Growth slowed slightly in 2020 due to COVID-19 as consumer focus shifted. Organic products are mainly sold in specialty stores, many of which were closed during lockdown period, as opposed to supermarkets which remained opened and offer online orders and distribution.
While organic food continues to grow in popularity, performance is weaker than in many other categories. This is because most organic products lack added value for consumers compared with alternatives such as fortified/functional offerings.
All Organic continues to lead sales 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 widespread availability.
Organic products will continue to grow in popularity over the coming years as consumers further embrace the health and wellness trend. The shift towards home working (as office workers will continue to work at least two days per week from home) is likely to have a major impact on the development of organic products.
In terms of distribution, Green, an organic section in Shufersal supermarkets, and Nizat Haduvdevan, a speciality health market, continue to grow and expand. The growth of these companies has contributed to the increase of organic products.
Organic baby food has increased in popularity in recent years, with new and existing brands launching organic pouches, as all new brands are in this format. Brands such as Piccolo and Green have recently entered the category.
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Understand the latest market trends and future growth opportunities for the Organic Packaged Food industry in Israel with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Organic Packaged Food research and analysis database.
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