Israeli Parents Face Rising Back-to-School Costs as Market Hits 421 Million Shekels

Ahead of the 2026 school year, Israeli parents are expected to spend approximately 421 million shekels on back-to-school supplies, marking a 3% increase from 408 million shekels in 2025, according to CofaceBDi data. The market has grown steadily from about 395 million shekels in 2024. The average spending basket, which includes items such as backpacks, writing tools, notebooks, water bottles, and lunch boxes, is estimated at around 480 shekels. However, this average conceals significant disparities, with basic supply sets costing about 250 shekels and premium branded products reaching up to 750 shekels. A single backpack alone can cost 300 shekels or more, and younger students often require an additional wheeled cart costing between 60 and 100 shekels.

The retail landscape is shifting, with specialized stationery stores still holding the largest market share at 39%, but discount stores are rapidly gaining ground, expected to reach 35% this year compared to 31% last year. Daniela Raz-Weinerav, CofaceBDi's Vice President of Data and Product, attributes this growth to intense competition, a favorable low dollar exchange rate reducing import costs, and retailers offering more attractive promotions. She also notes that companies differentiate themselves through shopping experience, product quality, and trendy designs inspired by K-pop and street art. Additionally, the demand for water bottles and lunch boxes continues to rise, driven by increased environmental awareness and longer school hours.