2023
0
Ireland Consumers and the Cost of Living Market Report 2023
2023-07-28T04:08:18+01:00
OX1158357
1495
165336
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Report
en_GB
“Consumers have made several changes to the ways they shop as a result of the ever-increasing prices of goods and services. A lack of confidence in government support has made…

Ireland Consumers and the Cost of Living Market Report 2023

£ 1,495 (Excl.Tax)

Description

The continued impact of rising costs on consumers’ lives and wellbeing has diminished their financial confidence. While government support has varied, companies and brands are making the effort to offer assistance by recognising the stress that consumers are under and undertaking innovative activity to ensure their products/services remain accessible. Brands that are responsive to and supportive of consumers’ current hardships are likely to find this support reciprocated in the future when consumer confidence has recovered.

Key Issues Covered in this Report

  • How consumer access to food and drink has been impacted.
  • The influence the cost of living crisis has had on consumer mental health.
  • The provision of government assistance for household bills.
  • The impact on consumers’ ability to save.
  • Changes made to consumer buying behaviours.
  • Consumer attitudes towards inflation and businesses.

Expert Analysis from an Industry Specialist

This report, written by Rebecca Blenman, delivers in-depth commentary and analysis to highlight current trends in how Irish consumers are dealing with the increasing cost of living.

Consumers have made several changes to the ways they shop as a result of the ever-increasing prices of goods and services. A lack of confidence in government support has made brands realise that they need to support consumers themselves by recognising the financial stress that many are experiencing, which builds on the greater sense of community that resulted from the pandemic. In the long term, this support will be returned to businesses as the mutual respect and recognition will make for a stronger rapport when consumers regain financial confidence.

Rebecca Blenman
Research Analyst

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • COVID-19: market context
        • Executive Summary

            • The market
              • Yearly inflation has decreased but prices are continuing to increase
                • Figure 1: Annual percentage change of consumer price indices of all items, UK (including NI) and Ireland, May 2021 – May 2023
              • The government offers some support for rising household costs
                • Figure 2: Consumer price indices for housing, water, electricity, gas and other fuels, UK (including NI) and Ireland, May 2021 – May 2023
              • The impact of the sustained increase of food and drink prices
                • Figure 3: Consumer price indices for food and non-alcoholic Beverages, UK (including NI) and Ireland, May 2021 – May 2023
              • Increased prevalence of shoplifting shows extent of consumer struggles
                • How consumers’ saving efforts have been affected
                  • Figure 4: Average weekly earnings (seasonally adjusted), RoI, 2021-22
                  • Figure 5: Mean weekly gross earnings, NI, 2018-22
                • Brand support needed for consumers’ mental wellbeing
                  • Figure 6: “Are the following a lower or higher priority to you as a result of the cost of living crisis?”, IoI, 2023
                • Innovations
                  • The consumer
                    • Consumers have made changes to how they shop
                      • Figure 7: Changes made over the last two months, NI and RoI, 2023
                    • Streaming services and at-home drinking are most common expenses
                      • Figure 8: Products/services consumers spend money on over the course of a year, NI and RoI, 2023
                    • Regional differences in consumer interest in continued expenses
                      • Figure 9: Products/services consumers would want to continue spending on, even if they had to make cuts to their overall spending, NI and RoI, 2023
                    • NI consumers lack confidence in government support
                      • Figure 10: Consumer attitudes towards inflation, NI and RoI, 2023
                    • Most consumers express so-so attitudes towards struggling businesses
                      • Figure 11: Consumer attitudes towards businesses, NI and RoI, 2023
                    • What we think
                    • The Market – Key Takeaways

                      • Yearly inflation has decreased but prices are continuing to increase
                        • The government offers some support for rising household costs
                          • The impact of the sustained increase of food and drink prices
                            • Increased prevalence of shoplifting shows extent of consumer struggles
                              • How consumers’ saving efforts have been affected
                                • Brand support needed for consumers’ mental wellbeing
                                • Market Drivers

