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 friendly business environment in which to start, or expand a business in the food and beverage industry.

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:
The share of Palestinian food products in the market has increased significantly over the last few years. In 2016, the share of food and beverages in the Palestinian market was (65% -70%) due to government policies to encourage domestic investment, Consumption of local food and beverages.

Market & Profitability: 
The food and beverage industry, like all other manufacturing industries, depends on the strength of the local market. At the local level, Palestinian products are marketed in all governorates of the West Bank and Gaza. Some companies sell their products in East Jerusalem, others are prohibited by Israeli measures and the rest are exported to the Middle East and Europe. In terms of exports, 85% of exported products are exported to the Israeli market, the rest are exported to the Middle East and Europe, where exports reached a billion US dollars in 2016..

Indicators for the Important Food Industries in Palestine                                                                                                                                                                                                                                                               

Type of Industry	No. of Factories	No. of Workers	Investment Amount(in Millions) $	The local market share	value of exports(in Millions)$
Meat products industry	18	722	27,3	90%	6
Processing and canning fruits and vegetables	20	557	36,6	20%	21
Industry, vegetable oils and fats	13	302	18.7	20%	31
Milk & Dairy Product	46	2324	67	55%	5
Industry wheat flour & cereal products	12	302	48	40%	-
Feed industry	26	427	28.9	15%	-
Bread and bakery products	1500	5900	100	90%	-
Sugars and sweets	33	1075	22	25%	8
Pasta and noodles	4	62	23,7	30%	-
Soft drinks and non-carbonated	24	1414	33.5	30%
Other food products	39	920	10,7	35%	-

 

Source: Palestinian food industries union