Kantar Worldpanel’s latest statistics indicate that the rate at which grocery product prices are increasing in Ireland is slowing down, the lowest since the outbreak of the cost of living crisis that followed shortly after Russia’s invasion of Ukraine in March 2022. The data shows that the increase in the cost of groceries over the 12-week period ending on 9th June is a mere 2.5 per cent, a decrease of 13 percentage points compared to the same period the previous year.
The research suggests that inflation is still on a downward trajectory, yet Irish consumers haven’t stopped seeking out good deals. More than a quarter of total sales value came from discounted products. The data also hints at a change in buying habits, with shoppers seemingly turning away from seasonal products and showing preference for food items usually associated with colder months.
Reflecting on the less than ideal sunny weather conditions in June, Emer Healy, Kantar’s Director of Business Development, noted that consumers weren’t spending time outdoors at the barbecue but instead chose to shop for indoor meals. He stated that less money was being spent on items like chilled salads, burgers, and sausages, as opposed to last year with a total decline of €1.6 million. But festive weekend indulgence did contribute to spiked sales in savoury snacks, sweets, beer, and lager by 16 per cent, 11.9 per cent, and 13.1 per cent respectively. Comfort foods like soups and home-baked goods also saw an uptick, bringing in an extra €1 million and €500,000 respectively.
The research reveals that store-branded products experienced a healthy growth, outdoing the overall market with a year-on-year growth of 4.9 per cent. Holding just over 48 per cent of value share, consumers spent an additional €73.5 million year-on-year on these items. Even the premium store ranges have shown good sales, seeing a rise of 11.4 percent with an additional spend of €16.8 million compared to the same time last year. Branded products also witnessed a modest rise by 3.9 per cent over the 12-week period, with consumers contributing an additional €57.9 million towards buying these products.
Further, online grocery shopping figures show an impressive climb with a 16.3 per cent increase year-on-year, accounting for an additional spend of €26.6 million.
In the landscape of retail competition, Dunnes currently commands a market share of 23.4 per cent, a 6.2 per cent increase from the previous year. Close on its heels is Tesco, with a market share of 23.1 per cent which is also a 6.2 per cent improvement year-on-year. Meanwhile, SuperValu occupies 20.5 per cent of the market and demonstrated a relatively feeble growth of 2.8 per cent. Lidl, on the other hand, holds 13.9 per cent of the market, with a growth rate of 5.6 per cent. As for Aldi, the company sits at 11.8 per cent market share.