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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • All Organic Ltd leads organic foods in Israel with a value share of 19.8% in 2021, followed by Tuvot Organic and Natural Food products with a value share of 5.3% and Hasade Natural and Organic Products Ltd with a value share of 3.8%.
  • Currently, the registered per capita expenditure, market size and forecast growth of organic products are relatively smaller than other developed economies, indicating a modest growth potential over the forecast period of 2021-2026.

 

  • Organic products in Israel represent 0.15% of global demand, with a per capita expenditure of US$10.02 in 2021. There is still a significant portion of the population unaware of the value-added by organic products, indicating a need for consumer education and potential for future growth.
  • Overall, there is expected to be positive growth, with organic products registering a CAGR of 3.7% for the forecast period 2021-2026, reaching a value of US$108.8 mn in 2025.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Israel recorded a growth of 3.3% in 2021, to reach a value of US$93.9 million. 
  • Organic prepared baby food led the growth in organic packaged food with a current value increase of 10.4% for the period 2020-2021.
  • Organic nectars (25-99% juice) grew at 3.6% in 2021. However, the overall organic beverages category remained relatively stagnant at US$19.2 million.
Market Trends
  • The Covid-19 pandemic has boosted overall health awareness amongst consumers in Israel. They are typically conscious about what they are consuming and the associated health benefits. Moreover, this trend has been further boosted by the Israeli government’s 2020 decision to introduce mandatory warning labels for products that are high in sugar, fat, or sodium content. 
  • Increased health awareness results in the higher demand for products that were once considered to be niche categories (such as organic products) – these products are now widely available in various locations and formats. As consumers are continuously looking for high-quality products to support their health and immunity, there is a premiumisation trend on the rise in the Israeli market.
  • Organic packaged food in Israel is comprised mainly of sweet biscuits, rice and pasta, and frozen meat, seafood, fruit, and vegetables – these three categories account for nearly two-thirds of value sales. Organic dairy has relatively low sales and is made up almost entirely of organic milk.
Competitive Landscape
  • All Organic Ltd continues to lead organic packed food in Israel – the company had a value market share of 24.9% in 2021, thanks to the popularity of its Harduf brand. Harduf includes a wide variety of organic products in various categories and is distributed by Tnuva, which contributes to its strong presence and comprehensive coverage. However, it is expected that the market share of Harduf will decline during the forecast period due to the rise of private label brands such as Shufersal. 
  • Tvuot Organic & Natural Food Products Ltd is ranked second organic food category, with a market share of 6.7% in 2021. The company is expected to maintain its position over the forecast period, owing to its strong distribution capabilities and a broad portfolio of products. Tvuot is considered as an innovative company, and it is likely that the company will launch new products such as pasta made from healthier flours in the market.
  • Alternative Pharma Ltd remained the leading player within organic beverages in 2021. The success is attributed to the popularity of its Pukka brand, which has performed well in organic tea. Also, the company is strongly supported by its global owner, Unilever Group, in terms of advertising and promotions to maintain consumer awareness.
Prospects And Growth Opportunity
  • Due to rising health awareness in Israel, consumers are becoming more informed and educated regarding the health benefits of various ingredients. Therefore, categories like carbonated water and natural juices (without artificial sugar content) are expected to witness growth along with reduced-calorie and sugar drinks. However, the better for you category is expected to decline during the forecast period. There is not much innovation in this category and brands are expected to focus on categories with solid demand.
  • Better for you reduced caffeine tea is likely to grow during the forecast period due to rising health consciousness among Israeli consumers. Many of them avoid caffeine due to its harmful effects such as anxiety and impact on sleep and blood pressure. Therefore, manufacturers are likely to invest in naturally decaffeinated teas – the only category within better for you beverages that is expected to grow in the forecast period. 
  • Coca-Cola is expected to continue to lead sales of better for you beverages due to strong customer loyalty of its brands, including Diet Coke, Coke Zero, Sprite Zero, and more. The company has a broad portfolio, robust distribution, and effective marketing to help make it a consistent top performer in the market.
General Health And Wellness Trends
  • Health and wellness categories are likely to record further growth over the forecast period due to increased health and wellness trends, which have been further boosted by the Covid-19 pandemic; people are increasingly demanding healthy products to look after their wellbeing. Furthermore, the introduction of negative labels in accordance with the product labelling regulation is likely to nudge consumers to opt for healthier choices. Companies are expected to launch healthier products that are more natural, organic or fortified/functional to comply with the regulations and meet consumer demand. 
  • There are ongoing discussions within the Israeli government to levy tax on sweet drinks at a fixed rate according to the amount of sugar in the drink (higher tax for drinks that have more than 5% sugar), and according to the size of the container (higher tax per litre of drinks in a small package). The purpose of the tax is to bring behavioural change among citizens, increase the state’s revenues and reduce health spending.
General Economics And Demographic Landscape

