Irish families are continuing to cut back on their weekly shop, spending €67 less on groceries this year compared to 2012.
Irish figures from consumer research firm Kantar Worldpanel show that the overall market has declined by 0.2% in the last year.
Shoppers with children appear to be hardest hit and are switching to discount stores in increasing numbers.
Aldi and Lidl's combined market share is likely to hit 15% by year end. However Tesco maintains its dominance with almost 28% of the market.
"We know that times are tight and from our shoppers that we monitor and track every single day - certainly those with kids - are telling us that it's especially tight at the moment," said
Mark Thompson of Kantar Worldpanel.
"They're having to look at different avenues just in a way to manage spend - and also the fact that inflation remains nearly double that it was last year."