Israel Laundry Appliances Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Israel Laundry Appliances Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The impact of COVID-19 on dry cleaning and laundry services in Israel varied depending on the customer base. Companies dependent on cleaning business wear are negatively affected due to business closures and the move to working from home. While some companies that are more focused on business-to-business sales increase sales as their customers intensify cleaning efforts to minimize the risk of infection.

Home laundry appliances in Israel experienced a decrease in sales last year. Although a slight increase in laundry habits was possible due to concerns about germs, consumers spent most of their time at home wearing a smaller collection of clothes, thus reducing the need to do laundry. Furthermore, not all people in Israel had more disposable income, and some consumers preferred to fix old washing machines or hang their clothes outside to dry, given the country’s warm climate.

The growth in home laundry appliances slightly slowed down in 2020 due to the slowdown in the housing market. In 2020 and 2021, housing acquisitions slowed significantly due to Buyer’s Price’s governmental housing plan, which offers apartments at lower-than-market prices. These have also caused uncertainty in the market as to whether apartment prices would continue rising. Therefore, many consumers wait until the situation is clearer before buying a home. With the pickup in the home buyers, the laundry market is certain to catch up with the pace and grow further.

Israel's home laundry appliances market is eyeing more of the larger washing machines as laundry is a daily chore for Israelis. Consumer preferences are continuously changing with the increasingly busy lifestyles that utilize highly efficient and time-saving laundry options. In the review period, companies offering various automatic washing machines responded to the changing preferences of consumers by expanding their offers of larger capacity models. 8kg products became almost the standard in the category, though companies also launched many new 9kg models, and machines with capacities of 10-11kg became more widely available. Over the forecast period, new launches will likely accentuate the shift towards larger capacity models in automatic washing machines and automatic tumble dryers. Israeli consumers equally receive lower-cost brands as well as premium.

Ecommerce in Israel is growing at a whooping rate and is expected to grow at a CAGR of over 15%. In the last ten years, it has grown by double digits despite its modest population and is majorly driven by cross-border e-commerce. The number of Israeli businesses selling online is only a few – with prices usually substantially higher than those of cross-border retailers. This trend is because of high value-added taxes (VAT) and monopolies on numerous consumer goods. Nearly 80% of Israeli online shoppers have bought products from abroad, predominantly from China, the United Kingdom, and the US. Israel is a fairly digitalized country with about 75% Internet penetration and a smartphone market of more than 60%. The dominant e-commerce categories in Israel include Home Electronics, Fashion & Footwear, and Media Products. Housewares and groceries are also popular products purchased online.

The Israel laundry appliances market is characterized by nearly consolidated players with many foreign players established for a long time and tougher competition to the newer players. BSH maintained its leadership in the home laundry appliances sector in 2021, with the gains coming from its Bosch, Siemens, and Constructa brands. These brands are perceived as reliable, offering high-quality products, and are often recommended by professionals and salespeople.

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