Shoppers facing a €330 hike in grocery bills 

The cost of groceries rose by 5.5% in Ireland during 2021.

The average household faces a €330 hike on its annual shopping bill as grocery price inflation hits its highest level in almost a decade.

Data on the Irish grocery market shows all the major retailers saw take-home grocery sales fall by 7.2% over the 12 weeks to April 17, 2022, compared to the same period last year, as consumers feel the pinch.

Data analytics and brand agency Kantar says the average spend per buyer has fallen by €144, with almost a quarter of those surveyed saying they are struggling to make ends meet with their weekly food shop.

Against a complex backdrop of global supply chain issues, grocery price inflation has hit 4.7% this period, its highest level since September 2013.

However that the online grocery market continues to grow, with sales up by 3.9% as people spent an extra €2m on digital platforms, which have a market share 3.3 percentage points higher than the same 52-week period in 2019.

“The impact of grocery inflation is being felt widely across store shelves and consumers will be noticing the effects on their budgets,” Kantar senior retail analyst, Emer Healy said.

Foods like cooked poultry, bread, pasta, and butter have seen some of the biggest jumps. 

“The average household is facing a €330 price increase on their annual grocery bill, and 23% of households say they are now struggling to make ends meet when it comes to their weekly food shop.

“Retailers are responding to the rising price of goods, focusing their efforts on offering everyday low prices for shoppers.” 

The latest Kantar report shows how for the first time since the pandemic began, sales are in decline by 5.2% compared with two years ago, as the period now includes the start of the first lockdown, when only essential shops were allowed to open.

“The pandemic might no longer be the first thing on shoppers’ minds, but we’re still seeing its effects on the grocery market as life gets back to normal,” Ms Healy said.

“The number of supermarket trips made each month has continued to fall, with shoppers making 3.5 fewer visits on average than this time last year when Covid-19 restrictions were much tighter.

The average spend per buyer has also fallen significantly by €144 as consumers eat more meals out of the home.

“On top of that, the types of items we’re buying have changed too. Sales of instant hot snacks and frozen pizzas are growing by 9% and 4.3% respectively over the last four weeks as shoppers turn to quick and easy meals now that many of us are back in the office and juggling school runs again.” 

Despite rising prices, consumers splashed out over Easter, spending €10.8m more on Easter eggs and seasonal chocolate over the latest four-week period compared to the same time last year, and spending an extra €620,000 on the traditional hot cross bun.

The Kantar data also shows Dunnes Stores has retained its position as Ireland’s largest grocer, with 22.4% market share in the latest 12 weeks, with the largest influx of new shoppers contributing an additional €56.8m to its overall performance.

SuperValu is second, with 21.8% market share, followed closely by Tesco, with 21.7%, with Lidl and Aldi accounting for 13% and 12.1% of the market respectively.