Israel Agriculture Market

Israel agriculture market, valued at USD 13.1 billion, grows via precision farming, smart irrigation, and organic trends, with key regions like Central and Northern Israel leading innovations.

Region:Middle East

Author(s):Geetanshi

Product Code:KRAB0001

Pages:96

Published On:August 2025

About the Report

Base Year 2024

Israel Agriculture Market Overview

  • The Israel Agriculture Market is valued at USD 13.1 billion, based on a five-year historical analysis. This growth is primarily driven by advancements in agricultural technology, increased demand for organic produce, and government support for sustainable farming practices. The market has seen a significant rise in investments in precision agriculture, smart irrigation systems, and digital crop management technologies, which enhance productivity and resource efficiency .
  • Key players in this market include regions such as Central Israel, which is known for its high-tech agricultural innovations, and Northern Israel, where diverse crop production thrives due to favorable climatic conditions. The Southern region also plays a crucial role, focusing on desert agriculture and water-efficient farming techniques, contributing to the overall market dynamics .
  • In recent years, the Israeli government has implemented agricultural policies aimed at promoting sustainable practices and enhancing food security. These policies include significant budget allocations for research and development in agricultural technologies, supporting farmers in adopting innovative solutions and improving crop yields .
Israel Agriculture Market Size

Israel Agriculture Market Segmentation

By Product Type:The product type segmentation includes various categories such as fruits and vegetables, cereals and grains, oilseeds and pulses, commercial crops, livestock, and aquaculture. Among these, fruits and vegetables dominate the market due to the increasing consumer preference for fresh produce and health-conscious eating habits. The demand for organic fruits and vegetables has surged, driven by a growing awareness of health and nutrition .

Israel Agriculture Market segmentation by Product Type.

By Farming Technique:The farming technique segmentation encompasses traditional farming, organic farming, precision farming, and hydroponics and aquaponics. Precision farming and organic farming are leading sub-segments, driven by consumer demand for chemical-free produce, sustainable practices, and the adoption of smart farming technologies. The trend towards resource-efficient and data-driven agriculture is supported by government incentives and a growing market for sustainable products, making these segments significant contributors to the overall agricultural landscape .

Israel Agriculture Market segmentation by Farming Technique.

Israel Agriculture Market Competitive Landscape

The Israel Agriculture Market is characterized by a dynamic mix of regional and international players. Leading participants such as Netafim, Haifa Group, BioBee Sde Eliyahu Ltd., Evogene Ltd., CropX Technologies, Gadot Agro, Rivulis Irrigation, GreenOnyx, Phytech, Adama Agricultural Solutions Ltd., Taranis, Manna Irrigation Intelligence, Saturas, AgriTask, and Hargol FoodTech contribute to innovation, geographic expansion, and service delivery in this space.

Netafim

1965

Tel Aviv, Israel

Haifa Group

1966

Haifa, Israel

BioBee Sde Eliyahu Ltd.

1986

Sde Eliyahu, Israel

Evogene Ltd.

2002

Rehovot, Israel

CropX Technologies

2015

Tel Aviv, Israel

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue (USD million)

Revenue Growth Rate (%)

Market Share (%)

Export Volume (metric tons or USD value)

R&D Expenditure (% of revenue)

Israel Agriculture Market Industry Analysis

Growth Drivers

  • Technological Advancements in Agriculture:Israel's agriculture sector is significantly driven by technological innovations, with over 1,000 agri-tech startups reported. The country invests approximately $500 million annually in agricultural R&D, focusing on precision farming and biotechnology. This investment has led to a significant increase in crop yields over the past decade, enhancing productivity and sustainability. The integration of smart irrigation systems has also reduced water usage by up to 25%, addressing critical resource management issues.
  • Government Support and Subsidies:The Israeli government allocated around $300 million for agricultural subsidies, promoting sustainable practices and innovation. This financial support has enabled farmers to adopt advanced technologies, improving efficiency and competitiveness. Additionally, the government’s commitment to enhancing food security has resulted in policies that encourage local production, which is crucial given that approximately 70% of agricultural products are consumed domestically. Such initiatives bolster the sector's resilience against global market fluctuations.
  • Increasing Demand for Organic Produce:The organic food market in Israel has seen growth, with sales estimated at $400 million, reflecting a notable increase. This surge is driven by rising consumer awareness regarding health and sustainability. As a result, about 10% of Israeli farms are now certified organic, catering to both local and international markets. The growing trend towards organic produce is expected to further stimulate agricultural innovation and diversification.

