Irish Grocery Spending Defies Cost-of-Living Concerns: A Shift Towards Brand Loyalty and Convenience
Despite ongoing price increases, Irish consumers spent an additional €56 million on groceries in the four weeks leading up to November 30th, 2025 – a testament to a surprising trend: a willingness to indulge, even as household budgets are squeezed. This isn’t simply about maintaining spending; it’s a fundamental shift in how and why Irish shoppers are filling their baskets, with significant implications for retailers and brands alike.
The Rise of ‘Affordable Indulgence’
Grocery price inflation currently stands at 6.0%, a slight dip from 6.5% the previous month, but still a considerable pressure on household finances. However, the data reveals shoppers aren’t solely focused on the absolute lowest price. Instead, they’re seeking a balance – a mix of quality and value. This ‘affordable indulgence’ is driving a remarkable surge in branded product sales. Brands now hold a 49.9% value share, the highest since January 2025, with an extra €96 million spent on branded ranges year-on-year.
This isn’t to say own-label brands are suffering. Quite the opposite. They’ve experienced robust growth of 5.3%, with an additional €82.6 million in sales. Crucially, it’s premium own-label ranges leading the charge, up 10.7% – indicating consumers are willing to trade up within private label offerings for perceived quality.
The Shrinking Shopping Trip & The Convenience Factor
Interestingly, shoppers are spending 1.3% less time in-store. This isn’t necessarily a sign of reduced spending, but a clear indication of a growing demand for convenience. Busy social calendars and time constraints are prioritizing quick wins: ready-to-go gifts, easy meal solutions, and anything that streamlines the shopping experience. Retailers who can capitalize on this trend – through efficient store layouts, online ordering options, and readily available pre-prepared foods – will be best positioned for success.
Christmas Dinner: A Balancing Act
The cost of the traditional Christmas dinner is marginally higher this year, around €31.22 for a family of four. Retailers are responding by emphasizing own-label options and promotional lines. While the price of staples like vegetables is decreasing, increases in turkey and seasonal biscuits are pushing up the overall cost. However, even with rising prices, festive indulgence remains a priority. A striking 24% of households purchased a selection box in November, despite a 13.5% price increase on chocolate.
Online Grocery Continues its Ascent
The shift towards online grocery shopping is accelerating. Online sales grew 6.7% year-on-year, now accounting for 6.2% of the market. This growth is fueled by both larger and more frequent online trips, with shoppers spending an additional €14.4 million online during the period. Nearly 18% of Irish households are now regularly purchasing groceries online, a figure expected to rise significantly in the coming years.
Retailer Performance: A Shifting Landscape
Dunnes currently holds the largest market share at 24.8%, up from the previous 12-week period, driven by larger and more frequent shopping trips. Tesco follows closely with 24% market share, benefiting from an influx of new customers. SuperValu, while maintaining a strong presence at 19.3%, saw more modest growth, but continues to attract the highest number of shopping trips per customer (averaging 23.6 trips over the last 12 weeks).
However, the standout performer is Lidl, with a remarkable 9.4% growth – the fastest among all retailers. This success is attributed to both attracting new shoppers and increasing the volume of purchases from existing customers. Aldi also experienced growth, up 2.5%, driven by increased store visits and new customer acquisition.
Looking Ahead: The Future of Irish Grocery
The trends observed in the lead-up to Christmas 2025 point to a future where convenience, brand loyalty, and a willingness to indulge will be key drivers of grocery spending. Retailers need to invest in seamless omnichannel experiences – integrating online and in-store offerings – to cater to evolving consumer preferences. Brands, particularly those offering premium products, have an opportunity to solidify their position by emphasizing quality and value. The focus will be less on simply offering the lowest price and more on delivering a compelling shopping experience that meets the needs of time-pressed, value-conscious consumers.
As consumer habits continue to evolve, understanding these nuances will be critical for success in the competitive Irish grocery market. Further research into the impact of personalized promotions and the role of sustainability in purchasing decisions will be crucial for retailers and brands looking to stay ahead of the curve. The Central Statistics Office provides valuable data on Irish consumer spending trends.
What strategies are you implementing to adapt to these changing consumer behaviours? Share your insights in the comments below!