                                  • The annual inflation difference is in decline but prices are still on the up
                                    • Figure 12: Annual percentage change of consumer price indices of all items, UK (including NI) and Ireland, May 2021 – May 2023
                                    • Figure 13: Consumer price indices for all items, UK (including NI) and Ireland, May 2021 – May 2023
                                    • Figure 14: Consumer feelings about their financial situation over the next year or so, IoI, June 2022-23
                                  • Government support for rising household bills
                                    • Figure 15: Consumer price indices for housing, water, electricity, gas and other fuels, UK (including NI) and Ireland, May 2021 – May 2023
                                    • Figure 16: Consumers who have been affected by increases in gas/electricity prices over the last two months, IoI, 2022-23
                                  • How access to food and drink has been affected
                                    • Figure 17: Consumer price indices for food and non-alcoholic Beverages, UK (including NI) and Ireland, May 2021 – May 2023
                                    • Figure 18: Consumers who have been affected by increases in food and drink prices over the last two months, IoI, 2022-23
                                  • Uptake in shoplifting behaviour shows extent of cost of living crisis
                                    • The impact on consumer savings
                                      • Figure 19: Mean weekly gross earnings, NI, 2018-22
                                      • Figure 20: Average weekly earnings (seasonally adjusted), RoI, 2021-22
                                      • Figure 21: “What, if any, effect do you think that the situation in Ukraine will have on your household’s finances?”, IoI, 2022-23
                                    • Consumers’ mental wellbeing
                                      • Figure 22: “Are the following a lower or higher priority to you as a result of the cost of living crisis?”, IoI, 2023
                                      • Figure 23: Products with stress and sleep functional claims, UK and Ireland, 2022-23
                                  • Innovations – Key Takeaways

                                    • Brand engagement through supporting local
                                      • Brands make efforts to ease financial impact
                                        • Consumers receive guidance and support from companies
                                        • Who’s Innovating?

                                            • Brands engage consumers with support for local businesses
                                                • Figure 24: NPD of brands that highlight localism in their products, UK and Ireland, 2023
                                              • Brands ease financial impact of buying
                                                  • Figure 25: Agreement with physical shopping locations, NI and RoI, 2022
                                                • Consumers offered additional guidance and support to save money
                                                  • Figure 26: the Yellow Sticker Cookbook app, UK, 2023
                                                  • Figure 27: AGREEMENT with selected statements about mortgages, NI and RoI, 2023
                                              • Consumer – Key Takeaways

                                                • Consumers have made changes to how they shop
                                                  • Streaming services and at-home drinking are most common expenses
                                                    • Regional differences in consumer interest in continued expenses
                                                      • NI consumers lack confidence in government support
                                                        • Most consumers express so-so attitudes towards struggling businesses
                                                        • Changes Made to Save Money

                                                            • Consumers have made changes to their grocery shop behaviours
                                                              • Figure 28: Changes made over the last two months, NI and RoI, 2023
                                                              • Figure 29: Agreement with selected attitudes and behaviours towards own-label products and discount retailers, NI and RoI, 2022
                                                            • Women are more likely to make supermarket-related changes
                                                              • Figure 30: Selected changes made over the last two months, by gender, NI and RoI, 2023
                                                              • Figure 31: Consumers who are mainly/wholly responsible for grocery shopping, by gender, NI and RoI, 2022
                                                            • Younger consumers have changed how they travel
                                                              • Figure 32: Consumers who have changed how they travel (eg cycling/walking rather than driving, using public transport more), by age, NI and RoI, 2023
                                                              • Figure 33: Consumers who personally own a car, by age, NI and RoI, 2022
                                                            • Reductions to pension/savings among consumers in a tight financial situation
                                                              • Figure 34: Consumers who have reduced savings/pension contributions, by financial situation, NI and RoI, 2023
                                                              • Figure 8: “Excluding the value of your main home and any pension savings you may have, roughly how much do you have in savings and investments? Please include the value of any investment or second homes that you own.”, NI and RoI, 2023
                                                          • Products/Services Purchased in a Year

