23% of consumers struggling with higher grocery prices
Nearly a quarter of consumers are struggling to make ends meet due to rising grocery prices, according to research conducted on behalf of Love Irish Food.
The study, carried out by Kantar, found that 23% of consumers are facing difficulties in covering the cost of shopping due to the jump in prices in the past year.
As a result, it found that many are switching to cheaper brands or selecting own-brand alternatives.
Consumers were also relying more on discounts and offers, and only buying what they need at that time.
“There is a greater search for offers, such as club card, or money off your next shop, and also doing smaller shops more frequently,” said Love Irish Food’s executive director Kieran Rumley. “People are adapting to this change are people have come through this process before.
“Shoppers are smart and they shop smartly.”
Mr Rumley said food and drink companies have tried to absorb some of the price inflation seen in the past year, while the hunt for special offers has further hit margins.
However most of the food companies he represents have a lot of experience in navigating challenging times.
“Most of these brands are generational, they’re there for the long-haul,” he said. “Margins have been tightened but, inevitably, producers look to the long-term.”
The research also shows a further move towards own brand goods – something that is also seen in separate grocery research by Kantar.
However Mr Rumley said that Irish brands have still managed to hold their own despite this shift.
Its latest research shows that Irish-produced brands still made up 44 of the top 100 best-selling brands last year, with its share of those sales on falling slightly last year.
“That’s only a drop of 1% in the past year,” Mr Rumley said.
The combined sales of those 44 brands was almost €1.1 billion last year – which is up 24% since 2017.