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The food and beverages market is prominent within Israel’s fast-moving consumer goods (FMCG) sector. FMCG products sell on a large scale and at a fast pace, usually at low or mid-range prices. Naturally, many of these are food and beverage products. According to estimates, Israel's food industry's revenue will increase to 17.81 billion U.S. dollars in 2026. In addition, projections show that the total consumer spending on food and non-alcoholic beverages will reach 49.44 billion U.S. dollars by 2025.

Increasing private spending on food and beverages

From 2014 to 2020, private spending on food products, such as dairy products, fruit, and vegetables, rose in Israel. A noticeable increase in spending occurred in the meat industry. In 2020, the private consumption expenditure on meats and its products reached nearly 8.22 billion U.S. dollars, following a gradual rise from 2014 onwards. In addition, the private consumption expenditure on alcoholic beverages increased to roughly 1.92 billion U.S. dollars in 2020.

Higher prices for food and beverages

In June 2022, Israel's Consumer Price Index (CPI) was measured at 105.9 points. In the first half of 2022, the CPI grew gradually, indicating a general rise in consumer prices. One of the driver was the Russia-Ukraine war, which led to a price increase in many markets, including food products. For instance, the CPI for flour in Israel increased significantly during the first six months of 2022, growing from 103.6 points in January to 110.6 points in June. In addition, some beverages such as coffee became more expensive. The CPI for coffee in Israel slightly rose from 99.8 to 100.5 index points between January and June 2022, respectively.

Export of food products

Due to Israel's subtropical climate, many species of fruits and vegetables are grown in the country. Israel is, therefore, a leading exporter of fruits and vegetables. In 2021, the export value of food from Israel reached over 1.24 billion U.S. dollars. The United States is one of the countries to which Israel exports food products on a large scale. The export value of food products from Israel to the United States amounted to 311.4 million U.S. dollars in 2021. Moreover, a beloved fruit that is grown in Israel is avocado. In March 2022, the export value of avocado from Israel amounted to nearly 35.33 million U.S. dollars.

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