                                                              • TV streaming subscriptions and in-home drinking most popular
                                                                • Figure 35: Products/services consumers spend money on over the course of a year, NI and RoI, 2023
                                                              • Women spend more on fashion and BPC
                                                                • Figure 36: Consumers who spend money on fashion and beauty/grooming services (eg hairdresser, nail bar), over the course of a year, by gender, NI and RoI, 2023
                                                                • Figure 37: Selected consumer behaviours to save money when shopping for beauty/grooming products in the last three months, by gender, IoI, 2023
                                                              • Younger consumers spend on products/services that contribute towards sense of self
                                                                • Figure 38: Consumers who spend money on selected products/services over the course of a year, by age, NI and RoI, 2023
                                                                • Figure 39: Selected key factors driving consumer behaviour around Identity and Rights, by age, IoI, 2023
                                                              • Higher earners spend on bigger-ticket items
                                                                • Figure 40: Consumers who spend money on selected products/services over the course of a year, by annual household income, NI and RoI, 2023
                                                                • Figure 41: “when do you expect to book your main holiday for 2023?”, by financial situation, IoI, 2022
                                                            • Product/Service Purchases Expected to Continue

                                                                • RoI residents prefer to keep holidays, NI prioritise smaller scale luxuries
                                                                  • Figure 42: Products/services consumers would want to continue spending on, even if they had to make cuts to their overall spending, NI and RoI, 2023
                                                                • One in 10 would prioritise alcohol amidst cut backs
                                                                  • Figure 43: Consumers who spend money on alcohol over the course of a year and would want to if they had to makes cuts to their overall spending, NI and RoI, 2023
                                                                  • Figure 44: New releases of alcoholic drinks with functional ingredients, Global, 2023
                                                                • Gym/health club subscriptions are a priority for men
                                                                  • Figure 45: Consumers who would want to continue to spend on gym/health club subscriptions, by gender, NI and RoI, 2023
                                                                  • Figure 46: Consumers who exercise to prevent future health problems, by gender, NI and RoI, 2022
                                                                • Younger consumers would like to continue socialising with friends
                                                                  • Figure 47: Consumers who would want to continue to spend money on socialising with friends, by age, NI and RoI, 2023
                                                                  • Figure 48: “Which of the following statements do you agree with about the COVID-19 pandemic?”, IoI, 2023
                                                              • Attitudes towards Inflation

                                                                  • Belief in NI government support is low
                                                                    • Figure 49: Consumer attitudes towards inflation, NI and RoI, 2023
                                                                  • Consumer interest in extended product shelf life
                                                                    • Figure 50: Agreement with selected attitudes towards waste and packaging, NI and RoI, 2022
                                                                  • The majority have no plans to reduce their WFH schedule
                                                                      • Figure 51: Top three words associated with working from home, NI and, RoI, 2023
                                                                    • Financially struggling consumers look for cheapest prices
                                                                      • Figure 52: Consumers who are spending more time looking for the cheapest prices for products/services than they were a year ago, by financial situation, NI and RoI, 2023
                                                                    • Younger consumers more affected by rising interest rates
                                                                      • Figure 53: Consumers who are worried about the impact of rising interest rates on their financial situation, by age, NI and RoI, 2023
                                                                      • Figure 54: Consumers who are struggling to keep up with car payments (eg lease fee, car loan repayments) as a result of the cost of living crisis, by age, NI and RoI, 2022
                                                                  • Attitudes towards Businesses and the Cost of Living

                                                                      • Mostly indifference to struggling businesses
                                                                        • Figure 55: Consumer attitudes towards businesses, NI and RoI, 2023
                                                                      • Younger consumers think companies should continue to prioritise sustainability
                                                                        • Figure 56: Consumers who think it is more important for businesses to maintain ethical/environmental standards than to keep their prices low, by age, NI and RoI, 2023
                                                                      • The financially secure are more willing to pay to support local
                                                                        • Figure 57: Agreement that it is worth paying more to support local businesses, by financial situation, NI and RoI, 2023
                                                                    • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                      • Data sources
                                                                        • Abbreviations

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