There is no evidence of excessive pricing in the grocery retail market, according to a report by the Consumer and Competition Protection Commission (CCPC) published on Tuesday.
Minister for Enterprise, Trade and Employment Simon Coveney published the analysis by the CCPC of the Irish grocery retail sector. He said he was pleased by the results of the report, which was published ahead of a Retail Forum meeting on Wednesday.
“Their analysis has also found that competition on price, quality and location has improved in recent years resulting in more choice for consumers,” Mr Coveney said. “I’m very conscious that food prices remain high when compared internationally. This report, however, finds that food inflation in Ireland has been the lowest in the EU in recent years and that changes in input costs may take time to be passed on to consumers,” he added.
Dunnes Stores has the largest market share of major grocery retailers as of May 2023, the report stated, with 23.2 per cent. This is followed by Tesco with 22.4 per cent, Supervalu with 20.7 per cent, Lidl with 13.3 per cent and Aldi at 12.1 per cent.
Almost one in five Irish households now purchase groceries online, according to the CCPC’s research, however in-store shopping remains the most popular method.
The market share among own brand labels has grown by 151 per cent between 2006 and 2023, with own brand label sales growing by 15.6 per cent in 2023 alone. Brands grew by 8 per cent.
The report states that value own labels “had the strongest growth, up 33.4 per cent with shoppers spending €18 million more on these ranges. Brands hold 47.5 per cent of the market with own label holding 46.9 per cent” in 2023, according to Kantar.
Minister for Trade Promotion, Digital and Company Regulation Dara Calleary thanked the CCPC for the “important analysis,” and welcomed that the commission would continue to monitor the grocery retail sector.
“I note too the CCPC’s own view that they have appropriate powers to carry out their work in this area, including the power to obtain information from traders,” he said.
Minister for Business, Employment and Retail Neale Richmond said he “very much” welcomed price reductions by retailers over recent weeks, “which should contribute to a further easing of inflation and help with the cost-of-living pressures facing customers”.
“It remains the case that grocery prices are high, and so it is important that retailers continue to pass on the impact of any reduction in input costs on product prices to customers,” Mr Richmond said.
He added that he intended to receive updates from retailers on their work and how they would continue to help their customers when he chairs the Retail Forum on Wednesday.
