Rate of grocery price inflation slows for tenth month in a row

A survey of over 30,000 products in Irish supermarkets revealed that shoppers paid 4.7pc more for these goods in the 12 weeks to February 18 compared with the same period in 2023.

This was down 1.2pc from January’s report, with inflation levels now at their lowest point since April 2022.

Kantar’s business development director Emer Healy said that this gradual decline is expected to continue throughout the year.

“As consumers continue to closely manage their household budgets and look for the best value, it’s no surprise that own label goods continue to perform strongly,” she said.

"We saw this behaviour over the course of 2023 and it’s clear to see this is now a more established norm for shoppers into 2024.”

Retailer’s own-brand products currently hold a 46pc market share, with shoppers spending an additional €112m on own label ranges year-on-year.

Demand for branded goods are still increasing, with sales up 4.7pc in the recent 12-week period. However, this remains slightly behind the total market, Kantar said.

Retailers introduced more promotions in the period in an attempt to woo shoppers following the annual slowdown after Christmas.

More than 27pc of all spend in the 12 weeks to February 18 was made on products featured in a promotional offer. This was an increase of almost 4pc compared to the same time in 2023.

Irish consumers also embraced the opportunity to celebrate Valentine's Day this year.

Over 58pc of Irish households purchased boxed and gifting chocolates in the 12-week period, spending an extra €1.7m year-on-year.

Many opted to celebrate at home, with an additional €4.3m spent on chilled ready meals, as well as €1.8m more spent on chilled desserts in the period.

Online grocery sales were up 17.3pc, with growth fuelled by more frequent visitors online.

Around 18.4pc of Irish households are now purchasing groceries online.

Dunnes Stores retained its title as the most popular grocer in the market in the period. The retailer currently holds a market share of 24.3pc.

Tesco followed, with a 23.5pc market share.

SuperValu’s market share stood at 20.6pc. SuperValu customers make the most trips in store, with an average of 20.9 trips over the 12-week period.

Lidl holds a 12.8pc market share, while Aldi’s market share was 10.9pc.