More than 40% of consumers feel financially worse off this Christmas

One in three survey respondents stated they will be opting for lower-cost alternatives across the board this year

A new report found that 51% of people planning to incorporate lower-cost or own brand products into their Christmas shopping.

More than half of Irish consumers will look to incorporate more lower-cost alternatives or own-brand products when it comes to their Christmas shopping this year as a significant proportion feel financially worse off, a new report shows.

According to the latest EY Ireland Consumer Pulse 2025, premium and branded products are no longer being seen as an absolute necessity, with 51% planning to incorporate lower-cost or own-brand products into their Christmas shopping.

It found that 43% of consumers are feeling financially worse off compared to last year and one in three respondents stated they will be opting for lower-cost alternatives across the board.

This comes as grocery price inflation continues to run ahead of the general rate of inflation piling pressure on already stretched households coming into the festive period.

Grocery price inflation is currently running at just over 6% while the headline inflation figure stands at 2.9% as of October.

Of those surveyed, 70% said they have noticed price changes that they associate with trade disruption and tariffs, particularly in food-related groceries and household goods.

EY Ireland agri-food sector lead Simon MacAllister said trade disruptions are now an “ongoing feature of the operating environment for every business, but retailers are not powerless”.

“The most resilient businesses are actively de-risking their supply chains by sourcing closer to home, building regional partnerships, reducing single-country exposure and creating flexibility in how and where products are produced.” 

Mr MacAllister added that if retailers “communicate these actions clearly to customers”, it can help build confidence with consumers that the price changes are being managed with intention rather than being “quickly passed on without scrutiny”.

Looking ahead to next year, the report found that 50% of respondents expect their current financial position to remain the same with consumers looking to focus more carefully and consider spending rather than cutting back.

EY said the consumer outlook for the new year is “reflective of traditional post-Christmas trends” with 29% of people looking make savings on general spending, 30% looking to prioritise allocating finances to areas such as improving their overall health and fitness, and 16% planning for future trips or experiences.

EY Ireland consumer products and retail sector lead Colette Devey said it is “interesting” that twice as many 18- to 34-years-olds are already planning a ‘wardrobe refresh’ in the January sales compared to the overall average — 10% compared to 5% — showing “that savvy shopping habits are firmly embedded in younger age cohorts”.

The research was based on a nationally representative survey of 1,032 adults.