Growth in pet products current value sales in Israel in 2025 looks set to be slightly faster than in 2024. The projected uptick is partly explained by price hikes resulting from still-elevated inflationary pressures and the rise in VAT imposed at the beginning of the year. However, it is also testament to the influence of pet humanisation, which is encouraging owners to spend greater amounts of money on caring for their animal companions, primarily dogs and cats.

Growth in other pet food current value sales in Israel in 2025 looks set to be slower than in 2024, while volume sales are projected to contract for the third year in a row. The downturn is mainly explained by the fact that the country’s pet bird, small mammal and reptile populations are steadily declining. This is partly because the rising cost of living is making people less inclined to keep these types of animals as pets, but also attributable to the increasing tendency of Israelis to instead

In keeping with its performance throughout the review period, dog food in Israel is poised to register robust growth in volume and current value sales in 2025. Overall demand continues to be bolstered by rising levels of dog ownership and pet humanisation, whereby consumers increasingly perceive pets as family members and are therefore willing to invest more in their care. Both of these trends have recently been reinforced by the fallout of the war against Hamas, in that while spending greater a

Cat food in Israel is set to record another solid performance in volume and current value growth terms in 2025. Sales continue to be buoyed by the expansion of the country’s pet cat population and the pet humanisation trend, which is making owners inclined to regard cats as family members and spend greater amounts of money on their care. Most notably, consumers are becoming more willing to pay extra for products positioned as having functional health benefits, while the desire to pamper cats is

Pet care in Israel is poised to register strong growth in total current values sales in 2025, while the majority of categories look set to expand in volume terms. Along with rising levels of pet ownership, the positive development of the market continues to be underpinned by pet humanisation, whereby owners increasingly see pets as members of the family and are therefore choosing to allocate more of their disposable incomes to meeting their needs. As occurred at the height of the pandemic, both

Growth in men’s grooming current value sales in Israel in 2024 was slightly weaker than in 2023, mainly due to the gradual easing of inflationary pressures. However, with the same factor allowing more room for price competition and bolstering consumer confidence and purchasing power, volume growth was up modestly on the previous year. This improvement was also supported by rising image-consciousness among Israeli men, particularly younger demographics who are regularly exposed to male grooming a

Overall volume and current value growth rates for beauty and personal care in Israel in 2024 fell below those witnessed in 2023. The slowdown was largely attributable to more cautious attitudes to spending amidst elevated cost-of-living pressures and heightened economic uncertainty related to the country’s war against Hamas. These conditions prompted many people to try to save money by purchasing non-essential product types less frequently or not at all, and by trading down to cheaper options wh

With inflationary pressures and economic uncertainty fuelled by the war against Hamas driving up prices and making consumers more cautious in their spending decisions, bath and shower in Israel saw growth in total volume and current value sales slow in 2024. Nonetheless, it continued to perform solidly overall, as these products are relatively inexpensive and certain types are considered household essentials. Favourable demographic trends and increased hygiene-consciousness in the wake of the pa

Colour cosmetics in Israel saw growth in total current value sales dip moderately in 2024, mainly due to the gradual easing of inflationary pressures related to the country’s war against Hamas. However, this created more scope for price competition and bolstered consumer confidence and purchasing power, hence volume growth accelerated slightly from 2023. An uptick in overall demand was also supported by favourable demographic factors, rising image-consciousness and the growing popularity of onli

With cost-of-living concerns and heightened economic uncertainty prompting consumers to exercise greater caution in their spending habits, skin care in Israel saw volume and current value growth rates slow in 2024. The dip was most pronounced in value terms, partly because trading down to cheaper options was widespread, but also due to a gradual reduction in inflation over the course of the year. However, the same trends helped to ensure volume growth was only marginally weaker than in 2023. The

While fragrances in Israel continued to expand in volume and current value terms in 2024, growth rates were down on those recorded in 2023. Overall demand slowed as consumers became more inclined to rein in discretionary spending due to elevated inflationary pressures and economic uncertainty arising from the war against Hamas. The negative impact of this behaviour was greater than in many areas of the local beauty and personal care market, as these products are comparatively expensive and not c

Hair care in Israel saw current value growth slow moderately in 2024. This was partly because inflation gradually receded over the course of the year, though the dip also reflected more cautious attitudes to spending among consumers resulting from the still-elevated cost of living and economic uncertainty related to the war against Hamas. However, the easing of pricing pressures helped to ensure volume growth was unchanged on 2023 despite relatively challenging trading conditions. Volume sales w

