The product images look like normal jpg files therefore there's no reason that they won't be cached by the visitors browser.
I'm assuming you ask this question because of the time it takes to load the page, caching won't help on the initial visit to the page only revisits.
I think your bigger problem is the 600K or so of HTML that makes up the page.
As you are using PHP you could enable compressed output either in php.ini or using ob_start('ob_gzhandler');
and ob_end_flush();, check the manual for details.
Not all browsers will support compressed data and it will only help a little, my advise is reduce the number of items on the page. You could also try using CSS to see if you can reduce the number of tags.
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