Economy: 

  • Israel's economy witnessed a strong recovery during 2021, with real GDP growth registering 7.8%. Real GDP growth is projected to settle between 3-3.5% from 2023 onwards. 
  • Private final consumption increased by 11.3% in 2021, following a decrease of 9.4% in 2020.
  • The savings ratio has been stable and higher than the regional average, amounting to 21.6% of disposable income, with the indicator expected to rise to 21.7% in 2022.

 

Population demographics: 

  • The population of Israel is growing considerably, reaching 9.4 million in 2021 from the 2000 level of 6.3 million. 
  • The country is also witnessing an increase in median age, standing at 30.1 years in 2021. The median age is expected to reach 31.2 years by 2030. 
  • Population over 65 is expected to increase from 12.3% of the total population in 2021 to 12.9% of the total population in 2025.

 

Income & expenditure: 

  • Consumer expenditure, which represented 49.5% of GDP in 2021, amounted to a per capita value of US$24,934 in 2021, with a growth of 3.9% forecasted for 2022. Overall, consumer expenditure is expected to increase by 32.1% for the period 2020-2030. 
  • Disposable income per capita was recorded at US$31,711 in 2021, with real growth of 4.0% forecasted for 2022. Cumulatively, disposable income is expected to increase by 32.1% for the period 2020-2030, averaging about 2.8% annually.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(18-21)

CAGR
(22-25)

Health & wellness products consumption [1]

USD million

3,191.9

3,325.3

3,531.5

3,672.9

3,807.6

3,932.5

4,051.3

4,164.5

4.8%

3.0%

Organic packaged food and beverages consumption

USD million

79.6

84.9

90.9

93.9

97.5

101.2

105.0

108.8

5.7%

3.7%

Organic packaged food consumption

USD million

63.6

68.0

71.6

74.7

77.8

80.8

83.8

86.6

5.5%

3.6%

Organic beverages consumption

USD million

15.9

16.9

19.2

19.2

19.7

20.4

21.2

22.2

6.5%

4.1%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

2.5

2.6

2.6

2.6

2.6

2.6

2.6

2.6

-

-

 

[1] Health and Wellness Definition: Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products. The above definition and more can be referenced from the definitions table at the end of the report.

Economic And Demographic Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

Total population

million

8.9

9.1

9.2

9.4

9.5

9.7

9.8

10.0

% Middle and upper class of total population

%

27.2

27.2

27.1

27.1

27.1

27.0

27.0

27.0

% Population aged 65+

%

11.7

11.9

12.1

12.3

12.4

12.6

12.8

12.9

% Population aged 0-14

%

28.2

28.2

28.1

27.9

27.7

27.5

27.3

27.0

% Population with higher education degrees

%

28.4

28.8

29.1

29.4

29.7

29.9

30.1

30.2

Average number of children per household

children

1.1

1.1

1.1

1.1

1.1

1.1

1.1

1.1

GDP per capita

USD per capita

46,752.1

48,496.2

47,066.2

50,345.6

51,790.7

52,778.6

53,592.9

54,380.5

Consumer expenditure per capita (US$)

USD per capita

24,965.1

25,640.2

22,777.4

24,934.6

25,908.4

26,589.1

27,252.9

27,822.2

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

3,945.0

4,048.3

3,619.8

3,979.1

4,144.0

4,253.3

4,354.4

4,437.7

 

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2021)

1

Tel Aviv

4.2

Top cities by population (2021)

2

Jerusalem

1.3

Top cities by population (2021)

3

Haifa

1.0

Top cities by population (2021)

4

Be'er Sheva

0.4

 

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2021)

1

Shufersal Ltd

Top grocery retailers by sales (2021)

2

Rami Levy Shivuk Hashikma Ltd

Top grocery retailers by sales (2021)

