Grocery price inflation reaches record high of 16%, data shows

Shortages and soaring prices remain the standout features of the Irish supermarket experience, with grocery price inflation reaching a record high of 16.4 per cent in the 12 weeks to the middle of last month, according to data from retail analysts Kantar.

Shoppers have also had to contend with gaps in the fruit and vegetable aisles, with cucumbers and tomatoes increasingly difficult to come by, the research suggests.

Grocery sales growth more than doubled in the four weeks to February 19th with sales jumping 10.2 per cent by value compared with 5 per cent in January, with record-breaking inflation the real driver behind this rather than more consumption.

Kantar’s senior retail analyst Emer Healy said the 16.4 per cent rate of inflation in recent weeks compares with a rate of 2.4 per cent 12 months ago.

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“In a year of rising costs and sky-high inflation, Irish consumers are looking for ways to manage their household budgets. This has led to the Irish grocery market becoming more competitive than ever, with shoppers looking for the best deals among the retailers,” she said.

She said shoppers have also been navigating shortages in the fruit and vegetable aisles over recent weeks. “Consumers spent €2.3 million more on vegetables year-on-year, however, volumes declined by 9.5 per cent. Volumes of cucumbers and tomatoes fell significantly by 17.2 per cent and 8.9 per cent respectively year-on-year.”

The market is seeing much stronger own-label growth (up almost 12 per cent) compared with brands (up just over 6 per cent) as shoppers looked for ways to save money.

Own-label value share has also risen from 42.6 per cent in 2021 to 45 per cent in 2023. Value own-label lines (the cheapest products) saw the strongest growth year-on-year, up 35.8 per cent, with shoppers spending €19 million more on these ranges.

Online sales remained strong over the past 12 weeks, up 5.2 per cent year-on-year, with shoppers spending an additional €8 million online. An influx of new shoppers boosted online sales by €7.1 million with nearly 18 per cent of Irish households now purchasing online.

With Valentine’s Day falling on a Tuesday and many feeling the strain of rising costs, consumers preferred to show their love at home this year, with shoppers spending an additional €1.2 million on wine, €1.5 million on chilled desserts and €3.8 million on chilled ready meals. Chocolate was also a winner, with shoppers spending an additional €326,000 on gifting chocolate.

While Easter has already hit the shops, Irish consumers are yet to stock up on Easter eggs. Sales of seasonal chocolate are down 29 per cent year-on-year even though Easter Sunday falls a week earlier this year. Shrove Tuesday also saw shoppers indulging in pancakes, with sales of flour, eggs, butter and chocolate spread up 11.9 per cent, 29.6 per cent, 19.5 per cent and 55.5 per cent respectively.

Dunnes Stores holds the highest share among all retailers at 23.6 per cent with growth of 12.3 per cent year-on-year. Tesco sits close behind in second place with the latest data showing shopper footfall for Tesco at its highest level since January 2020.

SuperValu has 20.8 per cent of the market and growth of 2.9 per cent, the strongest level for the retailer since April 2021. Aldi has 11.7 per cent and growth of 8.8 per cent year-on-year, while Lidl is on 12.6 per cent.