The sustained rise in the cost of living over recent years has reshaped how Irish consumers shop, spend and seek value, with private labels and discount shops now firmly embedded with shoppers for whom price continues to be the number one purchase consideration. That’s according to 15th edition of the EY Future Consumer Index, which surveyed more than 20,000 consumers across 26 countries, including Ireland.
The study noted that with global economic uncertainty set to persist and price levels not expected to return to pre-pandemic levels, these behavioural shifts are unlikely to be temporary and signal a lasting reset in consumer priorities that Irish businesses must act now to understand and respond to.
A positive for Irish retailers is that in-store shopping for everyday items remains resilient. Meanwhile, health and sustainability remain high priorities for consumers and are increasingly important levers for businesses seeking to entice consumers and differentiate their product offering.
Financial concerns continue to dominate the Irish consumer mindset, with 96% concerned with the cost of living and 92% with their own personal finances. Unsurprisingly, price has emerged as the primary driver of consumer purchasing in Ireland, both at a headline level (53%) and across a range of categories, including clothing and footwear (58%) and fresh food (46%). EY notes that 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. At a category level, 42% of consumers are now opting for less expensive alternatives in home and household care, and 37% are doing the same for fresh food, snacks and confectionery.
However, amid the anxiety, there is some optimism. Over half (54%) of consumers believe they’ll be better off in 12 months, compared to just 19% who think they’ll be worse off. This sentiment reveals a complex mindset – concerned but not resigned.
Budget sensitivity has shifted the perception of ‘own brand’ products in Ireland too. Once seen as the second choice on the shelves, Irish consumers are more likely (78%) than the average global shopper (67%) to say that private label goods meet their needs just as well as branded products. The 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.
EY states that it is important to note that the dynamics at play are more intricate than a straightforward price-for-value trade-off. For example, cost-conscious consumers have 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 respondents (48%) believe that new product improvements are often the result of cost-cutting rather than genuine enhancements for the customer.
Colette Devey, EY Ireland Consumer Sector Lead, commented: “Consumer behaviour has traditionally shifted during economic uncertainty and periods of acute price inflation, but today’s changes appear to be more fundamental. 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.
“Financial concerns continue to dominate the Irish consumer mindset, and we are seeing the rise of the ‘selective consumer’ who are changing their spending habits in different ways and for different categories. With food price inflation continuing to remain elevated – up 3% in the last year according to the latest CSO data – some shoppers are cutting back on non-essentials like clothing, cosmetics and alcohol. Others are leaning harder into value, shifting their spending to discount retailers and embracing private label options.
“For businesses, this landscape is complex, and they need to ensure they are price competitive for key brands and commodity items whilst appealing to consumers on other characteristics such as quality, health benefits and sustainability aspects. And instead of discounting prices and seeking to recover this via ‘shrinkflation’, a focus on enhancing product value and the qualities that justify the price is more likely to pay dividends.”
Meanwhile, the report highlights that physical retail in Ireland 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. This physical-first mindset is more pronounced in Europe than in Asia, where higher digital trust and platform penetration have driven consumers online in categories like beauty and electronics. In contrast, Irish consumers still value the human, experiential side of retail. However, this does not mean that consumers are seeking a purely ‘analogue’ experience, and the integration of digital experiences with physical retail outlets is becoming an increasing important point of differentiation for national and local retailers.
Devey said: “Reports of the demise of bricks & mortar retailing here in Ireland have been greatly exaggerated. For many across Ireland the local shop or pharmacy remains a cornerstone of daily life: a place for trusted advice, social interaction and connection to community, and this is not changing anytime soon. However, Irish consumers want the convenience and seamless integration of both digital and in-store shopping. To stand out, retailers must seek to develop omnichannel strategies to meet their consumers where they are – in store, online, via social media or delivery services.”
While price is the dominant force in purchase decisions, health and sustainability remain high on the agenda for Irish shoppers. A significant 81% say they are moderately or extremely concerned about their mental wellbeing, while an even greater 88% express concern for their physical health. This anxiety is driving action: over the past two years, 60% say they’ve made healthier food choices, 61% have exercised more, and 49% say they have prioritised sleep.
Irish consumers are actively seeking ways to improve their wellbeing – but they expect brands to meet them with solutions that are affordable, appealing, and accessible. That means offering health-focused products that don’t compromise on taste, price, or convenience. And while price pressures remain, consumers have indicated a clear willingness to prioritise wellness, particularly in fresh food (68%), processed food (53%), and beauty and cosmetics (52%).
In terms of sustainability, 89% said they are recycling as much as they can, 91% consciously avoid food waste and 82% thinking twice before making purchases. Interestingly, however, many of these sustainability behaviours can also lead to cost savings. Moreover, while three-quarters (72%) of respondents said they wanted healthier, more sustainable products to be more affordable, there is a reluctance to pay more for goods that meet this criteria. In terms of sustainability, some 83% said that brand owners should shoulder the responsibility of making their products more sustainable, without passing additional costs to consumers.
Dr Ronan Glynn, EY Ireland Health Sector Leader, concluded: “Irish consumers are sending a clear message – they’re ready to invest in their wellbeing, but only if companies and brands meet them halfway. It’s not enough to offer healthier options; they must be accessible, appealing, and affordable. In categories like food and beauty, healthier alternatives must be clearly priced, well-communicated, and easy to find. Mental health and wellbeing matters too, so businesses should consider how services, environments and experiences can support a broader sense of health and balance.”
NAM Implications:
- Key standout has to be prolonged inflation, supply chain disruptions and geopolitical instability…
- …would seem to be reshaping habits permanently.
- i.e. no return to pre-crisis states.
- To which add the finding that 78% of consumers find own label equivalents comparable with brands.
- i.e. a challenge to the size of brand premia in many categories…
