had enjoyed dominance for decades.
"The legal battle ended in a compromise given the force of a judgment at the Central District Court," allowing Achva to continue manufacturing while modifying one packaging color and enlarging its logo.
Following this entry, Abadi's quantitative market share dropped from 67.67% in 2025 to 61.86%, while Achva captured roughly 14% of the market. Experts note that while the overall average price has decreased due to cheaper alternatives, it does not necessarily prove that Abadi lowered its own prices, but rather that consumers are opting for lower-cost choices.
