Supermarket Costs In Israel vs USA vs UK
Supermarket shopping costs vary significantly between Israel, the United States, and the United Kingdom due to differences in import taxes, market competition, and local production costs. Israel, in particular, has some of the highest grocery prices globally, especially for dairy, meat, and fresh produce.
1. Overall Grocery Prices
Israel is one of the most expensive countries for groceries. High import taxes and a limited number of supermarket chains contribute to higher food prices compared to the US and UK.
United States grocery prices vary by region, but staples such as dairy, bread, and meat are generally cheaper than in Israel due to lower taxation and a highly competitive market.
United Kingdom offers the most affordable grocery prices among the three, with competitive supermarkets providing cheaper food options.
2. Price Comparison of Common Grocery Items
Item Israel (₪) USA (₪ equivalent) UK (₪ equivalent) Milk (1 liter) ₪6.70 ₪5.56 ₪5.00 Bread (1 loaf) ₪8.02 ₪7.00 ₪6.00 Eggs (dozen) ₪13.36 ₪10.00 ₪11.00 Chicken breast (1 kg) ₪40-₪50 ₪30-₪40 ₪28-₪38 Rice (1 kg) ₪10-₪20 ₪8-₪15 ₪7-₪12 Tomatoes (1 kg) ₪6-₪15 ₪5-₪10 ₪4-₪9 Apples (1 kg) ₪8-₪20 ₪6-₪15 ₪5-₪12
📌 Note: Prices may vary based on store location, discounts, and seasonal availability.
3. Why Is Supermarket Shopping More Expensive in Israel?
A. Import Taxes & Tariffs
Many food products in Israel are imported and subject to high tariffs, leading to increased costs.
Imported dairy products, grains, and packaged goods often face additional custom duties, making them more expensive.
B. Market Competition & Supermarket Chains
The Israeli market is dominated by a few large supermarket chains, limiting price competition.
Unlike the US and UK, where large retailers compete aggressively to lower prices, Israel has fewer discount supermarket options.
C. High Cost of Kosher Supervision
Kosher certification increases production and supply chain costs, especially for meat, dairy, and processed foods.
Many products require specialized handling, leading to higher retail prices.
D. VAT (Value Added Tax) on Food
Israel applies 17% VAT on many grocery items, while the UK has zero VAT on staple foods.
This makes daily essentials more expensive for Israeli consumers.
4. Where to Find Affordable Grocery Prices
In Israel:
Budget Supermarkets: Rami Levy, Osher Ad, Victory, Yochananof.
Markets (Shuks): Mahane Yehuda (Jerusalem), Carmel Market (Tel Aviv), Haifa Market.
Wholesale & Bulk Shopping: Cost 365, Mega, Yesh.
In the USA:
Discount Supermarkets: Walmart, Costco, Aldi, Trader Joe’s.
Local Farmers’ Markets for fresh produce at lower prices.
In the UK:
Budget Supermarkets: Tesco, Aldi, Lidl, Asda, Sainsbury’s.
Online Grocery Discounts help reduce costs further.
5. Final Thoughts: Where Is Grocery Shopping the Cheapest?
✔ Most expensive country: Israel, due to high import taxes, limited competition, and high VAT.
✔ Mid-range costs: USA, where regional pricing can vary but essentials remain relatively affordable.
✔ Most affordable country: UK, with low food VAT and intense supermarket competition.
Would you like help finding specific affordable grocery stores or budget shopping tips in Israel? 🚀