3

Electra Consumer Products Ltd

Top grocery retailers by sales (2021)

4

Yohananov M and Sons (1988) Ltd

Top grocery retailers by sales (2021)

5

Osher Ad

 

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Israel

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2021

Israel

1

Organic Apples Fresh

900,793

2021

Israel

2

Organic Vinegar and Substitutes

221,586

2021

Israel

3

Organic Fruit Prep

30,707

2021

Israel

4

Organic Peas Fr/Ch

3,780

2021

Israel

Total

Total Organics*

1,156,866

2020

Israel

1

Organic Apples Fresh

1,413,188

2020

Israel

2

Organic Vinegar and Substitutes

139,975

2020

Israel

3

Organic Broccoli Fr/Ch

137,346

2020

Israel

4

Organic Fruit Prep

98,524

2020

Israel

5

Organic Tomato Sauce Ex Ketchup

87,296

2020

Israel

Total

Total Organics*

1,910,506

2019

Israel

1

Organic Apples Fresh

1,329,904

2019

Israel

2

Organic Vinegar and Substitutes

318,341

2019

Israel

3

Organic Broccoli Fr/Ch

266,227

2019

Israel

4

Organic Fruit Prep

232,205

2019

Israel

5

Organic Tomato Sauce Ex Ketchp

81,820

2019

Israel

Total

Total Organics*

2,309,095

2018

Israel

1

Organic Apples Fresh

1,836,171

2018

Israel

2

Organic Broccoli Fr/Ch

220,333

2018

Israel

3

Organic Fruit Prep

124,098

2018

Israel

4

Organic Vinegar and Substitutes

66,088

2018

Israel

5

Organic Strawberries Fresh

66,088

2018

Israel

Total

Total Organics*

2,270,601

 

Note : Total organics is the sum of all exports in a particular year 

Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2018 – 2021 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2018-2021 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

Authorized Government Agency(s):

Plant Protection Inspection Services (PPIS) in the Ministry of Agriculture and Rural Development of the State of Israel

Agency(s) Contact Information:

The Ministry of Agriculture and Rural Development
Address: P.O. Box 30
Bayit Dagan 5025001
Email: ppis_web@moag.gov.il
Telephone 972-3-9681500
Fax: 972-3-9603005

PPIS Website
Ministry of Agriculture and Rural Development Website

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

Law for the Regulation of Organic Produce, 5765-2005 

Regulations of Organic Products (Organic Plants – Production and Sale), 5768-2008

Regulations of Organic Products (Preparations for Use in the Production of Organic Plants) 5768-2008

Regulations for Organic Products (Organic Products of Animal Origin) Tashag-2013

Date of Implementation: 1992; Law updated 2005, Regulations updated 2008 and 2013

Regulation and/or Standard Scope:

This initial standards covered to unprocessed plants and plant products, and processed products derived from plants, which carry or are intended to carry, descriptive labeling referring to organic production methods. Regulations for animal products were passed in 2013.

Imported Products

Certification to the Israeli standard is not a requirement for importing organic food into Israel. However, if an importer would like to utilize the Israeli organic seal then specific information documenting that the fruit meets Israel's requirements must be submitted to the Israeli Plant Protection and Inspection Service (PPIS).

Import information

Certification and Accreditation

Certification:

Regulations for Regulation of Organic Products (Control Approval Body), 5768-2008 
A list of accredited certifiers is available.

Accreditation Method:

Government

Accreditation:

The Plant Protection and Inspection Services (PPIS) are the competent authority and sole accreditation body authorized to approve inspection bodies for organic production.

PPIS is recognized by the U.S. National Organic Program (NOP) to accredit certification bodies in Israel to certify to the NOP standards.

Additional Information

Israel is on the third country list for the EU.

U.S. International Trade Administration

USDA's GAIN Report Israel Exporter Guide (2021)
USDA's GAIN Report Israel Retail Foods (2021)
USDA's GAIN Report Israel Food Service - Hotel Restaurant Institutional (2021)
USDA's GAIN Report Israel Food and Agricultural Import Regulations and Standards - Narrative (2020)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2022)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2022)
USDA's GAIN Report Israel Food Processing Ingredients (2021) 
USDA's GAIN Report Tel Aviv Tidbits – August 2017 (2017)