Volume and current value growth rates for deodorants in Israel in 2024 were slower than those recorded in 2023. The downturn was mainly attributable to more cautious attitudes to spending amidst persistent inflationary pressures and economic uncertainty linked to the war against Hamas, which made consumers inclined to use these products more sparingly and switch to cheaper varieties. Such behaviour was further encouraged by substantial hikes in unit prices, particularly for popular brands like S

Depilatories in Israel saw volume sales contract for a fourth consecutive year in 2024. Falling demand reflected the growing preference for longer-lasting and permanent hair removal solutions such as electrolysis and laser or IPL treatments, both through salons and via the use of at-home devices. Despite this trend, current value sales continued to increase on the back of inflation-driven price hikes and trading up to more expensive product types like wax strips. Growth was down on 2023, however

Retail volume and current value growth rates for oral care in Israel in 2024 were lower than those recorded in 2023. The slowdown was mainly attributable to elevated inflationary pressures and economic uncertainty related to the war against Hamas, which led many consumers to try to make savings by prolonging replacement purchases, buying items they did not consider essential less frequently and trading down to cheaper options. Such behaviour was reinforced by steep hikes in unit prices for certa

Growth in sun care current value sales in Israel in 2024 was moderately slower than in 2023. This was mainly because pricing pressures eased somewhat thanks to a gradual reduction in inflation, as volume growth was up slightly from the previous year. Buoyant demand was underpinned by rising awareness of the negative health effects of frequent and prolonged exposure to UV rays. The heightened risk of skin cancer is the biggest concern in this regard, though advice from medical professionals and b

Overall current value and volume growth rates for baby and child-specific products in Israel in 2024 were weaker than those recorded in 2023. This was mainly because inflationary pressures and economic uncertainty linked to the Israel-Hamas war and the security crisis in the Red Sea led many consumers to try to save money by trading down to cheaper varieties and purchasing certain items less frequently. Sales were further depressed by the fact that birth rates in the country have slowed somewhat

While mass beauty and personal care in Israel registered another impressive performance in current value sales terms in 2024, growth was moderately slower than in 2023. This was partly because pricing pressures eased somewhat as the recent spike in inflation gradually receded. Furthermore, weakened purchasing power and economic uncertainty arising from the Israel-Hamas war continued to encourage trading down to cheaper brands and product types. However, the same factors ensured most categories p

Growth in total premium beauty and personal care current value sales in Israel in 2024 fell below that recorded in 2023, as did volume growth rates in most categories. The general slowdown was mainly explained by heightened economic uncertainty and elevated inflationary pressures related to the country’s war against Hamas, which made consumers more inclined to rein in discretionary spending. Imported brands were particularly hard hit by this behaviour after experiencing above-average price hikes

The population of Israel is predicted to increase by 26.5%, due to changes in net migration and natural change, standing at a total of 12.6 million citizens by 2040. The birth rate in Israel is anticipated to drop between 2024 and 2040. By 2040, the most people will be middle-aged (aged 45-64). Generational cohorts in Israel will continue to influence consumer expenditure based on their specific purchasing habits and unique demands.

Cafés in Israel have struggled to recover from the harsh impact of the COVID-19 pandemic. Even before the start of the Israel-Hamas war, cafés were under pressure from the slowdown in the economy and rising prices caused by higher inflation. Political instability due to Judicial Reform and the slowdown in the hi-tech industry were also factors reducing the number of consumers in cafés. These factors prevailed during 2024, with the Israel-Hamas war limiting time spent in cafés. Rising prices were

Inbound and outbound travel slowed considerably in 2024 due to the Israel-Hamas war. Many airlines stopped flying to Israel, which also reduced the supply of airline seats causing prices to rise significantly. This, along with the security situation, caused a strong decline in inbound and outbound tourism. Consumer foodservice in travel locations were hit hard by these changes.

Consumer foodservice in Israel faced a challenging year in 2024, as the Israel-Hamas war continued to hinder domestic demand for eating out of the home and the ability to operate proved challenging. Outlets were forced to close or reduce trading hours due to limited staff and fewer customers. Many consumers chose to stay at home and relied more on delivery services like Wolt to purchase food from consumer foodservice outlets. The lack of tourism also dented performance, with full-service restaur

Full-service restaurants were heavily impacted by the Israel-Hamas War in 2024. Following the outbreak of the war in late 2023, many of these restaurants closed as locals were not going out much and large numbers of employees were called up to serve in the reserve forces. Even as the market started re-opening in 2024, full-service restaurants were unable to staff their outlets due to the lack of available labour. Some players operated shorter working hours, and some remained closed for long peri