Market Challenges

  • Water Scarcity and Resource Management:Water scarcity remains a critical challenge for Israel's agriculture, with the country classified as one of the most water-stressed nations globally. Agricultural water usage accounts for about 55% of total national water consumption. The sector faces a shortfall, but the figure of 1.5 billion cubic meters annually cannot be confirmed. This scarcity necessitates advanced water management strategies, including desalination and recycling, to sustain agricultural productivity and ensure food security.
  • High Operational Costs:The operational costs for Israeli farmers are high, with average expenses estimated at $1,000 per hectare. Factors contributing to these high costs include labor shortages, rising energy prices, and expensive inputs such as fertilizers and seeds. Consequently, many farmers struggle to maintain profitability, leading to a decline in the number of active farms, which has decreased in recent periods. This trend poses a significant threat to the agricultural sector's sustainability.

Israel Agriculture Market Future Outlook

The future of Israel's agriculture market appears promising, driven by ongoing technological advancements and a strong focus on sustainability. As the demand for organic and locally sourced products continues to rise, farmers are likely to adopt innovative practices that enhance productivity while conserving resources. Additionally, government initiatives aimed at supporting agri-tech development will further bolster the sector. The integration of smart technologies and sustainable practices will be crucial in addressing challenges such as water scarcity and operational costs, ensuring long-term growth.

Market Opportunities

  • Adoption of Precision Agriculture:The shift towards precision agriculture presents a significant opportunity for Israeli farmers. By utilizing data analytics and IoT technologies, farmers can optimize resource use, reduce waste, and enhance crop yields. This approach is expected to increase efficiency by up to 20%, making it a vital strategy for addressing operational challenges and improving profitability in the sector.
  • Investment in Agri-Tech Startups:The growing interest in agri-tech startups offers substantial investment opportunities. Investments in Israeli agri-tech are estimated at $300 million, reflecting a strong upward trend. This trend is likely to continue as investors seek innovative solutions to enhance agricultural productivity and sustainability, positioning Israel as a global leader in agricultural technology.

Scope of the Report

SegmentSub-Segments
By Product Type

Fruits and Vegetables

Cereals and Grains

Oilseeds and Pulses

Commercial Crops (e.g., cotton, flowers, herbs)

Livestock

Aquaculture

By Farming Technique

Traditional Farming

Organic Farming

Precision Farming

Hydroponics and Aquaponics

By Irrigation Method

Drip Irrigation

Sprinkler Irrigation

Surface Irrigation

Others

By Agricultural Input

Seeds

Fertilizers

Crop Protection Chemicals

Equipment & Machinery

By End-User

Farmers

Food Processors

Retailers

Exporters

By Distribution Channel

Direct Sales

Wholesale

Online Sales

By Technology Adoption

Traditional Techniques

Smart Farming Technologies

Sustainable Practices

By Geography

Northern Israel

Central Israel

Southern Israel

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Ministry of Agriculture and Rural Development, Israel Innovation Authority)

Manufacturers and Producers

Distributors and Retailers

Agricultural Technology Startups

Food Processing Companies

Industry Associations (e.g., Israel Farmers Association)

Financial Institutions

Players Mentioned in the Report:

Netafim

Haifa Group

BioBee Sde Eliyahu Ltd.

Evogene Ltd.

CropX Technologies

Gadot Agro

Rivulis Irrigation

GreenOnyx

Phytech

Adama Agricultural Solutions Ltd.

Taranis

Manna Irrigation Intelligence

Saturas

AgriTask

Hargol FoodTech

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Israel Agriculture Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Israel Agriculture Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Israel Agriculture Market Analysis

3.1 Growth Drivers

3.1.1 Technological Advancements in Agriculture
3.1.2 Government Support and Subsidies
3.1.3 Increasing Demand for Organic Produce
3.1.4 Export Opportunities in Global Markets

3.2 Market Challenges

3.2.1 Water Scarcity and Resource Management
3.2.2 High Operational Costs
3.2.3 Regulatory Compliance Issues
3.2.4 Market Competition from Imports

3.3 Market Opportunities

3.3.1 Adoption of Precision Agriculture
3.3.2 Development of Sustainable Practices
3.3.3 Investment in Agri-Tech Startups
3.3.4 Expansion into New Export Markets

3.4 Market Trends

3.4.1 Rise of Vertical Farming
3.4.2 Increased Use of Drones and IoT
3.4.3 Shift Towards Sustainable Agriculture
3.4.4 Growth of Local Food Movements

3.5 Government Regulation

3.5.1 Water Usage Regulations
3.5.2 Pesticide and Fertilizer Controls
3.5.3 Import Tariffs on Agricultural Products
3.5.4 Support for Organic Certification

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Israel Agriculture Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Israel Agriculture Market Segmentation

8.1 By Product Type

8.1.1 Fruits and Vegetables
8.1.2 Cereals and Grains
8.1.3 Oilseeds and Pulses
8.1.4 Commercial Crops (e.g., cotton, flowers, herbs)
8.1.5 Livestock
8.1.6 Aquaculture

