Irish consumers more worried about food prices than global peers, survey finds

As food inflation bites, Irish consumers are prioritising affordability over health or sustainability in their weekly shop

One in eight Irish consumers is choosing to eat more locally sourced products to help the environment, according to an Accenture report. Picture: Getty Images

More than 70% of Irish consumers said they are either extremely or very concerned about the cost of their food, significantly outpacing global counterparts, new figures from PwC show.

Grocery prices increased almost 5% in the past year, with the rate of inflation rising by 2.4 percentage points to 4.96%.

Latest data from Kantar shows Irish shoppers spent an extra €73m on groceries last month, with the warmer weather, longer days and time spent outdoors driving consumer spending.

In response to rising prices, almost two-thirds of Irish consumers are now considering ‘better value for money' as the top reason for switching food brands. In addition, some 41% of Irish respondents reported that they tend to buy budget or value brands.

Most recent data from the Central Statistics Office shows prices for a range of food items have jumped sharply over the past year. A pound of butter is €1.03 more expensive, Irish cheddar is up 57c per kilo, with two litres of full-fat milk up 27c and an 800g sliced pan up 5c.

The PwC survey shows that as food prices rise, just 37% say that they are willing to pay more for food that supports the environment, such as improving soil quality and enhancing biodiversity.

The research, which gathered insights from 1,000 Irish consumers, reveals that consumers want to purchase food that aligns with their attitudes towards health, convenience and sustainability. However, escalating food prices and cost-of-living challenges are constraining their ability to fulfil these aspirations.

Health concerns

Meanwhile, significant health concerns over ultra-processed foods or pesticide use are intensifying among over half of Irish consumers surveyed, with some 47% of respondents planning to increase their consumption of fresh produce in the coming months.

Over a third are reducing their alcohol consumption, while 32% are avoiding ultra-processed foods to a great extent. In addition, nearly a fifth are planning to reduce their consumption of red meat.

The current economic climate and recent cost of living impacts continue to weigh heavily on Irish consumers, the professional services firm found, with 50% of Irish respondents saying that they are ‘extremely’ or ‘very’ concerned about their personal financial situation.

Approximately 11% struggle to pay all or some of their bills every month, while 48% of Irish respondents stated they are just financially coping.

"Consumer sentiment remains fragile," says John O’Loughlin, Partner, PwC Ireland Retail and Consumer Practice.

"The survey highlights that many Irish consumers, although wanting to eat healthily and support sustainability, are concerned about the cost of living and their ability to pay."

Weight loss drugs

The findings also revealed that two-thirds of Irish respondents were open to using a weight-loss prescription drug in the future, compared to 61% of global respondents.

Of the global respondents who had experience using weight-loss prescription drugs, 73% confirmed that their overall health had improved, while 68% plan to still be taking the drug in six months. 

However, over half reported experiencing side effects, with 51% stating that they had not lost as much weight as they had hoped.