Value sales of other dairy products are set to increase in Israel in 2025, driven largely by rising prices across the category. Although some segments, such as chilled dairy desserts, are seeing a decline in volume sales due to growing health and wellness concerns, core staples like cream and fromage frais and quark

Value sales of cheese in Israel are set to increase in 2025, though this growth is largely price-driven due to broad cost increases across the dairy industry. Cheese, like other dairy products, was subject to the 1% VAT rise introduced in January 2025, and has also been impacted by mid-year price hikes from major players including Tara, Tnuva, and Strauss.

Value sales of baby food are set to increase in Israel in 2025. However, the year continues to present significant challenges, with rising prices driven in part by the increase in VAT to 18% on 1st January 2025. This change applies to baby food, despite ongoing efforts to have VAT removed to support parents. As a result, baby food is experiencing challenges in volume growth, as parents continue to struggle with the rising cost of living. Price increases remain a major contributor to the growth i

Value sales of drinking milk products are set to increase in Israel in 2025, despite ongoing challenges in the fresh milk market. During early 2025, sales of drinking milk declined due to a recurring shortage of price-controlled milk products at the end of 2024 and into January 2025. Further pressure came when the government announced a price increase for price-controlled milk effective from May 2025, making even subsidised milk products more expensive. Nevertheless, value growth remains relativ

Value sales of yoghurt and sour milk products are expected to increase in Israel throughout 2025. These products form a staple part of the Israeli diet, and despite rising prices due to the VAT increase at the start of 2025 and further price hikes across the dairy sector, moderate value growth is anticipated. However, price rises are tempering the pace of volume growth.

Butter and spreads continue to record strong value growth in 2025, largely driven by widespread price increases following the VAT rise on 1st January 2025, as well as further mid-year hikes across many dairy products. With butter no longer subject to price controls, both importers and local producers have been free to set prices independently, resulting in significantly higher retail prices. As a consequence, volume sales declined in 2025, as many consumers reduced their usage or opted to forgo

Value sales of dairy products and alternatives in Israel are set to rise in 2025; however, growth is restrained by the rise in VAT to 18% on 1 January 2025, which further pushed prices upwards and heightened consumer price sensitivity. Consequently, volume sales are challenged as consumers, particularly those in middle- and lower-income brackets, cut back spending to save money.

Value sales of plant-based dairy are set to record a double-digit increase in Israel in 2025. Robust sales are being driven by a growing vegan population, as well as interest from non-vegans and non-vegetarians seeking to incorporate a selection of plant-based products into their diets. The shift toward plant-based eating is now considered mainstream in Israel, significantly boosting sales.

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