More than half, or 58 per cent, of Irish consumers are either “extremely” or “very” concerned about their personal financial situation, up from 49 per cent a year ago, PwC’s Voice of the Consumer Survey has found.
Over six in 10 are now holding back on non-essential spending, up from 57 per cent a year ago, according to the survey of more than 1,000 people.
Some 84 per cent say that they are experiencing first-hand the disruptive effects of climate change in their daily lives, with 43 per cent confirming that they are buying more sustainable products.
But while consumers are focused on sustainability, they are also affected by ongoing cost-of-living pressures, PwC said.
Planning regulator Niall Cussen: We can overcome the housing crisis, ‘if we put our minds to it’
On his return to Web Summit, the often outspoken chief executive Paddy Cosgrave is now an epitome of caution
Surviving a shake-up: is restructuring ever good for staff?
The Irish Times Business Person of the Month: Dalton Philips, Greencore
[ Public urged to raise climate change with politicians seeking their voteOpens in new window ]
Despite a fall in inflation, consumers are still feeling the impact of high prices in their pockets, its survey suggests, with four in 10 citing rising prices as the biggest risk to their consumption habits. The Irish figure came in noticeably above a 31 per cent global average in the professional services giant’s worldwide study.
“Irish consumers are continuing to feel the squeeze of inflation and rising prices,” said John O’Loughlin, a partner in PwC Ireland’s retail and consumer practice.
“Value remains high on the agenda, with nearly half of Irish consumers seeking better value for money when considering switching from brands to which they are loyal. In the year ahead, companies must achieve a delicate balance between consumer affordability and environmental impact if they are to win new and retain existing consumers,” he said.
“They will also need to bolster their digital engagement and service-delivery, particularly as more consumers purchase products directly through social media.”
[ Shoppers still focused on price even as inflation slowsOpens in new window ]
[ Consumer sentiment falls amid job losses and higher pricesOpens in new window ]
Some 80 per cent of Irish consumers are worried about climate change, which compares to 85 per cent of consumers across the global study.
Half of Irish consumers agree that an independent sustainability score on food products would be useful when choosing products, with 42 per cent proactively seeking out information to learn if a food product is sustainable. These survey insights demonstrate the growing consumer demand for clear and informative product sustainability data, PwC said.
Some 42 per cent of Irish consumers say they would consider acquiring a hybrid vehicle in the next three years, while one-fifth say they would consider acquiring an electric vehicle.
Meanwhile, although technology platforms continue to influence purchasing decisions, they are also driving concerns, PwC noted, with almost three-quarters of Irish consumers expressing concern about their privacy and data being shared.
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
