Rising grocery costs have had a significant impact on Irish households, with an annual increase of 427 euros in the cost of groceries. Grocery price inflation, although at its lowest level this year, remains a concern, with consumers paying 14.7% more for goods in the 12 weeks leading up to July 9. This represents a decline from the previous month’s figure of 15.8%, and it is anticipated that grocery price inflation will continue to gradually decrease.
The rise in take-home grocery sales in Ireland, which have increased by 9.6% in the four weeks leading up to July 9, can primarily be attributed to inflation rather than increased purchasing. In an effort to reduce costs and food waste, shoppers are opting for more frequent visits to stores and purchasing smaller quantities per trip. Irish consumers are also showing a preference for own label products, as evidenced by a 13% growth in overall sales.
Notably, specific grocery sales have seen an increase in spending on chilled burgers, grills, and ice cream, as well as an 11.2% year-on-year surge in alcohol sales. Furthermore, online grocery sales have witnessed a 6% increase year-on-year.
In terms of market share, Dunnes Stores maintains the top position with 22.7%, followed closely by Tesco with 22.6%, and SuperValu in third place with 20.7%. Lidl holds a market share of 13.9%, while Aldi’s market share has risen to 12.5%.
Grocery Price Inflation
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Take-Home Grocery Sales
Take-home grocery sales in Ireland experienced a 9.6% growth over a four-week period until July 9, driven by factors such as inflation and a shift towards reducing costs and food waste through more frequent store visits and smaller purchases per trip.
This growth can be attributed to the price inflation of groceries rather than an increase in overall purchasing. Irish consumers have been visiting stores more often in an attempt to mitigate the rising costs and reduce food waste. Additionally, shoppers have been opting for smaller volumes per trip.
In terms of consumer preferences, own label products have become the top choice for Irish consumers, with a significant increase in sales. Branded goods also saw growth, but the market share between branded and own-brand label products was equal.
Overall, the rise in take-home grocery sales can be seen as a response to the escalating grocery prices and changing consumer behavior.
Consumer Preferences
One notable trend in consumer preferences is the increasing popularity of own label products in the Irish grocery market. According to recent data, Irish consumers have shown a strong preference for value own brand products, with €14.2m more spent on these goods.
Overall, own brand products recorded a growth of 13%, while branded goods saw a growth of 7.6%. In fact, last month, both branded and own-brand label products had an equal market share, highlighting the shift in consumer preferences.
This trend can be attributed to various factors, such as cost-saving measures and the perception of good quality associated with own label products. As Irish households face rising grocery costs, it seems that consumers are opting for more affordable options without compromising on quality.
