Volume sales of mobile phones are set to increase in 2025, although growth is modest due to heightened price sensitivity following the additional 1% VAT rise implemented during the year. Sales are strongest in smartphones, which remains the most dynamic category within mobile phones. Despite the difficult economic climate, the market was supported by high-profile premium launches, such as the Samsung S25 Ultra range in early 2025 and the Apple iPhone 16 range in late 2024, both of which attracte

Volume sales of consumer electronics in Israel are expected to decline in 2025. Although there are some positive expectations for 2025, the Israeli economy continues to struggle. Economic growth decreased in the fourth quarter of 2024, reflecting the ongoing impact of the Israel-Hamas war on the country’s economy. Additionally, unemployment rates are rising, indicating a challenging job market where layoffs are prevalent.

Volume sales of home audio and cinema are set to decline in Israel in 2025, continuing the downward trend from 2024 as the Israel-Hamas war disrupts the economy and erodes consumer confidence. The housing market entered recession in March 2025, with rising prices and concerns over potential property damage discouraging investment in home-related goods.

Volume sales of in-car entertainment continue to decline in 2025, in line with the negative trend seen in previous years, both in value and volume terms. Consumers remain reluctant to purchase new equipment or upgrade existing systems due to economic constraints. New cars have become significantly more expensive following a VAT increase in early 2025, combined with an 83% import tax and additional purchase taxes, making new vehicle purchases largely inaccessible for price-sensitive consumers. Ge

Retail volume sales of computers and peripherals in Israel are set to decline in 2025, reflecting broader economic pressures and shifting consumer behaviours. The results are primarily due to a rise in VAT, which further increased already elevated prices. Persistently high inflation has placed additional strain on household purchasing power, while a deteriorating economic outlook, marked by a large fiscal deficit and geopolitical instability, has prompted many consumers to delay or cancel non-es

Volume sales of imaging devices are set to decline in 2025 as consumers increasingly prefer to take pictures on their smartphones, rather than purchasing separate devices. The ease of capturing high-quality images on smartphones has reduced demand for specialised equipment, especially among casual users who are neither professionals nor talented amateurs.

Retail volume sales of portable players are set to increase in Isreal in 2025. As in 2024, wireless speakers continue to see increasing sales throughout 2025, remaining very popular. These speakers are convenient for outdoor use, such as barbecues or days at the beach with friends. The Bluetooth connection is highly convenient, as is the integrated voice activation and control feature available in many products. There is also a wide range of wireless speakers to choose from, varying in shape, si

Retail volume sales in home video are expected to decrease in Israel in 2025. However, televisions, particularly OLED models, are likely to see some volume growth compared to 2024. This will be driven by competitive pricing from retailers aiming to stimulate the market, especially in the mid-range segment where consumers are most financially constrained. OLED televisions are available in a wide range of brands and price points, with major players like Samsung, Hisense, LG, and Haier offering 24-

Volume sales of wearable electronics are expected to increase in 2025. This positive trend is supported by the launch of Samsung’s Galaxy Ring, which has attracted significant attention from fitness-conscious Israelis. Due to the high level of interest in exercise and health monitoring among Israelis, the Galaxy Ring is well positioned in this market, albeit at the premium end. The product launch has helped stimulate interest, despite the challenging economic and political climate, where most co

Volume sales of wireless headphones are set to rise in 2025, as consumers continue to seek high-quality audio systems to protect their hearing and enhance their listening experience. Noise-cancelling models are particularly popular, while TWS earbuds will be the most dynamic category in 2025. This performance is due to many consumers preferring the convenience and discreet design of smaller earpieces, ideal for listening to music, working out at the gym, or enjoying audio outdoors. TWS earbuds i

Away-from-home (AFH) tissues and hygiene saw current value growth in Israel in 2024 due largely to rising prices. However, volume growth was dampened significantly in AFH tissue due to the fact that tourists could no longer visit Israel as most airline companies stopped running flights to and from the country because of the dangers associated with the Israel-Hamas war. This had an adverse effect on AFH tissues and toilet paper in hotels and restaurants as tourists no longer visited these establi

Volume sales of nappies/diapers/pants saw growth in Israel over 2024 due to consumers stocking up because they feared sporadic attacks from Lebanon and Iran. Due to this factor, which was relevant throughout the year, although not continuously, consumers sought to stock up on as many nappies as possible so that they did not run out. Value sales, however, saw drops in growth rates as consumers focussed on buying the cheapest product possible to save money. Prices rose in 2024 and Israeli consumer

