Arab Consumers Prefer Luxury and Global Brands Reflecting Rising Economic Power

A recent comprehensive survey by the Aharon Institute for Economic Policy reveals significant differences in brand preferences between Arab and Jewish consumers in Israel for 2026. These disparities may stem not only from taste but also from economic changes in the Arab sector over the past decade. From 2012 to 2022, the average income of the Arab population increased by 4% annually, the highest growth rate among all sectors in Israel. Additionally, female employment in the Arab community rose sharply from 22.7% in 2004 to 45% recently, indicating a growing economic empowerment that influences brand choices.

The top 10 brands favored by Arab consumers include WhatsApp, Tnuva, Google, Bit, iPhone, Super-Pharm, LG, Sano, BMW, and Samsung. Notably, luxury car brands such as BMW (ranked 9th) and Mercedes (17th) are highly preferred by Arabs but rank much lower or do not appear in the top 50 among Jewish consumers. This suggests that Arab consumers associate premium car brands with economic success and international prestige, reflecting their new purchasing power and global market access.

In contrast, Jewish consumers tend to prefer brands linked to Israeli identity and tradition, such as Yotvata and Chocolate Para, which are almost absent from the Arab rankings. However, Tnuva, an Israeli brand, ranks second among Arabs, likely due to its inclusive marketing efforts and significant Arab workforce representation (20% as of 2025), especially during Ramadan campaigns.

Overall, the data indicates that the Arab community in 2026 favors global and premium brands that symbolize economic strength and modernity, while also embracing Israeli brands that recognize and engage them as important consumers. This shift reflects broader social and economic transformations within the Arab sector in Israel.