Time In Palestine
Home »  

Food and beverage industry
The food and beverage sector has been one of the fastest growing sectors of the Palestinian economy. The Investment Encouragement Law eased restrictions on new businesses in 1998 and as a result, the sector has become a major attraction for investment.
The Palestinian Territories offer a business friendly environment in which to start, or expand a business in the food and beverage industry for a number of reasons:
  • Strategic location in the region.
  • An Investment Encouragement Law, which provides generous incentives to facilitate the growth & expansion of businesses in Palestine.
  • The availability of an experienced work force.
  • The implementation of international treaties and free trade agreements with major industrial countries.
Manufacturing plants in this sub-sector are modernly equipped.  Most of the plants are semi or fully automated. A large percentage of the existing food & beverage manufacturing plants are ISO-certified.
 
Market Share:
Market share of Palestinian-made food products has increased dramatically during the past few years. In 2012, the Palestinian food and beverage market share was  62.7%. This was due, in part, to aggressive government policies to encourage local investment, and a marketing campaign to promote Palestinian manufactured food and beverages.

Market & Profitability: 
The food and beverage manufacturing industry is dependent, as are other manufacturing industries, on the strength of the local market. 87.7% of all sales are directed to the West Bank, with the remainder going to Gaza. 89% of exported products are sold in the Israeli market; the rest are sold in the Middle East and Europe.

Indicators for the Important Food Industries in Palestine
 
value of exports
The local market share
Investment
No. of Workers
No. of Factories
Type of Industry
6 $ Million
90%
25 $  Million
559 
17 
Meat products industry
21 $ Million
20%
30 $  Million
545
18
Processing and canning fruits and vegetables
31 $ Million
20%
70 $  Million
295 
13 
Industry, vegetable oils and fats
5 $ Million
45%
67 $  Million
1,754 
41 
Milk & Dairy Product
-
30%
45 $  Million
236 
9
Industry wheat flour & cereal products
-
15%
35 $  Million
329
22
Feed industry
-
90% 
100 $  Million
5,848 
1,498 
Bread and bakery products
8 $ Million
25%
22 $  Million
1,213
27 
Sugars and sweets
-
30%
34 $  Million 
89
5
Pasta and noodles
 
20%
34 $  Million
978 
20
Soft drinks and non-carbonated
-
35%
12 $  Million
860
31
Other food products
                                                                                                                                                                                                                                                                  *: In USD millions
 
Textile and Garments
The textile & clothing industry is the second largest industrial employer in Palestine. The industry is composed of hundreds of small enterprises operating out of individual homes. Seventy percent of registered companies are considered sole proprietorships, with the remaining 30% being registered partnerships.
The highest concentration of garment & textile factories in the West Bank is in Nablus, where there are 362 factories. 760 factories are in Gaza, with the balance of 578 factories distributed throughout the West Bank towns & cities.
The dominant segment of the industry (50%) is made up of micro-establishments constituting between one and four employees. Only 1% of the sector employs over 50 workers. The remaining 49% of garment and textile factories in the West Bank and Gaza employ between 5 and 49 employees.

Distribution & Market share: 
An increasing number of Palestinian companies are exporting directly to the USA, Europe and surrounding Arab countries. While a significant percentage of the 80% of production goes to Israel.
Palestine signed free trade agreements with the United States and Europe, which provide favorable terms for export and investment