The latest analysis on the Irish grocery market from Kantar shows annual grocery inflation hit 5.3% in the 12 weeks to 15 June.

This is a small increase from the pace seen in recent months and is far ahead of the overall level of inflation which is seen in wider economy.

Business development director at Kantar Emer Healy said: “The rise in average prices is clearly affecting both sales performance and shopper behaviour.

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"As grocery bills rise alongside other household expenses, Irish consumers are cautious with their spending and actively seek out promotions to secure the best value.”

The overall value of take-home sales was up by 5.7% in the four weeks to the middle of June, meaning an extra €28.8m of sales in the period.

High inflation

The high inflation levels may have been the driver behind the €802m increase in total spending on promotional lines in the three months to June, a 15.7% gain on the same period in 2024.

Supermarket own-label products overtook branded products in total market share. The Kantar report said that supermarkets must continue to find a balance between “delivering compelling value and navigating rising operational costs”.

Looking at the market shares for the major supermarket chains, Dunnes remained in the top spot with 23.6%, with Tesco close behind at 23.1%. Discounters Lidl and Aldi had 14% and 11.8% of the market respectively.