8.2 By Farming Technique

8.2.1 Traditional Farming
8.2.2 Organic Farming
8.2.3 Precision Farming
8.2.4 Hydroponics and Aquaponics

8.3 By Irrigation Method

8.3.1 Drip Irrigation
8.3.2 Sprinkler Irrigation
8.3.3 Surface Irrigation
8.3.4 Others

8.4 By Agricultural Input

8.4.1 Seeds
8.4.2 Fertilizers
8.4.3 Crop Protection Chemicals
8.4.4 Equipment & Machinery

8.5 By End-User

8.5.1 Farmers
8.5.2 Food Processors
8.5.3 Retailers
8.5.4 Exporters

8.6 By Distribution Channel

8.6.1 Direct Sales
8.6.2 Wholesale
8.6.3 Online Sales

8.7 By Technology Adoption

8.7.1 Traditional Techniques
8.7.2 Smart Farming Technologies
8.7.3 Sustainable Practices

8.8 By Geography

8.8.1 Northern Israel
8.8.2 Central Israel
8.8.3 Southern Israel

9. Israel Agriculture Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue (USD million)
9.2.4 Revenue Growth Rate (%)
9.2.5 Market Share (%)
9.2.6 Export Volume (metric tons or USD value)
9.2.7 R&D Expenditure (% of revenue)
9.2.8 Number of Patents/Innovations
9.2.9 Geographic Presence (Domestic/Export Markets)
9.2.10 Product Portfolio Breadth
9.2.11 Technology Adoption Level
9.2.12 ESG/Sustainability Initiatives

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Netafim
9.5.2 Haifa Group
9.5.3 BioBee Sde Eliyahu Ltd.
9.5.4 Evogene Ltd.
9.5.5 CropX Technologies
9.5.6 Gadot Agro
9.5.7 Rivulis Irrigation
9.5.8 GreenOnyx
9.5.9 Phytech
9.5.10 Adama Agricultural Solutions Ltd.
9.5.11 Taranis
9.5.12 Manna Irrigation Intelligence
9.5.13 Saturas
9.5.14 AgriTask
9.5.15 Hargol FoodTech

10. Israel Agriculture Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Agriculture
10.1.2 Ministry of Finance
10.1.3 Ministry of Environmental Protection

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Irrigation Systems
10.2.2 Funding for Research and Development
10.2.3 Expenditure on Sustainable Practices

10.3 Pain Point Analysis by End-User Category

10.3.1 Farmers
10.3.2 Agribusinesses
10.3.3 Exporters

10.4 User Readiness for Adoption

10.4.1 Technology Adoption Rates
10.4.2 Training and Support Needs
10.4.3 Financial Readiness

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of ROI
10.5.2 Case Studies of Successful Implementations
10.5.3 Future Use Case Opportunities

11. Israel Agriculture Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Efforts

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Planning
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of agricultural production statistics from the Israeli Central Bureau of Statistics
  • Review of market reports from agricultural associations and government publications
  • Examination of trade data and export-import statistics from the Ministry of Agriculture and Rural Development

Primary Research

  • Interviews with agronomists and agricultural economists specializing in Israeli agriculture
  • Surveys with farmers and agricultural producers across various sectors
  • Focus groups with stakeholders in the agricultural supply chain, including distributors and retailers

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including academic journals and industry publications
  • Triangulation of qualitative insights from interviews with quantitative data from surveys
  • Sanity checks through expert panel reviews involving industry veterans and market analysts

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total agricultural output based on national GDP contributions from agriculture
  • Segmentation of market size by crop types, livestock, and aquaculture sectors
  • Incorporation of government initiatives and subsidies impacting agricultural growth

Bottom-up Modeling

  • Collection of production volume data from leading agricultural firms and cooperatives
  • Cost analysis based on input prices, labor costs, and technology adoption rates
  • Volume x price modeling to estimate revenue across different agricultural segments

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating climate change impacts and technological advancements
  • Scenario planning based on potential shifts in consumer preferences and export markets
  • Baseline, optimistic, and pessimistic projections for agricultural growth through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Cereal Crop Producers50Farm Owners, Agronomists
Fruit and Vegetable Growers40Farm Managers, Supply Chain Coordinators
Dairy and Livestock Farmers40Livestock Managers, Veterinary Experts
Aquaculture Operators40Aquaculture Managers, Environmental Scientists
Agricultural Technology Providers40Product Development Managers, Sales Directors

Frequently Asked Questions

What is the current value of the Israel Agriculture Market?

The Israel Agriculture Market is valued at approximately USD 13.1 billion, reflecting significant growth driven by advancements in agricultural technology, increased demand for organic produce, and government support for sustainable farming practices.

What are the main drivers of growth in the Israel Agriculture Market?

Which regions in Israel are prominent in agriculture?

What types of products dominate the Israel Agriculture Market?

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