Cafés/bars remained under pressure in 2025 as the Israel-Hamas war kept consumers away from outlets, forcing widespread closures. In addition to security concerns, economic uncertainty and increased costs were key challenges for players.

Against the backdrop of a challenging landscape, consumer foodservice through travel performed better than other locations, aided by signs of recovery in the first half of the year. Economic uncertainty and costs of living challenges have dampened demand across the board, putting all locations under financial pressure.

In 2025, Israel’s consumer foodservice industry experienced a significant decline in value sales, driven by the ongoing regional conflict, and a sharp decline in both local and tourist demand. The war’s impact on daily life, coupled with rising costs and economic uncertainty, led to reduced discretionary spending and a marked drop in restaurant reservations and footfall across all channels. Despite these challenges, the sector demonstrated resilience through rapid digital transformation, innovat

Full-service restaurants faced strong headwinds from ongoing economic turmoil in 2025, with consumers less inclined to dine in restaurants due to the Israel-Hamas war and high costs of living. There was a clear shift towards more affordable takeaway and delivery options. Consumer interest remained strong in Japanese cuisine, with Japanika and Japan Japan performing well in a challenging landscape.

Street stalls/kiosks faced declining sales in 2025 amid consumer price sensitivity and weaker demand for foodservice options overall. Many operators have increasingly pivoted to offering delivery services, including key players such as re:bar, whilst some independents remained agile and adapted well to changing market conditions.

Limited-service restaurants were hard hit by the Israel-Hamas war in 2025, with foodservice value sales declining due to weaker demand and some outlets closing. Delivery platforms have supported the category, alongside the resilience of pizza restaurants and the rising popularity of comfort and indulgent foods.

Israel represents significant portion of global cannabis consumption, with an estimated 2.4 million illicit users and 132,800 legal medical cannabis patients in 2025. Despite reforms introduced in April 2024 to simplify access for severe conditions, the medical cannabis market faces significant challenges. The prescription process remains cumbersome, and the exclusion of major patient groups such as PTSD and chronic pain has driven many towards the illicit market, which accounts for over 90% of

Consumer outstanding balance increased only slightly in 2025, but rising household debt and strong bank profits triggered public backlash, leading the Bank of Israel to require Bank Hapoalim and Bank Leumi to return a portion of their profits to fund a financial relief programme. Banks continued to dominate lending despite growing non-bank competition, while BNPL solutions gained traction, particularly in e-commerce.

Although economic freedom is considerable, legislative decisions could lead to the state endorsing corruption and early elections could create instability. Economic momentum is expected to resume a higher growth path and inflation has fallen, but foreign firms are more wary of investing in Israel. A highly urban landscape and population growth will support the consumer market, but signs of brain drain are emerging. Advanced technologies remain a focus, but the sector faces multiple challenges.

The personal care appliances market in Israel demonstrated growth in 2025, driven primarily by premiumisation, with a total retail value reaching ILS334 million with a 6% growth rate in current terms. The market's attractiveness is enhanced by consumers' willingness to pay a premium for high-tech devices offering professional results at home. Oral care appliances was the largest and most dynamic category, while hair care appliances also saw growth due to the introduction of products utilising ad

The home laundry appliances market in Israel experienced a decline in sales volume in 2025, with a recorded value of 430,800 units, representing a 2% decline compared to the previous year, largely due to consumers being cautious with their spending amid economic uncertainties. Despite this, the market is expected to continue its shift towards energy-efficient products, driven by new EU-style energy regulations implemented from 1 July 2025. The median disposable income per household in Israel was

The vacuum cleaners market in Israel experienced growth in 2025, driven by consumer demand for innovative features and affordability. Standard vacuum cleaners remained the largest category in terms of sales volume, accounting for 466,000 units, while robotic vacuum cleaners saw significant growth with retail volume sales rising by 18% in 2025. The market is expected to continue growing, driven by advancements in technology, increasing consumer awareness, and the adoption of smart technologies. I

The consumer appliances market in Israel experienced a sluggish growth rate of 0.5% in retail volume in 2025, largely due to cautious consumer spending amid economic uncertainties. Despite this, certain categories like air conditioners saw higher growth rates, driven by innovative launches with smart and AI features. Looking ahead, the market is forecast to grow at a CAGR of 2% to 10 million units by 2030, driven by increasing demand for energy-efficient appliances and smart features. To succeed

