Higher Grocery Prices Prompt Surge in Own Label Sales in Ireland

Table of Contents

1. Key Highlights
2. Introduction
3. The Current Grocery Landscape
4. Own Brand Sales Surge
5. Seasonal Sales Fluctuations
6. The Shift to Online Sales
7. Retailer Market Share Dynamics
8. Implications for the Future
9. FAQ

Key Highlights

• Promotional Sales Increase: Shoppers spent an additional €99 million on promotional items, as grocery stores respond to rising costs.
• Own Range Popularity: Own brand products saw a 4.5% increase in sales, now accounting for 47.6% of total grocery value sales.
• Market Trends: Despite a slowdown in growth, online grocery shopping is on the rise, with a 10.8% increase in online sales year-on-year.

Introduction

In the realm of grocery shopping, the Irish marketplace reflects broader economic pressures as consumers grapple with increasing prices. Recent data from Kantar highlights a notable trend: as household costs rise, Irish shoppers are turning to promotional deals and own brand products in larger numbers. In a landscape where take-home sales saw an overall increase of 3.4% in the four weeks leading to March 23, 2025, this article delves into the dynamics behind these changes, exploring how inflation and market strategies are reshaping consumer behavior.

The backdrop of rising grocery prices, increasing by 3.8% year-on-year, not only pains consumers but also forces retailers to adapt quickly. How is this playing out in the aisles of Irish supermarkets? Read on to uncover the strategies retailers are adopting and how they’re influencing consumer choices.

The Current Grocery Landscape

Kantar’s latest insights illustrate a marked shift in consumer purchasing patterns amid high inflation. Shoppers are increasingly attracted to bargains and value, gravitating toward promotions and store-brand alternatives as a means to cope with their budget constraints. Emer Healy, Business Development Director at Kantar, pointed out that supermarkets are actively ramping up promotional efforts to lure customers both in-store and online.

Many consumers are finding solace in promotional sales, with an increase in spending on promotional lines summing to an impressive €99 million compared to the same period last year. This pivot towards value shopping and deal-seeking behavior reveals a significant shift in the rituals of grocery shopping, compelling retailers to rethink their strategies.

Own Brand Sales Surge

Significantly, Kantar noted that own label products, often regarded as the more economical alternative to branded goods, skyrocketed in popularity, experiencing a growth of 4.5%. Shoppers spent an additional €71.9 million on these own range products, which now constitute a remarkable 47.6% of total grocery value sales. The contrast illustrates an evolving shopping landscape where brand loyalty diminishes at the expense of economic prudence.

The rise in own brand sales can be attributed to several factors:

• Price Sensitivity: As consumers face mounting financial pressures, the allure of lower-priced alternatives becomes impossible to overlook.
• Quality Perception: Own brand products have improved significantly in quality over recent years, bolstering trust among consumers who were previously hesitant.
• Increased Promotional Efforts: Retailers have ramped up advertising for their select brands, positioning them as high-quality yet affordable options.

Seasonal Sales Fluctuations

The period leading up to St. Patrick’s Day and Shrove Tuesday also saw considerable spikes in specific categories. Kantar reported an additional €6.8 million in sales from beer, spirits, and wine. Shoppers were also prompted to spend an extra €590,000 on seasonal foods such as hot cross buns and pancakes. These findings underline the market’s responsiveness to cultural events and seasons, revealing the careful dance of modern consumerism.

In addition, there was a notable increase in fish sales, which saw an extra €930,000 spent on fresh fish and ready meals. Such trends illustrate the importance of seasonal marketing strategies and promotions, with retailers benefitting from occasions that encourage festive spending.

The Shift to Online Sales

In tandem with changing purchasing behaviors, online grocery shopping has gained substantial traction, specifically noted with a 10.8% year-on-year increase. Kantar’s data indicates that shoppers have shifted their preferences, purchasing groceries more often via online channels—an increase of 11.4% in the frequency of online grocery shopping.

This transition can be correlated with several factors:

• COVID-19 Legacy: The pandemic extended the reach of online grocery shopping, leading to lasting changes in how consumers procure their essentials.
• Convenience: As lifestyles become busier, many opt for the ease of online shopping without the need to physically navigate store aisles.
• Promotions Online: Retailers are now effectively integrating promotional offers across both online and brick-and-mortar formats, providing consumers a seamless shopping experience.

Retailer Market Share Dynamics

Kantar’s report reveals rich insights into the competitive dynamics among major Irish supermarkets. As of the latest data, Dunnes Stores holds a 24.4% market share, showcasing a commendable growth rate of 6% year-on-year. Notably, shoppers here were observed picking up more products per trip, showing an increase of 1.9%, indicative of evolving shopping habits focusing on bulk purchases.

In comparison:

• Tesco commands a 23.2% market share, also marking a 6% increase in value. Increased foot traffic contributed €33.6 million to their overall performance.
• SuperValu, with a 20.2% share, saw a growth of 5.4%, as consumers made the most trips to this grocer—an average of 24.5 times over a 12-week period.
• Lidl and Aldi capture 13.5% and 11.6% of the market, respectively, both demonstrating growth that highlights the importance of attracting budget-conscious consumers.

The competitive landscape among these retailers underscores the challenges and opportunities posed by changing consumer behaviors, particularly in times of economic strain.

Implications for the Future

As inflation continues to linger, and as household costs remain unpredictable, the landscape for grocery shopping in Ireland seems poised for continued evolution. Retailers will likely need to remain persistent in their efforts to cater to budget-conscious consumers while ensuring that promotional strategies align with shifting shopping behaviors. The trend toward own range products may signal long-term shifts in purchasing loyalty, encouraging major brands to rethink their positioning and product offerings.

Innovation in value offerings and promotional strategies will be crucial for supermarkets aiming to maintain market share and customer loyalty during these turbulent economic times. Observing how retailers adapt to these shifts will reflect broader trends in the grocery sector, as consumer expectations continue to evolve.

FAQ

What are own range products?

Own range products are grocery items sold under a retailer’s brand name that typically offer lower prices compared to national brands. They are increasingly favored by consumers seeking affordable alternatives without compromising quality.

How much have grocery prices increased in Ireland recently?

In March 2025, average grocery prices in Ireland increased by 3.8% compared to the previous year, contributing to shoppers’ search for promotional deals and less expensive alternatives.

Are promotional sales on the rise?

Yes, promotional sales in Irish grocery stores increased significantly, with shoppers spending an additional €99 million on promotional items compared to last year.

How has online grocery shopping changed in recent times?

Online grocery shopping has seen a 10.8% increase year-on-year, as consumers continue to take advantage of convenience and promotional offers available through digital channels.

What impact do seasonal events have on grocery sales?

Seasonal events such as St. Patrick’s Day and Shrove Tuesday have a notable impact on grocery sales, with specific categories like alcoholic beverages and seasonal food items showing significant boosts in sales during these times.

As we navigate an increasingly complex economic environment, the grocery sector remains a focal point of consumer behavior and market dynamics. Understanding these trends will be key for stakeholders aiming to thrive in a fluctuating landscape.