The upward trend in online purchases, which began during the Corona period, continues to intensify and recorded a very significant increase in 2021. The total number of purchases by Israelis in Israel and abroad amounted to NIS 410.3 billion, compared with NIS 346 billion last year, an increase of about 19%, of which the volume of purchases made online and by telephone was about 60%, according to ICC data. In Israel alone, the volume of purchases was NIS 380.1 billion, an increase of 16% compared to last year, while the volume of purchases abroad (physical purchases) amounted to NIS 30.2 billion, an increase of 65% compared to last year – a percentage increase that illustrates the recovery this year The year 2020 was characterized by closures that led to the closure of the sky.
In 2021, there was a decrease in the average employment rate of Israelis, which stood at NIS 222 this year, compared with NIS 224 in 2020, a decrease of 1.1%. While the average deal for purchases in Israel decreased by 1.8% this year, the average deal abroad showed an impressive increase of about 16% compared to last year. The increase in the average transaction online abroad is also due to the fact that trading sites offer substantial discounts of 20% and 30% on high transactions, so that the “VAT over $ 75” barrier is less effective. In addition, in 2021 there was an increase in bookings of flights and hotels online (much higher in amounts), compared to an almost complete stop in 2020 due to the corona.
All purchases in leading industries
According to ICC data, which summarized 2021 in terms of the volume of credit card activity as a measure of consumption consumption, the most prominent industry in the increase in transaction turnover is the aviation and tourism industry, which showed an increase of about 119% compared to last year as a result of the sky opening. In the annual view of 2019 versus 2021, it was recorded that the volume of purchases in the aviation and tourism industry in 2021 accounted for only 40% of the volume of purchases in the industry in 2019. The hospitality industry also reflected a significant increase of 117%. It also shows that the other major industries that recorded impressive growth in the turnover are the restaurants industry with an increase of about 54% compared to last year; The fashion industry with an increase of about 32%; And the leisure and recreation industry, which declined significantly in 2020 and rose by about 47% this year.
As expected, the energy industry also showed an increase compared to last year and stood at about 27%, as Israelis returned to the roads after a year of domestic closures that led to a significant reduction in fuel consumption. The Furniture and Home Registrar Branch grew by about 16%; While in the electrical products industry there was a modest increase of only 4% compared to last year, due to the fact that most of the increase in the industry occurred in a previous year and Israelis equipped their homes well in 2020. The food and insurance industries remained almost the same in 2020. A decrease of 0.8% and a minimal increase of 1.3% respectively. This is due to excess consumption of food products in 2020 and a reduction in insurance in 2021.
Israelis’ purchases online
Among the prominent industries in online purchases, we are witnessing the continued strengthening of the restaurant industry, which this year reflected an increase of about 62% online compared to last year, as part of a continuing general trend of Israelis to move and stay online. According to the data, about 29% of the total volume of purchases in the restaurant industry are online orders. Another prominent industry is the computer industry, where it was recorded that the volume of online purchases was about 69% of the total purchases in the industry; And the volume of purchases in the electrical products industry made online alone was about 62% of the total purchases in this industry. The Furniture and Home Industry industry showed an increase of about 23% in the volume of online purchases compared to last year, which constitutes about 47% of the total purchases in this industry. In the fashion industry, the volume of online purchases constituted about 20% of the total purchases in the industry, while in 2020 this figure was about 22%.
In terms of the distribution of Israeli purchases in Israel and abroad this year by age, it appears that similar to 2020, ages 40-50 constitute more than a quarter of total purchases (26.4%) and the average monthly basket for this age range in 2021 is NIS 8,842, the highest of age groups. Ages 16-20 showed a significant increase of 30.3% in the average monthly basket, however this group constitutes only 1.3% of the total purchases. The age groups 30-40 and 50-60 constitute about 20% in each age group. The data illustrate that in 2021, all age groups showed an increase of about 16% or more in the average monthly basket volume, compared to the previous year as part of the overall trend of switching from cash to credit cards.
| age group | 16-20 | 20-30 | 30-40 | 40-50 | 50-60 | 60-70 | +70 |
| Purchase screen share | 1.3% | 11.8% | 20.9% | 26.4% | 18.8% | 12.9% | 7.9% |
| Adult population screen share | 8.5% | 20.1% | 18.6% | 16.9% | 13.0% | 11.6% | 11.3% |
- The data are according to ICC, with extrapolation to the entire market and the distribution of population ages according to the CBS.
Itai Hazan, Director of Data and Digital at ICC, said: “ICC data shows that this year, too, we have witnessed an increase in the prominent industries and the continued strengthening of the online network. The preference for the use of credit cards instead of cash seems to be increasing, and the transition to online payment is constantly growing. In our estimation, Israelis will continue to do their shopping in the online arena. “