Irish grocery price inflation continued to rise in January, increasing 6.8% compared to the same period last year, adding further pressure to households after the festive period, new data from market research firm Worldpanel by Numerator shows.
In December, grocery price inflation stood at 6.25%. The inflation figure is based on the prices of 30,000 identical products compared year-on-year.
As of December, the latest figure available, headline inflation stands at 2.8%.
Take-home grocery sales in the four weeks to January 25 increased by 5% compared to last year, with shoppers spending more than €1.2bn on groceries over the period.
Business development director at Worldpanel by Numerator Emer Healy said while grocery sales continued to grow, “rising inflation meant that value remained front of mind for consumers”.
“Our latest pressure group study reveals that more shoppers in Ireland are finding the current economic climate tough, with 31% feeling that they are struggling to make ends meet. This is no surprise: rising grocery inflation means that consumers are increasingly feeling the pinch,” she said.
The company said grocery spending and the volume sold on promotion over the 12 weeks to January 25 remained at a record low of just 19.6%, “suggesting that shoppers are managing their budgets through everyday choices rather than increased promotional purchasing”.
Own-label products accounted for 43.4% of total grocery spending, with sales of premium own label goods experiencing growth of 5%.
The company noted a trend towards healthier options during January, with Irish shoppers spending an additional €454,000 on low- and no-alcoholic beverages. Spending on fresh fruit, chilled smoothies, juices and yoghurts was also on the rise, increasing by more than €8.1m.
Healthcare sales increased 6.8% year on year, with consumers ploughing an additional €1.8m into the category as they stocked up in time for the start of flu season.
Ms Healy said as shoppers refocus on health after the indulgence of the festive period “we’re seeing growing demand for everyday staples that support their wellbeing goals, such as products rich in protein and fibre”.
She added consumers were opting for a more “balanced, sustainable approach to healthy eating built around familiar, accessible foods that fit naturally into their daily routines”.
“With more shoppers exploring plant-based choices through Veganuary, meat alternative products experienced an uplift during the period, with shoppers spending an additional €838,000 on meat substitutes versus last year.”
Dunnes Stores held the largest share of consumer spending in the 12 weeks to January 25, with 24.8%. Larger trips and new shopper recruits contributed an additional €29.8m to its overall performance compared to last year.
Tesco was in second place, holding 24.4% of the market, followed by SuperValu at 19.4%.
Lidl was once again the fastest-growing grocer, holding 13.2% of the market while Aldi held 10.4%.
Online grocery sales continued their strong march, rising 7% year on year to take 5.8% value share.
