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Consumption trends
Israel
Consumption behavior | Consumption expenditure | Rate of household equipment
Consumption behavior
- Growing sectors
- Electronic components, telecommunications, computerization, high-tech products, medicines, agro-foods, banking and insurance.
- Consumer behavior
- Israelis are sensitive to advertising and brand image. They like quality and are thus ready to pay a higher price but the price should remain reasonable. Price is thus an important factor in the purchase decision of Israeli consumers. The after-sales service and warranties are necessary, since the Israeli consumer considers that a product without warranty is not a genuine product.
- Consumer profile and purchasing power
- Israeli consumers like new products. Israeli legislation promotes national products.
- Consumer recourse to credit
- Israeli households live beyond their resources because of recourse to credit. It is common for Israelis to pay for their purchases by credit card over several installments or to give post-dated checks.
- Consumers associations
-
Israel Consumer Council
Consumption expenditure
| Purchasing power parity | 2005 | 2006 | 2007 |
| Purchasing power parity (Local currency unit per USD) | 120.9 | 150.6 | 166.3 |
Source:
Israeli Bureau of Statistics
Definition: Purchasing power parity is the number of units of a country's currency required to buy the same amounts of goods and services in the domestic market as USD would buy in the United States.
| Household final consumption expenditure | 2006 | 2007 | 2008 |
| Household final consumption expenditure (Million USD, constant price 2000) | 78,889 | 83,696 | 86,692 |
| Household final consumption expenditure per capita (USD, constant price 2000) | 11,167 | 11,657 | 11,861 |
| Household final consumption expenditure (annual growth, %) | 4.0 | 6.7 | - |
| Household final consumption expenditure (% of GDP) | 55.3 | 56.7 | 58.3 |
Source:, last available data
| Consumption expenditure by product category as % of total expenditure | 2007 |
Rate of household equipment
| food, beverages and tobacco | 21.0% |
| Durable Goods | 8.5% |
| Apparels | 10.8% |
| Fuel and Electricity | 5.5% |
| Housing | 23.3% |
| Services | 29.9% |
Source: Israeli Bureau of Statistics, last available data
Household equipment
| Main consumer durables as % of households owning them | 2006 |
| Refrigerator | 99.4% |
| Freezer | 18.5% |
| Cooking range | 53.8% |
| Microwave oven | 82.0% |
| Dishwasher | 33.2% |
| Washing Machine | 94.9% |
| Airconditioner | 68.5% |
| Vaccuum Cleaner | 66.3% |
| Personal Computer | 54.6% |
| Television | 91.2% |
| VCR | 59.3% |
| DVD | 41.2% |
| Cable and satellite | 68.1% |
| At least one telephone line | 6.4% |
| Internet Usage | 85.1% |
| At least one mobile phone | 87.2% |
| At least one car | 60.4% |
| Heating | 6.1% |
Source: Israeli Bureau of Statistics, last available data
| Information technology and communication equipment, per 100 inhabitants | 2006 |
| Telephone subscribers | 166.6% |
| Main telephone lines | 43.9% |
| Cellular mobile subscribers | 128.5% |
| Internet users | 22.1% |
| PCs | 73.4% |
Source: International Telecommunication Union, last available data
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Last updates: September 2010
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