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Agriculture In Israel - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Publisher Mordor Intelligence Inc
Published Jun 23, 2025
Length 80 Pages
SKU # MOI20477899

Description

Agriculture In Israel Market Analysis

The Israel Agriculture Market size is estimated at USD 13.09 billion in 2025 and is projected to reach USD 15.77 billion by 2030, at a CAGR of 3.8% during the forecast period. Accelerating investment in agrifood technology, abundant desalinated water, and a renewed national focus on food security create favorable tailwinds for the Israel agriculture market. Precision irrigation uptake, government Research and Development subsidies, and rising specialty-crop exports collectively lift margins even as producers confront high labor costs. Capital inflows of USD 2.80 billion into more than 400 Israeli agrifood-tech companies in 2023 underscore investor confidence. Desalinated water priced near USD 0.40 per metric ton gives growers a cost-predictable input base, while the rapid scale-up of sensor-guided fertigation curbs fertilizer waste. Together, these forces position the Israel agriculture market for stable yet innovation-led expansion through 2030.

Agriculture In Israel Market Trends and Insights

Advancement in Agricultural Technology

Venture investors continue to fund Israeli crop science and ag-automation firms at scale. Greeneye Technology closed a USD 20 million Series A in April 2024 to commercialize AI-enabled spot spraying that cuts herbicide use by 88% while protecting yields. Netafim augmented its drip-irrigation leadership with real-time plant-monitoring software through an October 2024 partnership with Phytech, enabling irrigation that follows actual sap flow rather than set schedules. This integration of sensors, computer vision, and machine learning accelerates on-farm decision-making and reinforces Israel’s reputation as a global exporter of water-efficient know-how. A USD 500 million debt package secured by Netafim in late 2024 further signals institutional appetite for scaling Israeli water tech. As platforms mature from pilots to revenue-generating tools, technology adoption is anticipated to raise average yields and keep the Israel agriculture market on its current growth arc.

Favorable Government Initiatives and Subsidies

Institutional realignment came in June 2024 when the ministry was rebranded the Ministry for Agriculture and Food Security, reflecting heightened strategic priority. The Renewal Administration now channels targeted reconstruction grants toward automation, irrigation, and protected cultivation infrastructure. Israel’s Innovation Authority earmarked additional agritech Research and Development funding for peripheral regions to narrow the center-periphery income gap. KANAT’s disaster-insurance framework keeps liquidity available for growers facing climate or conflict disruptions. Meanwhile, the extended United States-Israel Agricultural Trade Agreement assures duty-free access for certain exports through 2025, tempering near-term demand volatility. These coordinated policies shorten payback periods on capital investments and underpin the Israel agriculture market’s steady expansion.

Dependence on Staple-Crop Imports

Domestic wheat output is forecast to dip to 90,000 metric tons in the 2025-2026 season, trailing the five-year average of 108,000 metric tons, forcing mills to continue sourcing from the Black Sea Basin. The sudden halt of Turkish produce shipments in 2024 required rapid supply-chain rerouting for tomatoes, olive oil, and cucumbers. Israel also imports 70% of laying-hen feed and most live cattle shipments, underscoring its exposure to external shocks. Switzerland, the Netherlands, and the United States together shipped about USD 1.16 billion in foodstuffs to Israel in 2024. Long-term liberalization reduced producer subsidies and amplified import reliance, complicating domestic self-sufficiency goals. This dependency subtracts an estimated 0.9 percentage points from the forecast CAGR for the Israel agriculture market.

Other drivers and restraints analyzed in the detailed report include:

  1. Widespread Precision-Irrigation Adoption
  2. Post-Conflict Food-Security Imperatives
  3. High Production Costs and Labor Shortages

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Fruits and Vegetables retained leadership with a 47.50% share of Israel agriculture market share in 2024, thanks to Mediterranean micro-climates and mature logistics links to European buyers. EU importers purchased EUR 979 million (USD 1.12 billion) worth of Israeli horticultural produce in 2024. Sensor-guided fertigation slashed nutrient runoff and bolstered shelf life. Meanwhile, cereals and grains slowed as wheat output lagged behind rainfall cycles, although barley held steady at 14,000 metric tons. Oilseeds, led by sunflower seed, are slated to grow 33% to 4,000 metric tons by 2025-2026, aided by precision seeding and pest-prediction analytics. Start-ups like Wonder Veggies, which raised USD 3 million to launch probiotic lettuce in 2025, reveal how biotech can reposition even mature categories. As technology percolates across crop types, Israel agriculture market participants extract higher margins from each irrigated hectare.

Commercial Crops commanded the fastest growth path with a 4.3% CAGR projected for 2025-2030, reflecting Israel’s pivot toward high-margin specialty output. In value terms, Commercial Crops will account for USD 4.1 billion of Israel agriculture market size by 2030, up from USD 3.3 billion in 2025. Export-oriented greenhouse systems enable premium strawberries, herbs, and flowers to hit EU shelves year-round. Technology layers such as AI-assisted climate control and robotic harvesters lift labor productivity, enticing institutional investors. Cotton harvests climbed from 40,000 to 65,000 bales between the 2024-2025 and 2025-2026 seasons, illustrating how climate-controlled programs can revive erstwhile marginal crops.

The Israel Agriculture Market Report is Segmented by Type (Cereals and Grains and More). The Report Includes Production Analysis (Volume), Consumption Analysis (Value and Volume), Export Analysis (Value and Volume), Import Analysis (Value and Volume), and Price Trend Analysis. The Market Forecasts are Provided in Terms of Value (USD) and Volume (Metric Tons).

List of Companies Covered in this Report:

  1. Market Overview
  2. Market Drivers
  3. Market Restraints
  4. Value/Supply-Chain Analysis
  5. Regulatory Landscape
  6. Technological Outlook
  7. PESTLE Analysis
  8. List of Key Stakeholders

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Please note: The report will take approximately 2 business days to prepare and deliver.

Table of Contents

80 Pages
1 Introduction
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Advancement in Agricultural Technology
4.2.2 Favorable Government Initiatives and Subsidies
4.2.3 Widespread Precision-Irrigation Adoption
4.2.4 Post-Conflict Food-Security Imperatives
4.2.5 Regenerative Desert-Farming Export Boom
4.2.6 Pesticide Ban by Importing Countries Creating Export Window
4.3 Market Restraints
4.3.1 Dependence on Staple-Crop Imports
4.3.2 High Production Costs and Labor Shortages
4.3.3 Climatic-Insurance Premium Inflation
4.3.4 Regional Trade-Route Disruptions
4.4 Value/Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 PESTLE Analysis
5 Market Size and Growth Forecasts
5.1 By Type (Production Analysis (Volume), Consumption Analysis (Value and Volume), Import Analysis (Value and Volume), Export Analysis (Value and Volume), and Price Trend Analysis)
5.1.1 Cereals and Grains
5.1.2 Oilseeds and Pulses
5.1.3 Fruits and Vegetables
5.1.4 Commercial Crops
6 Competitive Landscape
6.1 List of Key Stakeholders
7 Market Opportunities and Future Outlook

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