Frozen potatoes market in Israel

Earlier Report Observations

The frozen potato market in Israel expanded from 478 t in 2018 to a peak of 515 t in 2020. This growth was supported by the continuous development and introduction of new potato varieties. The main driver emerged in 2020, when annual growth of approximately 5% in the frozen french fries segment was fueled by the rise of home-delivery services, which increased demand. The market was led by the major domestic producer Tepogen, which reported strong sales and high profitability.

After 2020, market volume contracted, falling to 447 t in 2021 and further to 383 t in 2022. A key driver of the 2022 decline was a significant increase in exports, with over 45 000 t of high-quality potato varieties shipped abroad, mainly to Europe, reducing domestic supply. This occurred alongside the implementation of an agricultural reform that gradually opened the market to imports and reduced tariffs on potatoes to enhance competition. In 2023, market volume decreased again to 356 t, largely due to a sharp drop in imports. Notably, the frozen french fries segment continued to grow at an estimated 10% per year, attracting new players and importers, which intensified competition despite the overall market contraction.

In 2024, the sector faced potential potato shortages caused by war and drought, leading to higher prices, while tariff reductions continued as part of the agricultural reform. Investments in advanced agricultural technologies, such as precision fertilization and drip irrigation, were emphasized to improve yields and quality, though their impact on market volume remains to be seen.

Production frozen potatoes in Israel

In kind, 2017-2020, t

Top producers of frozen potatoes, 2017-2020

World map of production of frozen potatoes, 2017-2020

Israel's frozen potato production has grown for the third year in a row. In 2020, the country produced 354.3 tons of frozen potatoes, marking a 6.5% increase compared to the previous year. Looking at the period from 2017 to 2020, production rose by 38.1%, which translates to an average annual growth rate of 11.4%.

Annual dynamics of production in Israel in kind, 2017-2020, t

Exports frozen potatoes from Israel

Exports in kind, t

The market experienced significant fluctuations during this period. Exports hit their lowest point in 2019 and peaked in 2017, with a 22-fold difference between these years. In 2020, Israel's frozen potato export volume reached 4.1 tons, representing a substantial 266.4% increase from the year before.

Annual dynamics of product's exports from Israel in kind, 2017-2020, t

From 2017 to 2020, Jordan and Japan were the primary destinations for frozen potato exports, together accounting for 82.5% of total shipments. Other trading partners played a much smaller role individually.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Israel in kind, 2017-2020

Exports in value, K $ US

The market displayed notable volatility over the observed timeframe. Exports reached their lowest level in 2019 and their highest in 2017, with a 20-fold gap between these years. In 2020, frozen potato shipments from Israel totaled 4.0 thousand US dollars, showing a sharp rise of 300.0% compared to 2019.

Annual dynamics of product's exports from Israel in value, 2017-2020, K $ US

Between 2017 and 2020, Jordan and Japan clearly dominated the value of frozen potato exports from Israel, jointly making up 80.0% of total flows. Other countries held significantly smaller shares.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Israel in value, 2017-2020

Imports frozen potatoes to Israel

Imports in kind, t

Israel imported 164.4 tons of frozen potatoes in 2020, reflecting a modest 3.4% decrease year-over-year. Over the 2017-2020 period, imports declined by 3%, with a compound annual growth rate of -1.0%. The lowest import volume was recorded in 2018 at 155.1 tons, while the highest was in 2019 at 170.2 tons. The largest drop occurred in 2018 with an 8.5% decrease, and the biggest increase was in 2019 with a 9.8% rise.

Annual dynamics of product's imports to Israel in kind, 2017-2020, t

From 2017 to 2020, frozen potato imports to Israel were almost entirely supplied by Belgium, which accounted for 95.7% of total imports in volume terms.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Israel in kind, 2017-2020

Imports in value, K $ US

Frozen potato imports to Israel have increased for the third consecutive year. In 2020, imports reached 171.0 thousand US dollars, up by 6.9% compared to the previous year. Between 2017 and 2020, imports grew by 21.3%, equating to an average annual rate of 6.6%.

Annual dynamics of product's imports to Israel in value, 2017-2020, K $ US

During the 2017-2020 period, Belgium remained the overwhelmingly dominant supplier of frozen potatoes to Israel, representing 95.2% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Israel in value, 2017-2020