The food preparation appliances market in Israel exhibited modest growth in 2025, with a 1% increase in retail volume, reaching 1 million units. This growth was driven by consumers prioritising affordability, with median disposable income per household at ILS332,402. The market is expected to grow at a CAGR of 1% to 2 million units by 2030, driven by trends towards energy efficiency, multi-functionality, and premium features. Brands should focus on innovative products, competitive pricing, and e

In 2025, small cooking appliances in Israel experienced steady demand driven by economic pressures and limited kitchen space, which led consumers to prefer compact, multi-functional devices. The retail volume reached 2 million units, representing 1% growth compared to the previous year. Premium brands like SharkNinja are maintaining their strength through innovative offerings and strong brand loyalty. As retail e-commerce grows, brands should adapt their strategies to remain competitive.

The refrigeration appliances market in Israel experienced a decline in retail volume in 2025, with 348,700 units sold, representing a fall of 1% from the previous year, while retail value increased by 2% in current terms to ILS1.6 billion, driven by the premiumisation trend. This trend is expected to continue, driven by wealthy consumers investing in high-end refrigerators, especially built-in models with smart design. The market is characterised by a stable competitive landscape, with the top t

The dishwashers market in Israel experienced declining volume sales in 2025, though current value growth was driven by households prioritising energy efficiency and smart features due to rising power prices. With a median disposable income per household of ILS332,402 and a slight improvement in consumer confidence, the market retains potential for value growth. Built-in dishwashers is the largest category, supported by design trends favouring seamless kitchens and compact living spaces.

The large cooking appliances market in Israel demonstrated resilience in 2025, with stagnation in retail volume while value sales rose in current terms, driven by the premiumisation trend. High-end models with advanced features and sleek designs attracted high-income buyers, increasing the average price and supporting value sales growth. As the urban population continues to grow and median disposable income remains relatively stable for high-income households, the demand for premium large cookin

The microwaves market in Israel experienced growth of 1% in retail volume in 2025, driven by the need for simple and affordable cooking solutions following the conflict with Iran. The market is expected to continue growing, driven by the demand for affordable and multi-functional appliances, with a forecast CAGR of 1% over 2025-2030. Freestanding microwaves will remain the dominant category, supported by the affordability and convenience that these appliances provide. Import reform is expected t

The air conditioners market in Israel demonstrated positive growth in 2025, driven by a hotter than average summer and government incentives for eco-friendly technologies. The median disposable income per household rose by 3% to ILS332,402, supporting consumer spending on higher-end models. Split air conditioners remained dominant, with a focus on energy-efficient inverter models and environmentally friendly refrigerants like R32. The market is expected to continue growing, with a forecast CAGR

The heat pumps market in Israel experienced significant decline in volumes in 2025, despite government support for energy-efficient solutions and rising consumer awareness. Air to water heat pumps dominated the market, accounting for 800 units in retail volume, while ground source heat pumps had a significantly lower retail volume of less than 100 units. The market is expected to grow over the forecast period, driven by regulation favouring high-efficiency electric heating and innovation in heat

Financial cards rose over 2025 as more Israeli consumers relied on cards to pay for everyday purchases. In July 2025, it was noted that a rising number of consumers are spending more than they earn, with around one third falling into a debt trap, and struggling to replay the amounts charged to their credit cards. Overdrafts were also increasingly used, reflecting tighter household budgets. Indeed in 2024, the Bank of Israel reported that there was a notable increase in credit from credit card co

In 2025, the number of charge cards in circulation grew only slightly, slower than in 2024, as rising living costs, higher VAT, and a challenging job market drove stronger demand for credit cards, which offer the flexibility of partial repayment. Transactions per card also saw modest growth, limited by the preference for more flexible credit cards. The development of physical charge cards is further constrained by fintech solutions like Prepay.

Strong demand for credit cards, particularly non-bank cards, drove growth in cards in circulation in 2025, supported by competitive incentives such as cashback, discounts, fee waivers, and retail partnerships. Transaction volumes remained strong following a rebound in 2024, although growth slowed in 2025 due to higher interest rates and the VAT increase. Rising living costs have led many consumers to rely more heavily on credit cards to manage everyday expenses.