In recent months, many Irish consumers have become increasingly concerned about persistent food inflation. Grocery prices have risen by 27% between 2021 and June 2025, a substantial increase – though still below the EU average rise of 35% ( CPCC) From 2001 to 2021, Irish food and grocery prices rose by about 3%. This was lower than in most EU countries, and for the whole period, food inflation in Ireland stayed below the EU average. The current cost-of-living pressures have refocused shopper priorities.
The question arises: have we simply become more price-sensitive, or is a growing interest in healthier, premium food alternatives – often with more expensive ingredients – influencing our buying habits?
Market Context
Findings from the Competition and Consumer Protection Commission (CCPC) indicate no evidence of excessive profit margins or market failure among Irish grocery retailers. The sector remains highly competitive and dynamic, with strong consumer choice and improved services over the past two decades.
However, Ireland faces unique structural challenges compared to many EU members:
- Higher Wage Levels: The Irish minimum wage (€13.50/hour) is nearly double the EU average (€7.15/hour). While this supports incomes, it also increases labour costs throughout the supply chain.
- Island Location & Transport Costs: Being geographically removed from mainland Europe raises shipping and distribution expenses for both imports and exports. Rejected or delayed shipments can be especially costly for exporters.
- Scale Limitations for SMEs: A striking 99.8% of businesses in Ireland’s Food & Beverage Service Activities sector are SMEs – over 11,700 enterprises out of 11,803 in 2025. Smaller production volumes and limited economies of scale often mean higher per-unit costs.
Retailer Collaboration with Irish Producers
In recent years, major supermarkets have significantly increased purchasing from Irish food and drink producers. Initiatives such as Lidl Kickstart, Grow with Aldi, SuperValu Food Academy, and M&S’s Irish supplier engagement actively support SMEs. These programmes not only introduce innovative products into the market but also strengthen the local economy and create jobs. Sub-sector growth rates of 4–7% annually are common in areas benefiting from these collaborations.
Consumer Strategies for Smarter Shopping
While we can’t influence global market forces, informed consumer behaviour can help keep food budgets under control:
- Plan Your Meals: Weekly planning reduces impulse purchases and avoids overbuying. Online ordering – for example, doing a full week’s shop online can help maintain consistency and control spend and avoid impulse buying.
- Reduce Food Waste: Use leftovers creatively and store food correctly to extract maximum value from every ingredient.
- Support New Brands: Many Irish SMEs rely on every sale to grow their businesses. Exploring their products supports innovation and the local economy. Knowing the people behind the brand – through farmers’ markets, in-store tastings, or industry podcasts such as The Irish Food Trade Connect Conversations – builds consumer trust and connection.
- Be Strategic When Dining Out: Dining out weekly has fallen from 33% pre-COVID to 13% in 2025, reflecting lasting behavioural change. Opting for early-bird menus, midweek offers, or alternative dining times can make eating out more affordable while still supporting the hospitality sector.
The Bottom Line
Despite inflationary pressures, Ireland’s intense retail competition, the resilience and innovation of Irish food producers, and ongoing market oversight are helping to keep prices fair and supply chains functioning. By combining smart shopping, meal planning, waste reduction, and mindful dining choices, consumers can navigate challenging times while continuing to support local food businesses and enjoy the quality produce Ireland is known for .
Margaret Dineen