02-05-2025
Irish consumers make permanent switch to own-brand labels
Consumers in Ireland have permanently shifted their mindset around supermarkets' own-brand products, saying they meet their needs just as well as branded products.
A new consumer survey from EY found that 72% of Irish consumers say own-brand or generic products, once seen as the second choice on the shelves, now meets their needs. This is higher than global level of 67%.
The survey found that sentiment varies by category and while private labels are making strides in fresh food, confectionery and processed cupboard staples, branded goods continue to dominate in beauty and alcohol – categories where image, experience and indulgence remain important.
Colette Devey of EY Ireland said consumer behaviour has traditionally shifted during economic uncertainty and periods of acute price inflation.
"But today's changes appear to be more fundamental," she said. "Unlike past cycles – where consumers returned to familiar brands post-crisis – prolonged inflation, supply chain disruptions and geopolitical instability would seem to be reshaping habits permanently."
According to the survey, financial concerns continue to dominate the Irish consumer mindset, with 96% concerned with the cost of living and 92% with their own personal finances. Price was the primary driver of consumer purchasing in Ireland.
This price sensitivity has prompted a shift in shopping habits to find better value. Almost half of Irish shoppers (47%) said they are heading to discount shops to make their budgets go further, and a similar number (45%) said they plan to hold out for sales or join loyalty programmes to secure better value.
Consumers have also become more wary of 'shrinkflation', where products are reduced in size but prices stay the same, and sceptical of overly generous promotions. Almost half of the respondents (48%) believe that new product improvements are often the result of cost-cutting rather than genuine enhancements for the customer.
Despite their concern over prices, there is optimism amongst Irish consumers. More than half (54%) believe they'll be better off in 12 months, compared to just 19% who think they'll be worse off.
Across Ireland, physical retail continues to hold strong, not just in convenience or habit, but in real emotional and practical value. A large majority of Irish consumers still prefer in-person shopping for essentials: 83% favour physical stores for fresh food, while 74% prefer them for personal care items.
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