Tissue and hygiene saw current value growth in Israel in 2024. The year was characterised by shifting rates of inflation. For example, inflation reached 2.5% in February, rising to 3.2% in July and then again to 3.5% by September. Economic growth over 2024 was also volatile due to the impact of the Israel-Hamas war. In the first quarter, there was reported growth of just over 14%, although by the second quarter this had slipped to 1.2%. The economy showed a very slight improvement as the year pr

Value and volume sales of menstrual care increased in Israel in 2024 due to consumers buying in bulk to give donations to female soldiers and women from displaced families. As a result, whilst menstrual care tends to see stable demand, 2024 saw demand bolstered as consumers sought to support those people directly affected by the Israel-Hamas war. In addition, menstrual care also saw consumers buying more products for themselves at certain times of the year, which also helped to boost growth. At

This report assesses the business environment in Israel, focusing on the regulatory environment, stability of the financial system, FDI intake, labour market flexibility and skillset, trade openness, mobility infrastructure, ICT adoption and innovative capabilities. Companies can evaluate these factors to understand the strengths and weaknesses of a country’s business environment for better strategic investment decisions.

Tobacco consumption in Israel diverged from global trends in 2024, with a rise in smoking prevalence attributable to heightened stress levels resulting from the Israel-Hamas conflict. Local consumers increasingly turned to smoking as a coping mechanism, which contributed to an increase in cigarette sales during 2024. This contrasts with the general global pattern, which reflects a decline in smoking prevalence over the same period. Additionally, a significant number of former smokers resumed the

In 2024, the Israel-Hamas war had a significant influence on sales of cigarettes in Israel, which increased as heightened stress levels took hold throughout the year. Many locals were called up to serve in the army reserves, and the pressure of this situation led to a rise in smoking rates, both among those already serving and among new smokers. It is widely recognised in the country that smoking is more prevalent in military life than in civilian settings, but this period also saw an uptick in

Despite a challenging economic picture in 2024, with price increases and a difficult geopolitical context, retail tissue saw value sales rise in Israel. Volumes were boosted in the biggest categories such as toilet paper thanks to people stock piling and, in some cases, donating to the military and displaced families.

Retail value sales of wipes rose in Israel in 2024. Baby wipes remained the largest category during the year as the majority of people use baby wipes not only for babies but also for their own personal use. These products tend to be softer on the skin than facial wipes, for example, which have been believed to cause skin irritation. Products such as moist toilet wipes and facial cleansing wipes saw a slowdown in volume growth as people stopped buying these products as they became increasingly se

Retail adult incontinence saw growth in both volume and value terms in Israel in 2024. Adult incontinence pads saw slight volume growth during the year on the back of consumers seeking to use less expensive products to save money. As with other categories, value growth took a hit over the year as consumers became increasingly cash strapped as the cost of importing products into the country increased dramatically. Furthermore, the passing of the long-awaited Import Reform Law had little effect on

Cigars are generally considered a celebratory form of tobacco, but in 2024 their popularity declined, as the Israel-Hamas war significantly affected morale. Alongside this, rising prices continued to have a negative impact on sales. However, the higher cost of cigars led to an increased interest in cigarillos, which are a more affordable alternative. The number of Israelis travelling abroad fell significantly in 2024 compared to 2023, and more local consumers purchased their cigars and cigarillo

Value sales increased in Rx/reimbursement adult incontinence over 2024 due to the rise in costs and prices seen across the country due to the Israel-Hamas war and an increasingly negative economic picture. However, despite the difficulties seen over 2024 at the geopolitical level, Rx/reimbursement adult incontinence saw some growth as more people sought to get help in buying incontinence products due to being more cash strapped.

While volume sales of heated tobacco increased significantly in 2024, sales of smokeless tobacco have long remained negligible in Israel. However, 2024 saw a growing interest in nicotine pouches, particularly among younger consumers, fuelled by their increasing popularity on social media. According to data from the organisation Smoke Free, as of April 2024, 4.6% of 15–17-year-olds and 2.5% of 12–14-year-olds in Israel had tried chewing tobacco, which includes both nicotine and non-nicotine varie

The report examines the economic landscape of Israel and provides information on major monetary indicators, foreign trade and government finance. The economy expanded in real terms in 2024, driven by private consumption and government spending. However, a global economic slowdown, increasing geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.